2011 Audit ReportSTATE OF NEW MEXICO
TOWN OF TAOS
ANNUAL FINANCIAL REPORT
JUNE 30, 2011
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2
INTRODUCTORY SECTION
3
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2011
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 4-5
Official Roster 7
FINANCIAL SECTION
Independent Auditors’ Report 10-11
Management’s Discussion and Analysis 12-19
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets A-1 22-23
Statement of Activities A-2 24-25
Fund Financial Statements
Balance Sheet –Governmental Funds B-1 26
Reconciliation of the Balance Sheet to the Statement of Net Assets 27
Statement of Revenues, Expenditures, and
Changes in Fund Balances –Governmental Funds B-2 28
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 29
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis)and Actual
General Fund C-1 30
Statement of Net Assets-Proprietary Funds D-1 31
Statement of Revenues, Expenses, and
Changes in Net Assets-Proprietary Funds D-2 32
Statement of Cash Flows –Proprietary Funds D-3 33
Statement of Fiduciary Assets and Liabilities –Agency Funds E-1 34
NOTES TO THE FINANCIAL STATEMENTS 35-61
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 64-67
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet –Nonmajor Governmental Funds A-1 68-73
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 74-79
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 80
Recreation Special Revenue Fund B-2 81
Lodger’s Tax Special Revenue Fund B-3 82
Local Government Correction Special Revenue Fund B-4 83
Law Enforcement Protection Special Revenue Fund B-5 84
Civic Center Special Revenue Fund B-6 85
Domestic Violence Shelter Special Revenue Fund B-7 86
Public Transportation Special Revenue Fund B-8 87
Community Grants Special Revenue Fund B-9 88
Municipal Road Gasoline Tax Special Revenue Fund B-10 89
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 90
4
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2011
SUPPLEMENTARY INFORMATION (CONTINUED)
Statement/Schedule Page
Communications Special Revenue Fund B-12 91
2009 NMFA PPRF Disadvantage Program-Eco Park Debt Service Fund B-13 92
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-14 93
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund B-15 94
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund B-16 95
NMFA Debt Service Reserve Eco Park B-17 96
2007 NMFA Land Purchase Debt Service Fund B-18 97
Facilities Improvements Capital Projects Fund B-19 98
Airport Construction Capital Projects Fund B-20 99
Enhanced 911 Capital Projects Fund B-21 100
Vehicle Replacement Capital Projects Fund B-22 101
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-23 102
1999 Gasoline Tax Acquisition Capital Projects Fund B-24 103
Capital Projects Fund B-25 104
Statement of Revenues, Expenses, and Changes in Net Assets –
Budget (Non-GAAP Budgetary Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-26 105
Solid Waste Fund B-27 106
Taos Regional Landfill Fund B-28 107
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 110
Schedule of Collateral Pledged by Depository for Public Funds II 111
Schedule of Changes in Fiduciary Assets and Liabilities -Agency Funds III 113
Schedule of Joint Powers Agreements IV 114-115
COMPLIANCE SECTION
Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 118-119
FEDERAL FINANCIAL ASSISTANCE
Independent Auditors’ Report on Compliance with Requirements That Could
Have a Direct and Material Effect on Each Major Program and on Internal in
Control Over Compliance Accordance with OMB Circular A-133 122-123
Schedule of Expenditures of Federal Awards V 124-125
Schedule of Findings and Questioned Costs VI 126-130
OTHER DISCLOSURES 131
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6
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2011
Town Council
Name Title
Darren Cordova Mayor
Michael A. Silva Councilor
Rudy Abeyta Councilor
Amy Quintana Councilor
Gene Sanchez Councilor
Administration
Daniel Miera
Abigail Adame
Town Manager
Assistant Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez Municipal Judge
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8
FINANCIAL SECTION
9
INDEPENDENT AUDITORS’ REPORT
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited the accompanying financial statements of t he governmental activities, the business-type activities, each major
fund, the budgetary comparison for the general fund and the aggregate remaining fund information of the Town of Taos,New
Mexico (“the Town”),as of and for the year ended June 30, 2011, which collectively comprise the Town’s basic financial
statements as listed in the table of contents. We also have audited the financial statements of each of the Town’s nonmajor
governmental funds and the budgetary comparisons for the proprietary funds, the major capital projects fund and the remaining
nonmajor governmental funds presented as supplementary information in the accompanying combining and individual fund
financial statements as of and for the year ended June 30, 2011 as listed in the table of contents. T hese financial statements are the
responsibility of the Town’s management. Our responsibility is to express opinions on these financial statements based on our
audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting
as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we express no such opinion.
An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of
the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the
Town, as of June 30, 2011, and the respective changes in financial position and cash flows, where applicable, thereof ,and the
budgetary comparison for the general fund for the year then ended in conformity with accounting principles generally accepted in
the United States of America. I n addition, in our opinion, the financial statements referred to above present fairly, in all material
respects, the respective financial position of each nonmajor governmental fund of the Town as of June 30, 2011, and the
respective changes in financial position thereof,and the respective budgetary comparisons for the major capital projects fund and
all nonmajor governmental funds presented as supplementary information for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
10
In accordance with Government Auditing Standards, we have also issued our report dated November 29, 2011 on our
consideration of the Town’s internal control over financial reporting and on our tests of i ts compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our
testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the internal control over financial reporting or on compliance. T hat report is an integral part of an audit performed in accordance
with Government Auditing Standards and should be considered in assessing the results of our audit.
The Management’s Discussion and Analysis on pages 12 through 19 are not a required part of the basic financial statements but
are supplementary information required by accounting principles generally accepted in the United States of America. We have
applied certain limited procedures, which consisted principally of i nquiries of management regarding the methods of measurement
and presentation of t he required supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s
basic financial statements, the combining and individual fund financial statements, and the budgetary comparisons. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the
U.S. Office of Management and Budget Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations,and
is not a required part of the basic financial statements. T he accompanying financial information listed as supporting Schedules I
through IV in the table of contents is presented for purposes of additional analysis and is not a required part of the financial
statements. S uch information has been subjected to the auditing procedures applied in the audit of the basic financial statements
and the combining and individual fund statements and budgetary comparisons listed above and, in our opinion, is fairly stated in
all material respects in relation to the basic financial statements,and the combining and individual fund statements and budgetary
comparisons taken as a whole. The introductory section has not been subjected to the auditing procedures applied in the audit of
the basic financial statements and, accordingly, we express no opinion on it.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 29, 2011
11
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
As management of the Town of Taos, we offer readers of the Town of Taos financial statements,this narrative overview and
analysis of t he financial activities of the Town of Taos for the fiscal year ended June 30, 2011. W e encourage readers to consider
the information presented here in conjunction with the financial statements of the Town of Taos and additional information
provided.
FINANCIAL HIGHLIGHTS
The assets of the Town of Taos exceeded its liabilities at the close of the most recent fiscal year by $78,272,288 (net
assets).Of this amount, $5,806,647 (unrestricted net assets) may be used to meet the government’s ongoing obligations
to citizens and creditors.
The government’s total net assets increased by $3,496,292 during the fiscal year. T he majority of this increase is due to
several additional capital assets; projects include Eco Park Construction, Reed/Alexander Road Improvements, Morgan
Road Improvements and near completion of our Wastewater Treatment Plant Upgrades.
As of June 30, 2011, the Town’s governmental funds reported combined ending net assets balances of $51,940,572. O f
this total, $2,379,357 is designated for debt service and capital projects.
At the close of the current fiscal year, unassigned fund balance for the general fund was $1,443,211,or 9.3 percent of
total general fund expenditures.
The Town of Taos’total debt did not increase during the year. This year $1,440,091 was paid on the principal of the
various government loans, bonds, compensated absences and contracts payable.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the Town of Taos’ basic financial statements. The Town’s
basic financial statements comprise three components: 1) government-wide financial statements; 2) fund financial statements; and
3) notes to the financial statements. T his report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide financial statements. The government-wide financial statements are designed to provide readers with a broad
overview of the Town of Taos’ finances, in a manner similar to a private-sector business.
The statement of net assets presents information on all of the Town of Taos’assets and liabilities, with the difference between the
two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether or not the
financial position of the Town of Taos is improving or deteriorating.
The statement of activities presents information showing how the government’s net assets changed during the most recent fiscal
year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the
timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in
cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused personal leave).
Both of the government-wide financial statements distinguish functions of the Town of Taos that are principally supported in a
majority by t axes and a minimal amount from other miscellaneous receipts (governmental activities) from other functions that are
intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The
governmental activities of the Town of Taos include general government, public safety, public works, culture and recreation, and
health and welfare. T he business-type activities of the Town include joint Water and Sewer Services, Solid Waste Services, and
the Taos Regional Landfill.
The government-wide financial statements can be found in Exhibits A-1 and A-2 of this report.
12
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Town of Taos, like other state and local governments, uses fund
accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the Town of Taos
can be divided into three categories: governmental funds, proprietary funds,and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. H owever, unlike the government-wide financial statements, governmental
fund financial statements focus on daily inflows and outflows of spendable resources,as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in determining what financial resources are
available in the near future to finance the Town’s programs.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. B y doing so, readers may better understand the long-term i mpact of the government’s near
term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The Town of Taos maintains twenty-nine individual governmental funds organized according to their type (special revenue, debt
service and capital projects). Information is presented separately in the governmental fund balance sheet and statement of
revenues, expenditures, and changes in fund balances for the General Fund and Capital Projects, which are considered major
funds. Data from the other twenty-seven governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these nonmajor governmental funds is provided in the form o f combining statements elsewhere in this report.
The Town of Taos adopts an annual appropriated budget for its general fund, capital equipment replacement, special revenue fund,
fire, police, GRT,and all other funds. A b udgetary comparison statement has been provided for the General Fund to demonstrate
compliance with this budget. In addition, the individual financial statements of the nonmajor governmental fund types include
budgetary comparison data.
The basic governmental fund financial statements can be found in Exhibits B-1 through C-1 of this report.
Proprietary funds. Proprietary funds are generally used to account for services for which the Town charges customers –either
outside customers or internal units or departments of the Town. P roprietary funds provide the same type of information as shown
in the government-wide financial statements, only in more detail. The Town maintains one type of proprietary fund:
Enterprise funds.Are used to report the same functions presented as business-type activities in the government-wide financial
statements. The Town uses enterprise funds to account for the joint water and sewer services, solid waste and regional landfill
operations for the Town. The enterprise funds are considered to be major funds of the Town and can be found in Exhibits D-1
through D-3 of this report.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government.
Fiduciary funds are not reflected in the government-wide financial statement because the resources of those funds are not
available to support the Town of Taos’own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds.
The Town of Taos fiduciary funds account for the collection of street cut permits and deposits for reaction events. The basic
fiduciary fund financial statement can be found in Exhibit E-1 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. T he notes to the financial statements can be found on pages 35-
61 of this report.
13
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the notes to the financial statements. C ombining and individual fund statements and schedules
can be found on pages 68-79 of this report.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Analysis of Net Assets
As noted earlier, net assets may serve over time as a useful indicator of a government’s financial position. I n the case of the Town
of Taos, assets exceeded liabilities by $78,272,288 at the close of the current fiscal year.
The significant portion of the Town of Taos’net assets represents the Town’s investment of $67,198,829 in capital assets (e.g.,
land improvements, buildings, infrastructure and machinery & equipment), less any r elated outstanding debt used to acquire those
assets. The Town of T aos uses these capital assets to provide services to citizens; consequently, these assets are not available for
future spending. A lthough the Town of Taos’investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt mu st be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
June 30, 2011
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 8,106,377$ 5,605,469$ 13,711,846$
Restricted cash and cash equivalents 184,495 1,255,717 1,440,212
Bond issuance costs and discount 179,767 - 179,767
Capital assets, net of accumulated 53,480,621 28,021,848 81,502,469
depreciation
Total assets 61,951,260 34,883,034 96,834,294
Liabilities
Current Liabilities 1,583,691 1,615,109 3,198,800
Non-current liabilities 8,426,997 6,936,209 15,363,206
Total liabilities 10,010,688 8,551,318 18,562,006
Net Assets
Invested in capital assets, net of 44,645,935 22,552,894 67,198,829
related debt
Restricted 4,011,095 1,255,717 5,266,812
Unrestricted 3,283,542 2,523,105 5,806,647
Total net assets 51,940,572 26,331,716 78,272,288
Total Liabilities and Net Assets 61,951,260$ 34,883,034$ 96,834,294$
A portion of the Town of Taos’ governmental net assets (7 percent) represents resources that are subject to restrictions. The
restrictions relate to covenants provided by the Town’s long-term debt issuance and capital projects. The remaining balance of
unrestricted net assets, $3,283,542 may be used to meet the government’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town of Taos is able to report positive balances in all three categories of net assets, for
the government as a whole as well as for the business-type activities, as a whole.
14
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
Analysis of Changes in Net Assets
The Town’s net assets increased by $5,356,196 during the current fiscal year. These increases are explained in the government
and business-type activities discussion below, and are primarily a result of increased revenues from charges for service and capital
grants during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,191,597$ 4,860,639$ 6,052,236$
Operating grants and contributions 1,198,670 - 1,198,670
Capital grants and contributions 1,876,920 5,666,542 7,543,462
General revenues:
Property taxes, levied for general purposes 849,737 - 849,737
Gross receipts taxes 10,388,344 479,064 10,867,408
Gasoline and auto distribution taxes 353,663 - 353,663
Other taxes 1,272,971 - 1,272,971
Interest income 12,344 9,173 21,517
Miscellaneous income 53,669 332,480 386,149
Transfers - - -
Loss on disposal of capital assets 5,732 22,401 28,133
Total Revenues 17,203,647 11,370,299 28,573,946
Program expenses:
General government 6,996,281$ - 6,996,281$
Public safety 3,794,152 - 3,794,152
Public works 3,355,181 - 3,355,181
Culture and recreation 2,844,602 - 2,844,602
Health and welfare 648,928 - 648,928
Interest on long-term debt 335,845 - 335,845
Joint water and sewer - 3,276,488 3,276,488
Solid waste - 1,039,145 1,039,145
Taos Regional Landfill - 2,259,866 2,259,866
Total Expenses 17,974,989 6,575,499 24,550,488
Change in net assets (771,342) 4,794,800 #4,023,458
Net assets, beginning 52,711,914 21,536,916 74,248,830
Net assets, ending 51,940,572$ 26,331,716$ 78,272,288$
Governmental activities. Governmental activities decreased the Town of Taos’net assets by ($771,342). T he key elements of
this decrease are as follows:
The decrease in revenues from operating and capital grants,and other taxes was part of the net decrease along with
expenditures increasing from the prior year.
Tax revenues account for $12,864,715 or 75 percent of governmental revenues. T ax revenues are made up of property,
gross receipts, gasoline and motor vehicle and other taxes.
15
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
The General fund received the majority of the Town’s program revenue, accounting for $6,996,281 or 41 percent of
total governmental revenues. The primary recipients of these revenues are general government and public safety.
The Town’s direct charges to users of governmental services made up $1,191,597 or 7 percent of total governmental
revenues. These charges are for fees, fines and forfeitures, and licenses and permits.
Business-type activities. Business-type activities increased the Town’s net assets by $4,794,800.
The Town’s direct charges to users of business-type services made up $4,860,639 or 43 percent of total business-type
revenues. These charges are for water and sewer services, water and sewer connection fee. These direct charges for
service increased by $556,708 from the previous year due to a rate adjustment for water and sewer services.
The Town received several capital grants this year which increased net assets by $4,794,800 which contributed to the
overall increase in net assets.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town of Taos uses fund accounting to ensure and demonstrate compliance with finance-related legal
requirements.
Governmental funds. The focus of the Town of Taos’governmental funds is to provide information on near-term inflows,
outflows, and balances of spendable resources. S uch information is useful in assessing the Town of Taos’financing requirements.
In particular, unassigned fund balance ma y serve as a useful measure of a government’s net resources available for spending at
the end of the fiscal year. T ypes of Governmental funds reported by the Town include the General Fund, Special Revenue Funds,
Debt Service Funds and Capital Projects Funds.
Revenues for governmental functions overall totaled approximately $17,052,304 in the fiscal year ended June 30, 2011, which
represents a decrease of ($1,893,274)from the fiscal year ended June 30, 2010. This is largely due to the decrease in federal and
state operating and capital grants. Expenditures for governmental functions, totaling $18,379,767, decreased by approximately
$1,127,720 from the fiscal year ended June 30, 2010. This is largely due to the increase in expenditures in the general
government.In the fiscal year ended June 30, 2011, expenditures for governmental functions exceeded revenues by approximately
($1,316,220).
The General Fund is the chief operating fund of the Town of Taos. A t the end of the current fiscal year, unassigned fund balance
of the general fund was also the total fund balance of $1,443,211.
The fund balance of the Town of Taos’ general fund increased by $812,304 during the current fiscal year, due to an increase in
revenue and a decrease in expenditures. Overall, the general fund’s performance resulted in expenditures over revenues in the
fiscal year ended June 30, 2011 of $1,347,727 a decrease of ($102,193)over the comparable figure from the prior year of
$1,449,920.
Proprietary Funds. The Town’s proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
At the end of the fiscal year, the unrestricted net assets for enterprise funds were $2,523,105. T he total increase in net assets for
the enterprise funds wa s $4,794,800. Factors concerning the finances of this fund have been addressed previously in the
discussion of the Town’s business-type activities.
Fiduciary Funds. The Town maintains fiduciary funds for the assets associated with bid bonds, street cuts permits and recreation
deposits. Changes to the fiduciary funds were immaterial for the fiscal year.
16
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
General Fund Budgetary Highlights
Town budgets reflect the same pattern as seen in the revenue and expenditures of the Town. The State of New Mexico budget
process is defined under state law a nd regulation. T o enhance the process of developing a budget at the Town level, Taos utilizes
goals and objectives defined by the Town Council, community input meetings, long term plans and input from various staff
groups to develop the Town budget. Town priorities are well defined through this process.
GASB Statement No.34 does not require a statement presenting the overall result of the budget for each year; however, all major
budgetary funds are required to be reported as a separate statement.
The following table examines the summary budget performance of the general fund for the fiscal year ending June 30, 2010.
Detailed budget performance is examined through the Statement of Revenues, Expenditures, and Changes in Fund Balance for the
general fund found at Exhibit C-1. The Town’s final budget differs from the original budget due to budget increases and
decreases that were made during the fiscal year and expenditures not needed. Actual general fund expenditures were $633,153
less than the final budget amount (favorable variance). This was primarily to general governmental favorable variance of
$361,791. The difference between actual expenditures and budgeted expenditures is due to various expenditures that were
expected to occur during the year ended June 30, 2011, but savings from personnel vacancies cost saving measures caused this
favorable variance.
Budget Amounts
Original Final
Expenditures:
General government 4,436,161$ 4,392,179$ 4,030,388$ 361,791$
Public safety 2,890,254 2,900,757 2,787,193 113,564
Public works 1,032,253 1,003,674 959,807 43,867
Culture and recreation 1,934,170 1,850,759 1,736,828 113,931
Total Expenditures 10,292,838$ 10,147,369$ 9,514,216$ 633,153$
Actual (GAAP
Basis)
Favorable
(Unfavorable)
Variance
Capital Asset and Debt Administration
Capital assets. The Town of Taos’capital assets for its governmental and business-type activities as of June 30, 2011 amount to
$81,502,469 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and improvements,
furniture, fixtures and equipment, and infrastructure. T he total in the Town’s capital assets (net of accumulated depreciation) for
the current fiscal year was an increase of $245,416 for governmental activities and an increase of $6,239,019 for business-type
activities.
The significant additions to capital assets during the year were as follows:
Additions to governmental buildings and infrastructure for completion of the Town Hall Renovations, Morgan Road
Improvements, Reed & Alexander Street Improvements and NM68 Sidewalks Enhancements.
$2,308,475 was from additions to governmental activities construction in progress for Eco Park Recreation Facility.
$5,715,621 additions to business type construction in progress for upgrades to the Wastewater Treatment Plant.
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State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
Capital assets, net of depreciation
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 2,770,124 8,870,192 11,640,316
Buildings and improvements 33,306,067 4,385,023 37,691,090
Machinery and Equipment 15,215,742 8,624,969 23,840,711
Infrastructure 49,200,941 21,017,583 70,218,524
Land improvements 5,068,985 104,895 5,173,880
Total capital assets 111,839,668 43,265,084 155,104,752
Less: accumulated depreciation (58,359,047) (15,243,236) (73,602,283)
Total property, plant and equipment, net
of accumulated depreciation 53,480,621$ 28,021,848$ 81,502,469$
For government-wide financial statement presentation, all depreciable capital assets were depreciated from acquisition date to the
end of the current fiscal year. Fund financial statements record capital asset purchases as expenditures. See Note 6 in the
accompanying Notes to the Financial Statements for further information regarding capital assets.
Debt Administration. At the end of the current fiscal year, the Town of Taos had total long-term obligations outstanding of
$15,497,825. There were no additions to long term debt during the year.
Outstanding debt
Governmental Business-type
Activities Activities Total
Revenue Bonds 6,130,000$ 2,098,600$ 8,228,600$
NMFA amd RUS Loans 2,704,686 3,370,354 6,075,040
USDA Contract Payable - - -
Compensated absences 651,167 62,827 713,994
Landfill Closure Liability - 1,812,918 1,812,918
Total long-term liabilities 9,485,853$ 7,344,699$ 16,830,552$
See Note 7 in the accompanying Notes to the Financial Statements for further information regarding the Town of Taos’long-term
debt.
The Town knows of no currently known facts, decisions or conditions that are expected to have a significant effect on financial
position or results of operations.
18
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2011
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Town of Taos’finances for all of those with an interest in the
government’s finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Town of Taos –Finance Director, Town of Taos, 400 Camino de la Placita, Taos, New
Mexico, 87571, (575) 751-2024.
19
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20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 1,738,329$ 2,489,533$ 4,227,862$
Investments 3,346,130 1,634,939 4,981,069
Receivables:
Property taxes 212,019 - 212,019
Other taxes 1,186,519 - 1,186,519
Due from other governments 1,619,639 702,971 2,322,610
Customer receivables, net - 781,767 781,767
Internal balances 3,741 (3,741) -
Total current assets 8,106,377 5,605,469 13,711,846
Noncurrent assets
Restricted cash and cash equivalents 184,495 1,255,717 1,440,212
Bond issuance costs, net of accumulated
amortization of $37,662 179,767 - 179,767
Capital assets 111,839,668 43,265,084 155,104,752
Less: accumulated depreciation (58,359,047) (15,243,236) (73,602,283)
Total noncurrent assets 53,844,883 29,277,565 83,122,448
Total assets 61,951,260$ 34,883,034$ 96,834,294$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2011
Statement of Net Assets
Town of Taos
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 286,457$ 878,428$ 1,164,885$
Accrued payroll 131,573 14,581 146,154
Deposits held in trust for others 5,103 248,035 253,138
Accrued compensated absences 442,418 62,827 505,245
Accrued interest 44,062 65,575 109,637
Current portion of bonds payable 435,000 43,000 478,000
Current portion of loans and contracts payable 239,078 302,663 541,741
Total current liabilities 1,583,691 1,615,109 3,198,800
Noncurrent liabilities
Accrued compensated absences 208,749 - 208,749
Accrued landfill closure costs - 1,812,918 1,812,918
Bond premiums, net of accumulated
amortization of $13,202 57,640 - 57,640
Bonds payable 5,695,000 2,055,600 7,750,600
Loans and contracts payable 2,465,608 3,067,691 5,533,299
Total noncurrent liabilities 8,426,997 6,936,209 15,363,206
Total liabilities 10,010,688 8,551,318 18,562,006
Net Assets
Invested in capital assets, net of related debt 44,645,935 22,552,894 67,198,829
Restricted for:
Debt service 400,771 1,255,717 1,656,488
Capital projects 1,978,586 - 1,978,586
Special revenue 1,631,738 - 1,631,738
Unrestricted 3,283,542 2,523,105 5,806,647
Total net assets 51,940,572 26,331,716 78,272,288
Total liabilities and net assets 61,951,260$ 34,883,034$ 96,834,294$
Primary Government
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary Government
Governmental Activities:
General government 6,996,281$ 1,070,681$ 468,034$ -$
Public safety 3,794,152 - 295,058 -
Public works 3,355,181 - - 1,876,920
Culture and recreation 2,844,602 68,493 - -
Health and welfare 648,928 52,423 435,578 -
Interest on long-term debt 335,845 - - -
Total governmental activities 17,974,989 1,191,597 1,198,670 1,876,920
Business-type Activities:
Water and sewer 3,276,488 2,626,140 - 5,972,077
Solid waste 1,039,145 1,290,935 - -
Taos regional landfill 2,259,866 943,564 - -
Total business-type activities 6,575,499 4,860,639 - 5,972,077
Total primary government 24,550,488$ 6,052,236$ 1,198,670$ 7,848,997$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodger's taxes
Other taxes
Interest income
Miscellaneous income
Gain on disposal of capital assets
Total general revenues
Change in net assets
Net assets, beginning
Net assets, ending
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
For the Year Ended June 30, 2011
The accompanying notes are an integral part of these financial statements
Program Revenues
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(5,457,566)$ -$ (5,457,566)$
(3,499,094) - (3,499,094)
(1,478,261) - (1,478,261)
(2,776,109) - (2,776,109)
(160,927) - (160,927)
(335,845) - (335,845)
(13,707,802) - (13,707,802)
- 5,321,729 5,321,729
- 251,790 251,790
- (1,316,302) (1,316,302)
- 4,257,217 4,257,217
(13,707,802) 4,257,217 (9,450,585)
849,737 - 849,737
10,388,344 479,064 10,867,408
353,663 - 353,663
300,464 - 300,464
970,011 - 970,011
2,496 - 2,496
12,344 9,173 21,517
53,669 26,945 80,614
5,732 22,401 28,133
12,936,460 537,583 13,474,043
(771,342) 4,794,800 4,023,458
52,711,914 21,536,916 74,248,830
51,940,572$ 26,331,716$ 78,272,288$
Primary Government
Net (Expense) Revenue and Changes in Net Assets
25
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 1 of 2
Balance Sheet
Governmental Funds
June 30, 2011
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Assets
Cash and cash equivalents 617,164$ 9,805$ 1,295,855$ 1,922,824$
Investments 1,321,049 530,941 1,494,140 3,346,130
Receivables:
Property taxes 212,019 - - 212,019
Other taxes 815,742 - 370,777 1,186,519
Due from other governments 809,023 204,078 606,538 1,619,639
Due from other funds 206,694 - - 206,694
Total assets 3,981,691$ 744,824$ 3,767,310$ 8,493,825$
Liabilities
Accounts payable 103,278$ 18,838$ 164,341$ 286,457$
Accrued payroll 110,649 - 20,924 131,573
Deposits held in trust for others - - 5,103 5,103
Deferred revenue 196,286 - 94,665 290,951
Due to other funds - - 202,953 202,953
Total liabilities 410,213 18,838 487,986 917,037
Fund balances
Spendable
Restricted for:
General government - - 590,354 590,354
Public safety - - 78,832 78,832
Culture and recreation - - 114,874 114,874
Public works - - 243,140 243,140
Fire protection - - 586,533 586,533
Health and welfare - - 19,420 19,420
Debt service expenditures - - 393,571 393,571
Capital projects - 725,986 1,252,600 1,978,586
Committed to:
Minimum fund balance 1,017,901 - - 1,017,901
Subsequent year's expenditures 1,110,366 - - 1,110,366
Unassigned 1,443,211 - - 1,443,211
Total fund balances 3,571,478 725,986 3,279,324 7,576,788
Total liabilities and fund balances 3,981,691$ 744,824$ 3,767,310$ 8,493,825$
The accompanying notes are an integral part of these financial statements
26
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 2 of 2
Amounts reported for governmental activities in the Statement of Net Assets
are different because:
Fund balances - total governmental funds 7,576,788$
Bond issuance costs net of accumulated amortization are not a current
financial resource and, therefore, are not reported in the funds.179,767
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 53,480,621
Delinquent property taxes and lodger's tax settlement not collected within
sixty days after year end are not considered "available" revenues and are
considered to be deferred revenue in the fund financial statements, but are
considered revenue inthe Statement of Activities.290,951
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (44,062)
Some liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the funds:
Accrued compensated absences (651,167)
Bond premiums (57,640)
Bonds payable (6,130,000)
Loans payable (2,650,686)
Contracts payable (54,000)
Total net assets of governmental activities 51,940,572$
June 30, 2011
The accompanying notes are an integral part of these financial statements
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Assets
27
STATE OF NEW MEXICO Exhibit B-2
Town of Taos Page 1 of 2
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2011
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Revenues
Taxes
Property 798,791$ -$ -$ 798,791$
Gross receipts 8,681,340 731,573 975,431 10,388,344
Gasoline and motor vehicle taxes 237,616 - 116,047 353,663
Other 300,464 - 877,842 1,178,306
Intergovernmental income
Federal operating grants 92,466 - 150,000 242,466
Federal capital grants - 505,340 11,735 517,075
State operating grants 35,000 - 921,204 956,204
State capital grants - 148,580 1,211,265 1,359,845
Charges for services 416,918 - 466,998 883,916
Licenses and fees 276,730 - 30,951 307,681
Interest income 7,754 1,419 3,171 12,344
Miscellaneous 14,864 - 38,805 53,669
Total revenues 10,861,943 1,386,912 4,803,449 17,052,304
Expenditures
Current
General government 4,030,388 - 1,757,508 5,787,896
Public safety 2,787,193 - 228,411 3,015,604
Public works 959,807 137,335 321,528 1,418,670
Culture and recreation 1,736,828 - 444,338 2,181,166
Health and welfare - - 626,301 626,301
Capital outlay - 2,603,691 1,753,098 4,356,789
Debt service
Principal - - 650,296 650,296
Interest - - 343,045 343,045
Total expenditures 9,514,216 2,741,026 6,124,525 18,379,767
Excess (deficiency) of revenues over
expenditures 1,347,727 (1,354,114) (1,321,076) (1,327,463)
Other financing sources (uses)
Proceeds from sale of capital assets 10,533 - 710 11,243
Transfers in 5,415,369 438,104 3,679,356 9,532,829
Transfers out (5,961,325) (960,312) (2,611,192) (9,532,829)
Total other financing sources (uses)(535,423) (522,208) 1,068,874 11,243
Net change in fund balances 812,304 (1,876,322) (252,202) (1,316,220)
Fund balance - beginning of year 2,759,174 2,602,308 3,531,526 8,893,008
Fund balance - end of year 3,571,478$ 725,986$ 3,279,324$ 7,576,788$
The accompanying notes are an integral part of these financial statements
28
STATE OF NEW MEXICO Exhibit B-2
Town of Taos Page 2 of 2
Amounts reported for governmental activities in the Statement of Activities
are different because:
Net change in fund balances - total governmental funds (1,316,220)$
Governmental funds report capital outlays as expenditures. However, in
the Statement of Activities, the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense:
Capital expenditures recorded in capital outlay 4,356,789
Depreciation expense (4,596,694)
In the Statement of Activities, only the loss on the disposition of capital assets
is reported, whereas in the governmental funds, the proceeds from the
disposition increase financial resources. Thus, the change in net assets
differs from the change in fund balance by the book value cost of the capital
assets disposed.(5,511)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Increase in deferred revenue related to property taxes receivable 50,946
Lodger's tax settlement revenue not received within the period of availability 94,665
The issuance of long-term debt (e.g. bonds, loans, leases) provides current financial
resources to governmental funds, while the repayment of the principal of long-term
debt consumes the current financial resources of govermental funds. Neither
transaction, however, has any effect on net assets. Also, governmental funds
report the effect of issuance costs, premiums, discounts, and similar items when
debt is first issued, whereas these amounts are deferred and amortized in the
Statement of Activities:
Amortization of bond issuance costs (12,120)
Decrease in accrued interest 7,200
Increase in accrued compensated absences (4,558)
Amortization of bond premiums 3,865
Principal payments on bonds payable 415,000
Principal payments on loans payable 217,296
Payments on contracts payable 18,000
Change in net assets of governmental activities (771,342)$
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ended June 30, 2011
The accompanying notes are an integral part of these financial statements
29
STATE OF NEW MEXICO Exhibit C-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes 837,097$ 837,097$ 798,791$ (38,306)$
Gross receipts 8,154,705 8,716,532 8,681,340 (35,192)
Gas and motor vehicle 229,019 235,537 237,616 2,079
Other 370,650 370,650 300,464 (70,186)
Intergovernmental income
Federal operating grants - - 92,466 92,466
Federal capital grants - - - -
State operating grants 35,000 35,000 35,000 -
State capital grants - - - -
Charges for services 417,301 417,301 416,918 (383)
Licenses and fees 257,693 257,693 276,730 19,037
Interest income 8,571 8,571 7,754 (817)
Miscellaneous 20,379 20,379 14,864 (5,515)
Total revenues 10,330,415 10,898,760 10,861,943 (36,817)
Expenditures
Current
General government 4,436,161 4,392,179 4,030,388 361,791
Public safety 2,890,254 2,900,757 2,787,193 113,564
Public works 1,032,253 1,003,674 959,807 43,867
Culture and recreation 1,934,170 1,850,759 1,736,828 113,931
Health and welfare - - - -
Capital outlay - - - -
Total expenditures 10,292,838 10,147,369 9,514,216 633,153
Excess (deficiency) of revenues over expenditures 37,577 751,391 1,347,727 596,336
Other financing sources (uses)
Designated cash (budgeted increase in cash)309,498 (205,436) - 205,436
Transfers in 4,938,637 5,415,370 5,415,369 (1)
Transfers out (5,285,712) (5,961,325) (5,961,325) -
Proceeds from sale of capital assets - - 10,533 10,533
Total other financing sources (uses)(37,577) (751,391) (535,423) 215,968
Net change in fund balance - - 812,304 812,304
Fund balance - beginning of year - - 2,759,174 2,759,174
Fund balance - end of year -$ -$ 3,571,478$ 3,571,478$
Budgeted Amounts
Town of Taos
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
The accompanying notes are an integral part of these financial statements
30
Exhibit D-1
Water and
Sewer Solid Waste Total
Assets
Current assets
Cash and cash equivalents 1,166,927$ 773,023$ 549,583$ 2,489,533$
Investments 1,310,439 249,100 75,400 1,634,939
Due from other governments 697,244 5,727 - 702,971
Customer receivables 517,364 197,827 66,576 781,767
Total current assets 3,691,974 1,225,677 691,559 5,609,210
Noncurrent assets
Restricted cash and cash equivalents 312,824 - 942,893 1,255,717
Capital assets 38,453,909 595,178 4,215,997 43,265,084
Less: accumulated depreciation (13,861,439) (351,707) (1,030,090) (15,243,236)
Total noncurrent assets 24,905,294 243,471 4,128,800 29,277,565
Total assets 28,597,268$ 1,469,148$ 4,820,359$ 34,886,775$
Liabilities and net assets
Liabilities
Current liabilities
Accounts payable 711,091$ 85,885$ 81,452$ 878,428$
Accrued payroll 9,611 1,234 3,736 14,581
Meter deposits payable 248,035 - - 248,035
Accrued compensated absences 43,381 2,720 16,726 62,827
Interfund payable 783 - 2,958 3,741
Accrued interest payable 61,076 - 4,499 65,575
Current portion of bonds payable 43,000 - - 43,000
Current portion of loans and contracts payable 135,828 - 166,835 302,663
Total current liabilities 1,252,805 89,839 276,206 1,618,850
Noncurrent liabilities
Accrued landfill closure costs - - 1,812,918 1,812,918
Bonds payable 2,055,600 - - 2,055,600
Loans payable 2,266,037 - 801,654 3,067,691
Total noncurrent liabilities 4,321,637 - 2,614,572 6,936,209
Total liabilities 5,574,442 89,839 2,890,778 8,555,059
Net assets
Invested in capital assets, net of related debt 20,092,005 243,471 2,217,418 22,552,894
Restricted for:
Debt service 312,824 - 942,893 1,255,717
Unrestricted 2,617,997 1,135,838 (1,230,730) 2,523,105
Total net assets 23,022,826 1,379,309 1,929,581 26,331,716
Total liabilities and net assets 28,597,268$ 1,469,148$ 4,820,359$ 34,886,775$
Statement of Net Assets
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
June 30, 2011
Proprietary Funds
31
Exhibit D-2
Water and
Sewer Solid Waste Total
Operating revenues
Charges for services 2,626,140$ 1,290,935$ 943,564$ 4,860,639$
Total operating revenues 2,626,140 1,290,935 943,564 4,860,639
Operating expenses
Personnel services 671,928 83,554 339,493 1,094,975
Contractual services 819,012 669,150 1,574,478 3,062,640
Supplies 199,027 15,213 5,480 219,720
Repairs and maintenance 95,989 18,745 112,401 227,135
Utilities 277,296 239,595 6,488 523,379
Equipment - - - -
Depreciation 1,036,555 11,581 188,554 1,236,690
Other costs 32,263 1,307 1,777 35,347
Total operating expenses 3,132,070 1,039,145 2,228,671 6,399,886
Operating income (loss) (505,930) 251,790 (1,285,107) (1,539,247)
Non-operating revenues (expenses)
Gross receipts taxes 479,064 - - 479,064
Interest expense (144,418) - (31,195) (175,613)
Interest income 7,619 - 1,554 9,173
Gain on disposal of capital assets 18,401 - 4,000 22,401
Miscellaneous income 5,934 14,966 6,045 26,945
Total non-operating revenues (expenses)366,600 14,966 (19,596) 361,970
State and federal capital grants 5,972,077 - - 5,972,077
Transfers in 2,800,358 - - 2,800,358
Transfers out (2,800,358) - - (2,800,358)
Change in net assets 5,832,747 266,756 (1,304,703) 4,794,800
Net assets, beginning of year 17,190,079 1,112,553 3,234,284 21,536,916
Net assets, end of year 23,022,826$ 1,379,309$ 1,929,581$ 26,331,716$
Statement of Revenues, Expenses and Changes in Net Assets
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
For the Year Ended June 30, 2011
Proprietary Funds
32
Exhibit D-3
Total
Cash flows from operating activities
Cash received from user charges 2,933,999$ 1,236,244$ 975,636$ 5,145,879$
Cash payments to employees for services (659,172) (83,275) (337,432) (1,079,879)
Cash payments to suppliers for goods and services (1,977,639) (1,002,463) (307,416) (3,287,518)
Net cash provided by operating activities 297,188 150,506 330,788 778,482
Cash flows from noncapital financing activities
Gross receipts taxes 479,064 - - 479,064
Miscellaneous income 5,934 14,966 6,048 26,948
Payments for noncurrent accrued compensated absences (7,094) (961) (5,395) (13,450)
Interfund advances (payments) and transfers 36,002 (98,160) 92,547 30,389
Net cash provided (used) by noncapital
financing activities 513,906 (84,155) 93,200 522,951
Cash flows from capital and related financing activities
State and federal capital grants 5,972,077 - - 5,972,077
Interest paid (145,767) - (31,866) (177,633)
Principal payments on long-term debt (121,971) - (162,579) (284,550)
Proceeds from sale of capital assets 18,401 - 4,000 22,401
Acquisition of capital assets (7,185,935) (178,664) (111,113) (7,475,712)
Net cash (used) by capital and
related financing activities (1,463,195) (178,664) (301,558) (1,943,417)
Cash flows from investing activities
Purchases of investments (3,775) - - (3,775)
Interest on investments 7,619 - 1,554 9,173
Net cash provided by investing activities 3,844 - 1,554 5,398
Net (decrease) increase in cash and cash equivalents (648,257) (112,313) 123,984 (636,586)
Cash and cash equivalents - beginning of year 2,128,008 885,336 1,368,492 4,381,836
Cash and cash equivalents - end of year 1,479,751$ 773,023$ 1,492,476$ 3,745,250$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss)(505,930)$ 251,790$ (1,285,107)$ (1,539,247)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,036,555 11,581 188,554 1,236,690
Changes in assets and liabilities
Receivables 307,859 (54,688) 32,072 285,243
Accounts payable (560,523) (58,456) 60,480 (558,499)
Accrued payroll expenses 2,588 268 353 3,209
Current accrued compensated absences 10,168 11 1,708 11,887
Meter deposits 6,471 - - 6,471
Net cash provided by operating activities 297,188$ 150,506$ 330,788$ 778,482$
Statement of Cash Flows
For the Year Ended June 30, 2011
Enterprise Funds
Taos Regional
Landfill
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Town of Taos
Proprietary Funds
Water and
Sewer Solid Waste
33
STATE OF NEW MEXICO Exhibit E-1
Town of Taos
Statement of Fiduciary Assets and Liabilities - Agency Funds
June 30, 2011
Assets
Cash 10,582$
Investments 62,500
Total assets 73,082$
Liabilities
Deposits payable 71,335$
Due to other entities 1,747
Total liabilities 73,082$
The accompanying notes are an integral part of these financial statements
34
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies
The Town of Taos (Town ) was incorporated in 1934. The Town operates under a Council-Mayor form of
government and provides the following services as authorized by its charter: public safety (police and fire),
highways and streets,public utilities (water, wastewater, and solid waste), health and social services, culture-
recreation,education, public improvements, planning and zoning,and general administrative services.
The Town of Taos is a body politic and corporate under the name and form of government selected by its
qualified electors. The Town may:
1.Sue or be sued;
2.Enter into contracts and leases;
3.Acquire and hold property, both real and personal;
4.Have common seal, which may be altered at pleasure;
5.Exercise such other privileges that are incident to corporations of like character or degree that are not
inconsistent with the laws of New Mexico;
6.Protect generally the property of its municipality and its inhabitants;
7.Preserve peace and order within the municipality; and
8.Establish rates for services provided by municipal utilities and revenue-producing projects, including
amounts which the governing body determines to be reasonable in the operation of similar facilities.
This summary of significant accounting policies of the Town is presented to assist in the understanding of
Town’s financial statements. T he financial statements and notes are the representation of Town’s management
who is responsible for their integrity and objectivity.
The financial statements of the Town have been prepared in conformity with accounting principles generally
accepted in the United States of America (GAAP) as applied to governmental units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental
accounting and financial reporting principles. T he GASB periodically updates its codification of the existing
Governmental Accounting and Financial Reporting Standards which, along with subsequent GASB
pronouncements (Statements and Interpretations), constitutes GAAP for governmental units. The government-
wide and the proprietary funds financial statements have incorporated all applicable GASB pronouncements as
well as Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles
Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedures issued after
November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements.
Governments also have the option of following subsequent private sector guidance for their government-wide
financial statements and enterprise funds, subject to the same limitation. T he Town has elected not to follow
the subsequent private sector guidance. The more significant of the Town ’s accounting policies are described
below.
A.Financial Reporting Entity
The financial reporting entity consists of (a) the primary government, (b) organizations for which the
primary government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primary government are such that exclusion would cause the
reporting entity’s financial statements to be misleading or incomplete.
In evaluating how to define the Town for financial reporting purposes, management has considered all
potential component units. The decision to include any potential component units in the financial
reporting entity was made by applying the criteria set forth in GASB Statement No.’s 14 and 39.
Blended component units, although legally separate entities, are in substance part of the government’s
operations. Each discretely presented component unit is reported in a separate column in the
government-wide financial statements to emphasize that it is legally separate from the government.
35
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
A.Financial Reporting Entity (continued)
The basic-but not the only-criterion for including a potential component unit within the reporting
entity is the governing body’s ability to exercise oversight responsibility. The most significant
manifestation of this ability is financial interdependency. Other manifestations of the ability to
exercise oversight responsibility include, but are not limited to, the selection of governing authority,
the designation of management, the ability to significantly i nfluence operations, and accountability for
fiscal matters.
A second criterion used in evaluating potential component units is the scope of public service.
Application of t his criterion involves considering whether the activity benefits the government and/or
its citizens.
A third criterion used to evaluate potential component units for inclusion or exclusion from the
reporting entity is the existence of special financing relationships, regardless of whether the
government is able to exercise oversight responsibilities. Finally, the nature and significance of a
potential component unit to the primary government could warrant its inclusion within the reporting
entity. Based upon the application of these criteria, the Town does not have any component units
required to be reported under GASB Statements No. 14 and No. 39.
B.Government-wide and fund financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement of
activities) report information on all of t he nonfiduciary activities of the primary government. F or the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The Statement of Net Assets and the Statement of Activities were prepared using the economic
resources measurement focus and the accrual basis of accounting. R evenues, expenses, gains, losses,
assets and liabilities resulting from exchange-like transactions are recognized when the exchange
takes place. Revenues, expenses, gains, losses, assets and liabilities resulting from non-exchange
transactions are recognized in accordance with the requirements of GASB Statement No. 33,
Accounting and Financial Reporting for Non-exchange Transactions.
In the government-wide Statement of Net Assets, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term
debt and obligations. T he Town’s net assets are reported in three parts –invested in capital assets, net
of related debt; restricted net assets; and unrestricted net assets.
36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
B.Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by p rogram revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. T axes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns
in the fund financial statements.
C.Measurement focus, basis of accounting, and financial statement presentation
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting,as are the proprietary fund and fiduciary fund financial
statements. Revenues are recorded when earned and expenses are recorded whe n a liability is
incurred, regardless of the timing of related cash flows. P roperty t axes, net of estimated refunds,are
recognized as revenues in the year for which they are levied. G rants and similar items are recognized
as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as
they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay l iabilities of the current period.
For this purpose, the government considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded when a liability is
incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures
related to compensated absences and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are all
considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal
period, subject to the availability criterion. Sales and use taxes are classified as derived tax revenues
and are recognized as revenue when the underlying exchange takes place and the revenues are
measurable and available. G rants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met, subject to the availability criterion. Only the
portion of special assessments receivable due within the current fiscal period is considered to be
susceptible to accrual as revenue of the current period. All other revenue items are considered to be
measurable and available only when cash is received by the government.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
The Town reports the following major governmental funds:
The General Fund is the government’s primary operating fund. I t accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund was created to accumulate revenue and other financing sources
for the purpose of financing general-purpose capital projects.
The Town reports its proprietary funds as major funds. Proprietary funds include:
The Water and Sewer Fund is used to account for the activities of the Town’s water and
sewer operations.
The Solid Waste Fund accounts for the provision of solid waste services to the residents of
the Town and some residents of t he County. All activities necessary to provide such services
are accounted for in this fund, including, but not limited to administration, operations,
maintenance, financing and related debt service, and billing and collection.
The Taos Regional Landfill Fund is used to account for the activities of the Taos Regional
Landfill including debt repayments, closure and post-closure care estimates as well as
operations and administration.
Additionally, the Town reports the following fund type:
The Fiduciary Fund is purely custodial (assets equal liabilities) and does not involve the
measurement of results of operations. This fund accounts for assets held by the Town in a
trustee capacity for the judicial system bonds.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. E xceptions to this general rule are payments-in-lieu of taxes and other charges
between the government’s enterprise funds and various other functions of the government.
Elimination of these charges would distort the direct costs and program revenues reported in the
Statement of Activities.
Program revenues included in the Statement of Activities are derived directly from the program itself
or from parties outside the Town’s taxpayer or citizenry, as a whole; program revenues reduce the cost
of the function to be financed from the Town ’s general revenues. P rogram revenues are categorized
as (a) charges for services, which include revenues collected for fees and use of Town facilities, etc.,
(b) program-specific operating grants, which includes revenues received from state and federal
sources such as small cities assistance to be used as specified within each program grant agreement,
and (c) program-specific capital grants and contributions, which include revenues from state sources
to be used for capital projects. I nternally dedicated resources are reported as general revenues rather
than as program revenues. Likewise, general revenues include all taxes.
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. T he Town does not currently employ i ndirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. I nterest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
Proprietary funds distinguish operating revenues and expenses from non-operating items. O perating
revenues and expenses generally result from p roviding services in connection with the fund’s principal
ongoing operations. The principal operating revenue of the Town’s enterprise fund is charges for
services for the Town’s utilities. O perating expenses for enterprise funds include the cost of services,
administrative expenses and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as non-operating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the Town’s policy to use
restricted resources first, then unrestricted resources as they are needed.
D.Assets, Liabilities and Net Assets or Equity
Deposits and Investments: T he Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of t hree months or less from the
date of acquisition.
State statutes authorize the Town to invest in Certificates of Deposit, obligations of the U.S.
Government, and the State Treasurer’s Investment Pool.
Investments for the Town are reported at fair value. The State Treasurer’s Pool operates in
accordance with appropriate state laws and regulations. T he reported value of the pool is the same as
the fair value of the pool shares.
Receivables and Payables: I nterfund activity is reported as loans, services provided, reimbursements
or transfers. L oans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are
treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost,
charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other
interfund transactions are treated as transfers. T ransfers between governmental or between proprietary
funds are netted as part of the reconciliation to the government-wide financial statements.
Ad vances between funds, as reported in the fund financial statements, are offset by a fund balance
reserve account in applicable governmental funds to indicate that they are not available for
appropriation and are not expendable available financial resources in the event they are not received
within 60 days of year end.
All receivables are reported at their gross value and, where appropriate, are reduced by the estimated
portion that is expected to be uncollectible. I n the government-wide and governmental fund financial
statements, delinquent property taxes are recorded when levied. Property taxes are considered to be
100% collectible.
Property taxes are levied on November 1 based on the assessed value of property as listed on the
previous January 1 and are due in two payments by November 10th and April 10th. Property taxes
uncollected after November 10th and April 10th are considered delinquent and the Town may assess
penalties and interest. T he taxes attach as an enforceable lien on property thirty (30) days thereafter,
at which time they become delinquent. Property taxes are collected by Taos County and remitted
mo nthly to the Town.
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted by d onors or other outside agencies as to the specific purpose for which they may be used.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Capital Assets: Capital assets, which include property, plant, equipment, and infrastructure assets
(e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide financial statements. Capital assets are
defined by the government as assets with an initial, individual cost of more than $5,000 (amount not
rounded) and an estimated useful life in excess of one year. S uch assets are recorded at historical cost
or estimated historical cost if purchased or constructed. Pursuant to the implementation of GASB
Statement No. 34, the historical costs of infrastructure assets (retroactive to 1979) are included as part
of the governmental capital assets reported in the government wide statements. Information
Technology Equipment including software is being capitalized and included in machinery and
equipment in accordance with NMAC 2.20.1.9 C (5). D onated capital assets are recorded at estimated
fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially
extend assets lives are not capitalized. Library books and periodicals are estimated to have a useful
life of less than one year or are under the capitalization threshold and are expensed when purchased.
Major outlays for capital assets and improvements are capitalized as projects are constructed. I nterest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. T he total interest expense capitalized by the Town
during the current fiscal year was $0. No interest wa s included as part of the cost of capital assets
under construction.
Property, plant, and equipment of the primary government are depreciated using the straight line
method over the following estimated useful lives:
Assets Years
Land Improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
Deferred Revenues: Accounting principles generally accepted in the United States of America
require that grant revenue (voluntary nonexchange transactions) be recognized as revenue in the
government-wide financial statements when all eligibility requirements have been met and recognized
as revenue in the governmental fund financial statements based on the same factors subject to the
availability criterion. Amounts received from reimbursement basis grants are recorded as deferred
revenue in the governmental fund financial statements when received more than 60 days after year
end.
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
year based on years of service. E mployees can carry o ver unused personal leave each year with a cap
of 500 hours. On an appointed day each year employees may sell back unused personal leave based
on the following: 2 00 to 299 hours –25% of hourly salary; 300 to 399 hours –50% of hourly salary;
400 to 499 –75% of hourly salary; 500 hours and above –100% of hourly salary.
Those employees who have accrued above 500 hours of personal leave as of December 31, 2009, will
be permitted to take their accrued leave in excess of 500 hours, up to a maximum of 136 hours above
the cap as long as leave is taken December 31, of the previous fiscal year.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Vested or accumulated vacation leave that is expected to be liquidated with expendable available
financial resources is reported as an expenditure and a fund liability of the governmental or
proprietary fund that will pay i t. I n prior years, substantially all of the related expenditures have been
liquidated by the general fund. Amo unts of vested or accumulated vacation leave that are not
expected to be liquidated with expendable available financial resources are reported in the
government-wide statement of net assets.
Long-term O bligations: I n the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term d ebt and other long-term o bligations are reported as liabilities
in the applicable governmental activities, business-type activities, or proprietary fund type statement
of net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method. Bonds payable are reported net of the
applicable bond premium or discount. For fund financial reporting, bond premiums and discounts, as
well as issuance costs, are recognized in the period the bonds are issued. B ond proceeds are reported
as another financing source net of the applicable premium or discount. Issuance costs, even if
withheld from the actual net proceeds received, are reported as debt service expenditures.
Fund Balance Classification Policies and Procedures: For committed fund balance, the Town's
highest level of decision-making authority is the Town Council. The formal action that is required to
be taken to establish a fund balance commitment is the Town Council.
For assigned fund balance, the Town Council or an official or body to which the Town Council
delegates the authority is authorized to assign amounts to a specific purpose. The authorization policy
is in governmental funds other than the general fund, assigned fund balance represents the amount that
is not restricted or committed. This indicates that resources in other governmental funds are, at a
minimum, intended to be used for the purpose of that fund.
For the classification of fund balances, the Town considers restricted or unrestricted amounts to have
been spent when an expenditure is incurred for the purposes for which both restricted and unrestricted
fund balance is available. Also for the classification of fund balances, the Town considers committed,
assigned, or unassigned amounts to have been spent when an expenditure is incurred for purposes for
which amounts in any of those unrestricted fund balance classifications could be used.
Nonspendable Fund Balance: At June 30, 2011, the Town did not have any fund balances in non
spendable form.
Restricted and Committed Fund Balance: At June 30, 2011, the Town has presented restricted
fund balance on the governmental funds balance sheet in the amount of $590,354 for various general
government operations as restricted by enabling legislation,$78,832 for public safety, $114,874 for
culture and recreation, $243,140 for public works, $586,533 for fire protection, $19,420 for health and
welfare, $393,571 for debt service expenditures, and $1,978,586 for capital projects. The Town has
committed fund balance of the general fund for subsequent year’s expenditures in the amount of
$1,110,366. The details of these fund balance items are located on the governmental funds balance
sheet as detailed on page 26.
Minimum Fund Balance Policy: The Town’s policy for maintaining a minimum amount of fund
balance for operations is to minimize any sudden and unplanned discontinuity to programs and
operations and for unforeseen contingencies. At a minimum, the budget shall ensure that the Town
holds cash reserves of 1/12th the General Fund expenditures. The amount at June 30, 2011 for the
Town is $1,017,901.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Net Assets: Equity is classified as net assets and displayed in three components:
a. Invested in capital assets, net of related debt: Net assets invested in capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.
b. Restricted Net Assets: Consist of net assets with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation.
Descriptions for the related restrictions for net assets restricted for “special revenue” and
“capital projects” are described on pages 38 and 64-67.
c. Unrestricted Net assets:All other net assets that do not meet the definition of “restricted”
or “invested in capital assets, net of related debt.”
Interfund Transactions: Quasi-external transactions are accounted for as revenues, expenditures or
expenses. T ransactions that constitute reimbursements to a fund from expenditures/expenses initially
made from it that are properly applicable to another fund, are recorded as expenditures/expenses in the
reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed.
All other interfund transactions, except quasi-external transactions and reimbursements are reported as
transfers. Nonrecurring or non-routine permanent transfers of equity are reported as residual equity
transfers. All other interfund transfers are reported as operating transfers.
Estimates: The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could
differ from those estimates. Significant estimates in the Town’s financial statements include the
allowance for uncollectible accounts in the joint utility fund and depreciation on capital assets.
NOTE 2.Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved by resolution of the
Town Councilors,and submitted to the Department of Finance and Administration for State approval.
Once the budget has been formally approved, any amendments must also be approved by the Town
Council Members and the Department of Finance and Administration. A s eparate budget is prepared
for each fund. Line items within each budget may be over-expended; however, it is not legally
permissible to over-expend any budget in total by fund.
Governmental fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of
the subsequent fiscal year.
Proprietary fund budgets are prepared on the GAAP basis, excluding encumbrances, and secure
appropriation of funds for only one year. Carryover funds must be re-appropriated in the budget of
the subsequent fiscal year. The Town does not budget for depreciation expense, only capital outlay.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 2.Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)
The budgetary information presented in these financial statements has been properly amended by
Town Council in accordance with the above procedures. T hese amendments resulted in the following
changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $37,577 $751,391
Capital Projects Fund $(1,944,422)$(1,926,617)
Nonmajor Governmental Funds $ (4,744,818) $(4,737,750)
Change in net assets
Budgeted Funds:
Water and Sewer $2,165,545 $2,060,152
Solid Waste $ (191,770) $ (191,770)
Taos Regional Landfill $(23,921)$ (54,432)
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance –Budget
(GAAP Basis) and Actual and Statements of Revenues, Expenses and Changes in Net Assets-Budget
(GAAP Basis) and Actual present comparisons of the legally adopted budget with actual data on a
budgetary basis.
NOTE 3.Deposits and Investments
State statutes authorize the investment of Town funds in a wide variety of instruments including certificates of
deposit and other similar obligations, state investment pool, money market accounts, and United States
Government obligations. The Town is not aware of any invested funds that did not meet the State investment
requirements as of June 30, 2011.
Deposits of funds may be made in interest or non-interest bearing checking accounts in one or more banks or
savings and loan associations within the geographical boundaries of the Town. Deposits may be made to the
extent that they are insured by an agency of the United States or collateralized as required by statute.
The rate of interest in non-demand interest-bearing accounts shall be set by the State Board of Finance, but in
no case shall the rate of interest be less than one hundred percent of the asked price on United States treasury
bills of the same maturity on the day of deposit.
Excess of f unds may be temporarily invested in securities which are issued by the State or by the United States
government, or by their departments or agencies, and which are either direct obligations of the State or the
United States or are backed by the full faith and credit of those governments.
According to the Federal Deposit Insurance Corporation (FDIC), public unit deposits are funds owned by the
public unit. Under the Transaction Account Guarantee Program (TAGP) in effect from July 1, 2010 to
December 31, 2010, time deposits, savings deposits and interest bearing negotiable order of withdrawal (NOW)
accounts of a public unit in an institution in the same state will be insured up to $250,000 in aggregate and
separate from the $250,000 coverage for public unit demand deposits at the same institution.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 3.Deposits and Investments (continued)
The TAGP program expired on December 31, 2010. On November 9, 2010, the FDIC Board of Directors
issued a final rule to implement the section of the Dodd-Frank Wall Street Reform and Consumer Protection
Act that provides temporary unlimited coverage for noninterest-bearing transaction accounts in all FDIC-
insured depository institutions. The separate coverage on noninterest-bearing transaction accounts became
effective on December 31, 2010 and will terminate on December 31, 2012. From December 31, 2010 to July
20, 2011 accounts held by an official custodian for a government unit are insured as follows:
-Up to $250,000 for the combined total of all time and savings deposits (including NOW accounts), and
.
-Unlimited coverage for noninterest-bearing transaction (demand deposit) accounts
Through July 20,2011, there is no difference in deposit insurance coverage when an official custodian deposits
money in-state or out-of-state.
Custodial Credit Risk –Deposits Custodial credit risk is the risk that in the event of a bank failure, the Town’s
deposits may not be returned to it. T he Town does not have a deposit policy for custodial credit risk, other than
following state statutes as set forth in the Public Money Act (Section 6-10-1 to 6-10-63, NMSA 1978). At June
30, 2011, $5,977,818 of the Town’s deposits of $6,839,822 was exposed to custodial credit risk. $5,152,656
was uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s
name and $825,162 was uninsured and uncollateralized.
Amount of deposits 4,482,776$ 2,357,046$ 6,839,822$
(41,443) (70,561) (112,004)
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 3,941,333 2,036,485 5,977,818
3,941,333 1,211,323 5,152,656
Uninsured and uncollateralized -$ 825,162$ 825,162$
Collateral requirement
(50% of uninsured funds)1,970,667$ 1,018,243$ 2,988,910$
Pledged Collateral 4,313,355 1,211,323 5,524,678
Over (Under) collateralized 2,342,688$ 193,080$ 2,535,768$
TotalCentinel Bank
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than the
Town's name
First Community
Bank
Deposit Accounts covered by the
"Dodd-Frank Deposit Insurance
Provision"
The collateral pledged is listed on Schedule II in this report. The types of collateral allowed are limited to
direct obligations of the United States Government and all bonds issued by any agency, district or political
subdivision of the State of New Mexico.
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 3.Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The New
MexiGROW Local Government Investment Pool’s (LGIP)investments are valued at fair value based on quoted
market prices as of the valuation date. The LGIP is not SEC registered. The New Mexico State Treasurer is
authorized to invest the short-term i nvestment funds, with the advice and consent of the State Board of Finance,
in accordance with Sections 6-10-10(I) through 6-10-10(P) and Sections 6-10-10.1(A) and (E), NMSA 1978.
The pool does not have unit shares. P er Section 6-10-10.(F), NMSA 1978, at the end of each month all interest
earned is distributed by the State Treasurer to the contributing entities in amounts directly proportionate to the
respective amounts deposited in the fund and the length of time the fund amounts were invested. P articipation
in the LGIP is voluntary.
As of June 30, 2011, the Town’s investment in the State Treasurer Local Government Investment Pool was
rated as AAAm by Standard & Poor’s.
Additionally, the Town has investments held in U.S. Treasury Money Market Mutual Funds at the Bank of
Albuquerque in connection with New Mexico Finance Authority (NMFA) loans. Also, the Town has
investments which are managed by NMFA, on deposit with the State Treasurer’s office, in NMFA’s name for
the benefit of the Town.
The Town’s investments at June 30, 2011 include the following:
Investments Rated
New MexicoGrow Local Government Investment Pool AAAm 36 Days 4,638,833$
Reserve Contingency Fund Unrated Does not earn interest 39,236
U.S. Treasury Money Market Mutual Funds *AAA >365 Days 390,059
New Mexico State Treasurer Debt Service *AAA >365 Days 181,588
$ 5,249,716
Weighted Average
Maturity Fair Value
*Restricted cash and cash equivalents per Exhibit A-1
Interest Rate Risk –Investments. The Town does not have a formal policy limiting investment maturities that
would help manage its exposure to fair value losses from increasing interest rates.
Concentration of Credit Risk –Investments. For an investment, concentration of credit risk is when any one
issuer is 5% or more of the investment portfolio of the Town. T he investments in the New MexiGROW LGIP
and U.S Treasury Money Market Mutual Funds represent 88% and 7%, respectively, of the investment
portfolio. Since the Town only purchases investments with the highest credit rating, the additional
concentration is not viewed to be an additional risk by the Town. T he Town’s policy related to concentration
credit risk is to comply with the state statute as put forth in the Public Money Act (Section 6-10-1 to 6-10-63,
NMSA 1978).
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 3. Deposits and Investments (continued)
Reconciliation to the Statement of Net Assets:
Cash and cash equivalents per Exhibit A-1 4,227,862$
Restricted cash and cash equivalents per Exhibit A-1 1,440,212
Agency funds cash per Exhibit E-1 10,582
Certificates of deposits (maturity > 3 months) 365,500
Plus outstanding checks 1,571,966
Less deposits in transit (203,653)
Less U.S. Treasury Money Market Mutual Funds (390,059)
Less New Mexico State Treasurer Debt Service (181,588)
Less petty cash (1,000)
Bank balance of deposits 6,839,822$
NOTE 4. Receivables
Receivables as of June 30, 2011, are as follows:
Governmental Activities:Other
Capital Governmental
General Projects Funds Total
Property taxes receivable 212,019$ -$ -$ 212,019$
Other taxes receivable:
Gross receipts 786,120 255,098 1,041,218
Gasoline and motor vehicle 29,622 - 19,130 48,752
Lodger's taxes - - 96,549 96,549
Due from other governments:
Intergovernmental:
Federal grants 82,466 - - 82,466
State grants 726,557 204,078 606,538 1,537,173
Total receivables 1,836,784$204,078$ 977,315$ 3,018,177$
Receivables for governmental activities are considered to be 100% collectible.
Governmental funds report deferred revenue in connection with receivables for revenues that are not considered
to be available to liquidate liabilities in the current period. Governmental funds also defer revenue recognition
in connection with resources that have been received but not yet earned. Deferred revenue related to property
taxes receivable for the Town for the year ended June 30, 2011 was $196,286. In addition, the Town also
deferred revenue related to a lodger’s tax settlement that has not been received within the period of availability
in the amount of $94,665.
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 4.Receivables (continued)
Business-type Activities:Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 875,647$ 201,197$ 104,800$ 1,181,644$
Other receivables:
Gross receipts taxes 80,217 - - 80,217
Intergovernmental:
State grants 617,027 5,727 - 622,754
Total gross receivables 1,572,891 206,924 104,800 1,884,615
Less: allowance for
doubtful accounts 358,283 3,370 38,224 399,877
Total net receivables 1,214,608$203,554$ 66,576$ 1,484,738$
NOTE 5.Transfers and Interfund Receivables
Net operating transfers, made to close out funds and to supplement other funding sources, were as follows:
Governmental Activities:
Transfers In Transfers Out Amount
General Fund Lodger's Tax 13,500
General Fund Community Grants 39,000
General Fund 1/4 Cent Municipal GRT 181,097
General Fund Facilities Improvements 213,000
General Fund Capital Projects 173,121
General Fund General Fund 4,795,651
Recreation Community Grants 3,568
Lodger's Tax General Fund 298,000
Lodger's Tax Lodger's Tax 362,103
Local Government Correction General Fund 121,191
Civic Center Lodger's Tax 312,103
Civic Center General Fund 72,047
Public Transportation Lodger's Tax 153,280
Community Grants General Fund 15,000
1/4 Cent Municipal GRT Capital Projects 12,500
Communications Fund General Fund 286,400
NMFA Debt Service Reserve Eco Park 1/4 Cent Municipal GRT 180,784
2008 State Shared GRT RB Retirement 1/4 Cent Municipal GRT 492,000
1999 Gas Tax Revenue Bond Retirement General Fund 47,867
1999 Gas Tax Revenue Bond Retirement Municipal Road Gasoline Tax 105,235
1999 Gas Tax Revenue Bond Retirement 1999 Gas Tax Revenue Bond Reserve 1,837
1999 Gas Tax Revenue Bond Retirement State Shared Gasoline Tax 164,919
2007 NMFA PPRF Land Purchase 1/4 Cent Municipal GRT 92,000
Facilities Improvement Fund Capital Projects 295,000
Capital Projects Community Grants 30,000
Capital Projects Facilities Improvements 408,104
Airport Construction General Fund 3,000
2009 NMFA PPRF Disadvantage Program- Eco Park General Fund 180,831
1999 Gas Tax Acquisition Fund Capital Projects 479,691
9,532,829$
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 5.Transfers and Interfund Receivables (continued)
Business-Type Activities:
Transfers In Transfers Out Amount
Water and Sewer Water and Sewer 2,800,358$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2011 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 783$
General Fund Taos Regional Landfill 2,958
General Fund 1999 Gasoline Tax Acquisition 202,953
206,694$
All interfund transactions are short-term and are expected to be repaid within a month.
NOTE 6.Capital Assets
A summary of capital assets and changes occurring during the year ended June 30, 2011 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2010 Reclassifications Additions Deletions June 30, 2011
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ -$ 6,277,809$
Construction in progress 7,501,644 (7,384,741) 2,503,010 (150,211) 2,770,124
Total capital assets, not depreciated 13,779,453 (7,384,741) 2,503,010 (150,211) 9,047,933
Capital assets, depreciated:
Land improvements 5,068,985 - - - 5,068,985
Buildings and improvements 27,221,556 6,231,695 - 147,184 33,306,067
Machinery and equipment 15,242,273 - 173,328 199,859 15,215,742
Infrastructure 46,367,444 1,153,046 1,680,451 - 49,200,941
Total capital assets, depreciated 93,900,258 7,384,741 1,853,779 347,043 102,791,735
Less accumulated depreciation:
Land improvements (3,356,500) - (245,047) - (3,601,547)
Buildings and improvements (10,640,299) - (1,572,137) - (12,212,436)
Machinery and equipment (10,809,919) - (1,056,689) (191,321) (11,675,287)
Infrastructure (29,146,956) - (1,722,821) - (30,869,777)
Total accumulated depreciation (53,953,674) - (4,596,694) (191,321) (58,359,047)
Net book value 53,726,037$ -$ (239,905)$ 5,511$ 53,480,621$
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 6. Capital Assets (continued)
Depreciation expense for the year ended June 30, 2011 was charged to governmental activities as follows:
General government 1,574,960$
Public safety 599,480
Public works 1,875,093
Culture and recreation 547,161
4,596,694$
Balance Balance
Business-type activities:June 30, 2010 Reclassifications Additions Deletions June 30, 2011
Capital assets, not depreciated:
Land 262,422$ -$ -$ -$ 262,422$
Construction in progress 2,635,438 (10,390) 6,245,144 - 8,870,192
Total capital assets, not depreciated 2,897,860 (10,390) 6,245,144 - 9,132,614
Capital assets, depreciated:
Land improvements 104,895 - - - 104,895
Buildings and improvements 4,305,980 10,390 85,154 16,501 4,385,023
Machinery and equipment 8,452,022 - 252,860 79,913 8,624,969
Infrastructure 20,108,528 - 909,055 - 21,017,583
Total capital assets, depreciated 32,971,425 10,390 1,247,069 96,414 34,132,470
Less accumulated depreciation:
Land improvements (80,278) - (2,799) - (83,077)
Buildings and improvements (1,820,326) - (159,325) - (1,979,651)
Machinery and equipment (5,797,709) - (306,739) (79,913) (6,024,535)
Infrastructure (6,388,146) - (767,827) - (7,155,973)
Total accumulated depreciation (14,086,459) - (1,236,690) (79,913) (15,243,236)
Net book value 21,782,826$ -$ 6,255,523$ 16,501$ 28,021,848$
Depreciation expense for the year ended June 30, 2011 was charged to business-type activities as follows:
Water and sewer 1,036,555$
Solid waste 11,581
Landfill 188,554
1,236,690$
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2011, the following changes occurred in the liabilities reported in the
government-wide statement of net assets:
Balance Balance Due Within
June 30, 2010 Additions Retirements June 30, 2011 One Year
Revenue Bonds 6,545,000$ -$ 415,000$ 6,130,000$ 435,000$
NMFA Loans 2,867,982 - 217,296 2,650,686 221,078
USDA Contract Payable 72,000 - 18,000 54,000 18,000
Compensated Absences 646,610 446,975 442,418 651,167 442,418
Total Long-Term Debt 10,131,592$ 446,975$ 1,092,714$ 9,485,853$ 1,116,496$
Revenue Bonds
At June 30, 2011, the Town had two revenue bonds outstanding. For the Series 1999 Gasoline Tax Revenue
Bonds, the Town pledged revenues from the General and Municipal Road Gasoline Tax revenues. For the
Series 2008 Gross Receipts Tax Revenue Bonds, the Town pledged revenues from the State-Shared Gross
Receipts Tax revenues. The revenue bonds are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 1999 Gasoline Tax 03/01/99 10/01/12 3.60-4.75%1,955,000$
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00%6,395,000
The annual requirements to amortize the revenue bonds as of June 30, 2011, including interest payments,are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2012 435,000$ 247,755$ 682,755$
2013 450,000 229,188 679,188
2014 280,000 209,800 489,800
2015 290,000 198,600 488,600
2016 300,000 187,000 487,000
2017-2021 1,515,000 826,650 2,341,650
2022-2026 2,860,000 180,890 3,040,890
6,130,000$ 2,079,883$ 8,209,883$
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 7. Long-term Debt (continued)
NMFA Loans
The Town entered into two loan agreements with the New Mexico Finance Authority, wherein the Town
pledged revenue derived from State-Shared Gross Receipts Tax to cover debt service. This revenue is not
subject to intercept agreements. The NMFA loans are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
NMFA Land Purchase Loan 04/13/07 05/01/17 3.32-3.73%954,000$
NMFA Phase I Multi-Phase Eco Park 11/25/09 05/01/25 0.62-3.67%2,213,469
The annual requirements to amortize the NMFA loans as of J une 30, 2011, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2012 221,078$ 71,874$ 292,952$
2013 225,410 67,785 293,195
2014 230,226 63,220 293,446
2015 235,585 58,119 293,704
2016 241,436 52,535 293,971
2017-2021 834,193 183,076 1,017,269
2022-2025 662,758 60,266 723,024
2,650,686$ 556,875$ 3,207,561$
USDA Contract Payable
At June 30, 2011, the Town had the following USDA contract payable:
Original
Date of Due Interest Amount Balance
Description Issue Date Rate of Issue June 30, 2011
USDA Contract Payable 02/01/95 06/30/14 0.00%360,000$ 54,000$
The annual requirements to amortize the USDA contract payable as of June 30, 2011,including interest
payments, are as follows:
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 7.Long-term Debt (continued)
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2012 18,000$ -$ 18,000$
2013 18,000 - 18,000
2014 18,000 - 18,000
54,000$ -$ 54,000$
In prior years, the debt service funds have typically been used to liquidate long-term liabilities other than debt
associated with the USDA contract payable which is liquidated by the facilities improvements capital projects
fund.
Compensated Absences-Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. D uring fiscal year June 30, 2011, compensated absences increased $4,558
from the prior year accrual.Compensated absences are liquidated by the respective funds in which they are
accrued.
Proprietary Funds
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. T he following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2011:
Balance Balance Due Within
June 30, 2010 Additions Retirements June 30, 2011 One Year
Revenue Bonds 2,139,600$ -$ 41,000$ 2,098,600$ 43,000$
NMFA and RUS Loans 3,613,904 - 243,550 3,370,354 302,663
Landfill Closure Liability 480,190 1,332,728 - 1,812,918 -
Compensated Absences 64,390 61,264 62,827 62,827 62,827
Total Long-Term Debt 6,298,084$ 1,393,992$ 347,377$ 7,344,699$ 408,490$
Revenue Bonds
At June 30, 2011, the Town had the following revenue bonds outstanding:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
Series 1993A Water & Sewer 03/16/93 03/16/33 5.63%635,600$
Series 1993B Water & Sewer 03/16/93 03/16/33 5.50%123,000
Series 1995A Water & Sewer 12/05/95 12/05/35 5.125%1,315,000
Series 1998A Water & Sewer 07/01/99 01/01/38 4.75%475,000
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 7.Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2011, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2012 43,000$ 109,235$ 152,235$
2013 46,000 106,982 152,982
2014 49,000 104,572 153,572
2015 52,000 102,003 154,003
2016 54,000 99,279 153,279
2017-2021 316,000 450,769 766,769
2022-2026 409,000 358,541 767,541
2027-2031 529,000 239,327 768,327
2032-2036 538,600 91,745 630,345
2037-2038 62,000 4,485 66,485
2,098,600$ 1,666,938$ 3,765,538$
NMFA and USDA Loans
The Town entered into loan agreements with the New Mexico Finance Authority and USDA.These loans are
not subject to intercept agreements. The loans are as follows:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
RUS Series 2000A Water & Sewer 12/18/00 12/18/40 5.00%250,000$
NMFA Series 2001A Water & Sewer 05/11/01 05/01/21 4.16-5.41%950,391
NMFA Taos Regional Landfill 04/23/04 05/01/14 .79-3.34%1,372,684
NMFA Series 2008A Landfill 04/11/08 05/01/18 2.72-3.58%1,000,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%130,000
NMFA/WTB Water Project Fund Loan 09/11/09 06/01/29 0.00%600,000
NMED/ARRA Water State Revolving Fund Loan 11/23/09 06/30/30 0.00% 1,000,000
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 7.Long-term Debt (continued)
The annual requirement to amortize the loans as of June 30, 2011,including interest payments, are as follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2012 302,663$ 59,921$ 362,584$
2013 309,252 53,597 362,849
2014 317,268 46,765 364,033
2015 251,666 39,438 291,104
2016 257,182 34,229 291,411
2017-2021 947,855 91,387 1,039,242
2022-2026 466,087 42,200 508,287
2027-2031 400,381 29,350 429,731
2032-2036 49,000 17,150 66,150
2037-2041 69,000 2,750 71,750
3,370,354$ 416,787$ 3,787,141$
Compensated Absences-Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. D uring fiscal year June 30, 2011, compensated absences decreased $1,563
from the prior year accrual.Compensated absences are liquidated by the respective funds in which they are
accrued.
NOTE 8.Risk Management
The Town is exposed to various risks of loss related to torts, thefts of, damage to, and destruction of p roperty,
errors and omissions and natural disasters. T he Town participates in the New Mexico Self-Insurers’ Fund risk
pool.
The Town has not filed any claims for which the settlement amount exceeded the insurance coverage during the
past three years. H owever, should a claim be filed against the Town which exceeds the insurance coverage, the
Town would be responsible for a loss in excess of the coverage amounts. A s claims are filed, the New M exico
Self-Insurers’ Fund assesses and estimates the potential for loss and handles all aspects of the claim. I nsurance
coverage’s have not changed significantly from prior years and coverage’s are expected to be continued.
At June 30, 2011, no unpaid claims have been filed which exceed the policy limits and to the best of
management’s knowledge and belief all known and unknown claims will be covered by insurance. The Town
is not aware of any major lawsuits that have been filed.
New M exico Self-Insurers’ Fund has not provided information on an entity by e ntity basis that would allow for
a reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal
year.
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 9. Other Required Individual Fund Disclosures
Generally accepted accounting principles require disclosures of certain information concerning individual funds
including:
A.Deficit fund balance of individual funds. There were no funds with a deficit fund balance as of June 30,
2011.
B.Actual expenditures in excess of amount budgeted at the budgetary authority level. Budgetary legallevel
of control is at the fund level. There were no funds that exceeded approved budgetary authority for the
year ended June 30, 2011:
C.Designated cash appropriations in excess of a vailable balances. There were no funds that had designated
cash appropriations in excess of available balances for the year ended June 30, 2011.
NOTE 10.Pension Plan-Public Employees Retirement Association
Plan Description. Substantially all of the Town of Taos’s full-time employees participate in a public employee
retirement system authorized under the Public Employees Retirement Act (Chapter 10, Article 11 NMSA
1978.) T he Public Employees Retirement Association (PERA) is the administrator of the plan, which is a cost-
sharing, multiple-employer defined benefit retirement plan. T he plan provides for retirement benefits, disability
benefits, survivor benefits, and cost-of-living adjustments to plan members and beneficiaries. P ERA issues a
separate, publicly available financial report that includes financial statements and required supplementary
information for the plan. That report may be obtained by writing to PERA, P.O. Box 2123, Santa Fe, NM
87504-2123. The report is also available on PERA’s website at www.pera.state.nm.us.
Funding Policy. Plan members are required to contribute the following percentages of their gross salary:
9.15% for law enforcement, fire protection and municipal employees. T he Town is required to contribute the
following percentages of the gross covered salary: 25.65% for law enforcement employees, 28.30% for fire
protection employees, and 13.15% for municipal employees. T he contribution requirements of plan members
and the Town are established in State statute under Chapter 10, Article 11, NMSA 1978. The requirements
may be amended by acts of the legislature. T he Town ’s contributions to PERA for the years ending June 30,
2011, 2010 and 2009 were $1,003,393 $1,050,500,and $964,168, respectively, which equals the amount of t he
required contributions for each fiscal year.
NOTE 11.Post-Employment Benefits –State Retiree Health Care Plan
Plan Description. Town of Taos contributes to the New Mexico Retiree Health Care Fund, a cost-sharing
multiple-employer defined benefit postemployment healthcare plan administered by t he New Mexico Retiree
Health Care Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to
retired employees of p articipating New Mexico government agencies, their spouses, dependents, and surviving
spouses and dependents. The RHCA Board was established by the Retiree Health Care Act (Chapter 10,
Article 7C, NMSA 1978). The Board is responsible for establishing and amending benefit provisions of the
healthcare plan and is also authorized to designate optional and/or voluntary benefits like dental, vision,
supplemental life insurance, and long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and
whose eligible employer during that period of time made contributions as a participant in the RHCA plan on the
person’s behalf unless that person retires before the employer’s RHCA effective date, in which event the time
period required for employee and employer contributions shall become the period of time between the
employer’s effective date and the date of retirement; 2) retirees defined by the Act who retired prior to July 1,
1990; 3) former legislators who served at least two years; and 4) former governing authority members who
served at least four years.
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 11.Post-Employment Benefits –State Retiree Health Care Plan (continued)
The RHCA issues a publicly available stand-alone financial report that includes financial statements and
required supplementary information for the postemployment healthcare plan. That report and further
information can be obtained by writing to the Retiree Health Care Authority at 4308 Carlisle NE, Suite 104,
Albuquerque, NM 87107.
Funding Policy. T he Retiree Health Care Act (Section 10-7C-13 NMSA 1978) authorizes the RHCA Board to
establish the monthly premium contributions that retirees are required to pay for healthcare benefits. Each
participating retiree pays a mo nthly premium a ccording to a service based subsidy rate schedule for the medical
plus basic life plan plus an additional participation fee of five dollars if the eligible participant retired prior to
the employer’s RHCA effective date or is a former legislator or former governing authority member. Former
legislators and governing authority members are required to pay 100% of the insurance premium to cover their
claims and the administrative expenses of t he plan. T he mo nthly premium rate schedule can be obtained from
the RHCA or viewed on their website at www.nmrhca.state.nm.us.
The Retiree Health Care Act (Section 10-7C-15 NMSA 1978) is the statutory authority that establishes the
required contributions of p articipating employers and their employees. During the fiscal year ended June 30,
2011, the statute required each participating employer to contribute 1.666% of each participating employee’s
annual salary; each participating employee was required to contribute .833% of their salary. I n the fiscal years
ending June 30, 2012 through June 30, 2013 the contribution rates for employees and employers will rise as
follows:
(1)
For employees who are not members of an enhanced retirement plan the contribution rates will be:
Fiscal Year Employer Contribution Rate Employee Contribution Rate
FY 12 1.834%.917%
FY 13 2.000%1.000%
(2)
For employees who are members of an enhanced retirement plan (state police and adult correctional officer
coverage plan 1; municipal police member coverage plans 3, 4, and 5; municipal fire member coverage plan 3,
4 and 5; municipal detention officer member coverage plan 1; and members pursuant to the Judicial Retirement
Act [10-12B-1 NMSA 1978]), during the fiscal year ended June 30, 2011, the statute required each
participating employer to contribute 2.084% of each participating employee’s annual salary;and each
participating employee was required to contribute 1.042% of their salary. In the fiscal years ending June 30,
2012 through June 30, 2013 the contribution rates for both employees and employers will rise as follows:
Fiscal Year Employer Contribution Rate Employee Contribution Rate
FY 12 2.292%1.146%
FY 13 2.500%1.250%
Also, employers joining the program after 1/1/98 are required to make a surplus-amount contribution to the
RHCA based on one of two formulas at agreed-upon intervals.
The RHCA plan is financed on a pay-as-you-go basis. The employer, employee and retiree contributions are
required to be remitted to the RHCA on a monthly basis. The statutory requirements for the contributions can
be changed by t he New Mexico State Legislature. The Town’s contributions to the RHCA for the years ended
June 30, 2011, 2010 and 2009 were $106,634, $83,627 and $76,488,respectively, which equal the required
contributions for each year.
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 12.Contingent Liabilities
There is not any pending litigation that would warrant disclosure in the notes to the financial statements.
NOTE 13.Federal and State Grants
In the normal course of operations, the Town receives grant funds from various federal and state agencies.
Amounts received or receivable from grantor agencies are subject to audit and adjustment by g rantor agencies,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds. A ny liability
for reimbursement which may arise as a result of these audits is not believed to be material.
NOTE 14.Landfill Closure and Post Closure Care Costs
State and Federal laws and regulations require that the Town place a final cover on its landfill site and perform
certain maintenance and monitoring functions at the landfill site for a minimum of thirty years after closure. I n
addition to operating expenses related to current activities of the landfill site, an expense provision and related
liability are being recognized based on the future closure and postclosure care costs that will be incurred near or
after the date the landfill no longer accepts waste. T he recognition of these landfill closure and postclosure care
costs is based on the amount of the landfill used during the year. T he estimated liability for landfill closure and
postclosure care costs is $1,812,918 as of June 30, 2011, wh ich is based on 31 percent usage (filled) of the
landfill. This is an increase of $1,332,728, due to additional costs in mo nitoring and postclosure. The
estimated total current cost of the landfill closure and postclosure care is based on the amount that would be
paid if all equipment, facilities, and services required to close, monitor, and maintain the landfill were acquired
as of June 30, 2011. However, the actual cost of closure and postclosure care may be higher due to inflation,
changes in technology, or changes in landfill laws and regulations.
In addition, the Town is required by State and Federal laws and regulations to make annual contributions to
finance closure and postclosure care. The Town is in compliance with these requirements, and at June 30,
2011, cash of $613,955 is part of the pooled funds held by the Town and is presented as restricted cash on the
statement of net assets.
NOTE 15.Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2011 in
the amount of $1,782,167 as follows:
Project Description Contractor
Eco Park 130,436$ Lone Mountain Construction and Living Designs
Wastewater Treatment Plant
Upgrades 890,256 AUI, Inc., Zenon & Souder, Miller and Associates
Well 9 Improvements 187,864 Hydro Resources- Rocky Mountain, Inc. & Souder
Miller and Associates
Airport EIS 228,426 URS Corporation
Urban Interface Engine 345,185 Siddons- Martin Emergency
1,782,167$
Contract Amount
Remaining
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 16.Subsequent Events
The date to which events occurring after June 30, 2011, the date of the most recent statement of net assets, have
been evaluated for possible adjustment to the financial statements or disclosures is November 29, 2011 which is
the date on which the financial statements were issued.
LGIP Investment in the Reserve Primary Fund
The New Mexico State Treasurer's Office invested a portion of the LGIP in The Reserve Primary Fund ("the
Fund"), a money market fund, in fiscal years 2006, 2007, 2008 and 2009. O n September 15, 2008, the balance
of the LGIP’s investment in the Fund was $381.7 million. On September 16, 2008, The Reserve Primary
Fund's net asset value fell below $1.00 and holdings in the Fund were frozen.
On July 15, 2010, the Reserve announced that it will begin its seventh distribution to Primary Fund
shareholders on or about July 16, 2010. The distribution, in the amount of approximately $215 million,
represents approximately 67% of the Fund’s remaining asset value of $323 million as of t he close of business
on July 9, 2010. I ncluding this seventh distribution, $50.7 billion of Fund assets as of the close of business on
September 15, 2008, will have been returned to investors. There have been no additional distributions in the
past year.
The New Mexico State Treasurer’s Office believes that there may be additional distributions. Uncertainty
remains, however, as to the timing and amounts of these distributions. Effective November 24, 2010, all
remaining assets were transferred to a liquidating services agent, Crederian Fund Services LLC.
Severance Payout
On September 9, 2011, the Town paid the Town Manager a severance amount of $111,600, which is calculated
on his base salary at the time of separation. The Town Council approved a one year salary severance payout
upon separation from the Town which occurred in August 2011.
NOTE 17.Concentrations
The Town depends on financial resources flowing from, or associated with, both the Federal Government and
the State of New Mexico. B ecause of this dependency, the Town is subject to changes in the specific flows of
intergovernmental revenues based on modifications to Federal and State laws and Federal and State
appropriations.
NOTE 18.Restricted Net Assets
The government-wide statement of net assets reports $5,266,812 of restricted net assets, all of which is
restricted by enabling legislation. See pages 38 and 64 to 67 for descriptions of the related restrictions for
special revenue, debt service and capital projects funds.
NOTE 19.Utility Revenues Pledged
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $635,600 in Series 1993A Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $505,600 and $388,586, respectively. Principal and interest paid for the current year and total
customer net revenues were $40,059 and $2,626,140, respectively.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 19.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $123,000 in Series 1993B Water & Sewer Revenue Bonds, issued in 1993.
The bonds are payable solely from utility customer net revenues and are payable through March 2033. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $99,000 and $78,539, respectively. P rincipal and interest paid for the current year and total customer
net revenues were $7,555 and $2,626,140, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Utility Bonds, issued in 1995. The bonds are
payable solely from utility customer net revenues and are payable through December 2035. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service account or
the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $1,085,000 and $863,874, respectively. Principal and interest paid for the current year and total
customer net revenues were $77,683 and $2,626,140, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $475,000 in Series 1998A Water & Sewer Revenue Bonds, issued in 1999.
The bonds are payable solely from utility customer net revenues and are payable through January 2038. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the bond agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the bond agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the bond agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $409,000 and $335,938, respectively. Principal and interest paid for the current year and total
customer net revenues were $27,085 and $2,626,140, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $250,000 in RUS Series 2000A Water & Sewer Loan, issued in 2000. The
loans are payable solely from utility customer net revenues and are payable through December 2040. The
pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts
due under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service
account or the loan agreement reserve account, to the USDA or the Trustee, as its assignee, to be deposited in
the debt service reserve account or the loan agreement reserve account held by the trustee, payable from and
constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan
is $225,000 and $195,650, respectively. P rincipal and interest paid for the current year and total customer net
revenues were $14,400 and $2,626,140, respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $950,391 in NMFA Series 2001A Water & Sewer Loan, issued in 2001. T he
loans are payable solely from utility customer net revenues and are payable through May 2021. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan agreement,including an amount sufficient to cure any deficiencies in the debt service account or
the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $509,177
and $121,129, respectively. Principal and interest paid for the current year and total customer net revenues
were $68,080 and $2,626,140, respectively.
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 19.Utility Revenues Pledged (continued)
The Town of Taos has pledged future revenues from the distribution of the Municipal Environmental Services
Gross Receipts Tax revenue, to repay $1,372,684 in NMFA Taos Regional Landfill Loan, issued in 2004. T he
loans are payable solely from the Municipal Environmental Services GRT revenue and are payable through
May 2014. The pledged revenues shall be in an amount sufficient to pay principal, premium, if any, interest
and other amounts due under the loan agreement, including an amount sufficient to cure any deficiencies in the
debt service account or the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be
deposited in the debt service reserve account or the loan agreement reserve account held by t he trustee, payable
from and constituting a lien upon the pledged revenues. T he total principal and interest remaining to be paid on
the loan is $230,204 and $15,099, respectively. Principal and interest paid for the current year and total
customer net revenues were $81,429 and $943,564, respectively.
The Town of Taos has pledged future revenues from the Taos Regional Landfill system, net of operation and
maintenance expenses, to repay $1,000,000 in NMFA Series 2008A Landfill Loan, issued in 2008. T he loans
are payable solely from utility customer net revenues and are payable through May 2018. The pledged
revenues shall be in an amount sufficient to pay principal, premium, if any, interest and other amounts due
under the loan agreement, including an amount sufficient to cure any deficiencies in the debt service account o r
the loan agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt
service reserve account or the loan agreement reserve account held by the trustee, payable from and constituting
a lien upon the pledged revenues. T he total principal and interest remaining to be paid on the loan is $738,285
and $84,909, respectively. P rincipal and interest paid for the current year and total customer net revenues were
$102,398 and $943,564, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $130,000 in NMFA/WTB Water Project, issued in 2009. T he loans are payable
solely from utility customer net revenues and are payable through June 2029. T he pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal to be paid on the loan is $118,903 with no interest due.
Principal for the current year and total customer net revenues were $5,913 and $2,626,140, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $600,000 in NMFA/WTB Water Project, issued in 2009. The loans are payable
solely from utility customer net revenues and are payable through June 2029. T he pledged revenues shall be in
an amount sufficient to pay principal, premium, if any, interest and other amounts due under the loan
agreement, including an amount sufficient to cure any deficiencies in the debt service account or the loan
agreement reserve account, to the NMFA or the Trustee, as its assignee, to be deposited in the debt service
reserve account or the loan agreement reserve account held by the trustee, payable from and constituting a lien
upon the pledged revenues. The total principal to be paid on the loan is $548,786 with no interest due.
Principal for the current year and total customer net revenues were $27,288 and $2,626,140, respectively.
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2011
NOTE 20.Related Parties
The Town conducted transactions with several entities which are considered related parties. T hese related party
transactions are as follows:
Vendor Related Party Amount
DMC Broadcasting Mayor Darren Cordova $ 30,815
Abeyta Engineering Council member Rudy Abeyta’s brother 48,657
In & Out Plumbing Assistant Town Manager –Abigail Adame’s father 2,312
MS Quick Stop Finance Director –Marietta Fambro’s brother 516
Dave’s Digital IT Manager –Reuben Martinez’s brother 2,023
Northern NM Job & Drug Screening CEDD –Matt Sprigg’s wife 1,890
Vallecito Courier Cust. Serv. Mgr. –Debbie Medina-Vigil’s husband 654
Toop Toops Bldg & Grounds Dir. –Manuel Pacheco’s sister-in-law 3,046
NOTE 21.Subsequent Pronouncements
In November 2010, GASB Statement No. 60 Accounting and Financial Reporting for Service Concession
Arrangements, Effective Date: For financial statements for periods beginning after December 15, 2011. The
provisions of this Statement generally are required to be applied retroactively for all periods presented. The
standard is expected to have no effect on the Town in upcoming years.
In November 2010, GASB Statement No. 61 The Financial Reporting Entity: Omnibus—an amendment of
GASB Statements No. 14 and No. 34, Effective Date: The provisions of this Statement are effective for financial
statements for periods beginning after June 15, 2012. Earlier application is encouraged. The standard is
expected to have no effect on the Town in upcoming years.
In December 2010, GASB Statement No. 62 Codification of Accounting and Financial Reporting Guidance
Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, Effective Date: The requirements of
this Statement are effective for financial statements for periods beginning after December 15, 2011. Earlier
application is encouraged. The provisions of this Statement generally are required to be applied retroactively for
all periods presented. The Town will implement this standard during fiscal year June 30, 2013.
In June 2011, GASB Statement No. 63 Financial Reporting of Deferred Outflows of Resources, Deferred
Inflows of Resources, and Net Position Effective Date: The provisions of Statement 63 are effective for
financial statements for periods beginning after December 15, 2011, with earlier application encouraged. T he
standard is expected to have no effect on the Town in upcoming years.
In June 2011, GASB Statement No. 64 Derivative Instruments: Application of Hedge Accounting Termination
Provisions—an amendment of GASB Statement No. 53 Effective Date: The provisions of Statement 64 are
effective for financial statements for periods beginning after June 15, 2011, with earlier application encouraged.
The standard is expected to have no effect on the Town in upcoming years.
61
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62
SUPPLEMENTARY INFORMATION
63
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2011
Special Revenue Funds
Fire Protection
To account for the operations and maintenance of the fire department. Financing is provided by an allotment from the State of New
Mexico Fire Marshall’s Office. State Statute Section 59A-53-2, NMSA, 1978 compilation, requires the allotment be used only to
operate fire departments.
Recreation
To account for establishing and maintaining recreational programs in the Town. F inancing is provided by program r evenue and by a 1-
cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. S tate Statute Section 7-12-15, NMSA, 1978
compilation requires this tax be used in the above manner.
Lodger’s Tax
To account for the operations of tourist facilities or for half of advertising, promoting and publicizing such facilities and tourist
attractions. Financing is provided by one and a half percent of a five percent tax on lodging gross receipts within the Town of Taos.
State Statute Section 4-6-41 provides for this tax to be imposed by the Town. Revenues received are pursuant to the Lodger’s Tax Act
(Section 3-38-15, NMSA 1978). Monies in the Lodger’s Tax Fund may be used to build, operate, and maintain tourism related
facilities.
Local Government Correction
The local government corrections fee fund is used to account for the collection of a mandatory correction fee for violations of any
municipal ordinance. Funds collected can only be used for jailer training, construction planning, construction, operation and
maintenance of a municipal jail, and for paying for costs of housing. Authority is NMSA 1978 Section 35-14-11B(1).
Law Enforcement Protection
The law enforcement protection fund was created to account for revenues received pursuant to the law enforcement protection fund
(Section 29-13-7, NMSA 1978). Amounts distributed from this fund may only be expended for the following purposes: (1) the repair
and purchase of law enforcement apparatus and equipment that meet nationally recognized standards; (2) expenses associated with
advanced law e nforcement planning and training; (3) complying with match or contribution requirements of federal funds for criminal
justice programs; (4) no more than fifty percent (50%) of the replacement salaries of municipal and county law enforcement personnel
while attending a specified advanced law enforcement planning and training.
Civic Center
To account for that portion of lodger’s tax receipts allocated for Civic Center operations and promotional expenditures, as well as the
revenues earned from Civic Center operations, including rentals, catering fees, and related charges for services. Authority is Town
Council resolution.
Domestic Violence Shelter
This fund was created to receive the appropriations and grants for the purpose of construction and maintaining the Domestic Violence
Shelter Home. Authority is Town Council resolution.
Public Transportation
To account for the portion of Lodger’s Tax receipts allocated for the purpose of providing transportation to the public. Authority is
Town Council resolution.
64
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2011
Special Revenue Funds (continued)
Community Grants
To account for various small grants for various community purposes. Each grant is authorized by the granting agency. The fund is
authorized by Town Council resolution.
Municipal Road Gasoline Tax
To account for a 1 cent gasoline tax that is used for repairing and construction of r oads. Also included in this fund is revenue from the
State Department of Transportation under a municipal arterial project agreement. Authority is 7-7-6.9 and 7-1-6.27 NMSA 1978.
¼ Cent Municipal Gross Receipts Tax
To account for proceeds from a supplemental municipal gross receipts tax, a portion of which is pledged toward payment of principal
and interest on Series 1988 Gross Receipts Tax Revenue Bonds. After required debt service transfers have been made, the remaining
income of this fund is restricted for capital improvement purposes. NMSA 1978 Chapter 7, Article 20E-1 to 22.
Communications
To account for money collected by the Town from three other government entities to share centralized dispatch services throughout
the County of Taos. Funding is authorized by a joint power agreement as authorized by Sections 11-1-1 through 11-1-7 NMSA
1978.
65
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2011
Debt Service Funds
2009 NMFA PPRF Disadvantage Program-Eco Park
This fund was creation for the purpose of constructing phase I of a multi-phased recreation park.The repayment under the loan
agreement solely from the first and second increments of municipal infrastructure gross receipts tax pursuant to section 7-19D-11,
NMSA 1978.
2008 Gross Receipts Tax Revenue Bond Retirement
This fund was created for the purpose of repayment of the bond issue from the 1.225% distribution of State Shared Gross Receipts Tax
revenues. Authority is Town Council resolution.
1999 Gasoline Tax Revenue Bond Retirement
This fund was created with transfers from the Gas Tax Fund for the purpose of repayment of the Series 1999 Gasoline Tax Revenue
Bonds. Authority is Town Council resolution.
1999 Gasoline Tax Revenue Bond Reserve
This fund was created with transfers from the Gas Tax Fund for the purpose of accumulating monies for the payment of principal and
interest on Series 1999 Gasoline Tax Revenue Bonds. Authority is Town Council resolution.
NMFA Debt Service Reserve Eco Park
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of Eco Park. Authority is Town Council resolution.
2007 NMFA Land Purchase
This fund was created to be credited with transfers from the General Fund for the purpose of accumulating monies for payment of
principal and interest on the debt for repayment of land purchase. Authority is Town Council resolution.
66
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2011
Capital Projects Funds
Facilities Improvements
This fund was created to receive transfers from other funds for the purpose of improving facilities of the Town. Authority is Town
Council resolution.
Airport Construction
This fund was created to receive proceeds from federal and state grants for the purpose of financing improvements to the Taos
Municipal Airport. Authority is Town Council resolution.
Enhanced 911
This fund was created to receive grants and transfers for the purpose of expanding benefits of the basic 911 emergency telephone
number to achieve faster response time. Authority is Town Council resolution.
Vehicle Replacement
This fund is created to receive transfers from other funds for the purpose of purchasing vehicles for the Town of Taos. Authority is
Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition
This fund was created to receive the 1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
Authority is Town Council resolution.
1999 Gasoline Tax Acquisition
This fund was created to receive the bond proceeds and to account for the capital outlay associated with the bond issue. Authority is
Town Council resolution.
67
Fire Protection Recreation Lodger's Tax
Local
Government
Correction
Assets
Cash and cash equivalents 209,313$ 22,898$ 207,773$ 41,401$
Investments 377,220 40,000 40,000 -
Receivables:
Other taxes - - 191,214 -
Due from other governments - - - -
Total assets 586,533$ 62,898$ 438,987$ 41,401$
Liabilities
Accounts payable -$ -$ 78,218$ 368$
Accrued payroll - - 2,964 -
Deposits held in trust for others - - - -
Deferred revenue - - 94,665 -
Due to other funds - - - -
Total liabilities - - 175,847 368
Fund balances
Spendable
Restricted for:
General government - - 263,140 -
Public safety - - - 41,033
Culture and recreation - 62,898 - -
Public works - - - -
Fire protection 586,533 - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects - - - -
Committed to:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 586,533 62,898 263,140 41,033
Total liabilities and fund balances 586,533$ 62,898$ 438,987$ 41,401$
June 30, 2011
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
Special Revenue
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
68
Statement A-1
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence
Shelter
Public
Transportation
Community
Grants
Municipal
Road Gasoline
Tax
5,899$ 47,330$ 1$ 6,775$ 27,106$ -$
- 25,000 - - 25,000 -
- - - - - 19,130
32,000 - - 21,362 49,934 -
37,899$ 72,330$ 1$ 28,137$ 102,040$ 19,130$
100$ 10,784$ -$ 4,569$ 6,015$ -$
- 4,467 - 4,149 1,082 -
- 5,103 - - - -
- - - - - -
- - - - - -
100 20,354 - 8,718 7,097 -
- - - - 94,943 -
37,799 - - - - -
- 51,976 - - - -
- - - - - 19,130
- - - - - -
- - 1 19,419 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
37,799 51,976 1 19,419 94,943 19,130
37,899$ 72,330$ 1$ 28,137$ 102,040$ 19,130$
Special Revenue
69
1/4 Cent
Municipal
Gross Receipts
Tax Communications
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Assets
Cash and cash equivalents 24,539$ 91,001$ 148$ 805$
Investments 39,038 150,000 - -
Receivables:
Other taxes 160,433 - - -
Due from other governments - - - -
Total assets 224,010$ 241,001$ 148$ 805$
Liabilities
Accounts payable -$ 468$ -$ -$
Accrued payroll - 8,262 - -
Deposits held in trust for others - - - -
Deferred revenue - - - -
Due to other funds - - - -
Total liabilities - 8,730 - -
Fund balances
Spendable
Restricted for:
General government - 232,271 - -
Public safety - - - -
Culture and recreation - - - -
Public works 224,010 - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - - 148 805
Capital projects - - - -
Committed to:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 224,010 232,271 148 805
Total liabilities and fund balances 224,010$ 241,001$ 148$ 805$
Combining Balance Sheet
Special Revenue Debt Service
The accompanying notes are an integral part of these financial statements
June 30, 2011
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
70
Statement A-1
Page 2 of 3
1999 Gasoline
Tax Revenue
Bond
Retirement
1999 Gasoline
Tax Revenue
Bond Reserve
NMFA Debt
Service
Reserve Eco
Park
2007 NMFA
Land Purchase
Facilities
Improvements
Airport
Construction Enhanced 911
197,584$ -$ 181,015$ 34$ 138,647$ 19,446$ 309$
- 195,000 - - - - 25,000
- - - - - - -
- - - - 93,018 - -
197,584$ 195,000$ 181,015$ 34$ 231,665$ 19,446$ 25,309$
-$ -$ -$ -$ 9,951$ -$ -$
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - 9,951 - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - - -
197,584 195,000 - 34 - - -
- - 181,015 - 221,714 19,446 25,309
- - - - - - -
- - - - - - -
- - - - - - -
197,584 195,000 181,015 34 221,714 19,446 25,309
197,584$ 195,000$ 181,015$ 34$ 231,665$ 19,446$ 25,309$
Debt Service Capital Projects
71
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72
STATE OF NEW MEXICO Statement A-1
Town of Taos Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax
Acquisition
Total
Nonmajor
Governmental
Funds
Assets
Cash and cash equivalents 49,287$ 24,544$ -$ 1,295,855$
Investments 47,000 530,882 - 1,494,140
Receivables:
Other taxes - - - 370,777
Due from other governments - - 410,224 606,538
Total assets 96,287$ 555,426$ 410,224$ 3,767,310$
Liabilities
Accounts payable -$ -$ 53,868$ 164,341$
Accrued payroll - - - 20,924
Deposits held in trust for others - - - 5,103
Deferred revenue - - - 94,665
Due to other funds - - 202,953 202,953
Total liabilities - - 256,821 487,986
Fund balances
Spendable
Restricted for:
General government - - - 590,354
Public safety - - - 78,832
Culture and recreation - - - 114,874
Public works - - - 243,140
Fire protection - - - 586,533
Health and welfare - - - 19,420
Debt service expenditures - - - 393,571
Capital projects 96,287 555,426 153,403 1,252,600
Committed to:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 96,287 555,426 153,403 3,279,324
Total liabilities and fund balances 96,287$ 555,426$ 410,224$ 3,767,310$
The accompanying notes are an integral part of these financial statements
Capital Projects
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
June 30, 2011
73
Fire Protection Recreation Lodger's Tax
Local
Governmental
Correction
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - 2,496 875,346 -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 230,458 - - -
State capital grants - - - -
Charges for services - 37,371 43,216 -
Licenses and fees - - - 30,851
Interest income - - - -
Miscellaneous 80 642 37,514 -
Total revenues 230,538 40,509 956,076 30,851
Expenditures
Current
General government - - 803,617 -
Public safety 67,894 - - 133,203
Public works - - - -
Culture and recreation - 22,656 - -
Health and welfare - - - -
Capital outlay 11,700 - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 79,594 22,656 803,617 133,203
Excess (deficiency) of revenues over
expenditures 150,944 17,853 152,459 (102,352)
Other financing sources (uses)
Proceeds from sale of capital assets - - - -
Transfers in - 3,568 660,103 121,191
Transfers out - - (840,986) -
Total other financing sources (uses)- 3,568 (180,883) 121,191
Net change in fund balances 150,944 21,421 (28,424) 18,839
Fund balances - beginning of year 435,589 41,477 291,564 22,194
Fund balances - end of year 586,533$ 62,898$ 263,140$ 41,033$
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
The accompanying notes are an integral part of these financial statements
Special Revenue
For the Year Ended June 30, 2011
74
Statement A-2
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence
Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 116,047
- - - - - -
- - 150,000 - - -
- - - 225 - -
64,600 - - 285,578 340,568 -
- - - - - -
- 31,098 - 52,423 - -
- 100 - - - -
- - - - - -
- 19 - 545 5 -
64,600 31,217 150,000 338,771 340,573 116,047
- - - - 397,178 -
27,314 - - - - -
- - - - - -
- 421,682 - - - -
- - 150,000 476,301 - -
- - - - 1,298 -
- - - - - -
- - - - - -
27,314 421,682 150,000 476,301 398,476 -
37,286 (390,465) - (137,530) (57,903) 116,047
- - - 710 - -
- 384,150 - 153,280 15,000 -
- - - - (72,568) (105,235)
- 384,150 - 153,990 (57,568) (105,235)
37,286 (6,315) - 16,460 (115,471) 10,812
513 58,291 1 2,959 210,414 8,318
37,799$ 51,976$ 1$ 19,419$ 94,943$ 19,130$
Special Revenue
75
1/4 Cent Municipal
Gross Receipts Tax Communications
2009 NMFA
PPRF
Disadvantage
Program- Eco
Park
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Revenues
Taxes
Gross receipts 975,431$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - 302,890 - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 975,431 302,890 - -
Expenditures
Current
General government - 549,379 - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - 125,436 245,000
Interest - - 55,320 246,425
Total expenditures - 549,379 180,756 491,425
Excess (deficiency) of revenues over
expenditures 975,431 (246,489) (180,756) (491,425)
Other financing sources (uses)
Proceeds from sale of capital assets - - - -
Transfers in 12,500 286,400 180,831 492,000
Transfers out (969,462) - - -
Total other financing sources (uses)(956,962) 286,400 180,831 492,000
Net change in fund balances 18,469 39,911 75 575
Fund balances - beginning of year 205,541 192,360 73 230
Fund balances - end of year 224,010$ 232,271$ 148$ 805$
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2011
Debt ServiceSpecial Revenue
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
76
Statement A-2
Page 2 of 3
1999 Gasoline
Tax Revenue
Bond
Retirement
1999 Gasoline
Tax Revenue
Bond Reserve
NMFA Debt
Service Reserve
Eco Park
2007 NMFA
Land Purchase
Facilities
Improvements
Airport
Construction Enhanced 911
-$ -$ -$ -$ -$ -$ -$
- - - - - - -
- - - - - - -
- - - - - - -
- - - - - 11,510 -
- - - - - - -
- - - - 93,018 3,377 -
- - - - - - -
- - - - - - -
- 1,337 231 - - - -
- - - - - - -
- 1,337 231 - 93,018 14,887 -
500 - - 1,663 - - -
- - - - - - -
- - - - 202,051 17,131 -
- - - - - - -
- - - - - - -
- - - - 83,406 - -
170,000 - - 91,860 18,000 - -
21,200 - - 20,100 - - -
191,700 - - 113,623 303,457 17,131 -
(191,700) 1,337 231 (113,623) (210,439) (2,244) -
- - - - - - -
319,858 - 180,784 92,000 295,000 3,000 -
- (1,837) - - (621,104) - -
319,858 (1,837) 180,784 92,000 (326,104) 3,000 -
128,158 (500) 181,015 (21,623) (536,543) 756 -
69,426 195,500 - 21,657 758,257 18,690 25,309
197,584$ 195,000$ 181,015$ 34$ 221,714$ 19,446$ 25,309$
Debt Service Capital Projects
77
(This page intentionally left blank)
78
STATE OF NEW MEXICO Statement A-2
Town of Taos Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
Revenues
Taxes
Gross receipts -$ -$ -$ 975,431$
Gasoline and motor vehicle taxes - - - 116,047
Other - - - 877,842
Intergovernmental income
Federal operating grants - - - 150,000
Federal capital grants - - - 11,735
State operating grants - - - 921,204
State capital grants - - 1,114,870 1,211,265
Charges for services - - - 466,998
Licenses and fees - - - 30,951
Interest income - 1,450 153 3,171
Miscellaneous - - - 38,805
Total revenues - 1,450 1,115,023 4,803,449
Expenditures
Current
General government 5,171 - - 1,757,508
Public safety - - - 228,411
Public works - 102,346 - 321,528
Culture and recreation - - - 444,338
Health and welfare - - - 626,301
Capital outlay 6,505 - 1,650,189 1,753,098
Debt service
Principal - - - 650,296
Interest - - - 343,045
Total expenditures 11,676 102,346 1,650,189 6,124,525
Excess (deficiency) of revenues over
expenditures (11,676) (100,896) (535,166) (1,321,076)
Other financing sources (uses)
Proceeds from sale of capital assets - - - 710
Transfers in - - 479,691 3,679,356
Transfers out - - - (2,611,192)
Total other financing sources (uses)- - 479,691 1,068,874
Net change in fund balances (11,676) (100,896) (55,475) (252,202)
Fund balances - beginning of year 107,963 656,322 208,878 3,531,526
Fund balances - end of year 96,287$ 555,426$ 153,403$ 3,279,324$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2011
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds
Capital Projects
79
STATE OF NEW MEXICO Statement B-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 218,836 270,458 230,458 (40,000)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 80 80
Total revenues 218,836 270,458 230,538 (39,920)
Expenditures
Current
General government - - - -
Public safety 604,425 644,347 67,894 576,453
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 50,000 61,700 11,700 50,000
Debt service
Principal - - - -
Interest - - - -
Total expenditures 654,425 706,047 79,594 626,453
Excess (deficiency) of revenues over
expenditures (435,589) (435,589) 150,944 586,533
Other financing sources (uses)
Designated cash (budgeted increase in cash)435,589 435,589 - (435,589)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)435,589 435,589 - (435,589)
Net change in fund balance - - 150,944 150,944
Fund balance - beginning of year - - 435,589 435,589
Fund balance - end of year -$ -$ 586,533$ 586,533$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Fire Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
80
STATE OF NEW MEXICO Statement B-2
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - 2,496 2,496
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 12,179 12,179 37,371 25,192
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 642 642
Total revenues 12,179 12,179 40,509 28,330
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 44,521 43,201 22,656 20,545
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 44,521 43,201 22,656 20,545
Excess (deficiency) of revenues over expenditures (32,342) (31,022) 17,853 48,875
Other financing sources (uses)
Designated cash (budgeted increase in cash)32,342 27,454 - (27,454)
Transfers in - 3,568 3,568 -
Transfers out - - - -
Total other financing sources (uses)32,342 31,022 3,568 (27,454)
Net change in fund balance - - 21,421 21,421
Fund balance - beginning of year - - 41,477 41,477
Fund balance - end of year -$ -$ 62,898$ 62,898$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Recreation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
81
STATE OF NEW MEXICO Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 823,000 926,695 875,346 (51,349)
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 29,800 45,228 43,216 (2,012)
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 28,000 37,686 37,514 (172)
Total revenues 880,800 1,009,609 956,076 (53,533)
Expenditures
Current
General government 783,475 865,135 803,617 61,518
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 783,475 865,135 803,617 61,518
Excess (deficiency) of revenues over expenditures 97,325 144,474 152,459 7,985
Other financing sources (uses)
Designated cash (budgeted increase in cash)118,330 36,409 - (36,409)
Transfers in 557,103 660,103 660,103 -
Transfers out (772,758) (840,986) (840,986) -
Total other financing sources (uses)(97,325) (144,474) (180,883) (36,409)
Net change in fund balance - - (28,424) (28,424)
Fund balance - beginning of year - - 291,564 291,564
Fund balance - end of year -$ -$ 263,140$ 263,140$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Lodger's Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
82
STATE OF NEW MEXICO Statement B-4
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees 52,140 52,140 30,851 (21,289)
Interest income - - - -
Miscellaneous - - - -
Total revenues 52,140 52,140 30,851 (21,289)
Expenditures
Current
General government - - - -
Public safety 98,734 148,734 133,203 15,531
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 98,734 148,734 133,203 15,531
Excess (deficiency) of revenues over expenditures (46,594) (96,594) (102,352) (5,758)
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,594 (24,597) - 24,597
Transfers in 45,000 121,191 121,191 -
Transfers out - - - -
Total other financing sources (uses)46,594 96,594 121,191 24,597
Net change in fund balance - - 18,839 18,839
Fund balance - beginning of year - - 22,194 22,194
Fund balance - end of year -$ -$ 41,033$ 41,033$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Local Government Correction Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
83
STATE OF NEW MEXICO Statement B-5
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 32,600 32,600 64,600 32,000
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 32,600 32,600 64,600 32,000
Expenditures
Current
General government - - - -
Public safety 32,600 32,600 27,314 5,286
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 32,600 32,600 27,314 5,286
Excess (deficiency) of revenues over expenditures - - 37,286 37,286
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 37,286 37,286
Fund balance - beginning of year - - 513 513
Fund balance - end of year -$ -$ 37,799$ 37,799$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Law Enforcement Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
84
STATE OF NEW MEXICO Statement B-6
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 47,200 23,364 31,098 7,734
Licenses and fees 200 200 100 (100)
Interest income - - - -
Miscellaneous 200 200 19 (181)
Total revenues 47,600 23,764 31,217 7,453
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 470,659 449,390 421,682 27,708
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 470,659 449,390 421,682 27,708
Excess (deficiency) of revenues over expenditures (423,059) (425,626) (390,465) 35,161
Other financing sources (uses)
Designated cash (budgeted increase in cash)38,909 41,476 - (41,476)
Transfers in 384,150 384,150 384,150 -
Transfers out - - - -
Total other financing sources (uses)423,059 425,626 384,150 (41,476)
Net change in fund balance - - (6,315) (6,315)
Fund balance - beginning of year - - 58,291 58,291
Fund balance - end of year -$ -$ 51,976$ 51,976$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Civic Center Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
85
STATE OF NEW MEXICO Statement B-7
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants 150,000 150,000 150,000 -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 150,000 -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 150,000 -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 150,000 -
Excess (deficiency) of revenues over expenditures - - - -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 1$ 1$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Domestic Violence Shelter Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
86
STATE OF NEW MEXICO Statement B-8
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - 225 225 -
State operating grants 283,377 288,639 285,578 (3,061)
State capital grants - - - -
Charges for services 55,000 52,422 52,423 1
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - 545 545 -
Total revenues 338,377 341,831 338,771 (3,060)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 468,528 477,420 476,301 1,119
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 468,528 477,420 476,301 1,119
Excess (deficiency) of revenues over expenditures (130,151) (135,589) (137,530) (1,941)
Other financing sources (uses)
Designated cash (budgeted increase in cash)(18,401) (18,401) - 18,401
Transfers in 148,552 153,280 153,280 -
Transfers out - - - -
Proceeds from sale of capital assets - 710 710 -
Total other financing sources (uses)130,151 135,589 153,990 18,401
Net change in fund balance - - 16,460 16,460
Fund balance - beginning of year - - 2,959 2,959
Fund balance - end of year -$ -$ 19,419$ 19,419$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Public Transportation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
87
STATE OF NEW MEXICO Statement B-9
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 493,979 532,387 340,568 (191,819)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 5 5
Total revenues 493,979 532,387 340,573 (191,814)
Expenditures
Current
General government 591,060 641,925 397,178 244,747
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 43,275 42,250 1,298 40,952
Debt service
Principal - - - -
Interest - - - -
Total expenditures 634,335 684,175 398,476 285,699
Excess (deficiency) of revenues over expenditures (140,356) (151,788) (57,903) 93,885
Other financing sources (uses)
Designated cash (budgeted increase in cash)209,356 209,356 - (209,356)
Transfers in - 15,000 15,000 -
Transfers out (69,000) (72,568) (72,568) -
Total other financing sources (uses)140,356 151,788 (57,568) (209,356)
Net change in fund balance - - (115,471) (115,471)
Fund balance - beginning of year - - 210,414 210,414
Fund balance - end of year -$ -$ 94,943$ 94,943$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Community Grants Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
88
STATE OF NEW MEXICO Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 88,605 105,235 116,047 10,812
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 88,605 105,235 116,047 10,812
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 88,605 105,235 116,047 10,812
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (88,605) (105,235) (105,235) -
Total other financing sources (uses)(88,605) (105,235) (105,235) -
Net change in fund balance - - 10,812 10,812
Fund balance - beginning of year - - 8,318 8,318
Fund balance - end of year -$ -$ 19,130$ 19,130$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Municipal Road Gasoline Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
89
STATE OF NEW MEXICO Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 916,259 981,501 975,431 (6,070)
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 916,259 981,501 975,431 (6,070)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 916,259 981,501 975,431 (6,070)
Other financing sources (uses)
Designated cash (budgeted increase in cash)39,038 27,578 - (27,578)
Transfers in 12,500 12,500 12,500 -
Transfers out (967,797) (1,021,579) (969,462) 52,117
Total other financing sources (uses)(916,259) (981,501) (956,962) 24,539
Net change in fund balance - - 18,469 18,469
Fund balance - beginning of year - - 205,541 205,541
Fund balance - end of year -$ -$ 224,010$ 224,010$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
90
STATE OF NEW MEXICO Statement B-12
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 324,790 324,790 302,890 (21,900)
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 10,800 10,800 - (10,800)
Total revenues 335,590 335,590 302,890 (32,700)
Expenditures
Current
General government 594,780 594,780 549,379 45,401
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 594,780 594,780 549,379 45,401
Excess (deficiency) of revenues over expenditures (259,190) (259,190) (246,489) 12,701
Other financing sources (uses)
Designated cash (budgeted increase in cash)(13,406) (27,210) - 27,210
Transfers in 272,596 286,400 286,400 -
Transfers out - - - -
Total other financing sources (uses)259,190 259,190 286,400 27,210
Net change in fund balance - - 39,911 39,911
Fund balance - beginning of year - - 192,360 192,360
Fund balance - end of year -$ -$ 232,271$ 232,271$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Communications Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
91
STATE OF NEW MEXICO Statement B- 13
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis) Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 125,436 125,436 125,436 -
Interest 55,320 55,320 55,320 -
Total expenditures 180,756 180,756 180,756 -
Excess (deficiency) of revenues over expenditures (180,756) (180,756) (180,756) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)56 56 - (56)
Transfers in 180,700 180,700 180,831 131
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,831 75
Net change in fund balance - - 75 75
Fund balance - beginning of year - - 73 73
Fund balance - end of year -$ -$ 148$ 148$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
92
STATE OF NEW MEXICO Statement B-14
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 245,000 245,000 245,000 -
Interest 246,425 246,425 246,425 -
Total expenditures 491,425 491,425 491,425 -
Excess (deficiency) of revenues over expenditures (491,425) (491,425) (491,425) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)(575) (575) - 575
Transfers in 492,000 492,000 492,000 -
Transfers out - - - -
Total other financing sources (uses)491,425 491,425 492,000 575
Net change in fund balance - - 575 575
Fund balance - beginning of year - - 230 230
Fund balance - end of year -$ -$ 805$ 805$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
93
STATE OF NEW MEXICO Statement B-15
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 750 750 500 250
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 170,000 170,000 170,000 -
Interest 25,153 25,153 21,200 3,953
Total expenditures 195,903 195,903 191,700 4,203
Excess (deficiency) of revenues over expenditures (195,903) (195,903) (191,700) 4,203
Other financing sources (uses)
Designated cash (budgeted increase in cash)(52,702) (123,955) - 123,955
Transfers in 248,605 319,858 319,858 -
Transfers out - - - -
Total other financing sources (uses)195,903 195,903 319,858 123,955
Net change in fund balance - - 128,158 128,158
Fund balance - beginning of year - - 69,426 69,426
Fund balance - end of year -$ -$ 197,584$ 197,584$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
94
STATE OF NEW MEXICO Statement B-16
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 1,600 1,837 1,337 (500)
Miscellaneous - - - -
Total revenues 1,600 1,837 1,337 (500)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures 1,600 1,837 1,337 (500)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (1,600) (1,837) (1,837) -
Total other financing sources (uses)(1,600) (1,837) (1,837) -
Net change in fund balance - - (500) (500)
Fund balance - beginning of year - - 195,500 195,500
Fund balance - end of year -$ -$ 195,000$ 195,000$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
95
STATE OF NEW MEXICO Statement B-17
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - 209 231 22
Miscellaneous - - - -
Total revenues - 209 231 22
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - 209 231 22
Other financing sources (uses)
Designated cash (budgeted increase in cash)- (180,965) - 180,965
Transfers in - 180,756 180,784 28
Transfers out - - - -
Total other financing sources (uses)- (209) 180,784 180,993
Net change in fund balance - - 181,015 181,015
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 181,015$ 181,015$
The accompanying notes are an integral part of these financial statements
Town of Taos
NMFA Debt Service Reserve Eco Park
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
Budgeted Amounts
96
STATE OF NEW MEXICO Statement B-18
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 1,761 1,761 1,663 98
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 91,860 91,860 91,860 -
Interest 20,100 20,100 20,100 -
Total expenditures 113,721 113,721 113,623 98
Excess (deficiency) of revenues over expenditures (113,721) (113,721) (113,623) 98
Other financing sources (uses)
Designated cash (budgeted increase in cash)(279) (279) - 279
Transfers in 114,000 114,000 92,000 (22,000)
Transfers out - - - -
Total other financing sources (uses)113,721 113,721 92,000 (21,721)
Net change in fund balance - - (21,623) (21,623)
Fund balance - beginning of year - - 21,657 21,657
Fund balance - end of year -$ -$ 34$ 34$
Town of Taos
2007 NMFA Land Purchase Debt Service Fund
The accompanying notes are an integral part of these financial statements
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
Budgeted Amounts
97
STATE OF NEW MEXICO Statement B-19
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - 100,000 93,018 (6,982)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - 100,000 93,018 (6,982)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 323,793 363,426 202,051 161,375
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 84,987 141,250 83,406 57,844
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 426,780 522,676 303,457 219,219
Excess (deficiency) of revenues over expenditures (426,780) (422,676) (210,439) 212,237
Other financing sources (uses)
Designated cash (budgeted increase in cash)131,780 748,780 - (748,780)
Transfers in 295,000 295,000 295,000 -
Transfers out - (621,104) (621,104) -
Total other financing sources (uses)426,780 422,676 (326,104) (748,780)
Net change in fund balance - - (536,543) (536,543)
Fund balance - beginning of year - - 758,257 758,257
Fund balance - end of year -$ -$ 221,714$ 221,714$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Facilities Improvements Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
98
STATE OF NEW MEXICO Statement B-20
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 662,522 662,522 11,510 (651,012)
State operating grants - - - -
State capital grants 15,927 20,424 3,377 (17,047)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 678,449 682,946 14,887 (668,059)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 544,161 549,158 17,131 532,027
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 153,830 153,830 - 153,830
Debt service
Principal - - - -
Interest - - - -
Total expenditures 697,991 702,988 17,131 685,857
Excess (deficiency) of revenues over expenditures (19,542) (20,042) (2,244) 17,798
Other financing sources (uses)
Designated cash (budgeted increase in cash)16,542 17,042 - (17,042)
Transfers in 3,000 3,000 3,000 -
Transfers out - - - -
Total other financing sources (uses)19,542 20,042 3,000 (17,042)
Net change in fund balance - - 756 756
Fund balance - beginning of year - - 18,690 18,690
Fund balance - end of year -$ -$ 19,446$ 19,446$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Airport Construction Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
99
STATE OF NEW MEXICO Statement B-21
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over expenditures - - - -
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 25,309 25,309
Fund balance - end of year -$ -$ 25,309$ 25,309$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Enhanced 911 Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
100
STATE OF NEW MEXICO Statement B-22
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - 7,990 5,171 2,819
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 14,495 6,505 6,505 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 14,495 14,495 11,676 2,819
Excess (deficiency) of revenues over expenditures (14,495) (14,495) (11,676) 2,819
Other financing sources (uses)
Designated cash (budgeted increase in cash)14,495 14,495 - (14,495)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)14,495 14,495 - (14,495)
Net change in fund balance - - (11,676) (11,676)
Fund balance - beginning of year - - 107,963 107,963
Fund balance - end of year -$ -$ 96,287$ 96,287$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Vehicle Replacement Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
101
STATE OF NEW MEXICO Statement B-23
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 15,000 15,000 - (15,000)
Charges for services - - - -
Licenses and fees - - - -
Interest income 2,000 2,000 1,450 (550)
Miscellaneous - - - -
Total revenues 17,000 17,000 1,450 (15,550)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 157,407 157,407 102,346 55,061
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 129,109 129,109 - 129,109
Debt service
Principal - - - -
Interest - - - -
Total expenditures 286,516 286,516 102,346 184,170
Excess (deficiency) of revenues over expenditures (269,516) (269,516) (100,896) 168,620
Other financing sources (uses)
Designated cash (budgeted increase in cash)269,516 269,516 - (269,516)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)269,516 269,516 - (269,516)
Net change in fund balance - - (100,896) (100,896)
Fund balance - beginning of year - - 656,322 656,322
Fund balance - end of year -$ -$ 555,426$ 555,426$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
102
STATE OF NEW MEXICO Statement B-24
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 1,674,794 1,850,884 1,114,870 (736,014)
Charges for services - - - -
Licenses and fees - - - -
Interest income 2,000 2,000 153 (1,847)
Miscellaneous - - - -
Total revenues 1,676,794 1,852,884 1,115,023 (737,861)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 2,401,560 2,653,341 1,650,189 1,003,152
Debt service
Principal - - - -
Interest - - - -
Total expenditures 2,401,560 2,653,341 1,650,189 1,003,152
Excess (deficiency) of revenues over expenditures (724,766) (800,457) (535,166) 265,291
Other financing sources (uses)
Designated cash (budgeted increase in cash)320,766 320,766 - (320,766)
Transfers in 404,000 479,691 479,691 -
Transfers out - - - -
Total other financing sources (uses)724,766 800,457 479,691 (320,766)
Net change in fund balance - - (55,475) (55,475)
Fund balance - beginning of year - - 208,878 208,878
Fund balance - end of year -$ -$ 153,403$ 153,403$
The accompanying notes are an integral part of these financial statements
Town of Taos
1999 Gasoline Tax Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
Budgeted Amounts
103
STATE OF NEW MEXICO Statement B-25
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 687,196 718,705 731,573 12,868
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 585,252 585,252 505,340 (79,912)
State operating grants - - - -
State capital grants 502,114 602,114 148,580 (453,534)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - 1,419 1,419
Miscellaneous - - - -
Total revenues 1,774,562 1,906,071 1,386,912 (519,159)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 125,490 157,250 137,335 19,915
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 3,593,494 3,675,438 2,603,691 1,071,747
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 3,718,984 3,832,688 2,741,026 1,091,662
Excess (deficiency) of revenues over expenditures (1,944,422) (1,926,617) (1,354,114) 572,503
Other financing sources (uses)
Designated cash (budgeted increase in cash)707,850 707,850 - (707,850)
Transfers in 434,000 438,104 438,104 -
Transfers out (727,371) (749,280) (960,312) (211,032)
Proceeds from issuance of bonds 1,529,943 1,529,943 - (1,529,943)
Total other financing sources (uses)1,944,422 1,926,617 (522,208) (2,448,825)
Net change in fund balance - - (1,876,322) (1,876,322)
Fund balance - beginning of year - - 2,602,308 2,602,308
Fund balance - end of year -$ -$ 725,986$ 725,986$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2011
104
STATE OF NEW MEXICO Statement B-26
Budget (GAAP Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues
Charges for services 2,185,503$ 2,480,426$ 2,626,140$ 145,714$
Total operating revenues 2,185,503 2,480,426 2,626,140 145,714
Operating expenses
Personnel services 657,718 673,613 671,928 1,685
Contractual services 1,041,355 1,054,973 819,012 235,961
Supplies 191,195 200,314 182,526 17,788
Maintenance and materials 88,200 104,218 95,989 8,229
Utilities 335,450 319,921 277,296 42,625
Equipment 11,163,754 10,389,068 16,501 10,372,567
Depreciation - - 1,036,555 (1,036,555)
Miscellaneous 159,951 160,830 32,263 128,567
Total operating expenses 13,637,623 12,902,937 3,132,070 9,770,867
Operating income (loss) (11,452,120) (10,422,511) (505,930) 9,916,581
Non-operating revenues (expenses)
Gross receipts taxes 458,184 490,751 479,064 (11,687)
Interest expense (150,518) (150,708) (144,418) 6,290
Interest income 28,530 28,530 7,619 (20,911)
Gain on disposal of capital assets - 18,401 18,401 -
Miscellaneous income 557,483 557,495 5,934 (551,561)
Total non-operating revenues
(expenses)893,679 944,469 366,600 (577,869)
Transfers 2,954,934 2,964,934 - (2,964,934)
State and federal capital grants 9,769,052 8,573,260 5,972,077 (2,601,183)
Change in net assets 2,165,545$ 2,060,152$ 5,832,747 3,772,595$
Total net assets, beginning of year 17,190,079
Total net assets, end of year 23,022,826$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2011
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Water and Sewer Proprietary Fund
105
STATE OF NEW MEXICO Statement B-27
Budget (GAAP Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues
Charges for services 1,176,407$ 1,176,407$ 1,290,935$ 114,528$
Total operating revenues 1,176,407 1,176,407 1,290,935 114,528
Operating expenses
Personnel services 88,010 95,096 83,554 11,542
Contractual services 759,642 766,072 669,150 96,922
Supplies 3,922 15,216 15,213 3
Maintenance and materials 17,350 19,014 18,745 269
Utilities 266,020 266,698 239,592 27,106
Equipment 247,044 219,959 - 219,959
Depreciation - - 11,584 (11,584)
Miscellaneous 1,475 1,408 1,307 101
Total operating expenses 1,383,463 1,383,463 1,039,145 344,318
Operating income (loss) (207,056) (207,056) 251,790 458,846
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Government contributions
Gain on disposal of capital assets - - - -
Miscellaneous income 15,286 15,286 14,966 (320)
Total non-operating revenues
(expenses)15,286 15,286 14,966 (320)
Transfers - - - -
State and federal capital grants - - - -
Change in net assets (191,770)$ (191,770)$ 266,756 458,526$
Total net assets, beginning of year 1,112,553
Total net assets, end of year 1,379,309$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2011
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Solid Waste Proprietary Fund
106
STATE OF NEW MEXICO Statement B-28
Budget (GAAP Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues
Charges for services 1,226,524$ 1,226,524$ 943,564$ (282,960)$
Total operating revenues 1,226,524 1,226,524 943,564 (282,960)
Operating expenses
Personnel services 343,494 344,771 339,493 5,278
Contractual services 302,808 329,724 1,574,478 (1,244,754)
Supplies 4,025 6,013 5,480 533
Maintenance and materials 117,221 117,221 112,401 4,820
Utilities 8,123 8,123 6,488 1,635
Equipment 648,974 648,974 - 648,974
Depreciation - - 188,554 (188,554)
Miscellaneous 165,885 166,185 1,777 164,408
Total operating expenses 1,590,530 1,621,011 2,228,671 (607,660)
Operating income (loss) (364,006) (394,487) (1,285,107) (890,620)
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense (31,018) (31,018) (31,195) (177)
Interest income 5,000 5,000 1,554 (3,446)
Gain on disposal of capital assets - - 4,000 4,000
Miscellaneous income - - 6,045 6,045
Total non-operating revenues
(expenses)(26,018) (26,018) (19,596) 6,422
State and federal capital grants 366,073 366,073 - (366,073)
Transfers - - - -
Change in net assets (23,951)$ (54,432)$ (1,304,703) (1,250,271)$
Total net assets, beginning of year 3,234,284
Total net assets, end of year 1,929,581$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2011
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Taos Regional Landfill Proprietary Fund
107
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108
SUPPORTING SCHEDULES
109
STATE OF NEW MEXICO Schedule I
Town of Taos
Schedule of Deposit and Investment Accounts
For the Year Ended June 30, 2011
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
First Community Bank
Clearing Account Checking 950,601$ 146,567$ 1,096,937$231$
Judicial Bond Fund Municipal Court Checking 1,913 - 329 1,584
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 3,125,232 49,875 455 3,174,652
Certificate of Deposit - Investment CD 170,500 - - 170,500
Certificate of Deposit - Investment CD 195,000 - - 195,000
Total First Community Bank 4,482,776 196,442 1,097,721 3,581,497
Centinel Bank
General Fund Checking 2,035,640 7,211 317,330 1,725,521
Water/Wastewater Improvement Fund Checking 147,667 - 8,817 138,850
Payroll Clearing Checking 58,200 - 58,200 -
1994 GRT Revenue Bond Acquisition Fund Checking 44,978 - 20,434 24,544
HUD Account - Domestic Violence Shelter Checking 997 - - 997
ACH Transfer Account Checking 69,564 - 69,464 100
Total Centinel Bank 2,357,046 7,211 474,245 1,890,012
Bank of New York Mellon - Investments
2001A Water & Sewer Revenue Bond
Retirement
U.S. Treasury Mutual
Fund 61,738 - - 61,738
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury Mutual
Fund 137,289 - - 137,289
2008A Taos Regional Landfill Debt Service
U.S. Treasury Mutual
Fund 100,015 - - 100,015
2004 Taos Regional Landfill Acquisition
U.S. Treasury Mutual
Fund 91,017 - - 91,017
Total Bank of Albuquerque 390,059 - - 390,059
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase
State Treasurer Debt
Service 24 - - 24
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer Debt
Service 163 - - 163
2008A Taos Regional Landfill Debt Service
State Treasurer Debt
Service 351 - - 351
2010 Phase II Wastewater Treatment Plant
Rehab
State Treasurer Debt
Service 266 - - 266
2010 Phase I Multi-phased Rec. Park
State Treasurer Debt
Service 180,784 - - 180,784
Total New Mexico Finance Authority 181,588 - - 181,588
Total 7,411,469$203,653$ 1,571,966$6,043,156
New Mexico State Treasurer Local Government Investment Pool 4,678,069
Add: petty cash 1,000
Total deposits and investments 10,722,225$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 4,227,862$
Investments - Exhibit A-1 4,981,069
Restricted cash and cash equivalents - Exhibit A-1 1,440,212
Fiduciary funds cash and cash equivalents and investments - Exhibit E-1 73,082
Total deposits and investments 10,722,225$
See accompanying independent auditors' report
110
STATE OF NEW MEXICO Schedule II
Description of Fair Market
Name of Pledged CUSIP Value at Location
Depository Collateral Maturity Number June 30, 2011 of Safekeeper
First Community Bank
MBS GNMA II 11/20/2038 36202EXM6 86,498$ Federal Home Loan Bank, Dallas, TX
MBS GNMA I 9/15/2018 36225BZQ4 244,056 Federal Home Loan Bank, Dallas, TX
GNR 2009-67 PA 11/20/2036 38373AQK5 691,514 Federal Home Loan Bank, Dallas, TX
GNR 2009-67 LA 12/16/2036 38373AYM2 195,928 Federal Home Loan Bank, Dallas, TX
GNR 2009-84 A 11/16/2020 38374XD77 182,726 Federal Home Loan Bank, Dallas, TX
GNR 2008-58 PA 6/16/2036 38375DLM8 2,868,075 Federal Home Loan Bank, Dallas, TX
GNR 2010-23 LC 10/20/2037 38376VL62 44,558 Federal Home Loan Bank, Dallas, TX
4,313,355
Centinel Bank
FNMA 11/1/2019 31371LXX2 844,527 Independent Bankers Bank, Dallas TX
FHLB 4/17/2014 31331GTJ8 209,598 Independent Bankers Bank, Dallas TX
FHLB 4/17/2014 31331GTJ8 157,198 Independent Bankers Bank, Dallas TX
1,211,323
Total Pledged Collateral 5,524,678$
See accompanying independent auditors' report
June 30, 2011
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
111
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112
STATE OF NEW MEXICO Schedule III
Balance Balance
June 30, 2010 Additions Deletions June 30, 2011
Assets
Cash 5,494$ $ 26,948 $ 21,860 10,582$
Investments 62,500 - - 62,500
Total assets 67,994$ 26,948$ 21,860$ 73,082$
Liabilities
Deposits payable 66,730$ 7,780$ 3,175$ 71,335$
Due to other entities 1,264 14,656 14,173 1,747
Total liabilities 67,994$ 22,436$ 17,348$ 73,082$
Town of Taos
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
For the Year Ended June 30, 2011
See accompanying independent auditors' report
113
Agreement
The Town
Participates with
Party Responsible for
Operation Description
Salazar Property and
Sports Facilities
Taos Municipal
Schools Board of
Education
Taos Municipal
School District
Develop, manage and maintain a multi-purpose athletic
facility on the Salazar Property
Public Restroom Facility County of Taos County of Taos Designing, constructing, operating, and maintaining a
public restroom facility
Enhanced 911-Response
System
County of Taos,
Town of Questa,
Village of Taos Ski
Valley
Town of Taos Provide an answering point for information regarding
needed emergency services
Taos Regional Landfill
Board
County of Taos,
Village of Questa,
Village of Red River,
Village of Taos Ski
Valley
Town of Taos Establish the Taos Regional Landfill Board
See accompanying independent auditors' report
June 30, 2011
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
114
Schedule IV
Period Cost to Town
Town
Contributions Audit Responsibility
40 Years from 2009, with option to
renew
$2,140,012 for
Phase I; unknown
for other phases
None to date Taos Municipal School
District
November 20, 2007 to January 31,
2028
Indeterminate Indeterminate County of Taos
July 6, 1998 until terminated Estimated $219,494
per year
$243,694 Town of Taos
50 years from November 2, 2000 Dependent on
landfill expenses
None to date Town of Taos
115
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116
COMPLIANCE SECTION
117
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
We have audited the financial statements of the governmental activities,the business-type activities,each major fund, the
budgetary comparison for the General Fund and the aggregate remaining fund information of the Town of Taos (“the Town”),New
Mexico,as of and for the year ended June 30, 2011, which collectively comprise the Town’s basic financial statements as listed in
the table of contents, and have issued our report thereon dated November 29, 2011. We also have audited the financial statements
of each of the Town’s nonmajor governmental funds and budgetary comparisons for the proprietary funds, Capital Projects Fund,
and the remaining nonmajor governmental funds presented as supplementary information in the accompanying combining and
individual fund financial statements as of and for the year ended June 30, 2011 as listed in the table of contents. We conducted our
audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the Town’s internal control over financial reporting as a basis for designing
our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of the Town’s internal control over financial reporting. Accordingly, we do not express
an opinion on the effectiveness of the Town’s internal control over financial reporting.
Our consideration of internal control over financial reporting wa s for the limited purpose described in the preceding paragraph and
was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies,or
material weaknesses and therefore, there can be no assurance that all deficiencies, significant deficiencies, or material weaknesses
have been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified a
certain deficiency in internal control over financial reporting that we consider to be a material weakness.
A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the
normal course of performing their assigned functions, to prevent, or detect and correct mi sstatements on a timely basis. A material
weakness is a deficiency, or combination of deficiencies, in internal control such that there is a reasonable possibility that a material
misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. We consider
the deficiency described in the accompanying schedule of findings and questioned costs as item FS 2010-01, to be a material
weakness.
118
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we
performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and ma terial effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance that is required to be reported under Government Auditing Standards.
We noted a certain matter that is required to be reported pursuant to Government Auditing Standards paragraphs 5.14 and 5.16, and
Section 12-6-5, NMSA 1978, which is described in the accompanying schedule of findings and questioned costs as item FS 2011-
01.
The Town’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned
costs. We did not audit the Town’s responses and, accordingly, we express no opinion on them.
This report is intended solely for the information and use of the audit committee management, others within the organization, Town
Council, the Office of the State Auditor, New Mexico Legislature, the New Mexico Department of Finance and Administration,
federal awarding agencies and pass-through entities and is not intended to be and should not be used by anyone other than these
specified parties.
Accounting & Consulting Group, LLP
Albuquerque, New Mexico
November 29, 2011
119
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120
FEDERAL FINANCIAL ASSISTANCE
121
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE WITH REQUIREMENTS THAT
COULD HAVE A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Hector Balderas
New Mexico State Auditor
The United States Office of Management and Budget and
The Town Council
Town of Taos
Taos, New Mexico
Compliance
We have audited the compliance of Town of Taos,New Mexico (“the Town”)with the types of compliance requirements
described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that could have a
direct and material effect on each of the Town’s major federal programs for the year ended June 30, 2011. The Town’s major
federal programs are identified in the summary of auditors’results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major
federal programs is the responsibility of the Town’s management. Our responsibility is to express an opinion on the Town’s
compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about
whether noncompliance with the types of compliance requirements referred to above that could have a direct and material
effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s
compliance with those requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination of the
Town’s compliance with those requirements.
In our opinion, the Town complied, in all material respects, with the compliance requirements referred to above that could
have a direct and material effect on each of its major federal programs for the year ended June 30, 2011.
Internal Control Over Compliance
The management of the Town is responsible for establishing and maintaining effective internal control over compliance with
the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our
audit, we considered the Town’s internal control over compliance with the requirements that could have a direct and material
effect on a major federal program to determine the auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133,but not for
the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not
express an opinion on the effectiveness of the Town’s internal control over compliance.
122
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not
allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness
in internal control over compliance is a deficiency, or combination of deficiencies,in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with type of compliance requirement of a federal program
will not be prevented, or detected and corrected,on timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control over compliance that might be deficiencies,
significant deficiencies, or material weaknesses. We did not indentify any deficiencies in internal control over compliance
that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of the audit committee management, others within the organization,
Town Council, the Office of the State Auditor, New Mexico Legislature, the New Mexico Department of Finance and
Administration, federal awarding agencies and pass-through entities and is not intended to be and should not be used by
anyone other than these specified parties.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 29, 2011
123
STATE OF NEW MEXICO Schedule V
Town of Taos Page 1 of 2
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2011
CFDA
Number Federal Grant Number Expenditures
16.540 11-690-12421 $ 145,458
16.580 2005-DD-BX-1109 55,808
Total U.S. Department of Justice 201,266
Community Development Block Grant (1)14.228 10-C-NR-I-01-G-27 500,000
14.235 NM02B601005 150,000
Total U.S. Department of Housing & Urban Development 650,000
Federal Aviation Administration (FAA)
Airport Improvements Program - EIS Phase 3A 20.106 3-35-0041-021-2009 11,541
Safe Routes to School 20.205 SRSF-7700(154) 15,000
DOT 06-07 NM 68 Enhancements 20.205 TPE-068-1(61)42 204,346
Federal Transportation Administration (FTA) Federal Assistance-ARRA 20.509 69-8350-0-7-401 507,500
Federal Transportation Administration (FTA) 20.509 NM-03-0041-00 495,015
Total U.S. Department of Transportation 1,233,402
Mexico Environment Department
66.458 CWSRF 15 3,525,996
81.128 11-690-12422 408,577
$ 6,019,241
(1) Denotes Major Federal Financial Assistance Program
U.S. Department of Housing & Urban Development Passed Through the
Total Federal Financial Assistance
See accompanying independent auditors' report
U.S. Environmental Protection Agency Passed Through the State of New
EPA- Clean Water State Revolving Fund- ARRA (1)
U.S. Department of Energy
Funding Source/Grantor or Contact Name
U.S. Department of Justice
Taos County Juvenile Justice
Enforcement Assistance
State of New Mexico, Department of Finance & Administration
ARRA Conservation Block Grant (1)
Community Against Violence
U.S. Department of Transportation
124
STATE OF NEW MEXICO Schedule V
Town of Taos Page 2 of 2
Schedule of Expenditures of Federal Awards
For the Year Ended June 30, 2011
Notes to Schedule of Expenditures of Federal Awards
3. Loan amounts
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
6,019,241$
18,936,025
24,955,266$
1. Basis of Presentation
Total expenditures
The accompanying Schedule of Expenditures of Federal Awards (Schedule)includes the federal grant activity of the Town of Taos and
is presented on the modified accrual basis of accounting,which is the same basis as was used to prepare the governmental fund
financial statements,except for the proprietary funds.The information in this Schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations .
The Town did not provide any federal awards to subrecipients during the year.
Total expenditures funded by other sources
2. Subrecipients
Total federal awards expended per Schedule of Expenditures of Federal Awards
The Town owed $54,000 to United Stated Department of Agriculture and $225,000 to the Rural Utilities Service as of June 30, 2011.
125
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 5
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Section I –Summary of Audit Results
Financial Statements:
1.Type of auditors’ report issued Unqualified
2.Internal control over financial reporting:
a.Material weaknesses identified?Yes
b.Significant deficiencies identified not considered to be material weaknesses?No
c.Noncompliance material to the financial statements noted?No
Federal Awards:
1.Internal control over major programs:
a.Material weaknesses identified?No
b.Significant deficiencies identified not considered to be material weaknesses?No
2.Type of auditors’ report issued on compliance for major programs Unqualified
3.Any audit findings disclosed that are required to be reported in accordance with
Section 510(a) of Circular A-133?No
4.Identification of major programs:
CFDA
Number Federal Program
14.228 Community Development Block Grant
81.128 Energy Efficiency and Conservation Block Grant
66.458 EPA-Clean Water State Revolving Fund
5.Dollar threshold used to distinguish between type A and type B programs:$300,000
6.Auditee qualified as a low-risk auditee under the requirements set forth by
OMB Circular A-133 section 530?No
126
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 5
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
Section II –Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings
2007-01 Bank Reconciliations Resolved
2009-03 Preparation of Financial Statements Resolved
2010-01 Design Deficiencies in Internal Control
over Financial Reporting Repeated and Modified
Federal Awards Findings
2009-01 Davis-Bacon Resolved
2010-01 Excluded Parties List Resolved
Section III –Financial Statement Findings and Questioned Costs
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Material Weakness)
Condition: The Town’s internal control structure is inadequate. The Town does not have a comprehensive
documented internal control system over financial information. The Town does not maintain proper oversight or
monitoring in regards to the Town’s accounting activities and has not taken the proper measures to monitor and
mitigate the risk for fraud, misappropriation of assets, or misstatement of financial statements. During our audit, we
noted the following internal control deficiencies:
Changes to the vendor master file are not periodically reviewed for reasonableness.
Management does not have internal controls in place to ensure all debt covenants have been reviewed
and the Town is in compliance with all requirements of each debt instrument.
Management and the board of governance have not established practices for the identification of risks
affecting the entity as well as appropriate fraud risk assessment and monitoring processes.
Management and the board of governance does not mo nitor controls over financial reporting through
ongoing monitoring, independent evaluations, and remediation of identified deficiencies.
Criteria: NMAC 6.20.2.11 states:
A.Every Town shall establish and maintain an internal control structure to provide management with
reasonable assurance that assets are safe-guarded against loss from unauthorized use or disposition, that
transactions are executed in accordance wi th management's authorization and recorded properly to permit
the preparation of general purpose financial statements in accordance with GAAP, and that state and federal
programs are managed in compliance with applicable laws and regulations. The internal control structure
shall include written administrative controls (rules, procedures and practices, and policies that affect the
organization) and accounting controls (activity cycles, financial statement captions, accounting applications
including computer systems) that are in accordance with GAAP.
B.Each Town shall develop, establish and maintain a structure of internal accounting controls and
written procedures to provide for segregation of duties, a system of authorization and recording procedures,
and sound accounting practices in performance of duties and functions. The duties to be segregated are the
authorization to execute a transaction, recording the transaction, and custody of assets involved in the
transaction.
127
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 5
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Material Weakness) (continued)
(1) Town management must ensure that protection of the public trust is a major focus when granting
the authorization to execute business of the Town.
(2) Employees handling significant amounts of cash must be adequately bonded. Access to assets is
permitted only in accordance with Town authorization.
(3) Receipts, checks or warrants, purchase orders, and vouchers shall be sequentially pre-numbered.
(4) The Town shall have proper safeguards to protect unused checks and other pre-numbered forms,
undeposited cash and other receipts, and facsimile signature plates.
(5) Transactions are to be recorded as necessary to permit preparation of financial statements in
conformity with GAAP. In addition, the Town shall establish any other criteria applicable to such
statements to maintain accountability for assets.
(6) The Town shall conduct independent checks on performance and proper valuation of recorded
amounts, such as clerical checks, reconciliations, comparison of assets with recorded accountability,
computer-programmed controls, management review of reports that summarize the detail of account
balances, and user review of computer generated reports.
C.An internal control structure is required to demonstrate the Town’s ability to record, process,
summarize and report financial data consistent with the following financial statement assertions:
(1) rights and ownership;
(2) existence and occurrence;
(3) valuation and allocations;
(4) completeness; and,
(5) presentation and disclosure.
D.The internal control structure shall demonstrate that the Town identifies applicable laws and
regulations, and that procedures are designed to provide reasonable assurance that the Town complies with
those laws and regulations. Internal control procedures shall be established, implemented and documented
through Town correspondence, manuals, training, and other additional methods. Appropriate internal control
procedures shall be adopted by the Council within a Town to safeguard its assets, check the accuracy and
reliability of its accounting data, promote operational efficiency, and encourage adherence to prescribed
managerial policies. The internal control structure shall address all Town transactions.
The SAS No. 112 Appendix lists the following circumstances as possible control deficiency, significant deficiency,
or material weakness, “inadequate documentation of the components of internal control.” SAS 112 paragraph 19
states that ineffective oversight of the agency’s financial reporting and internal control by those charged with
governance should be regarded as at least a significant deficiency and a strong indicator of a material weakness in
internal control.
Effect: Because certain internal controls have weaknesses in design, key controls are not in place to properly
safeguard assets and prevent or detect material misstatements due to errors or fraud.
Cause: The Town has not performed a formalized and documented risk assessment process for those key controls in
place to prevent and detect errors or fraud.
Auditors’ Recommendations: The Town should ensure that a comprehensive internal control structure over financial
information is designed, documented, and implemented. Management should follow and ensure that all staff follows
the Town’s documented internal control procedures. The Town Council is charged with governance and should
provide effective oversight of the internal control and financial reporting process.
Agency’s Response: Management agrees with the auditors’ recommendations and will prepare a formalized and
documented internal control procedures in association with existing practices that are currently followed with the
Town’s accounting manual and subsequent policies and procedures. The Town is in the process of procuring a CPA
consulting firm to review and analyze the internal controls and give recommendations in regards to this finding.
128
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 5
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
FS 2011-01 Noncompliance of Town Policy (Other Matter)
Condition: During our testwork of travel and per diem it was noted that any travel that exceeds four or more days is
required to have Town Manager’s signature approving the travel. In addition, during testwork of personal use of
vehicles, it was noted that one employee who was allowed a take home vehicle did not have the fringe benefit added
to their W-2. According to Town policy police can take home a marked vehicle if they live within 30 miles of the
Town Hall, however the above mentioned officer lived outside the 30 mile range.
Criteria: According to Town Travel policy Chapter 3.120 Section .020(C) -Reimbursement Procedures-states if
travel exceeds four days, then approval will be required of the Town Manager for any employee.In addition,
according to Town Policy 3.124.020 Take Home Use-states Public Law 99-44 allows clearly marked police and fire
vehicles to be taken home after duty hours without being considered a working condition fringe benefit subject to IRS
regulations. The exception to this rule is that no police vehicle may be taken home if a police officer lives more than
30 miles from the Town Hall.
Effect: Because the internal policy structure is not followed, management and staff are unable to prevent
unauthorized travel.
Cause: The Town was unaware the approval by the Town Manager was required for travel exceeding a certain
amount of time. In addition, due to the slight mileage overage set forth in the Town policy, the Police Chief verbally
approved the police officers take home vehicle without a fringe benefit.
Auditor’s Recommendations: We recommend the Town follow all Town Policies set forth by Manager and the Town
Council. Any amendments to the policy should be clearly documented and approved.
Agency’s Response: Management agrees with the auditors’ recommendations and will follow all Town Policies set
forth by Manager and the Town Council.
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 5 of 5
Schedule of Findings and Questioned Costs
For the Year Ended June 30, 2011
FINDINGS –FEDERAL AWARDS
None
130
STATE OF NEW MEXICO
Town of Taos
Other Disclosures
For the Year Ended June 30, 2011
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 29, 2011. In attendance were the following:
Representing the Town of Taos:
Michael A. Silva Councilor/Mayor Pro Tem
Abigail Adame Interim Town Manager
Marietta Fambro Finance Director
Representing Accounting & Consulting Group, LLP:
Robert Cordova, CPA Audit Manager
Auditor Prepared Financial Statements
Accounting and Consulting Group, LLP prepared the GAAP-basis financial statements and footnotes of the Town of T aos from
the original books and records provided to them by the management of the Town. T he responsibility for the financial statements
remains with the Town.
131