LandfillCertification
(UpdatedMayJuly2017)[1][2]
INDEPENDENTACCOUNTANTS’REPORTONAPPLYINGAGREED-UPONPROCEDURES
(Sameaddresseeasfinancialopinion)
and
TheDirector,
OhioEnvironmentalProtectionAgency
Wehave audited,in accordancewith GovernmentAuditingStandardsissuedbytheComptrollerGeneral oftheUnitedStates, thebasicfinancialstatementsof(nameofgovernment) fortheyearended December31,20XX,andhaveseparately issuedourunmodified reportthereondatedXXX.[Ifqualified, describethequalification. However,aqualified opinionmay disqualify agovernmentfromusingthistest, andconceivably requireagovernmenttoobtaincostlythird-partyfinancialinstruments.Ifourstaff contemplatesaqualification,theyshouldconsultimmediately.]Thesestatementspresentthelandfillasa majorenterprisefundandalso withintheGovernment’sbusiness-typeactivities.Modifyasneeded.
InalettertotheOhio EnvironmentalProtection Agencydated ZZZ[3](theLetter),the(chieffinancialofficer(CFO))of(nameoflandfill)specified thatcertainamountsdisclosed in thatLetterwerederivedfromtheindependently auditedfinancialstatementsreferredtointhefirst paragraphabove.
Wehaveperformed theproceduresdescribedbelowasagreedtobythe(Sameaddressee asfinancial opinion)andbytheOhioEnvironmentalProtectionAgency,solelyto assistyouindeterminingthatcertain amountsreportedintheLetteragreedto,orcanbecomputed from,amountspresentedintheaudited basicfinancialstatements. The[financialopinionaddressee]’smanagement isresponsibleforthe information presentedintheLetter. Thesufficiencyoftheproceduresissolelytheresponsibilityofthe partiesspecifiedinthisreport.Consequently, wemakenorepresentationregardingthesufficiencyofthe procedures describedbeloweitherforthepurposeforwhichthisreporthasbeenrequestedorforany otherpurpose.
USETHEFOLLOWINGPARAGRAPHIFTHEGOVERNMENTUSES“ALTERNATIVE1"FROM
3745-27-17(H):
AsrequiredbyOhioAdministrativeCodeSections3745-27-15(L)(5)(c)and3745-27-16(L)(5)(c) and3745-27-18(M)(5)(c),insertonlyifthecircumstanceexistsdescribedinfootnote[4]wehave agreedthefollowingamountsincludedintheLetterto theauditedfinancialstatements:
Alternative1, LineNo.
2Sum of cashandmarketablesecurities
3Totalexpenditures
4Annualdebtservice
5Longterm debt
6Capitalexpenditures
7Totalassuredenvironmentalcosts
8Totalannualrevenue
Theamountsonlines2through6and8agreetothebasicfundfinancialstatementsof(nameof government),orcanbecomputedfromamountsappearingtherein.Wefollowedthedefinitionsfor lines2through6and8includedintheStateSupportDocumentfortheLocalGovernment Financial Test,issuedNovember27,1996bytheUSEPA. Line7includestotalassuredenvironmentalcosts reportedin thefund[5]financialstatementsfollowingGovernmentalAccountingStatementNumber18.[6]
USETHEFOLLOWINGPARAGRAPHSIFTHEGOVERNMENTUSES“ALTERNATIVE2"FROM
3745-27-17(H):
AsrequiredbyOhioAdministrativeCodeSections3745-27-15(L)(5)(c)and3745-27-16(L)(5)(c), And 3745-27-18(M)(5)(c),insertonlyifthecircumstanceexistsdescribedinfootnote[7]wehave agreedthefollowingamountsincludedintheLetterto theauditedfinancialstatements:
Alternative2, LineNo.
5Totalassuredenvironmentalcosts[seefootnote[8]]
6Totalannualrevenue
Theamountsonline6agreeto thebasicfundfinancialstatementsof(nameofgovernment),or canbe computed fromamountsappearing therein. We followedthedefinitionforline6includedintheState SupportDocumentfortheLocalGovernmentFinancialTest, issuedNovember27,1996bythe USEPA. Line5includestotalassuredenvironmentalcostsreportedinthefund7 financialstatements followingGovernmentalAccountingStatementNumber18.
[While client responses are not required, if the client chooses to respond to the exceptions, please insert the following paragraph.][9]
The District has responded to issues [the issue] discussed in this report. You may obtain a copy of their response from [indicate appropriate contact information, such as name of client contact person and telephone number]. OR A copy of their response is included on the District‘s web page, at [indicate entity’s web site address].
Thisagreed-upon proceduresengagementwasconductedinaccordancewiththeAmericanInstituteof CertifiedPublicAccountants’ attestationstandardsandapplicableattestationengagement standards includedintheComptrollerGeneraloftheUnitedStates’Government AuditingStandards. Wewerenot engaged to,anddidnotconductan examinationorreview, theobjective of which would bethe expressionofanopinionorconclusionrespectively,onthe letter. Accordingly,wedonotexpressan opinionorconclusion.Hadweperformedadditionalprocedures, othermattersmighthavecometoour attentionthatwouldhavebeenreportedtoyou.
This report is to provide assistance in the evaluation that certain amounts reported in the Letter agreed to, or can be computed from, amounts presented in the audited basic financial statement for the year ended December 31, 20XX, and is not suitable for any other purpose.
Signature
City, State
(dateZZZ)[10]
[1]Pleasereadthedocument,AUPAdditionalGuidanceforadditionalinformation,whichweupdatedin May 2017Thisdocumentis availableat theIPAResourcespageontheAOShomepage,and in ourBriefcaseforAOSstaff.
[2]Updated July 2017 – revisions made to the last paragraph in the report. Changes are not marked.
[3]TheCFOshoulddateher/hisletteronorafterthedateofour financialstatementopinion.Ouragreed-upon proceduresreportshouldbedatedonorafterthedateoftheCFO’sletter.
[4]Deletereferenceto OAC3745-27-18(M)(5)(c)unlessOhio EPAdirectorhasrequiredthelandfillto implement correctiveactionrelatedto ground watercontaminationdescribedin3745-27-10.
[5]SincetheStateSupportDocumentwasbasedonpre-GASB34 fundfinancialstatements,webelieveweshould comparetheamountsto thefundstatementsunderGASB34.Anexceptionwouldexistwherea government reportedtheGASB18 liabilityasa governmentalactivityliabilityandnotinthe governmentalfund financial statements.Inthatcase,weshouldagreetheliabilityto theentity-widestatementamounts.Youshouldconsult withthe CenterforAuditExcellence.
[6]Twopointsofcaution:
A.TheCFO’slettershouldincludeasterisksnextto theitemsderivedfromtheauditedstatements.We shouldreviewthefinal versionofthisletterto assurethattheasteriskedamountsareconsistentwith theitems wehavelistedinthisreportandintheauditedfinancialstatements.
B.Wecanonlyagreeamountsfromtheletterthat werederivedfromtheauditedstatements.Thatis,the
amountshouldappearintheauditedstatementsandshouldbeincludedintheadjustedtrialbalance,or shouldbecomputabledirectlyfromtheadjustedtrialbalance.Itispreferableto haveamounts referencedintheletterappearasseparatecaptionsontheauditedstatements.Forexample,itis preferableto havea separatecaptionentitled “estimatedclosureandpostclosureliability,”ratherthan havethatliabilitycombinedwithotheramountsinthe“accruedliabilities”caption.Itwouldbe inappropriatefor usto reportona computation, whichincludedanamountthat wasnotincludedinthe adjustedtrialbalance.Forexample,wecouldnotreportona computationthatinvolvedthenumberof tonsofwasteacceptedintoa landfill,oronfinancialinformationnotrelatedto theyearweaudited.
[7]Deletereferenceto OAC3745-27-18(M)(5)(c)unlessOhio EPAdirectorhasrequiredthelandfillto implement correctiveactionrelatedto ground watercontaminationdescribedin3745-27-10.
[8]TheexampleCFOletterinOAC3745-27-17(H),Alternative2, doesnotincludeanasterisknextto line5. However, webelieveitshouldbeasteriskedandthat we shouldagreethatamountto thefund(orentity-wide statements,per footnote3)financialstatementsto complywiththerequirementsonpage20 oftheStateSupport DocumentfortheLocalGovernmentFinancialTest.
[9]AOS auditors see AOSAM 38100.44 and AUP Additional Guidance
[10]Pleasereadthedocument,AUPAdditionalGuidanceforadditionalinformation,whichweupdatedin May 2017Thisdocumentis availableat theIPAResourcespageontheAOShomepage,and in ourBriefcaseforAOSstaff.