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2023.12.07 Board Agenda AttachmentsSUMMARY OF AUDIT RESULTS SOUTH TAHOE PUBLIC UTILITY DISTRICT YEAR ENDED JUNE 30, 2023 JUSTIN WILLIAMS, CPA PRESENTER AUDITOR & MANAGEMENT RESPONSIBILITIES Management is responsible for the preparation and presentation of the financial statements. Purpose of an audit is to provide financial statement users with an independent opinion on whether the financial statements are presented fairly, in all material respects, and in accordance with applicable accounting standards (GAAP) AUDIT PROCESS Interim Fieldwork – June 2023 Planning – risk assessment, review of Board minutes, management inquiry Documentation and testing of internal controls Cash Receipts Disbursements Payroll Journal entries, bank reconciliations, financial reporting AUDIT PROCESS -FIELDWORK Year-End Fieldwork – September 2023 Testing of Year-End Balances and Activity Confirmation of balances Cut-off testing – receivables and payables Detail tests of transactions Analytical review Single Audit procedures Preparation of Financial Statements and footnotes AUDIT REPORTING Reporting Results of the Audit Audit Opinion- Independent Auditor’s Report Government Auditing Standards (GAS)Report Uniform Guidance (Single Audit) Report Communication with Those Charged with Governance Management Letter AUDIT RESULTS –FINANCIAL STATEMENTS Independent Auditor’s Report Types of Opinions- Unmodified, Qualified, Adverse or Disclaimer. STPUD 2023- Unmodified (“Clean”) Audit Opinion AUDIT RESULTS –GOVERNMENT AUDITING STANDARDS Government Auditing Standards Report Material weaknesses – none noted Significant deficiencies – none noted Compliance exceptions – none noted AUDIT RESULTS –UNIFORM GUIDANCE Uniform Guidance (Single Audit) Report Required when an entity expends more than $750,000 in Federal grant expenditures Major Programs Tested Drinking Water State Revolving Fund Hazard Mitigation Grant State and Private Forestry Cooperative Fire Assistance No findings noted in relation to internal controls or compliance exceptions AUDIT RESULTS –CONCLUSION LETTER Communication with Those Charged with Governance Accounting Policies & Significant Changes in Disclosures GASB 96, Subscription-Based Information Technology Agreements Accounting Estimates Allowance for doubtful accounts Lease receivable Subscription liability Depreciation Net pension liability AUDIT RESULTS –CONCLUSION LETTER Communication with Those Charged with Governance (continued) Difficulties Encountered in Performing the Audit None Disagreements with Management None Audit adjustments None AUDIT RESULTS –MANAGEMENT LETTER Management letter - Recommendation for improvement No recommendations in current year Prior year accounts receivable write off recommendation implemented during the current year SUMMARY OF AUDIT RESULTS Reporting Results of the Audit Audit Opinion- Independent Auditor’s Report – Unmodified (“Clean”) opinion Government Auditing Standards Report No matters reported Uniform Guidance Report No matters reported Communication with Those Charged with Governance GASB 96 implementation, No audit adjustments Management Letter No matters reported MUN CPAS 1760 CREEKSIDE OAKS DRIVE, SUITE 160 SACRAMENTO, CALIFORNIA 95833 T. 916.929.0540 F. 916.929.0541 E. 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SOUTH TAHOE PUBLIC UTILITY DISTRICT GRANT UPDATE DONIELLE MORSE GRANTS COORDINATOR STPUD CURRENT FUNDING SOURCES ARPA Funds for Fire Hydrant Installation in City of South Lake Tahoe •$300,000 Award •No match required •40 hydrants installed EDWA MOU •$160,000 award •Annual funding for groundwater projects Tahoe Keys POA Consolidation Assessment •$205,000 award •Phase 3 of assessment of TK Water System ARPA Fire Hydrant Installation (Pending) •$114,882 award •Install 16 fire hydrants in EDC Hazard Mitigation Grants Blower System Emergency Generator Project •$1,026,169 award •Completed August 2023 Tanks Backup Power Supply for Water Infrastructure •$940,000 award •Project complete; closeout pending Paloma Well/Keller Booster Station Generators Installation •$259,246 award •In progress Prop 1 Tahoe Sierra IRWM 2019 Implementation •$2,261,690 total award for partnership •$406,079 STPUD award •Grant Administration •Water conservation incentives and rebates for leak repairs Prop 1 DAC Water Efficiency/Water Loss System Implementation •$937,901 Award •Upgrade/optimize water loss data technology to monitor and rapidly correct system losses •Install up to 3 connectors in AMI system •Water conservation incentives and rebates Local Agency Technical Assistance (LATA) •$491,035 award •Funds to develop a plan to bring broadband access to underserved areas within STPUD’s service territory •Plan will be used to facilitate the construction of broadband network project CTC And USFS Fuels Reduction Grants CTC Critical Infrastructure Hazardous Fuels Planning•$197,000 award•Develop Vegetation Management Plan (VMP) USFS TWFFSP Fuels Reduction on Critical Facilities•$500,500 award•Implement fuels reduction work on USFS sites CTC Fuels Reduction Implementation (Pending)•$2,000,000+ award•Implement fuels reduction work on non-USFS sites Cooperative Fire Program FY22 •$2,125,619 awardd to partnership •$1,067,120 award STPUD •Black Bart and Bijou/Bowers Waterline upgrades FY23 •$2,125,620 award to partnership •$21,256 award STPUD - Administration WaterSMART Small-Scale Water Efficiency Grant •$100,000 award •Washoan/Acoma PRV Replacement •SCADA Upgrades Clean Water State Revolving Loan Fund (CWSRF) Tahoe Keys Wastewater Pump Station Rehab •$6,189,331 loan WWTP Secondary Clarifiers Upgrade •$5,281,344 loan Upper Truckee Wastewater Pump Station Rehab •$4,729,903 loan Drinking Water State Revolving Loan Fund (DWSRF) 2019 Waterline Replacement Project •$9,000,000 loan •Rocky 1, Bowers, Bijou, Blackbart •Project complete Keller Heavenly Water System Improvements •$5,500,000 loan Disaster Assistance •Tamarack Fire - $94,697 •Alpine County Flood - $42,962 •Caldor Fire - $653,409 •Severe Winter Storms (Dec-Jan) - $459,760 •Severe Winter Storms (Feb) - $554,293 PENDING FUNDING APPLICATIONS PENDING GRANT APPLICATIONS •Alpine County Soil Stabilization Project -$2,790,987-OES Hazard Mitigation Grant –Waitlisted by OES until funding is available. •Al Tahoe/ Bayview Well Backup Generator -$573,480 –OES Hazard Mitigation Grant –Waitlisted by OES until funding is available. •Bureau of Reclamation WaterSMART Drought Response Program -$195,185 PENDING LOAN APPLICATIONS •DWSRF: Waterline Upgrades and Improvement Projects: $6,934,231 •DWSRF: Pioneer Trail Waterline and PRV Upgrade Project: $9,963,201 •DWSRF: Tahoe Mtn/Glenwood/Lake Tahoe BLVD Waterline Upgrades: $7,567,939 •CWSRF: Bijou Wastewater Pump Station Rehabilitation Project -$7,988,220.00 UPCOMING OPPORTUNITIES •Small-Scale Water Efficiency –Bureau of Reclamation •Cooperative Fire Program FY24 -USFS •Water and Energy Efficiency –Bureau of Reclamation •Electric Vehicle/Fleet Grants –California •TSIRWM Supplemental Environmental Projects –CA Regional Water Quality Control Board •Building Resilient Infrastructure and Communities -FEMA