Eagle Pass City Council approves 2015 Audit, City Debt is $78 Million
By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2016
The Eagle Pass City Council heard a presentation of the 2015 Comprehensive Annual Financial Report (CAFR) for fiscal year ended September 30, 2015 at their special meeting held on Tuesday, March 22, 2015, from Certified Public Accountant Milo Martinez of the independent auditing firm of Martinez, Rosario & Company L.L.P. of San Antonio, Texas.
During the presentation, Martinez stated that his firm was giving the City an unmodified and clean opinion through every operation under the scope of the City of Eagle Pass.
Martinez discussed the details in his report pertaining to the auditing process. including multiple opinions from different funds that are reported such as special revenue and capital projects funds, enterprise funds, waterworks, international bridges, and landfill and agency funds.
Martinez continued to breakdown the City’s financial and grant reports, cash flows and internal controls as well.
Martinez noted that there were some proprietary reinstatements due to new accounting standards that were adopted by law, Government Accounting Standards Board Statements No. 68 and No. 71, related to pensions.
Martinez presented reports on the government wide activities, including all assets of $238,659,000 and liabilities of $43,880,000 and business type debt at $ 34,508,000 for a total City debt of $78,388,000, equity at $26,498,037 and proprietary at $133,565,124.
Martinez noted that their were no material weakness or deficiencies found to be reported on under government standard auditing reports.
Under grant programs , Martinez stated that the city was in material compliance as well.
Martinez proceeded to cover other details pertaining to the City of Eagle Pass net positions, capital projects, analysis, government standards auditing report and other items important to the function of the city government and its audits.
City Council unanimously approved the 2015 City of Eagle Pass Comprehensive Annual Financial Report from Rosario, Martinez & Company LLP.
The Eagle Pass City Council then proceeded to go into executive session under agenda item No.16 pursuant to Section 551.071, Chapter 551, Texas Government Code – Consultation with legal counsel regarding legal advice on matters related to the Management Letter, Single Audit Supplement, and the Governance Letter from Martinez, Rosario, L.L.P.; and possible action in open session regarding same, including possible approval and acceptance of the Management letter.
Once back in open session, Mayor Cantu opened agenda item No.16 for any statements, discussion or motion.
Councilman Luis E. Sifuentes made a motion to approve agenda item No.16 which was seconded by Mayor Pro-Tem Rudy Villalpando.
Mayor Cantu called the item for any further discussion and there being none, called it for a vote, which was approved unanimously
Another item pertaining to the 2015 audit was presented under agenda item No.9 which called for an additional $ 7,500 for other work done by Martinez, Rosario & Company L.L.P during the performance of work for the City of Eagle Pass 2015 audit.
Originally, the City of Eagle Pass contracted Martinez, Rosario & Company L.L.P to conduct the annual audit for 2015 at a cost of $63,500 and the company is now requesting an additional $7,500 compensation for other work performed during the audit period.
Martinez, Rosario & Company L.L.P’s reason for the request for additional payment were that additional single audit testing and reporting in accordance to with OMB Circular A-133, additional services provided for the implementation of GASB statement No. 68, additional time (50 hours) spent as described in nature of work had to be performed.
Once the City Council reviewed all the information on additional compensation requested by Martinez, Rosario & Company, the City Council voted to deny the auditing firm’s request for an additional $7,500 compensation. their was an disagreement with what was being requested by Martinez, Rosario & Company L.L.P and council decided to reject the request. Councilmen Luis E. Sifuentes made a motion to deny the additional compensation, seconded by Mayor Pro-Tem Rudy Villalpando, and unanimously approved to deny said extra $7,500 compensation.
