For the tenth consecutive year an auditor described the financial records at Antelope Valley-East Kern Water Agency as clean and a clean opinion indicates that the Agency functions in a professionally consistent manner.
Thomas Young, an auditor and partner at the Bakersfield-based accounting firm of Brown Armstrong presented his opinion to AVEK’s Board of Directors at their regular public meeting on Tuesday, November 8th.
AVEK Assistant General Manager Matt Knudson said this is the third year that the Agency has worked with this accounting firm.
In his written report, Young stated that he audited financial statements of AVEK’s “business-type activities” for the fiscal year ending on June 30, 2022, as well as the related notes to the financial statements, “which collectively comprise the Agency’s basic financial statements.”
“In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Agency, as of June 30, 2022, and the respective changes in financial position, and cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
He told Board members that the accounting firm conducts audits based on standards generally accepted in the United States as well as standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States.
“We are required to be independent of the Agency and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our audit,” Young stated in the written report. “We believe that the audit evidence we have obtained is sufficient and appropriate to provide basis for our audit opinions.”
He stated, in the written report, that AVEK’s management is responsible for the preparation and fair presentation of the financial statements … and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement.
Regarding the auditor’s responsibility he stated, in the written report, “our objectives are to obtain reasonable assurance about whether the financial statements, as a whole, are free from material misstatement, and to issue an auditor’s report that includes our opinions.”
He said auditors must “exercise professional judgment and maintain professional skepticism throughout the audit. In addition, they must identify and assess the risks of material misstatement of the financial statements.
“We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.”
“Teresa did a good job working with the auditor,” Frank said, referring to Teresa Yates, a certified public accountant and AVEK’s Finance Manager.
In a 7-0 vote, board members unanimously accepted the audit.