ORDER NO. 31049
APPROVE RULES RELATING TO FORMAT OF ESD #1 AND ESD #2 AUDIT AND
REPORT
Came to be heard this the 13th day of October, 2008, with a motion made by
Commissioner Oehler, seconded by Commissioner Williams. The Court unanimously
approved by a vote of 4-0-0 to:
Approve the rules relating to the format of Emergency Service District (ESD) No. 1 and
Emergency Service District (ESD) No. 2 audit and report, with the Kerr County Auditor
recommending that ESD No. 1 and ESD No. 2 prepare financial statements using the
compilation format and issue a Compilation Report to be issued by an Independent
Certified Public Accountant, and adopt that as an actual rule for the Emergency Services
Districts (ESDs).
~ e 3~oN9
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COMMISSIONERS' COURT AGENDA REQUEST
MADE BY: Jeannie Hargis OFFICE: Auditor's Office
MEETING DATE: October 13, 2008 TIME PREFERRED:
SUBJECT: Consider, Discuss and Take Appropriate Action to approve the rules relating
to the format of ESD No. 1 and ESD No. 2 audit and report. The Texas Health and
Safety Code, Chapter 775, paragraphs 775.036 and 775.082 spells out that the county
auditor, with the approval of the Commissioner's Court, shall adopt rules relating to the
format of the audit and report.
The Kerr County Auditor recommends that ESD No. 1 and ESD No. 2 prepare financial
statements using the compilation format and to issue a Compilation Report to be issued
by an Independent Certified Public Accountant.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON)
NAME OF PERSON ADDRESSING THE COURT: Jeannie Hargis
ESTIMATED LENGTH OF PRESENTATION: 3 minutes
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Title 5, Chapter 551 and 552, Government Code, is as follows:
Meeting scheduled for Mondays
5:00 PM previous Tuesday
THIS REQUEST RECEIVED BY:
THIS RQUEST RECEIVED ON:
@ .M.
All Agenda Requests will be screened by the County Judge's Office to determine if adequate
information has been prepared for the Court's formal consideration and action at time of Court
Meetings. Your cooperation will be appreciated and contribute towards your request being
addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners'
Court.
OFFICE OF RURAL COMMUNITY AFFAIRS ESD Operating Guide
6. FINANCIAL MANAGEMENT PRACTICES
In this chapter, as in the entire document, "Board" refers to the ESD Board of Emergency
Services Commissioners. "ESD" refers to emergency services district.
Financial Operations
Handling and safeguarding public funds requires detailed attention to the annual budget,
accounting system, cash controls, purchasing protocols and internal controls.
Annual Budeet
One of the most important tasks that a Board undertakes is the adoption of the annual
budget. State statutes do not require that ESDs adopt a budget, however it has been proven
that preparation and adoption of a budget is essential to good financial management. Even
though most of the expenditures may be through contract to a various service delivery
organizations, the ESD still should adopt a budget.
Accounting Svstem
All ESDs must have an accounting system that accurately records and tracks the receipts of
funds from various sources through deposits in financial institutions to payments for services
rendered in the way of salaries, purchases of goods or services, reimbursement for
contractual expenditures, etc. The accounting system must correspond to the budget
accounts to facilitate regular reports to the Board and to the county commissioner's court, so
they can compare current revenues and expenditures against the amounts budgeted.
Cash Controls
It is imperative that each ESD work with its auditor to institute adequate controls to
safeguard revenues as well as expenditures of funds to reduce the opportunity for the misuse
of funds.
Funds are to be disbursed only by check signed by the Board treasurer and countersigned by
the Board president, and in no event shall an expenditure of more than $2,000 be paid from
tax money unless a sworn itemized account covering the expenditure is presented to the
Board and the Board approves the expenditure.
Single County ESD Audit
In an ESD located wholly in one county, the county auditor shall have access to the books,
records, assets and officials of the ESD at any time.
On or before June 1 of each year, an ESD located wholly in one county shall prepare and file
with the county commissioner's court an audit report of the ESD's fiscal accounts and
records. The audit shall be performed and prepared at the expense of the ESD. The county
auditor, with the approval of the commissioner's court, shall adopt rules relating to .the
format of the audit and report.
The person who performs the audit and issues the report must be an independent certified
public accountant or firm of certified public accountants licensed in the state, unless the
commissioners' court by order requires the audit to be performed by the county auditor.
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