articleSpecial District*

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Tulare County Special Districts are required to comply with minimum auditing requirements as set forth by the State Controller. Records of such audits are to be filed with the County Auditor as further required by CGC §26909.

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Tulare County Special Districts should undertake an audit conducted by the County Auditor or a Certified Public Accountant/public accountant: a. Have sufficient knowledge and training to enable compliance with both generally accepted auditing standards and generally accepted government auditing standards. b. Have a thorough knowledge of the fundamental principles of governmental accounting, including both fund accounting and enterprise accounting. c. Comply with Government Auditing Standards as promulgated by the United States General Accounting Office when applicable (e.g., Single Audit Act, required by agreement or contract, etc.). REQUIRED RESPONSES: 1. Local Agency Formation Commission 2. County of Tulare Auditor-Controller 3. The following Districts which have not filed their audit report with the County by the required due date: DISTRICT ONE Eshom Valley Public Cemetery District ( ) Kaweah Delta Water Conservation District Lemon Cove Sanitary District Lewis Creek Water District Lindsay Local Hospital District Lindsay-Strathmore Memorial District Poplar Community Services District Sequoia Memorial District Three Rivers Memorial District Three Rivers Public Cemetery District DISTRICT TWO Allenworth Community Services District Alpaugh Community Services District Atwell Island Water District Deer Creek Storm Water District Friant Power Authority Teviston Community Services District Tipton Community Services District Tipton-Pixley Public Cemetery District Tulare Irrigation District Tulare Local Healthcare District Kaweah River Power Authority District Visalia Memorial District DISTRICT FOUR Dinuba Veteran's Memorial District Ivanhoe Public Utility District Kingsburg Hospital District Orosi Public Utility District St. John's Water District Woodlake Veterans Memorial District DISTRICT FIVE Porterville Memorial District Springville Veteran's Memorial District Terra Bella Memorial District Vandalia Water District

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None. Response 3: The District generally agrees that this finding could be correct but does not have specific independent information to corroborate it. No recommendation was made and hence no recommendation can be implemented as to this finding. However, the District has historically complied with state mandated annual audit requirements by having a Certified Public Accountant undertake such audits and then submit the resulting audit report to the California State Controller's Office (SCO) and the County Auditor. If you have any questions or concerns, please advise us and we will respond as expeditiously as possible. Respectfully, Michael L. Farley Moses Diaz Enclosure(s): (none) (KHD) CC: Lemon Cove Sanitary District Lemon Cove Water P. O. Box 44374 Lemon Cove, CA 93244-0151 June 1, 2015 TO: The Honorable Judge Bret Hillman Tulare County Grand Jury FROM: Lemon Cove Sanitary District SUBJECT: Special Districts - Audit Failures Report On May 28, 2015, the Tulare County Grand Jury provided a report to the Lemon Cove Sanitary District, including it, in F3 of its Report, on a list of twenty special districts in Tulare County which allegedly had failed to file audit reports with the County of Tulare by the required due date. For purposes of subdivision (b) of §933.05 of the Penal Code, the directors of the Lemon Cove Sanitary District do respond as follows: The Lemon Cove Sanitary District has complied with California Government Code §26909, and therefore, disagrees with the finding that it has failed to conduct annual audits. The District officers have no proof that such filing was accomplished, and therefore know nothing of the timeliness of such, but have been assured that it was done. The District is in contact with the Auditor's Office monthly, and were never informed by them that the audit reports were not filed. Audit Reports are customarily sent directly from the C.P.A. performing them, according to Government Auditing Standards protocol, as are the State mandated Local Government Financial Transactions and Compensation Reports, which are sent directly to the State Controller's Office. In future years, an aspect of a "thorough review of reliable documents" should include an inquiry there, as those reports contain all pertinent data with respect to the officers of record and finances of special districts, and should be considered to be reliable. If there are any questions regarding this response, please contact me at (559) 597-2504, or e-mail me at pensar3@netzero.com. William Pensar, Secretary CELVE Lemon Cove Sanitary District enail 505 405 47 401 17 Lemon Cove Sanitary District Lemon Cove Water P. O. Box 44374 Lemon Cove, CA 93244-0151 June 1, 2015 TO: The Honorable Judge Bret Hillman Tulare County Grand Jury FROM: Lemon Cove Sanitary District SUBJECT: Special Districts – Audit Failures Report On May 28, 2015, the Tulare County Grand Jury provided a report to the Lemon Cove Sanitary District, including it, in F3 of its Report, on a list of twenty special districts in Tulare County which allegedly had failed to file audit reports with the County of Tulare by the required due date. For purposes of subdivision (b) of §933.05 of the Penal Code, the directors of the Lemon Cove Sanitary District do respond as follows: The Lemon Cove Sanitary District has complied with California Government Code §26909, and therefore, disagrees with the finding that it has failed to conduct annual audits. The District officers have no proof that such filing was accomplished, and therefore know nothing of the timeliness of such, but have been assured that it was done. The District is in contact with the Auditor's Office monthly, and were never informed by them that the audit reports were not filed. Audit Reports are customarily sent directly from the C.P.A. performing them, according to Government Auditing Standards protocol, as are the State mandated Local Government Financial Transactions and Compensation Reports, which are sent directly to the State Controller's Office. In future years, an aspect of a "thorough review of reliable documents" should include an inquiry there, as those reports contain all pertinent data with respect to the officers of record and finances of special districts, and should be considered to be reliable. If there are any questions regarding this response, please contact me at (559) 597-2504, or e-mail me at pensar3@netzero.com. W. Muis William Pensar, Secretary Lemon Cove Sanitary District South Mooney Boulevard Visalia, CA 93277 (559) 624-7295 • Fax (559) 733-6078 July 30, 2015 Lemon Cove Sanitary District Lemon Cove Water P. O. Box 44374 ····································· Lemon Cove, CA 93244-0151 Attn: William Pensar RE: 2014-2015 Final Report Special Districts - Audit Failures Dear Mr. Pensar, Thank you for your response in regards to the above mentioned Grand Jury report. However, in your response you did not adequately address the following items: