[Name of Government]
[Name of] County
Independent Accountants’ Report on
Applying Agreed-Upon Procedures
Page 1
Use for 2016-2017 or 2017 AUPs [1]
(LandfillCertification - UpdatedMarch 2018)[2][3]
INDEPENDENTACCOUNTANTS’REPORTONAPPLYINGAGREED-UPONPROCEDURES
[Name of Government]
[Name of] County
[Address]
[City], Ohio [Zip Code][4]
and
TheDirector,
OhioEnvironmentalProtectionAgency
Wehave audited,in accordancewith GovernmentAuditingStandardsissuedbytheComptrollerGeneral oftheUnitedStates, thebasicfinancialstatementsof[Name of Government]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 AgencydatedZZZ[5](theLetter),the[ChiefFinancialOfficer(CFO)]of[Nameoflandfill]specified thatcertainamountsdisclosed in thatLetterwerederivedfromtheindependently auditedfinancialstatementsreferredtointhefirst paragraphabove.
Wehaveperformed theproceduresdescribedbelowasagreedtobythe[Name of Government][6] andbytheOhioEnvironmentalProtectionAgency,solelyto assistyouindeterminingthatcertain amountsreportedintheLetteragreedto,orcanbecomputed from,amountspresentedintheaudited basicfinancialstatements. The[Name of Government]’s[7]management isresponsibleforthe information presentedintheLetter. Thesufficiencyoftheproceduresissolelytheresponsibilityofthe partiesspecifiedinthisreport.Consequently, wemakenorepresentationregardingthesufficiencyofthe procedures describedbeloweitherforthepurposeforwhichthisreporthasbeenrequestedorforany otherpurpose.
USETHEFOLLOWINGPARAGRAPHIFTHEGOVERNMENTUSES“ALTERNATIVE1"FROM3745-27-17(H):
AsrequiredbyOhioAdministrativeCodeSections3745-27-15(L)(5)(c)and3745-27-16(L)(5)(c) [and3745-27-18(M)(5)(c)],[insertonlyifthecircumstanceexistsdescribedinendnote [8]]wehave agreedthefollowingamountsincludedintheLetterto theauditedfinancialstatements:
Alternative1, LineNo.
2Sum of cashandmarketablesecurities
3Totalexpenditures
4Annualdebtservice
5Longterm debt
6Capitalexpenditures
7Totalassuredenvironmentalcosts
8Totalannualrevenue
Theamountsonlines2through6and8agreetothebasicfundfinancialstatementsof[Name of Government],orcanbecomputedfromamountsappearingtherein.Wefollowedthedefinitionsfor lines2through6and8includedintheStateSupportDocumentfortheLocalGovernment Financial Test,issuedNovember27,1996bytheUSEPA. Line7includestotalassuredenvironmentalcosts reportedin thefund[9]financialstatementsfollowingGovernmentalAccountingStatementNumber18.[10]
USETHEFOLLOWINGPARAGRAPHSIFTHEGOVERNMENTUSES“ALTERNATIVE2"FROM3745-27-17(H):
AsrequiredbyOhioAdministrativeCodeSections3745-27-15(L)(5)(c)and3745-27-16(L)(5)(c), [and3745-27-18(M)(5)(c)],[insertonlyifthecircumstanceexistsdescribedinendnote[11]wehave agreedthefollowingamountsincludedintheLetterto theauditedfinancialstatements:
Alternative2, LineNo.
5Totalassuredenvironmentalcosts[seeendnote[12]]
6Totalannualrevenue
Theamountsonline6agreeto thebasicfundfinancialstatementsof[Name of Government],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.][13]
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 Landfill‘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]
[Date][14]
[1] This report shell should be used for entities with a testing period of 2016-2017. For period 2015-2016 and prior, please obtain the previous report shell from the Old Practice Aids located at
[2]Pleasereadthedocument,AUPAdditionalGuidanceforadditionalinformationThisdocumentis availableat theIPAResourcespageontheAOShomepage,and in ourBriefcaseforAOSstaff.
[3]Updated March 2018 - Additions are indicated by double underlines and items removed are in strikeout font. Double underlines and strikeout font should be removed prior to finalizing. All the red references should be updated as appropriate and changed to black font prior to finalizing. All blue font items are guidance and need removed prior to finalizing.
[4]Sameaddresseeasfinancialopinion
[5]TheCFOshoulddateher/hisletteronorafterthedateofour financialstatementopinion.Ouragreed-upon proceduresreportshouldbedatedonorafterthedateoftheCFO’sletter.
[6]Sameaddresseeasfinancialopinion
[7]Sameaddresseeasfinancialopinion
[8] Deletereferenceto OAC3745-27-18(M)(5)(c)unlessOhio EPAdirectorhasrequiredthelandfillto implement correctiveactionrelatedto ground watercontaminationdescribedin3745-27-10.
[9] SincetheStateSupportDocumentwasbasedonpre-GASB34 fundfinancialstatements,webelieveweshould comparetheamountsto thefundstatementsunderGASB34.Anexceptionwouldexistwherea government reportedtheGASB18 liabilityasa governmentalactivityliabilityandnotinthe governmentalfund financial statements.Inthatcase,weshouldagreetheliabilityto theentity-widestatementamounts.Youshouldconsult withthe CenterforAuditExcellence.
[10]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.
[11] Deletereferenceto OAC3745-27-18(M)(5)(c)unlessOhio EPAdirectorhasrequiredthelandfillto implement correctiveactionrelatedto ground watercontaminationdescribedin3745-27-10.
[12]TheexampleCFOletterinOAC3745-27-17(H),Alternative2, doesnotincludeanasterisknextto line5. However, webelieveitshouldbeasteriskedandthat we shouldagreethatamountto thefund(orentity-wide statements,per footnote3)financialstatementsto complywiththerequirementsonpage20 oftheStateSupport DocumentfortheLocalGovernmentFinancialTest.
[13] AOS auditors see AOSAM 38100.44 and AUP Additional Guidance
[14]Pleasereadthedocument,AUPAdditionalGuidanceforadditionalinformation.Thisdocumentis availableat theIPAResourcespageontheAOShomepage,and in ourBriefcaseforAOSstaff.