2012 Audit ReportAccounting & Consulting Group, LLP
Certified Public Accountants
STATE OF NEW MEXICO
TOWN OF TAOS
ANNUAL FINANCIAL REPORT
JUNE 30, 2012
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2
INTRODUCTORY SECTION
3
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2012
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 35
NOTES TO THE FINANCIAL STATEMENTS 36-63
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 66-69
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet –Nonmajor Governmental Funds A-1 70-75
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 76-81
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 82
Recreation Special Revenue Fund B-2 83
Lodger’s Tax Special Revenue Fund B-3 84
Local Government Correction Special Revenue Fund B-4 85
Law Enforcement Protection Special Revenue Fund B-5 86
Civic Center Special Revenue Fund B-6 87
Domestic Violence Shelter Special Revenue Fund B-7 88
Public Transportation Special Revenue Fund B-8 89
Community Grants Special Revenue Fund B-9 90
Municipal Road Gasoline Tax Special Revenue Fund B-10 91
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 92
4
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2012
SUPPLEMENTARY INFORMATION (CONTINUED)
Statement/Schedule Page
Statement of Revenues, Expenditures and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Communications Special Revenue Fund B-12 93
2009 NMFA PPRF Disadvantage Program-Eco Park Debt Service Fund B-13 94
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-14 95
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund B-15 96
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund B-16 97
NMFA Debt Service Reserve Eco Park Debt Service Fund B-17 98
2007 NMFA Land Purchase Debt Service Fund B-18 99
2011 PPRF Street Improvement Debt Service Fund B-19 100
2011 PPRF Street Improvement Reserve Debt Service Fund B-20 101
Facilities Improvements Capital Projects Fund B-21 102
Capital Projects Capital Projects Fund B-22 103
Airport Construction Capital Projects Fund B-23 104
Enhanced 911 Capital Projects Fund B-24 105
Vehicle Replacement Capital Projects Fund B-25 106
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-26 107
1999 Gasoline Tax Acquisition Capital Projects Fund B-27 108
Statement of Revenues, Expenses and Changes in Net Assets –
Budget (GAAP Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-28 109
Solid Waste Fund B-29 110
Taos Regional Landfill Fund B-30 111
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 114-115
Schedule of Collateral Pledged by Depository for Public Funds II 116
Schedule of Changes in Fiduciary Assets and Liabilities -Agency Funds III 117
Schedule of Joint Powers Agreements IV 118-119
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 122-123
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
Control Over Compliance in Accordance with OMB Circular A-133 126-127
Schedule of Expenditures of Federal Awards V 128-129
Schedule of Findings and Questioned Costs VI 130-134
OTHER DISCLOSURES 135
5
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6
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2012
Town Council
Name Title
Darren Cordova Mayor
Michael A. Silva Councilor
Rudy Abeyta Councilor
Frederick Peralta Councilor
Andrew Gonzales Councilor
Administration
Oscar Rodriguez
Abigail Adame
Town Manager
Assistant Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez
C. Brian James
Municipal Judge
Town Attorney
7
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8
FINANCIAL SECTION
9
Accounting & Consulting Group, LLP
Certified Public Accountants
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 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, New
Mexico (“the Town”), as of and for the year ended June 30, 2012, 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 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, 2012 as listed in the table of contents. These 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, 2012, 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. In 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, 2012, and the respective changes in financial position thereof, and the respective budgetary comparisons
of all nonmajor governmental funds and the proprietary 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 27, 2012 on our
consideration of the Town’s internal control over financial reporting and on our tests of its 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. That 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.
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and
Analysis on pages 12-19 be presented to supplement the basic financial statements. Such information, although not a part of
the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an
essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic or
historical context. We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquires of management about the
methods of preparing the information and comparing the information for consistency with management’s responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us
with sufficient evidence to express an opinion or provide any assurance.
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
U.S. Office of Management and Budget Circular A-133, Audit of States, Local Governments, and Non-Profit Organizations,
and is not a required part of the basic financial statements. The 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. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has been subjected to the
auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the financial statements
or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 27, 2012
11
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2012
We are pleased to present the Town of Taos’s financial statements for the fiscal year ended June 30, 2012. Management’s
discussion and analysis of these statements is also provided to help the reader fully appraise the Town’s financial condition.
FINANCIAL HIGHLIGHTS
The Town of Taos’ total assets exceeded its total liabilities at the close of the fiscal year by $77,523,876 (net assets). Of
this amount, $7,028,680 (unrestricted net assets) is available to meet the government’s ongoing obligations to its citizens
and creditors.
The Town’s total net assets decreased by $748,412 during the fiscal year. The majority of this decrease comes from the
assumption of a new loan for street improvements and a decrease in gross receipts taxes and grant revenues.
As of June 30, 2012, the Town’s governmental activities reported combined ending net assets balances of $49,087,656.
Of this total, $332,099 is designated for debt service and $1,979,475 is designated for capital projects.
At the close of the current fiscal year, the unassigned fund balance for the general fund was $726,286, amounting to 7
percent of total general fund government expenditures.
The Town of Taos’ total debt increased during the year primarily as the result of the early retirement of the Series 1999
Gasoline Tax Bonds in the amount of $365,000 and the issuance of new debt in the amount of $1,694,457. The Town
paid $1,759,300 on the principal of various of its loans, bonds, compensated absences and contracts payable.
Overview of the 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. This 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 taxes 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. The 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.
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.
12
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2012
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, 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. By doing so, readers may better understand the long-term impact 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-eight 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, which is considered a major fund. 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 of combining statements elsewhere in this report.
The Town of Taos adopts an annual appropriated budget for its general fund, capital projects funds, debt service funds, special
revenue funds, fire, police, GRT, and all other funds. A budgetary 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. Proprietary 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 recreation 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. The notes to the financial statements can be found on pages 36-
63 of this report.
Combining statements. The combining statements referred to earlier in connection with nonmajor governmental funds are
presented immediately following the notes to the financial statements. Combining and individual fund statements and schedules
can be found on pages 70-111 of this report.
13
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2012
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. In the case of the Town
of Taos, assets exceeded liabilities by $77,523,876 at the close of the current fiscal year.
The most significant portion of the Town of Taos’ net assets represents the Town’s investment of $65,470,176 in capital assets
(e.g., land improvements, buildings, infrastructure and machinery & equipment), less any related outstanding debt used to acquire
those assets. The Town of Taos uses these capital assets to provide services to its citizens, so these assets are not available for
future spending. Although the Town of Taos’ investment in its capital assets is reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to
liquidate these liabilities.
Governmental Business-Type
Activities Activities Total
Assets
Current and other assets 7,385,700$ 5,248,405$ 12,634,105$
Restricted cash, cash equivalents & investments 1,856,284 1,233,805 3,090,089
Bond issuance costs and discount 167,647 - 167,647
Capital assets, net of accumulated 50,385,934 29,788,823 80,174,757
depreciation
Total assets 59,795,565 36,271,033 96,066,598
Liabilities
Current Liabilities 1,562,263$ 1,105,861$ 2,668,124$
Non-current liabilities 9,145,646 6,728,952 15,874,598
Total liabilities 10,707,909 7,834,813 18,542,722
Net Assets
Invested in capital assets, net of 40,854,644 24,615,532 65,470,176
related debt
Restricted 3,791,215 1,233,805 5,025,020
Unrestricted 4,441,797 2,586,883 7,028,680
Total net assets 49,087,656$ 28,436,220$ 77,523,876$
Total Liabilities and Net Assets 59,795,565$ 36,271,033$ 96,066,598$
June 30, 2012
A portion of the Town of Taos’ governmental net assets of $3,791,215 (7 percent) represents resources that are subject to
restrictions related to covenants arising from the Town’s long-term debt issuance and capital projects, and other purposes as
prescribed by external parties. The remaining balance of unrestricted net assets, $4,441,797, 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 categories of net assets for both the
governmental and business-type activities.
14
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2012
Analysis of Changes in Net Assets
The Town’s net assets decreased by $748,412 during the fiscal year. This decrease is primarily the result of a decrease in gross
receipts taxes and grant revenues during the fiscal year.
Governmental Business-type
Revenues Activities Activities Total
Program revenues:
Charges for service 1,123,907$ 5,019,377$ 6,143,284$
Operating grants and contributions 1,015,864 7,898 1,023,762
Capital grants and contributions 551,245 2,452,263 3,003,508
General revenues:
Property taxes, levied for general purposes 903,273 - 903,273
Gross receipts taxes 9,595,348 379,820 9,975,168
Gasoline and auto distribution taxes 320,327 - 320,327
Other taxes 1,175,509 - 1,175,509
Interest income (loss)(12,948) 2,372 (10,576)
Miscellaneous income 77,865 25,614 103,479
Loss on disposal of capital assets (78) - (78)
Total Revenues 14,750,312 7,887,344 22,637,656
Program expenses:
General government 7,484,623$ -$ 7,484,623$
Public safety 2,955,523 - 2,955,523
Public works 3,815,746 - 3,815,746
Culture and recreation 2,363,078 - 2,363,078
Health and welfare 662,839 - 662,839
Interest on long-term debt 321,419 - 321,419
Joint water and sewer - 3,626,563 3,626,563
Solid waste - 1,203,249 1,203,249
Taos Regional Landfill - 953,028 953,028
Total Expenses 17,603,228 5,782,840 23,386,068
Change in net assets (2,852,916) 2,104,504 (748,412)
Net assets, beginning 51,940,572 26,331,716 78,272,288
Net assets, ending 49,087,656$ 28,436,220$ 77,523,876$
For the Year Ended June 30, 2012
Governmental activities. Governmental activities decreased the Town of Taos’ net assets by $2,852,916, primarily as the result
of decreases in gross receipts taxes and grant revenue.
Tax revenues account for $11,994,457 or 81 percent of governmental revenues. Tax 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, 2012
The General fund received the majority of the Town’s program revenue, accounting for $7,484,623 or 51 percent of total
governmental revenues. The primary recipients of these revenues are general government, public works and public safety.
The Town’s direct charges to users of governmental services made up $1,123,907, or 8 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 $2,104,504.
The Town’s direct charges to users of business-type services made up $5,019,377, or 64 percent of total business-type revenues.
These charges are for water and sewer services, water and sewer connection fees. These direct charges for service increased by
$158,738 from the previous year due to the second year of a 5-year rate adjustment for water and sewer services.
The Town received the remainder of a $4.9 million capital grant this year which contributed to the overall increase in net assets by
$2,104,904. This is a substantial decrease from the previous year in the amount of $2,698,756.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
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. Such information is useful in assessing the Town of Taos’ financing requirements.
In particular, unreserved fund balance may serve as a useful measure of a government’s net resources available for spending at
the end of the fiscal year. Types 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 $14,750,312 in the fiscal year ended June 30, 2012, which
represents a decrease of $2,301,992 from the fiscal year ended June 30, 2011. This is largely due to the decrease in gross receipts
taxes and federal, state operating and capital grants. Expenditures for governmental activities, totaling $17,603,228, decreased by
approximately $371,761 from the fiscal year ended June 30, 2011. This is largely due to the decrease in expenditures in public
safety as the function was short staffed for a major part of the year. In the fiscal year ended June 30, 2012, expenditures for
governmental functions exceeded revenues by approximately $2,852,916.
The General Fund is the chief operating fund of the Town of Taos. It is from here that the Town pays for the public safety and
other basic services it provides to its citizens. At the end of the current fiscal year, unassigned fund balance of the general fund
was $726,286.
The fund balance of the Town of Taos’ general fund decreased by $423,885 during the current fiscal year, due to a decrease in
revenue and an increase in expenditures. Overall, the general fund’s performance resulted in revenues over expenditures in the
fiscal year ended June 30, 2012 of $403,638, a decrease of $944,089 over the comparable figure from the prior year of
$1,347,727.
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 $2,649,054. The total increase in net assets for
the enterprise funds was $2,104,504. 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, 2012
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 and regulation. To 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. The Town defines its priorities 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, 2012.
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 $668,357
less than the final budget amount (favorable variance). This was primarily to general governmental favorable variance of
$447,113. The difference between actual expenditures and budgeted expenditures is due to various expenditures that were
expected to occur during the year ended June 30, 2012, but did not, along with savings from personnel vacancies.
Budget Amounts
Original Final
Expenditures:
General government 5,248,284$ 5,076,607$ 4,629,494$ 447,113$
Public safety 2,948,305 2,843,940 2,671,984 171,956
Public works 1,048,069 1,064,011 1,052,616 11,395
Culture and recreation 1,533,476 1,487,919 1,450,026 37,893
Total Expenditures 10,778,134$ 10,472,477$ 9,804,120$ 668,357$
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, 2012 amount to
$80,174,757 (net of accumulated depreciation). Capital assets include land, land improvements, buildings and improvements,
furniture, fixtures and equipment, and infrastructure. The Town’s capital assets for the current fiscal year decreased $3,094,687
for governmental activities and increased $1,766,975 for business-type activities.
The significant additions to capital assets during the year were as follows:
$2,308,475 additions to governmental activities reclassifying construction in progress for Eco Park Recreation Facility
into service.
$1,086,669 of additions to governmental infrastructure and equipment for completion and/or purchase of a Skeeder
Brush Truck for the Fire Department, an E-911 Communications Upgrade and the Airport Beacon and Seal Coat
projects.
$2,222,653 of additions to business-type construction in progress for upgrades to the Wastewater Treatment Plant, which
will be fully completed during the fiscal year ended June 30, 2013.
$931,355 of additions to business type infrastructure were completion of the Chamisa Phase I Water/Sewer, Dedicated
Fill Line, Grit Pump Replacement and Fire Hydrant Replacement projects.
17
State of New Mexico
Town of Taos
Management’s Discussion and Analysis
June 30, 2012
Town of Taos's Capital Assets, Net of Depreciation
June 30, 2012
Governmental Business-like
Activities Activities Total
Land 6,277,809$ 262,422$ 6,540,231$
Constuction in progress 358,224 10,994,117 11,352,341
Land improvements 7,377,460 104,895 7,482,355
Buildings and improvements 33,444,101 4,392,921 37,837,022
Machinery and Equipment 15,237,169 8,740,908 23,978,077
Infrastructure 49,708,256 21,821,050 71,529,306
Total capital assets 112,403,019 46,316,313 158,719,332
Less: accumulated depreciation (62,017,085) (16,527,490) (78,544,575)
Total property, plant and equipment, net
of accumulated depreciation 50,385,934$ 29,788,823$ 80,174,757$
For government-wide financial statement presentation purposes, all depreciable capital assets were depreciated from the
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
$17,290,667. There was one addition to long term debt during the year in the amount of $1,694,457 for Street Improvements
within the Town limits.
Town of Taos's Outstanding Debt
June 30, 2012
Governmental Business-like
Activities Activities Total
Revenue Bonds 5,510,000$ 2,055,600$ 7,565,600$
NMFA amd RUS Loans 3,985,290 3,117,691 7,102,981
USDA Contract Payable 36,000 - 36,000
Compensated Absences 619,942 68,803 688,745
Landfill Closure Liability - 1,897,341 1,897,341
Total long-term liabilities 10,151,232$ 7,139,435$ 17,290,667$
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, 2012
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
(This page intentionally left blank)
20
BASIC
FINANCIAL STATEMENTS
21
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 1,896,090$ 2,762,105$ 4,658,195$
Investments 3,127,768 1,634,501 4,762,269
Receivables:
Property taxes 191,298 - 191,298
Other taxes 1,896,217 - 1,896,217
Due from other governments 267,425 698,440 965,865
Customer receivables, net - 160,261 160,261
Internal balances 6,902 (6,902) -
Total current assets 7,385,700 5,248,405 12,634,105
Noncurrent assets
Restricted cash and cash equivalents 4,494 932,949 937,443
Restricted investments 1,851,790 300,856 2,152,646
Bond issuance costs, net of accumulated
amortization of $49,782 167,647 - 167,647
Capital assets 112,403,019 46,316,313 158,719,332
STATE OF NEW MEXICO
Primary Government
June 30, 2012
Statement of Net Assets
Town of Taos
Less: accumulated depreciation (62,017,085) (16,527,490) (78,544,575)
Total noncurrent assets 52,409,865 31,022,628 83,432,493
Total assets 59,795,565$ 36,271,033$ 96,066,598$
The accompanying notes are an integral part of these financial statements
22
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 297,088$ 368,733$ 665,821$
Accrued payroll 160,415 20,536 180,951
Deposits held in trust for others 5,103 250,837 255,940
Accrued compensated absences 410,553 55,231 465,784
Accrued interest 40,295 55,272 95,567
Current portion of bonds payable 265,000 46,000 311,000
Current portion of loans and contracts payable 383,809 309,252 693,061
Total current liabilities 1,562,263 1,105,861 2,668,124
Noncurrent liabilities
Accrued compensated absences 209,389 13,572 222,961
Accrued landfill closure costs - 1,897,341 1,897,341
Bond premiums, net of accumulated
amortization of $17,066 53,776 - 53,776
Bonds payable 5,245,000 2,009,600 7,254,600
Loans and contracts payable 3,637,481 2,808,439 6,445,920
Primary Government
Total noncurrent liabilities 9,145,646 6,728,952 15,874,598
Total liabilities 10,707,909 7,834,813 18,542,722
Net Assets
Invested in capital assets, net of related debt 40,854,644 24,615,532 65,470,176
Restricted for:
Debt service 332,099 1,233,805 1,565,904
Capital projects 1,979,475 - 1,979,475
Special revenue 1,479,641 - 1,479,641
Landfill - 917,919 917,919
Unrestricted 4,441,797 1,668,964 6,110,761
Total net assets 49,087,656 28,436,220 77,523,876
Total liabilities and net assets 59,795,565$ 36,271,033$ 96,066,598$
23
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Governmental Activities:
General government 7,484,623$ 1,040,846$ 345,677$ -$
Public safety 2,955,523 - 225,852 -
Public works 3,815,746 - - 551,245
Culture and recreation 2,363,078 31,160 - -
Health and welfare 662,839 51,901 444,335 -
Interest on long-term debt 321,419 - - -
Total governmental activities 17,603,228 1,123,907 1,015,864 551,245
Business-type Activities:
Water and sewer 3,626,563 2,891,725 - 2,452,263
Solid waste 1,203,249 1,230,466 - -
Taos regional landfill 953,028 897,186 7,898 -
Total business-type activities 5,782,840 5,019,377 7,898 2,452,263
Total primary government 23,386,068$ 6,143,284$ 1,023,762$ 3,003,508$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Franchise taxes
Lodger's taxes
Other taxes
Investment income (loss)
Miscellaneous income
Loss 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, 2012
The accompanying notes are an integral part of these financial statements
Program Revenues
24
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(6,098,100)$ -$ (6,098,100)$
(2,729,671) - (2,729,671)
(3,264,501) - (3,264,501)
(2,331,918) - (2,331,918)
(166,603) - (166,603)
(321,419) - (321,419)
(14,912,212) - (14,912,212)
- 1,717,425 1,717,425
- 27,217 27,217
- (47,944) (47,944)
- 1,696,698 1,696,698
(14,912,212) 1,696,698 (13,215,514)
903,273 - 903,273
9,595,348 379,820 9,975,168
320,327 - 320,327
328,067 - 328,067
847,432 - 847,432
10 - 10
(12,948) 2,372 (10,576)
77,865 25,614 103,479
(78) - (78)
12,059,296 407,806 12,467,102
(2,852,916) 2,104,504 (748,412)
51,940,572 26,331,716 78,272,288
49,087,656$ 28,436,220$ 77,523,876$
Net (Expense) Revenue and Changes in Net Assets
25
Exhibit B-1
Page 1 of 2
General Fund
Other Governmental
Funds Total
Assets
Cash and cash equivalents 542,284$ 3,210,090$ 3,752,374$
Investments 1,377,922 1,749,846 3,127,768
Receivables:
Property taxes 191,298 - 191,298
Other taxes 1,459,700 436,517 1,896,217
Due from other governments 18,523 248,902 267,425
Due from other funds 6,902 - 6,902
Total assets 3,596,629$ 5,645,355$ 9,241,984$
Liabilities
Accounts payable 131,045$ 166,043$ 297,088$
Accrued payroll 138,167 22,248 160,415
Deposits held in trust for others - 5,103 5,103
Deferred revenue 179,824 53,777 233,601
Due to other funds - - -
Total liabilities 449,036 247,171 696,207
Fund balances
Spendable
Restricted for:
General government - 490,342 490,342
Public safety - 20,395 20,395
Culture and recreation - 246,633 246,633
Public works - 8,725 8,725
Fire protection - 599,231 599,231
Health and welfare - 30,594 30,594
Debt service expenditures - 498,535 498,535
Capital projects - 3,503,729 3,503,729
Committed for:
Minimum fund balance 817,010 - 817,010
Subsequent year's expenditures 1,604,297 - 1,604,297
Unassigned 726,286 - 726,286
Total fund balances 3,147,593 5,398,184 8,545,777
Total liabilities and fund balances 3,596,629$ 5,645,355$ 9,241,984$
June 30, 2012
Governmental Funds
Balance Sheet
Town of Taos
STATE OF NEW MEXICO
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 8,545,777$
Bond issuance costs net of accumulated amortization are not a current
financial resource and, therefore, are not reported in the funds.167,647
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 50,385,934
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 in the Statement of Activities.233,601
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (40,295)
Some liabilities, including bonds payable, loans and contracts are not due
and payable in the current period and, therefore, are not reported in the funds:
Accrued compensated absences (619,942)
Bond premiums (53,776)
Bonds payable (5,510,000)
Loans payable (3,985,290)
Contracts payable (36,000)
Total net assets of governmental activities 49,087,656$
June 30, 2012
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
Exhibit B-2
Page 1 of 2
General Fund
Other Governmental
Funds Total
Revenues
Taxes
Property 919,735$ -$ 919,735$
Gross receipts 8,031,097 1,564,251 9,595,348
Gasoline and motor vehicle taxes 224,892 95,435 320,327
Other 328,067 888,330 1,216,397
Intergovernmental income
Federal operating grants - 150,000 150,000
Federal capital grants - 515,601 515,601
State operating grants 48,910 816,954 865,864
State capital grants - 35,644 35,644
Charges for services 380,021 455,137 835,158
Licenses and fees 267,243 21,506 288,749
Investment income (loss)(8,578) (4,370) (12,948)
Miscellaneous 16,371 61,494 77,865
Total revenues 10,207,758 4,599,982 14,807,740
Expenditures
Current
General government 4,629,494 961,947 5,591,441
Public safety 2,671,984 243,247 2,915,231
Public works 1,052,616 633,929 1,686,545
Culture and recreation 1,450,026 946,498 2,396,524
Health and welfare - 637,184 637,184
Capital outlay - 983,244 983,244
Debt service
Principal - 997,853 997,853
Interest - 325,186 325,186
Total expenditures 9,804,120 5,729,088 15,533,208
Excess (deficiency) of revenues over
expenditures 403,638 (1,129,106) (725,468)
Other financing sources (uses)
Proceeds from issuance of debt - 1,694,457 1,694,457
Transfers in 4,653,215 3,835,426 8,488,641
Transfers out (5,480,738) (3,007,903) (8,488,641)
Total other financing sources (uses)(827,523) 2,521,980 1,694,457
Net change in fund balances (423,885) 1,392,874 968,989
Fund balance - beginning of year 3,571,478 4,005,310 7,576,788
Fund balance - end of year 3,147,593$ 5,398,184$ 8,545,777$
For the Year Ended June 30, 2012
Governmental Funds
Statement of Revenues, Expenditures and Changes in Fund Balances
Town of Taos
STATE OF NEW MEXICO
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 968,989$
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 983,244
Depreciation expense (4,077,853)
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.(78)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenue in the funds:
Decrease in deferred revenue related to property taxes receivable (16,462)
Decrease in lodger's tax settlement revenue not received within the period of availability (40,888)
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 3,767
Decrease in accrued compensated absences 31,225
Amortization of bond premiums 3,864
Proceeds from the issuance of debt (1,694,457)
Principal payments on bonds payable 620,000
Principal payments on loans payable 359,853
Payments on contracts payable 18,000
Change in net assets of governmental activities (2,852,916)$
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, 2012
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 854,294$ 854,294$ 919,735$ 65,441$
Gross receipts 8,154,705 8,154,705 8,031,097 (123,608)
Gas and motor vehicle 241,897 241,897 224,892 (17,005)
Other 370,650 370,650 328,067 (42,583)
Intergovernmental income
Federal operating grants 10,000 10,000 - (10,000)
Federal capital grants - - - -
State operating grants 35,000 35,000 48,910 13,910
State capital grants - - - -
Charges for services 350,130 350,130 380,021 29,891
Licenses and fees 256,679 256,679 267,243 10,564
Interest income 8,571 8,571 (8,578) (17,149)
Miscellaneous 31,871 33,934 16,371 (17,563)
Total revenues 10,313,797 10,315,860 10,207,758 (108,102)
Expenditures
Current
General government 5,248,284 5,076,607 4,629,494 447,113
Public safety 2,948,305 2,843,940 2,671,984 171,956
Public works 1,048,069 1,064,011 1,052,616 11,395
Culture and recreation 1,533,476 1,487,919 1,450,026 37,893
Health and welfare - - - -
Capital outlay - - - -
Total expenditures 10,778,134 10,472,477 9,804,120 668,357
Excess (deficiency) of revenues over expenditures (464,337) (156,617) 403,638 560,255
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,178,824 1,080,713 - (1,080,713)
Transfers in 4,724,557 4,719,322 4,653,215 (66,107)
Transfers out (5,439,044) (5,643,418) (5,480,738) 162,680
Proceeds from sale of capital assets - - - -
Total other financing sources (uses)464,337 156,617 (827,523) (984,140)
Net change in fund balance - - (423,885) (423,885)
Fund balance - beginning of year - - 3,571,478 3,571,478
Fund balance - end of year -$ -$ 3,147,593$ 3,147,593$
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, 2012
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 1,357,625$ 783,629$ 620,851$ 2,762,105$
Investments 1,310,001 249,100 75,400 1,634,501
Due from other governments 152,363 - 7,898 160,261
Customer receivables, net 535,166 158,520 4,754 698,440
Total current assets 3,355,155 1,191,249 708,903 5,255,307
Noncurrent assets
Restricted cash and cash equivalents 253,715 - 679,234 932,949
Restricted investments 62,171 - 238,685 300,856
Capital assets 41,323,750 768,668 4,223,895 46,316,313
Less: accumulated depreciation (14,933,719) (375,350) (1,218,421) (16,527,490)
Total noncurrent assets 26,705,917 393,318 3,923,393 31,022,628
Total assets 30,061,072$ 1,584,567$ 4,632,296$ 36,277,935$
Liabilities and net assets
Liabilities
Current liabilities
Accounts payable 202,355$ 136,057$ 30,321$ 368,733$
Accrued payroll 13,780 1,795 4,961 20,536
Meter deposits payable 250,837 - - 250,837
Accrued compensated absences 36,842 15,987 2,402 55,231
Interfund payable 696 - 6,206 6,902
Accrued interest payable 51,511 - 3,761 55,272
Current portion of bonds payable 46,000 - - 46,000
Current portion of loans and contracts payable 137,789 - 171,463 309,252
Total current liabilities 739,810 153,839 219,114 1,112,763
Noncurrent liabilities
Accrued compensated absences 11,158 2,414 - 13,572
Accrued landfill closure costs - - 1,897,341 1,897,341
Bonds payable 2,009,600 - - 2,009,600
Loans payable 2,178,248 - 630,191 2,808,439
Total noncurrent liabilities 4,199,006 2,414 2,527,532 6,728,952
Total liabilities 4,938,816 156,253 2,746,646 7,841,715
Net assets
Invested in capital assets, net of related debt 22,018,394 393,318 2,203,820 24,615,532
Restricted for:
Landfill - - 917,919 917,919
Debt service 253,715 - - 253,715
Unrestricted 2,850,147 1,034,996 (1,236,089) 2,649,054
Total net assets 25,122,256 1,428,314 1,885,650 28,436,220
Total liabilities and net assets 30,061,072$ 1,584,567$ 4,632,296$ 36,277,935$
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, 2012
Proprietary Funds
31
Exhibit D-2
Water and
Sewer Solid Waste Total
Operating revenues
Charges for services 2,891,725$ 1,230,466$ 897,186$ 5,019,377$
Total operating revenues 2,891,725 1,230,466 897,186 5,019,377
Operating expenses
Personnel services 711,133 118,688 271,302 1,101,123
Contractual services 1,086,651 759,526 336,701 2,182,878
Supplies 190,678 7,602 3,949 202,229
Repairs and maintenance 69,927 60,966 113,379 244,272
Utilities 329,415 231,322 6,654 567,391
Depreciation 1,076,331 23,643 188,331 1,288,305
Other costs 30,147 1,502 6,265 37,914
Total operating expenses 3,494,282 1,203,249 926,581 5,624,112
Operating income (loss) (602,557) 27,217 (29,395) (604,735)
Non-operating revenues (expenses)
Gross receipts taxes 379,820 - - 379,820
Interest expense (132,281) - (26,447) (158,728)
Interest income 1,205 - 1,167 2,372
Miscellaneous income 980 21,788 2,846 25,614
Total non-operating revenues (expenses)249,724 21,788 (22,434) 249,078
State and federal capital grants 2,452,263 - - 2,452,263
State and federal operating grants - - 7,898 7,898
Transfers in 3,230,344 - 492,632 3,722,976
Transfers out (3,230,344) - (492,632) (3,722,976)
Change in net assets 2,099,430 49,005 (43,931) 2,104,504
Net assets, beginning of year 23,022,826 1,379,309 1,929,581 26,331,716
Net assets, end of year 25,122,256$ 1,428,314$ 1,885,650$ 28,436,220$
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Proprietary Funds
For the Year Ended June 30, 2012
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
32
Exhibit D-3
Total
Cash flows from operating activities
Cash received from user charges 3,418,804$ 1,275,500$ 959,008$ 5,653,312$
Cash payments to employees for services (713,503) (104,863) (284,401) (1,102,767)
Cash payments to suppliers for goods and services (2,212,752) (1,010,743) (433,656) (3,657,151)
Net cash provided by operating activities 492,549 159,894 240,951 893,394
Cash flows from noncapital financing activities
Gross receipts taxes 379,820 - - 379,820
Miscellaneous income 980 21,788 2,846 25,614
Payments for noncurrent accrued compensated absences 11,158 2,414 - 13,572
Interfund advances (payments) (87) - (4,650) (4,737)
Net cash provided (used) by noncapital
financing activities 391,871 24,202 (1,804) 414,269
Cash flows from capital and related financing activities
State and federal capital grants 2,452,263 - 7,898 2,460,161
Interest paid (141,846) - (27,185) (169,031)
Principal payments on long-term debt (128,828) - (166,835) (295,663)
Acquisition of capital assets (2,873,892) (173,490) (7,898) (3,055,280)
Net cash (used) by capital and
related financing activities (692,303) (173,490) (194,020) (1,059,813)
Cash flows from investing activities
Purchases of investments 438 - - 438
Interest on investments 1,205 - 1,167 2,372
Net cash provided by investing activities 1,643 - 1,167 2,810
Net increase in cash and cash equivalents 193,760 10,606 46,294 250,660
Cash and cash equivalents - beginning of year 1,479,751 773,023 1,492,476 3,745,250
Cash and cash equivalents - reclassification (62,171) - (238,685) (300,856)
Cash and cash equivalents - beginning as reclassified 1,417,580 773,023 1,253,791 3,444,394
Cash and cash equivalents - end of year 1,611,340$ 783,629$ 1,300,085$ 3,695,054$
Reconciliation of operating income (loss) to
net cash provided by operating activities:
Operating income (loss)(602,557)$ 27,217$ (29,395)$ (604,735)$
Adjustments to reconcile operating income (loss) to
net cash provided by operating activities:
Depreciation 1,076,331 23,643 188,331 1,288,305
Changes in assets and liabilities
Receivables 527,079 45,034 61,822 633,935
Accounts payable (508,736) 50,172 (51,131) (509,695)
Accrued payroll expenses 4,169 561 1,225 5,955
Current accrued compensated absences (6,539) 13,267 (14,324) (7,596)
Meter deposits 2,802 - - 2,802
Net cash provided by operating activities 492,549$ 159,894$ 240,951$ 893,394$
Statement of Cash Flows
For the Year Ended June 30, 2012
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
(This page intentionally left blank)
34
Exhibit E-1
Assets
Cash 7,734$
Investments 60,000
Total assets 67,734$
Liabilities
Deposits payable 67,177$
Due to other entities 557
Total liabilities 67,734$
Statement of Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
STATE OF NEW MEXICO
June 30, 2012
The accompanying notes are an integral part of these financial statements
35
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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. The 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. The 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. The 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.
36
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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 influence operations, and accountability for
fiscal matters.
A second criterion used in evaluating potential component units is the scope of public service.
Application of this 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 the nonfiduciary activities of the primary government. For 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. Revenues, 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. The Town’s net assets are reported in three parts – invested in capital assets, net
of related debt; restricted net assets; and unrestricted net assets.
37
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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
segments are offset by program 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. Taxes 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 when a liability is
incurred, regardless of the timing of related cash flows. Property taxes, net of estimated refunds, are
recognized as revenues in the year for which they are levied. Grants 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 liabilities 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. Grants 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.
38
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund. This fund includes state shared gross receipts tax income fund and state shared gas tax
income funds.
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 Taos 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 and recreational events.
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions 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. The General Fund, Lodger’s Tax Fund, Water and Sewer Fund and the Taos
Regional Landfill fund are combined with funds that have identical activities for financial statement
reporting.
Program revenues included in the Statement of Activities are derived directly from the program itself
or from parties outside the Town’s taxpayers or citizenry, as a whole; program revenues reduce the
cost of the function to be financed from the Town’s general revenues. Program 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. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include all taxes.
39
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 1. Summary of Significant Accounting Policies (continued)
C. Measurement focus, basis of accounting, and financial statement presentation (continued)
The Town reports all direct expenses by function in the Statement of Activities. Direct expenses are
those that are clearly identifiable with a function. The Town does not currently employ indirect cost
allocation systems. Depreciation expense is specifically identified by function and is included in the
direct expense of each function. Interest on general long-term debt is considered an indirect expense
and is reported separately on the Statement of Activities.
Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating
revenues and expenses generally result from providing 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. Operating 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: The Town’s cash and cash equivalents are considered to be cash on hand,
demand deposits and short-term investments with original maturities of three 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. The reported value of the pool is the same as
the fair value of the pool shares. Restricted investments have been reclassified from prior year
classification of restricted cash and cash equivalents, due to the maturity date, and therefore are more
accurately considered restricted investments.
Receivables and Payables: Interfund activity is reported as loans, services provided, reimbursements
or transfers. Loans 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. Transfers between governmental or between proprietary
funds are netted as part of the reconciliation to the government-wide financial statements.
Advances 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. In the government-wide and governmental fund financial
statements, delinquent property taxes are recorded when levied. Property taxes are considered to be
100% collectible.
The Town estimates the allowance for uncollectible accounts based off the days delinquent. The
Town has estimated all accounts that are greater than 120 days to be uncollectible.
40
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Assets or Equity (continued)
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. The 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
monthly to the Town.
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted by donors or other outside agencies as to the specific purpose for which they may be used
and restricted for future debt service payments.
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. Such 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). Donated 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. Interest
incurred during the construction phase of capital assets of business-type activities is included as part
of the capitalized value of the assets constructed. There was no interest expense capitalized by the
Town during the current fiscal. No interest was 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.
41
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Assets or Equity (continued)
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
year based on years of service. Employees can carry over unused personal leave each year with a cap
of 500 hours.
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 it. In prior years, substantially all of the related expenditures have been
liquidated by the general fund. Amounts 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 Obligations: In the government-wide financial statements, and proprietary fund types in
the fund financial statements, long-term debt and other long-term obligations 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. Bond 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, 2012, the Town did not have any fund balances in
nonspendable form.
Restricted and Committed Fund Balance: At June 30, 2012, the Town has presented restricted
fund balance on the governmental funds balance sheet in the amount of $490,342 for various general
government operations as restricted by enabling legislation, $20,395 for public safety, $246,633 for
culture and recreation, $8,725 for public works, $599,231 for fire protection, $30,594 for health and
welfare, $498,535 for debt service expenditures, and $3,503,729 for capital projects. The Town has
committed fund balance of the general fund for subsequent year’s expenditures in the amount of
$1,604,297. The details of these fund balance items are located on the governmental funds balance
sheet as detailed on page 26.
42
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 1. Summary of Significant Accounting Policies (continued)
D. Assets, Liabilities and Net Assets or Equity (continued)
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, 2012 for the
Town is $817,010.
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 66-69.
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. Transactions 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.
43
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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 separate 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.
The budgetary information presented in these financial statements has been properly amended by Town Council
in accordance with the above procedures. These amendments resulted in the following changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $ (464,337) $ (156,617)
Nonmajor Governmental Funds $ (4,626,138) $ (4,853,019)
Change in net assets
Budgeted Funds:
Water and Sewer $ (748,018) $ (793,536)
Solid Waste $ (235,670) $ (467,422)
Taos Regional Landfill $ 19,172 $ 107,370
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, 2012.
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.
44
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 3. Deposits and Investments (continued)
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 funds 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.
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
December 31, 2012 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)
Up to $250,000 for the combined amount of all interest-bearing demand deposit accounts, and
Unlimited coverage for noninterest-bearing transaction (demand deposit) accounts.
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. The 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, 2012, $5,366,325 of the Town’s deposits of $6,244,914 were exposed to custodial credit risk. $4,898,336
was uninsured and collateralized by collateral held by the pledging bank’s trust department, not in the Town’s
name, and $467,989 was uninsured and uncollateralized.
45
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 3. Deposits and Investments (continued)
Amount of deposits 3,803,483$ 2,441,431$ 6,244,914$
(40,799) (87,790) (128,589)
FDIC Coverage (500,000) (250,000) (750,000)
Total uninsured public funds 3,262,684 2,103,641 5,366,325
3,262,684 1,635,652 4,898,336
Uninsured and uncollateralized -$ 467,989$ 467,989$
Collateral requirement
(50% of uninsured funds)1,631,342$ 1,051,821$ 2,683,163$
Pledged Collateral 4,125,016 1,635,652 5,760,668
Over (Under) collateralized 2,493,674$ 583,831$ 3,077,505$
TotalCentinel Bank
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than the
Town's name
US 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.
Reconciliation to the Statement of Net Assets:
Cash and cash equivalents per Exhibit A-1 4,658,195$
Restricted cash and cash equivalents per Exhibit A-1 937,443
Restricted investments per Exhibit A-1 2,152,646
Agency funds cash per Exhibit E-1 7,734
Certificates of deposits (maturity > 3 months) 170,500
Plus outstanding checks 528,114
Less deposits in transit (55,622)
Less U.S. Treasury Money Market Mutual Funds (2,151,837)
Less New Mexico State Treasurer Debt Service (809)
Less petty cash (1,450)
Bank balance of deposits 6,244,914$
46
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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 investment 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. Per 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. Participation
in the LGIP is voluntary.
As of June 30, 2012, 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, 2012 include the following:
Investments Rated
New MexicoGrow Local Government Investment Pool AAAm 60 Days 4,646,374$
Reserve Contingency Fund Unrated Does not earn interest 5,395
U.S. Treasury Money Market Mutual Funds *AA+**>365 Days 2,151,837
New Mexico State Treasurer Debt Service *AA+ ** >365 Days 809
$ 6,804,415
Weighted Average
Maturity Fair Value
*Restricted investments per Exhibit A-1
** Based off Standards & Poor’s rating
Reconciliation to the Statement of Net Assets:
Investments per Exhibit A-1 4,762,269$
Restricted investments per Exhibit A-1 2,152,646
Plus agency fund investment per E-1 60,000
Less certificate of deposit (170,500)
Total investments 6,804,415$
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.
47
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 3. Deposits and Investments (continued)
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. The investments in the New MexiGROW LGIP
and U.S Treasury Money Market Mutual Funds represent 68% and 32%, 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. The 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).
NOTE 4. Receivables
Receivables as of June 30, 2012, are as follows:
Governmental Activities:Other
Governmental
General Funds Total
Property taxes receivable 191,298$ -$ 191,298$
Other taxes receivable:
Gross receipts 1,423,789 211,387 1,635,176
Gasoline and motor vehicle 35,911 8,725 44,636
Lodger's taxes - 216,405 216,405
Due from other governments:
Intergovernmental:
Federal grants - 142,603 142,603
State grants 18,523 106,299 124,822
Total receivables 1,669,521$685,419$ 2,354,940$
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, 2012 was $179,824. 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 $53,777.
Business-type Activities: Water and Solid Taos Regional
Sewer Waste Landfill Total
Customer receivables 908,923$ 200,188$ 55,821$ 1,164,932$
Other receivables:
Intergovernmental:
State grants 152,363 - 7,898 160,261
Total gross receivables 1,061,286 200,188 63,719 1,325,193
Less: allowance for
doubtful accounts 373,757 41,668 51,067 466,492
Total net receivables 687,529$ 158,520$ 12,652$ 858,701$
48
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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 Civic Center 156,085$
General Fund General Fund 4,423,562
Lodger's Tax General Fund 161,625
Lodger's Tax Lodger's Tax 684,053
Local Government Correction General Fund 110,493
Civic Center Lodger's Tax 78,185
Public Transportation Lodger's Tax 156,370
Community Grants General Fund 188,376
Communications Fund General Fund 287,227
General Fund 1/4 Cent Municipal GRT 73,568
2009 NMFA PPRF Disadvantage Program - Eco Park 1/4 Cent Municipal GRT 180,608
2008 Gross Receipts Tax Revenue Bond Retirement 1/4 Cent Municipal GRT 490,821
Facilities Improvement Fund 1/4 Cent Municipal GRT 13,000
Vehicle Replacement Fund 1/4 Cent Municipal GRT 18,402
1999 Gasoline Tax Revenue Bond Retirement
1999 Gasoline Tax
Revenue Bond Reserve 195,021
2007 NMFA Land Purchase 1/4 Cent Municipal GRT 113,716
Facilities Improvement Fund General Fund 90,339
Capital Projects 1/4 Cent Municipal GRT 76,230
Vehicle Replacement Fund General Fund 50,000
2011 NMFA Street Improvement Fund
1999 Gas Tax Revenue
Bond Retirement 23,005
2011 NMFA Street Improvement Fund
Municipal Road Gasoline
Tax Fund 105,840
2011 NMFA Street Improvement Fund General Fund 169,116
Facilities Improvement Fund Capital Projects 329,975
Airport Construction Fund Capital Projects 17,257
Vehicle Replacement Fund Capital Projects 2,564
1999 Gasoline Tax Acquisition Capital Projects 293,203
8,488,641$
49
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 5. Transfers and Interfund Receivables (continued)
Business-Type Activities:
Transfers In Transfers Out Amount
Water and Sewer Water and Sewer 3,230,344$
Taos Regional Landfill Taos Regional Landfill 492,632
3,722,976$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2012 is as follows:
Due from Other Funds Due to Other Funds Amount
General Fund Water and Sewer 696$
General Fund Taos Regional Landfill 6,206
6,902$
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, 2012 follows. Land and
construction in progress are not subject to depreciation.
Balance Balance
Governmental activities:June 30, 2011 Additions Deletions June 30, 2012
Capital assets, not depreciated:
Land 6,277,809$ -$ -$ 6,277,809$
Construction in progress 2,770,124 223,887 2,635,787 358,224
Total capital assets, not depreciated 9,047,933 223,887 2,635,787 6,636,033
Capital assets, depreciated:
Land improvements 5,068,985 2,308,475 - 7,377,460
Buildings and improvements 33,306,067 138,034 - 33,444,101
Machinery and equipment 15,215,742 441,320 419,893 15,237,169
Infrastructure 49,200,941 507,315 - 49,708,256
Total capital assets, depreciated 102,791,735 3,395,144 419,893 105,766,986
Less accumulated depreciation:
Land improvements (3,601,547) (241,994) - (3,843,541)
Buildings and improvements (12,212,436) (1,206,665) - (13,419,101)
Machinery and equipment (11,675,287) (936,814) (419,815) (12,192,286)
Infrastructure (30,869,777) (1,692,380) - (32,562,157)
Total accumulated depreciation (58,359,047) (4,077,853) (419,815) (62,017,085)
Net book value 53,480,621$ (458,822)$ 2,635,865$ 50,385,934$
50
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 6. Capital Assets (continued)
Depreciation expense for the year ended June 30, 2012 was charged to governmental activities as follows:
General government 1,871,948$
Public safety 39,495
Public works 2,138,969
Culture and recreation 3,189
Health and Welfare 24,252
4,077,853$
Balance Balance
Business-type activities:June 30, 2011 Additions Deletions June 30, 2012
Capital assets, not depreciated:
Land 262,422$ -$ -$ 262,422$
Construction in progress 8,870,192 2,446,331 322,406 10,994,117
Total capital assets, not depreciated 9,132,614 2,446,331 322,406 11,256,539
Capital assets, depreciated:
Land improvements 104,895 - - 104,895
Buildings and improvements 4,385,023 7,898 - 4,392,921
Machinery and equipment 8,624,969 119,990 4,051 8,740,908
Infrastructure 21,017,583 803,467 - 21,821,050
Total capital assets, depreciated 34,132,470 931,355 4,051 35,059,774
Less accumulated depreciation:
Land improvements (83,077) (2,681) - (85,758)$
Buildings and improvements (1,979,651) (150,350) - (2,130,001)
Machinery and equipment (6,024,535) (322,422) (4,051) (6,342,906)
Infrastructure (7,155,973) (812,852) - (7,968,825)
Total accumulated depreciation (15,243,236) (1,288,305) (4,051) (16,527,490)
Net book value 28,021,848$ 2,089,381$ 322,406$ 29,788,823$
Depreciation expense for the year ended June 30, 2012 was charged to business-type activities as follows:
Enterprise activities:
Water and sewer 1,076,331$
Solid waste 23,643
Landfill 188,331
1,288,305$
51
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 7. Long-term Debt
Governmental Activities:
During the year ended June 30, 2012, the following changes occurred in the liabilities reported in the
government-wide statement of net assets:
Balance Balance Due Within
June 30, 2011 Additions Retirements June 30, 2012 One Year
Revenue Bonds 6,130,000$ -$ 620,000$ 5,510,000$ 265,000$
NMFA Loans 2,650,686 1,694,457 359,853 3,985,290 365,809
USDA Contract Payable 54,000 - 18,000 36,000 18,000
Compensated Absences 651,167 379,328 410,553 619,942 410,553
Total Long-Term Debt 9,485,853$ 2,073,785$ 1,408,406$ 10,151,232$ 1,059,362$
Revenue Bonds
At June 30, 2012, 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 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, 2012, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2013 265,000$ 229,188$ 494,188$
2014 280,000 209,800 489,800
2015 290,000 198,600 488,600
2016 300,000 187,000 487,000
2017 315,000 386,250 701,250
2018-2022 1,200,000 440,400 1,640,400
2023-2026 2,860,000 180,890 3,040,890
5,510,000$ 1,832,128$ 7,342,128$
52
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 7. Long-term Debt (continued)
NMFA Loans
The Town entered into three 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
NMFA Revolving Loan Fund Road Projects 11/04/11 05/01/22 1.895% 1,694,457
The annual requirements to amortize the NMFA loans as of June 30, 2012, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2013 365,809$ 92,021$ 457,830$
2014 372,604 86,937 459,541
2015 380,341 81,081 461,422
2016 389,203 74,281 463,484
2017 399,053 56,508 455,561
2018-2022 1,572,972 219,448 1,792,420
2023-2025 505,308 36,960 542,268
3,985,290$ 647,236$ 4,632,526$
USDA Contract Payable
At June 30, 2012, the Town had the following USDA contract payable:
Original
Date of Due Interest Amount
Description Issue Date Rate of Issue
USDA Contract Payable 02/01/95 06/30/14 0.00% 360,000$
The annual requirements to amortize the USDA contract payable as of June 30, 2012, including interest
payments, are as follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
2013 18,000$ -$ 18,000$
2014 18,000 - 18,000
36,000$ -$ 36,000$
53
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 7. Long-term Debt (continued)
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. During fiscal year June 30, 2012, compensated absences decreased
$31,225 from the prior year accrual. Compensated absences are liquidated by the respective funds in which
they are accrued.
Proprietary Funds:
The proprietary funds have incurred various forms of debt which were used for the purposes of constructing,
expanding, repairing and making improvements to its property, plant and equipment. The following schedule
shows the changes to its various forms of debt during the fiscal year ended June 30, 2012:
Balance Balance Due Within
June 30, 2011 Additions Retirements June 30, 2012 One Year
Revenue Bonds 2,098,600$ -$ 43,000$ 2,055,600$ 46,000$
NMFA and RUS Loans 3,370,354 - 252,663 3,117,691 309,252
Landfill Closure Liability 1,812,918 84,423 - 1,897,341 -
Compensated Absences 62,827 61,207 55,231 68,803 55,231
Total Long-Term Debt 7,344,699$ 145,630$ 350,894$ 7,139,435$ 410,483$
Revenue Bonds
At June 30, 2012, 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
54
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 7. Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2012, including interest payments, are as
follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 57,000 96,448 153,448
2018-2022 333,000 434,191 767,191
2023-2027 430,000 337,081 767,081
2028-2032 557,000 211,545 768,545
2033-2037 439,600 63,944 503,544
2038 38,000 1,658 39,658
2,055,600$ 1,557,703$ 3,613,303$
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
55
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 7. Long-term Debt (continued)
The annual requirement to amortize the loans as of June 30, 2012, including interest payments, is as follows:
Fiscal Year Total Debt
Ending June 30, Principal Interest Service
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 263,063 28,672 291,735
2018-2022 777,022 71,915 848,937
2023-2027 468,557 41,750 510,307
2028-2032 364,681 33,350 398,031
2033-2037 51,000 22,400 73,400
2038-2041 58,000 7,950 65,950
3,117,691$ 380,066$ 3,497,757$
Compensated Absences- Employees of the Town are able to accrue a limited amount of vacation and other
compensatory time during the year. During fiscal year June 30, 2012, compensated absences increased $5,976
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 property,
errors and omissions and natural disasters. The 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. However, 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. As claims are filed, the New Mexico
Self-Insurers’ Fund assesses and estimates the potential for loss and handles all aspects of the claim. Insurance
coverage has not changed significantly from prior years and coverage’s are expected to be continued.
At June 30, 2012, 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 Mexico Self-Insurers’ Fund has not provided information on an entity by entity 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.
56
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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,
2012.
B. Actual expenditures in excess of amount budgeted at the budgetary authority level. Budgetary legal level
of control is at the fund level. There were no funds that exceeded approved budgetary authority for the
year ended June 30, 2012:
C. Designated cash appropriations in excess of available balances. The following funds had designated cash
appropriations in excess of available balances for the year ended June 30, 2012.
1999 Gasoline Tax Revenue Bond Retirement
Debt Service Fund $ 220,540 $ 197,584 22,956$
Facilities Improvements Capital Projects Fund 234,196 231,665 2,531
Cash
Appropriation in
excess of
availableDesignated Cash
Beginning Year
Cash & AR
Available
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.) The Public Employees Retirement Association (PERA) is the administrator of the plan, which is a cost-
sharing, multiple-employer defined benefit retirement plan. The plan provides for retirement benefits, disability
benefits, survivor benefits, and cost-of-living adjustments to plan members and beneficiaries. PERA 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. The 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. The 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. The Town’s contributions to PERA for the years ending June 30,
2012, 2011 and 2010 were $921,212, $1,003,393, and $1,050,500, respectively, which equal the amount of the
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 the New Mexico Retiree
Health Care Authority (RHCA). The RHCA provides health care insurance and prescription drug benefits to
retired employees of participating 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.
57
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 11. Post-Employment Benefits – State Retiree Health Care Plan (continued)
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.
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. The 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 monthly premium according 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 the plan. The monthly 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 participating employers and their employees. During the fiscal year ended June 30,
2012, the statute required each participating employer to contribute 1.834% of each participating employee’s
annual salary; each participating employee was required to contribute .917% of their salary. In the fiscal year
ending 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 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, 2012, the statute required each
participating employer to contribute 2.292% of each participating employee’s annual salary; and each
participating employee was required to contribute 1.146% of their salary. In the fiscal year ending June 30,
2013 the contribution rates for both employees and employers will rise as follows:
Fiscal Year Employer Contribution Rate Employee Contribution Rate
FY 13 2.500% 1.250%
Also, employers joining the program after January 1, 1998, 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 the New Mexico State Legislature. The Town’s contributions to the RHCA for the years ended
June 30, 2012, 2011 and 2010 were $109,884, $106,634 and $83,267, respectively, which equal the required
contributions for each year.
58
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 12. Contingent Liabilities
The Town is party to various claims and lawsuits arising in the normal course of business. The Town is insured
through the New Mexico Self Insurers Fund. The maximum exposure of the Town is not estimable as of June
30, 2012.
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 grantor agencies,
the purpose of which is to ensure compliance with conditions precedent to the granting of funds. Any 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. In
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. The recognition of these landfill closure and postclosure care
costs is based on the amount of the landfill used during the year. The estimated liability for landfill closure and
postclosure care costs is $1,897,341 as of June 30, 2012, which is based on 33 percent usage (filled) of the
landfill. This is an increase of $84,823, due to additional costs in monitoring 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, 2012. 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,
2012, cash of $679,234 and investments of $74,500 is part of the pooled funds held by the Town and is
presented as restricted cash and investments 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, 2012 in
the amount of $1,500,229 as follows:
Project Description Contractor
Wastewater Treatment Plant Upgrades 208,745$ September 2012 AUI, Inc. & Souder, Miller & Associates
Aiport EIS 95,297 June 2013 URS Corporation
2 - Ford F150 Trucks 49,648 August 2012 Bob Turner's Ford
Aiport Beacon & Pole Replacement 43,020 September 2012 Bixby Electric & Armstrong Consulting
Rehabilitation of Wells 3 & 3A 86,125 August 2012 Layne Christens
Search-Technical-Rescue Cab & Chassis 293,265 August 2012 Siddons-Martin
Urban Interface Engine 345,185 July 2012 Siddons-Martin
Equipment Shed Expansion 127,545 October 2012 Vigil Contracting Service
Horizontal Baler 170,936 October 2012 Action Compaction Equipment
Hrydrological Services 80,463 July 2012 Daniel B. Stephens & Associates
1,500,229$
Contract
Amount
Remaining
Estimated Date
of Completion
59
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 16. Subsequent Events
The date to which events occurring after June 30, 2012, the date of the most recent statement of net assets, have
been evaluated for possible adjustment to the financial statements or disclosures is November 27, 2012, which
is the date on which the financial statements were issued.
The Town will be acquiring new debt in the amount of $197,390 from New Mexico Finance Authority and the
Water Trust Board for Water System Improvements.
The Town will be receiving $200,000 of additional funding from the New Mexico Environmental Department
Clean Water State Revolving Fund Project for completion of the wastewater treatment plant upgrades project.
The expected completion is September 2012.
NOTE 17. Concentrations
The Town depends on financial resources flowing from, or associated with, both the Federal Government and
the State of New Mexico. Because 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 $5,025,020 of restricted net assets, all of which is
restricted by enabling legislation. See pages 66 to 69 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 $493,600 and $360,146, respectively. Principal and interest paid for the current year and total
customer net revenues were $40,440 and $2,891,725, respectively.
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 $97,000 and $73,094, respectively. Principal and interest paid for the current year and total customer
net revenues were $7,445 and $2,891,725, respectively.
60
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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 $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 $1,063,000 and $863,874, respectively. Principal and interest paid for the current year and total
customer net revenues were $77,683 and $2,891,725, 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 $402,000 and $316,194, respectively. Principal and interest paid for the current year and total
customer net revenues were $26,760 and $2,891,725, 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. The total principal and interest remaining to be paid on the loan
is $222,000 and $207,600, respectively. Principal and interest paid for the current year and total customer net
revenues were $14,250 and $2,891,725, 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. The
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. The total principal and interest remaining to be paid on the loan is $462,659
and $99,451, respectively. Principal and interest paid for the current year and total customer net revenues were
$68,196 and $2,891,725, respectively.
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. The
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 the trustee, payable
from and constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on
the loan is $155,918 and $7,763, respectively. Principal and interest paid for the current year and total
customer net revenues were $81,623 and $897,186, respectively.
61
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
NOTE 19. Utility Revenues Pledged (continued)
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. The 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 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 and interest remaining to be paid on the loan is $645,736
and $65,252, respectively. Principal and interest paid for the current year and total customer net revenues were
$112,205 and $897,186, 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. The loans are payable
solely from utility customer net revenues and are payable through June 2029. 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. The total principal to be paid on the loan is $112,437 with no interest due.
Principal for the current year and total customer net revenues were $6,466 and $2,891,725, 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. 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. The total principal to be paid on the loan is $518,942 with no interest due.
Principal for the current year and total customer net revenues were $29,844 and $2,891,725, respectively.
The Town of Taos has pledged future revenues from the Taos Wastewater project, net of operation and
maintenance expenses, to repay $1,000,000 in NMED Clean Water State Revolving Fund Project, issued in
2009. The loans are payable solely from utility customer net revenues and are payable through June 2030. 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 NMED 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. Principal and interest to be paid on the loan is not due and
payable until completion of the project.
NOTE 20. Related Parties
The Town conducted transactions with several entities which are considered related parties. These related party
transactions are as follows:
Vendor Related Party Amount
DMC Broadcasting Mayor – Darren Cordova $ 30,226
Abeyta Engineering Council member – Rudy Abeyta’s brother 65,987
MS Quick Stop Finance Director – Marietta Fambro’s brother 356
Dave’s Digital IT Manager – Reuben Martinez’s brother 2,484
Northern Fire Suppression Town Clerk– Renee Lucero’s brother 2,000
62
STATE OF NEW MEXICO
Town of Taos
Notes to the Financial Statements
June 30, 2012
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. The standard is
expected to have no effect on the Town in upcoming years.
In March 2012, Statement No. 65 Items Previously Reported as Assets and Liabilities, Effective Date: The
provisions of this Statement are effective for financial statements for periods beginning after December 15,
2012. Earlier application is encouraged. The standard will be implemented during fiscal year June 30, 2014.
In March 2012, Statement No. 66 Technical Corrections-2012—an amendment of GASB Statements No. 10 and
No. 62, Effective Date: The provisions of this Statement are effective for financial statements for periods
beginning after December 15, 2012. Earlier application is encouraged. The standard will be implemented
during fiscal year June 30, 2014.
In June 2012, Statement No. 67 Financial Reporting for Pension Plans—an amendment of GASB Statements
No. 25, Effective Date: The provisions of this Statement are effective for financial statements for periods
beginning after June 15, 2013. Earlier application is encouraged. The standard is expected to have no effect on
the Town in upcoming years.
In June 2012, Statement No. 68 Accounting and Financial Reporting for Pensions—an amendment of GASB
Statements No. 27, Effective Date: The provisions of this Statement are effective for financial statements for
periods beginning after June 15, 2014. Earlier application is encouraged. The standard is expected to have no
effect on the Town in upcoming years.
63
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64
SUPPLEMENTARY INFORMATION
65
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2012
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.
66
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2012
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.
67
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2012
Debt Service Funds
2009 NMFA PPRF Disadvantage Program-Eco Park
This fund was created 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.
2011 PPRF Street Improvement
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
2011 PPRF Street Improvement Reserve
This fund was created for the purpose of accumulating monies for the payment of principal and interest on Series PPRF Street
Improvement Revenue Bonds. Authority is Town Council resolution.
68
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2012
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.
Capital Projects
This fund was created to accumulate revenue and other financing sources for the purpose of financing general-purpose capital projects.
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 was 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 bond proceeds and to account for the capital outlay associated with the bond issue. Authority is Town
Council resolution.
69
Fire Protection Recreation Lodger's Tax
Local
Government
Correction
Assets
Cash and cash equivalents 162,973$ 1,209$ 107,407$ 22,469$
Investments 436,258 37,500 - -
Receivables:
Other taxes - - 162,628 -
Due from other governments - - - -
Total assets 599,231$ 38,709$ 270,035$ 22,469$
Liabilities
Accounts payable -$ -$ 4,001$ 5,895$
Accrued payroll - - 6,140 -
Deposits held in trust for others - - - -
Deferred revenue - - 53,777 -
Due to other funds - - - -
Total liabilities - - 63,918 5,895
Fund balances
Spendable
Restricted for:
General government - - - -
Public safety - - - 16,574
Culture and recreation - 38,709 206,117 -
Public works - - - -
Fire protection 599,231 - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects - - - -
Committed for:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 599,231 38,709 206,117 16,574
Total liabilities and fund balances 599,231$ 38,709$ 270,035$ 22,469$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
June 30, 2012
Combining Balance Sheet
Town of Taos
Special Revenue
Nonmajor Governmental Funds
70
Statement A-1
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence
Shelter
Public
Transportation
Community
Grants
Municipal
Road Gasoline
Tax
4,702$ 3,994$ 1$ 13,378$ 17,849$ -$
- 3,000 - - 25,000 -
- - - - - 8,725
- - - 27,337 63,962 -
4,702$ 6,994$ 1$ 40,715$ 106,811$ 8,725$
881$ 84$ -$ 4,334$ 1,432$ -$
- - - 5,788 379 -
- 5,103 - - - -
- - - - - -
- - - - - -
881 5,187 - 10,122 1,811 -
- - - - 105,000 -
3,821 - - - - -
- 1,807 - - - -
- - - - - 8,725
- - - - - -
- - 1 30,593 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
3,821 1,807 1 30,593 105,000 8,725
4,702$ 6,994$ 1$ 40,715$ 106,811$ 8,725$
Special Revenue
71
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 -$ 94,243$ -$ 1$
Investments - 150,000 - -
Receivables:
Other taxes 151,523 - - -
Due from other governments - - - -
Total assets 151,523$ 244,243$ -$ 1$
Liabilities
Accounts payable -$ 483$ -$ -$
Accrued payroll - 9,941 - -
Deposits held in trust for others - - - -
Deferred revenue - - - -
Due to other funds - - - -
Total liabilities - 10,424 - -
Fund balances
Spendable
Restricted for:
General government 151,523 233,819 - -
Public safety - - - -
Culture and recreation - - - -
Public works - - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - - - 1
Capital projects - - - -
Committed for:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 151,523 233,819 - 1
Total liabilities and fund balances 151,523$ 244,243$ -$ 1$
Special Revenue
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Debt Service
June 30, 2012
Combining Balance Sheet
Nonmajor Governmental Funds
72
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
2011 PPRF
Street
Improvement
2011 PPRF
Street
Improvement
Reserve
-$ -$ 181,802$ 32$ 147,101$ 169,599$
- - - - - -
- - - - - -
- - - - - -
-$ -$ 181,802$ 32$ 147,101$ 169,599$
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 181,802 32 147,101 169,599
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - 181,802 32 147,101 169,599
-$ -$ 181,802$ 32$ 147,101$ 169,599$
Debt Service
73
Facilities
Improvements
Capital
Projects
Airport
Construction Enhanced 911
Assets
Cash and cash equivalents 309,523$ 12,214$ 25,090$ 309$
Investments - 505,919 - 25,000
Receivables:
Other taxes - 113,641 - -
Due from other governments - - 142,603 -
Total assets 309,523$ 631,774$ 167,693$ 25,309$
Liabilities
Accounts payable 5,964$ 319$ 140,990$ -$
Accrued payroll - - - -
Deposits held in trust for others - - - -
Deferred revenue - - - -
Due to other funds - - - -
Total liabilities 5,964 319 140,990 -
Fund balances
Spendable
Restricted for:
General government - - - -
Public safety - - - -
Culture and recreation - - - -
Public works - - - -
Fire protection - - - -
Health and welfare - - - -
Debt service expenditures - - - -
Capital projects 303,559 631,455 26,703 25,309
Committed for:
Minimum fund balance - - - -
Subsequent year's expenditures - - - -
Unassigned - - - -
Total fund balances 303,559 631,455 26,703 25,309
Total liabilities and fund balances 309,523$ 631,774$ 167,693$ 25,309$
STATE OF NEW MEXICO
Capital Projects
The accompanying notes are an integral part of these financial statements
June 30, 2012
Combining Balance Sheet
Nonmajor Governmental Funds
Town of Taos
74
Statement A-1
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax
Acquisition
Total
Nonmajor
Governmental
Funds
30,654$ 13,419$ 1,892,121$ 3,210,090$
47,000 520,021 148 1,749,846
- - - 436,517
- 15,000 - 248,902
77,654$ 548,440$ 1,892,269$ 5,645,355$
-$ 1,660$ -$ 166,043$
- - - 22,248
- - - 5,103
- - - 53,777
- - - -
- 1,660 - 247,171
- - - 490,342
- - - 20,395
- - - 246,633
- - - 8,725
- - - 599,231
- - - 30,594
- - - 498,535
77,654 546,780 1,892,269 3,503,729
- - - -
- - - -
- - - -
77,654 546,780 1,892,269 5,398,184
77,654$ 548,440$ 1,892,269$ 5,645,355$
Capital Projects
75
Fire Protection Recreation Lodger's Tax
Local
Governmental
Correction
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - 10 888,320 -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 225,852 - - -
State capital grants - - - -
Charges for services - 4,531 45,016 -
Licenses and fees - - - 21,356
Investment income (loss)- - - -
Miscellaneous - 855 31,916 -
Total revenues 225,852 5,396 965,252 21,356
Expenditures
Current
General government - - - -
Public safety 52,961 - - 156,308
Public works - - - -
Culture and recreation - 29,585 913,013 -
Health and welfare - - - -
Capital outlay 160,193 - 36,332 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 213,154 29,585 949,345 156,308
Excess (deficiency) of revenues over
expenditures 12,698 (24,189) 15,907 (134,952)
Other financing sources (uses)
Proceeds from issuance of debt - - - -
Transfers in - - 845,678 110,493
Transfers out - - (918,608) -
Total other financing sources (uses)- - (72,930) 110,493
Net change in fund balances 12,698 (24,189) (57,023) (24,459)
Fund balances - beginning of year 586,533 62,898 263,140 41,033
Fund balances - end of year 599,231$ 38,709$ 206,117$ 16,574$
For the Year Ended June 30, 2012
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Special Revenue
76
Statement A-2
Page 1 of 3
Law
Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 95,435
- - - - - -
- - 150,000 - - -
- - - - - -
- - - 294,335 279,637 -
- - - - - -
- 26,629 - 51,901 - -
- 150 - - - -
- - - - - -
- 4,852 - 852 - -
- 31,631 150,000 347,088 279,637 95,435
- - - - 427,848 -
33,978 - - - - -
- - - - - -
- 3,900 - - - -
- - 150,000 487,184 - -
- - - 5,100 30,108 -
- - - - - -
- - - - - -
33,978 3,900 150,000 492,284 457,956 -
(33,978) 27,731 - (145,196) (178,319) 95,435
- - - - - -
- 78,185 - 156,370 188,376 -
- (156,085) - - - (105,840)
- (77,900) - 156,370 188,376 (105,840)
(33,978) (50,169) - 11,174 10,057 (10,405)
37,799 51,976 1 19,419 94,943 19,130
3,821$ 1,807$ 1$ 30,593$ 105,000$ 8,725$
Special Revenue
77
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 893,858$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - 325,727 - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 893,858 325,727 - -
Expenditures
Current
General government - 532,569 - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - 78,837 - -
Debt service
Principal - - 126,538 255,000
Interest - - 54,218 236,625
Total expenditures - 611,406 180,756 491,625
Excess (deficiency) of revenues over
expenditures 893,858 (285,679) (180,756) (491,625)
Other financing sources (uses)
Proceeds from issuance of debt - - - -
Transfers in - 287,227 180,608 490,821
Transfers out (966,345) - - -
Total other financing sources (uses)(966,345) 287,227 180,608 490,821
Net change in fund balances (72,487) 1,548 (148) (804)
Fund balances - beginning of year 224,010 232,271 148 805
Fund balances - end of year 151,523$ 233,819$ -$ 1$
Special Revenue
For the Year Ended June 30, 2012
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Nonmajor Governmental Funds
Town of Taos
Debt Service
78
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
2011 PPRF
Street
Improvement
2011 PPRF
Street
Improvement
Reserve
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- 21 787 8 2 183
- - - - - -
- 21 787 8 2 183
- - - 1,530 - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
365,000 - - 94,540 138,775 -
4,600 - - 17,656 12,087 -
369,600 - - 113,726 150,862 -
(369,600) 21 787 (113,718) (150,860) 183
- - - - - 169,416
195,021 - - 113,716 297,961 -
(23,005) (195,021) - - - -
172,016 (195,021) - 113,716 297,961 169,416
(197,584) (195,000) 787 (2) 147,101 169,599
197,584 195,000 181,015 34 - -
-$ -$ 181,802$ 32$ 147,101$ 169,599$
Debt Service
79
Facilities
Improvements Capital Projects
Airport
Construction Enhanced 911
Revenues
Taxes
Gross receipts -$ 670,393$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - 79,913 435,688 -
State operating grants - 17,130 - -
State capital grants - 7,993 12,651 -
Charges for services 1,333 - - -
Licenses and fees - - - -
Investment income (loss)- (5,022) - -
Miscellaneous 23,019 - - -
Total revenues 24,352 770,407 448,339 -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 261,699 92,954 231,440 -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 96,122 205,216 226,899 -
Debt service
Principal 18,000 - - -
Interest - - - -
Total expenditures 375,821 298,170 458,339 -
Excess (deficiency) of revenues over
expenditures (351,469) 472,237 (10,000) -
Other financing sources (uses)
Proceeds from issuance of debt - - - -
Transfers in 433,314 76,231 17,257 -
Transfers out - (642,999) - -
Total other financing sources (uses)433,314 (566,768) 17,257 -
Net change in fund balances 81,845 (94,531) 7,257 -
Fund balances - beginning of year 221,714 725,986 19,446 25,309
Fund balances - end of year 303,559$ 631,455$ 26,703$ 25,309$
Town of Taos
STATE OF NEW MEXICO
Capital Projects
For the Year Ended June 30, 2012
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Nonmajor Governmental Funds
The accompanying notes are an integral part of these financial statements
80
Statement A-2
Page 3 of 3
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
-$ -$ -$ 1,564,251$
- - - 95,435
- - - 888,330
- - - 150,000
- - - 515,601
- - - 816,954
- 15,000 - 35,644
- - - 455,137
- - - 21,506
- (852) 503 (4,370)
- - - 61,494
- 14,148 503 4,599,982
- - - 961,947
- - - 243,247
- 22,794 25,042 633,929
- - - 946,498
- - - 637,184
89,599 - 54,838 983,244
-
- - - 997,853
- - - 325,186
89,599 22,794 79,880 5,729,088
(89,599) (8,646) (79,377) (1,129,106)
- - 1,525,041 1,694,457
70,966 - 293,202 3,835,426
- - - (3,007,903)
70,966 - 1,818,243 2,521,980
(18,633) (8,646) 1,738,866 1,392,874
96,287 555,426 153,403 4,005,310
77,654$ 546,780$ 1,892,269$ 5,398,184$
Capital Projects
81
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 230,458 225,852 225,852 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 230,458 225,852 225,852 -
Expenditures
Current
General government - - - -
Public safety 236,498 159,270 52,961 106,309
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 580,493 653,115 160,193 492,922
Debt service
Principal - - - -
Interest - - - -
Total expenditures 816,991 812,385 213,154 599,231
Excess (deficiency) of revenues over
expenditures (586,533) (586,533) 12,698 599,231
Other financing sources (uses)
Designated cash (budgeted increase in cash)586,533 586,533 - (586,533)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)586,533 586,533 - (586,533)
Net change in fund balance - - 12,698 12,698
Fund balance - beginning of year - - 586,533 586,533
Fund balance - end of year -$ -$ 599,231$ 599,231$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Fire Protection Special Revenue Fund
Town of Taos
Budgeted Amounts
82
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 - - 10 10
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 3,500 3,500 4,531 1,031
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 855 855
Total revenues 3,500 3,500 5,396 1,896
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 46,461 46,461 29,585 16,876
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 46,461 46,461 29,585 16,876
Excess (deficiency) of revenues over expenditures (42,961) (42,961) (24,189) 18,772
Other financing sources (uses)
Designated cash (budgeted increase in cash)42,961 42,961 - (42,961)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)42,961 42,961 - (42,961)
Net change in fund balance - - (24,189) (24,189)
Fund balance - beginning of year - - 62,898 62,898
Fund balance - end of year -$ -$ 38,709$ 38,709$
Statement of Revenues, Expenditures and Changes in Fund Balance
Recreation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
83
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 823,000 823,000 888,320 65,320
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 38,000 40,000 45,016 5,016
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous 7,200 33,662 31,916 (1,746)
Total revenues 868,200 896,662 965,252 68,590
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 944,002 948,639 913,013 35,626
Health and welfare - - - -
Capital outlay - 36,332 36,332 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 944,002 984,971 949,345 35,626
Excess (deficiency) of revenues over expenditures (75,802) (88,309) 15,907 104,216
Other financing sources (uses)
Designated cash (budgeted increase in cash)148,732 161,239 - (161,239)
Transfers in 845,678 845,678 845,678 -
Transfers out (918,608) (918,608) (918,608) -
Total other financing sources (uses)75,802 88,309 (72,930) (161,239)
Net change in fund balance - - (57,023) (57,023)
Fund balance - beginning of year - - 263,140 263,140
Fund balance - end of year -$ -$ 206,117$ 206,117$
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
Lodger's Tax Special Revenue Fund
Town of Taos
Budgeted Amounts
84
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 36,080 36,080 21,356 (14,724)
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 36,080 36,080 21,356 (14,724)
Expenditures
Current
General government - - - -
Public safety 135,000 162,423 156,308 6,115
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 135,000 162,423 156,308 6,115
Excess (deficiency) of revenues over expenditures (98,920) (126,343) (134,952) (8,609)
Other financing sources (uses)
Designated cash (budgeted increase in cash)1,462 15,850 - (15,850)
Transfers in 97,458 110,493 110,493 -
Transfers out - - - -
Total other financing sources (uses)98,920 126,343 110,493 (15,850)
Net change in fund balance - - (24,459) (24,459)
Fund balance - beginning of year - - 41,033 41,033
Fund balance - end of year -$ -$ 16,574$ 16,574$
Local Government Correction Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
85
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 32,000 32,000 - (32,000)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 32,000 32,000 - (32,000)
Expenditures
Current
General government - - - -
Public safety 37,799 37,799 33,978 3,821
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 37,799 37,799 33,978 3,821
Excess (deficiency) of revenues over expenditures (5,799) (5,799) (33,978) (28,179)
Other financing sources (uses)
Designated cash (budgeted increase in cash)5,799 5,799 - (5,799)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)5,799 5,799 - (5,799)
Net change in fund balance - - (33,978) (33,978)
Fund balance - beginning of year - - 37,799 37,799
Fund balance - end of year -$ -$ 3,821$ 3,821$
Law Enforcement Protection Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
86
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 36,400 28,812 26,629 (2,183)
Licenses and fees - 150 150 -
Investment income (loss)- - - -
Miscellaneous 300 300 4,852 4,552
Total revenues 36,700 29,262 31,631 2,369
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 5,103 5,103 3,900 1,203
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 5,103 5,103 3,900 1,203
Excess (deficiency) of revenues over expenditures 31,597 24,159 27,731 3,572
Other financing sources (uses)
Designated cash (budgeted increase in cash)51,538 53,741 - (53,741)
Transfers in 78,185 78,185 78,185 -
Transfers out (161,320) (156,085) (156,085) -
Total other financing sources (uses)(31,597) (24,159) (77,900) (53,741)
Net change in fund balance - - (50,169) (50,169)
Fund balance - beginning of year - - 51,976 51,976
Fund balance - end of year -$ -$ 1,807$ 1,807$
Civic Center Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
87
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 - - - -
Investment income (loss)- - - -
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$
Domestic Violence Shelter Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
88
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 - - - -
State operating grants 283,377 294,334 294,335 1
State capital grants - - - -
Charges for services 55,000 55,000 51,901 (3,099)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - 880 852 (28)
Total revenues 338,377 350,214 347,088 (3,126)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 493,195 487,191 487,184 7
Capital outlay - 5,100 5,100 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 493,195 492,291 492,284 7
Excess (deficiency) of revenues over expenditures (154,818) (142,077) (145,196) (3,119)
Other financing sources (uses)
Designated cash (budgeted increase in cash)(1,552) (14,293) - 14,293
Transfers in 156,370 156,370 156,370 -
Transfers out - - - -
Total other financing sources (uses)154,818 142,077 156,370 14,293
Net change in fund balance - - 11,174 11,174
Fund balance - beginning of year - - 19,419 19,419
Fund balance - end of year -$ -$ 30,593$ 30,593$
Public Transportation Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
89
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 566,197 518,152 279,637 (238,515)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 566,197 518,152 279,637 (238,515)
Expenditures
Current
General government 727,159 674,594 427,848 246,746
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 106,902 106,145 30,108 76,037
Debt service
Principal - - - -
Interest - - - -
Total expenditures 834,061 780,739 457,956 322,783
Excess (deficiency) of revenues over expenditures (267,864) (262,587) (178,319) 84,268
Other financing sources (uses)
Designated cash (budgeted increase in cash)84,488 74,211 - (74,211)
Transfers in 183,376 188,376 188,376 -
Transfers out - - - -
Total other financing sources (uses)267,864 262,587 188,376 (74,211)
Net change in fund balance - - 10,057 10,057
Fund balance - beginning of year - - 94,943 94,943
Fund balance - end of year -$ -$ 105,000$ 105,000$
Statement of Revenues, Expenditures and Changes in Fund Balance
Community Grants Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
90
Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 97,979 105,840 95,435 (10,405)
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 97,979 105,840 95,435 (10,405)
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 97,979 105,840 95,435 (10,405)
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out (97,979) (105,840) (105,840) -
Total other financing sources (uses)(97,979) (105,840) (105,840) -
Net change in fund balance - - (10,405) (10,405)
Fund balance - beginning of year - - 19,130 19,130
Fund balance - end of year -$ -$ 8,725$ 8,725$
Municipal Road Gasoline Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
91
Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 916,259 916,259 893,858 (22,401)
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 916,259 916,259 893,858 (22,401)
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 916,259 916,259 893,858 (22,401)
Other financing sources (uses)
Designated cash (budgeted increase in cash)45,358 50,086 - (50,086)
Transfers in - - - -
Transfers out (961,617) (966,345) (966,345) -
Total other financing sources (uses)(916,259) (916,259) (966,345) (50,086)
Net change in fund balance - - (72,487) (72,487)
Fund balance - beginning of year - - 224,010 224,010
Fund balance - end of year -$ -$ 151,523$ 151,523$
Statement of Revenues, Expenditures and Changes in Fund Balance
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
92
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 328,890 328,890 325,727 (3,163)
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous 10,800 10,800 - (10,800)
Total revenues 339,690 339,690 325,727 (13,963)
Expenditures
Current
General government 618,218 599,306 532,569 66,737
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - 80,000 78,837 1,163
Debt service
Principal - - - -
Interest - - - -
Total expenditures 618,218 679,306 611,406 67,900
Excess (deficiency) of revenues over expenditures (278,528) (339,616) (285,679) 53,937
Other financing sources (uses)
Designated cash (budgeted increase in cash)(22,962) 38,126 - (38,126)
Transfers in 301,490 301,490 287,227 (14,263)
Transfers out - - - -
Total other financing sources (uses)278,528 339,616 287,227 (52,389)
Net change in fund balance - - 1,548 1,548
Fund balance - beginning of year - - 232,271 232,271
Fund balance - end of year -$ -$ 233,819$ 233,819$
Communications Special Revenue Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
93
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 126,538 126,538 126,538 -
Interest 54,218 54,218 54,218 -
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)16 16 - (16)
Transfers in 180,740 180,740 180,608 (132)
Transfers out - - - -
Total other financing sources (uses)180,756 180,756 180,608 (148)
Net change in fund balance - - (148) (148)
Fund balance - beginning of year - - 148 148
Fund balance - end of year -$ -$ -$ -$
2009 NMFA PPRF Disadvantage Program- Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
94
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 255,000 255,000 255,000 -
Interest 236,625 236,625 236,625 -
Total expenditures 491,625 491,625 491,625 -
Excess (deficiency) of revenues over expenditures (491,625) (491,625) (491,625) -
Other financing sources (uses)
Designated cash (budgeted increase in cash)805 805 - (805)
Transfers in 490,820 490,820 490,821 1
Transfers out - - - -
Total other financing sources (uses)491,625 491,625 490,821 (804)
Net change in fund balance - - (804) (804)
Fund balance - beginning of year - - 805 805
Fund balance - end of year -$ -$ 1$ 1$
Statement of Revenues, Expenditures and Changes in Fund Balance
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
95
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 1,500 1,500 - 1,500
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 365,000 365,000 365,000 -
Interest 26,035 26,035 4,600 21,435
Total expenditures 392,535 392,535 369,600 22,935
Excess (deficiency) of revenues over expenditures (392,535) (392,535) (369,600) 22,935
Other financing sources (uses)
Designated cash (budgeted increase in cash)197,535 220,540 - (220,540)
Transfers in 195,000 195,000 195,021 21
Transfers out - (23,005) (23,005) -
Total other financing sources (uses)392,535 392,535 172,016 (220,519)
Net change in fund balance - - (197,584) (197,584)
Fund balance - beginning of year - - 197,584 197,584
Fund balance - end of year -$ -$ -$ -$
Statement of Revenues, Expenditures and Changes in Fund Balance
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
96
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 - - - -
Investment income (loss)- - 21 21
Miscellaneous - - - -
Total revenues - - 21 21
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 - - 21 21
Other financing sources (uses)
Designated cash (budgeted increase in cash)195,000 195,000 - (195,000)
Transfers in - - - -
Transfers out (195,000) (195,000) (195,021) (21)
Total other financing sources (uses)- - (195,021) (195,021)
Net change in fund balance - - (195,000) (195,000)
Fund balance - beginning of year - - 195,000 195,000
Fund balance - end of year -$ -$ -$ -$
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
97
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 - - - -
Investment income (loss)- - 787 787
Miscellaneous - - - -
Total revenues - - 787 787
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 - - 787 787
Other financing sources (uses)
Designated cash (budgeted increase in cash)- - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 787 787
Fund balance - beginning of year - - 181,015 181,015
Fund balance - end of year -$ -$ 181,802$ 181,802$
NMFA Debt Service Reserve Eco Park Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
98
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 - - - -
Investment income (loss)- - 8 8
Miscellaneous - - - -
Total revenues - - 8 8
Expenditures
Current
General government 1,531 1,531 1,530 1
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 94,540 94,540 94,540 -
Interest 17,656 17,656 17,656 -
Total expenditures 113,727 113,727 113,726 1
Excess (deficiency) of revenues over expenditures (113,727) (113,727) (113,718) 9
Other financing sources (uses)
Designated cash (budgeted increase in cash)(273) (273) - 273
Transfers in 114,000 114,000 113,716 (284)
Transfers out - - - -
Total other financing sources (uses)113,727 113,727 113,716 (11)
Net change in fund balance - - (2) (2)
Fund balance - beginning of year - - 34 34
Fund balance - end of year -$ -$ 32$ 32$
2007 NMFA Land Purchase Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budgeted Amounts
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
99
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 - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 2 2
Miscellaneous - - - -
Total revenues - - 2 2
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 157,451 157,451 138,775 18,676
Interest 24,778 24,778 12,087 12,691
Total expenditures 182,229 182,229 150,862 31,367
Excess (deficiency) of revenues over expenditures (182,229) (182,229) (150,860) 31,369
Other financing sources (uses)
Designated cash (budgeted increase in cash)(87,028) (117,894) - 117,894
Transfers in 269,257 300,123 297,961 (2,162)
Transfers out - - - -
Total other financing sources (uses)182,229 182,229 297,961 115,732
Net change in fund balance - - 147,101 147,101
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 147,101$ 147,101$
2011 PPRF Street Improvement Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
100
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 - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - 183 183
Miscellaneous - - - -
Total revenues - - 183 183
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 - - 183 183
Other financing sources (uses)
Designated cash (budgeted increase in cash)- (169,416) - 169,416
Proceeds from issuance of debt - 169,416 169,416 -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - 169,416 169,416
Net change in fund balance - - 169,599 169,599
Fund balance - beginning of year - - - -
Fund balance - end of year -$ -$ 169,599$ 169,599$
Statement of Revenues, Expenditures and Changes in Fund Balance
2011 PPRF Street Improvement Reserve Debt Service Fund
Town of Taos
STATE OF NEW MEXICO
Budgeted Amounts
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
101
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 - - 1,333 1,333
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - 23,019 23,019
Total revenues - - 24,352 24,352
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 290,471 349,369 261,699 87,670
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 246,700 239,641 96,122 143,519
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 555,171 607,010 375,821 231,189
Excess (deficiency) of revenues over expenditures (555,171) (607,010) (351,469) 255,541
Other financing sources (uses)
Designated cash (budgeted increase in cash)217,744 234,196 - (234,196)
Transfers in 337,427 433,314 433,314 -
Transfers out - (60,500) - 60,500
Total other financing sources (uses)555,171 607,010 433,314 (173,696)
Net change in fund balance - - 81,845 81,845
Fund balance - beginning of year - - 221,714 221,714
Fund balance - end of year -$ -$ 303,559$ 303,559$
Facilities Improvements Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
102
Statement B-22
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 687,196 694,696 670,393 (24,303)
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 81,914 89,299 79,913 (9,386)
State operating grants - - 17,130 17,130
State capital grants 172,889 172,889 7,993 (164,896)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - (5,022) (5,022)
Miscellaneous - - - -
Total revenues 941,999 956,884 770,407 (186,477)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 89,159 93,706 92,954 752
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 910,261 985,103 205,216 779,887
Debt service -
Principal - - - -
Interest - - - -
Total expenditures 999,420 1,078,809 298,170 780,639
Excess (deficiency) of revenues over expenditures (57,421) (121,925) 472,237 594,162
Other financing sources (uses)
Designated cash (budgeted increase in cash)589,636 553,188 - (553,188)
Transfers in 105,235 211,735 76,231 (135,504)
Transfers out (637,450) (642,998) (642,999) (1)
Proceeds from issuance of bonds - - - -
Total other financing sources (uses)57,421 121,925 (566,768) (688,693)
Net change in fund balance - - (94,531) (94,531)
Fund balance - beginning of year - - 725,986 725,986
Fund balance - end of year -$ -$ 631,455$ 631,455$
Capital Projects Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
103
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 1,243,260 1,243,260 435,688 (807,572)
State operating grants - - - -
State capital grants 31,247 35,732 12,651 (23,081)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues 1,274,507 1,278,992 448,339 (830,653)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 532,011 536,995 231,440 305,555
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 777,363 777,363 226,899 550,464
Debt service
Principal - - - -
Interest - - - -
Total expenditures 1,309,374 1,314,358 458,339 856,019
Excess (deficiency) of revenues over expenditures (34,867) (35,366) (10,000) 25,366
Other financing sources (uses)
Designated cash (budgeted increase in cash)17,610 18,109 - (18,109)
Transfers in 17,257 17,257 17,257 -
Transfers out - - - -
Total other financing sources (uses)34,867 35,366 17,257 (18,109)
Net change in fund balance - - 7,257 7,257
Fund balance - beginning of year - - 19,446 19,446
Fund balance - end of year -$ -$ 26,703$ 26,703$
Airport Construction Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
104
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 - - - -
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)- - - -
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$
Enhanced 911 Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
105
Statement B-25
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 - - - -
Investment income (loss)- - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - 12,401 - 12,401
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 102,000 89,599 89,599 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 102,000 102,000 89,599 12,401
Excess (deficiency) of revenues over expenditures (102,000) (102,000) (89,599) 12,401
Other financing sources (uses)
Designated cash (budgeted increase in cash)81,034 31,034 - (31,034)
Transfers in 20,966 70,966 70,966 -
Transfers out - - - -
Total other financing sources (uses)102,000 102,000 70,966 (31,034)
Net change in fund balance - - (18,633) (18,633)
Fund balance - beginning of year - - 96,287 96,287
Fund balance - end of year -$ -$ 77,654$ 77,654$
Vehicle Replacement Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
106
Statement B-26
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 650,000 650,000 15,000 (635,000)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 (852) (2,852)
Miscellaneous - - - -
Total revenues 652,000 652,000 14,148 (637,852)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 169,277 171,698 22,794 148,904
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 650,000 650,000 - 650,000
Debt service
Principal - - - -
Interest - - - -
Total expenditures 819,277 821,698 22,794 798,904
Excess (deficiency) of revenues over expenditures (167,277) (169,698) (8,646) 161,052
Other financing sources (uses)
Designated cash (budgeted increase in cash)167,277 169,698 - (169,698)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)167,277 169,698 - (169,698)
Net change in fund balance - - (8,646) (8,646)
Fund balance - beginning of year - - 555,426 555,426
Fund balance - end of year -$ -$ 546,780$ 546,780$
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
107
Statement B-27
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 500,000 500,000 - (500,000)
State operating grants - - - -
State capital grants 889,135 297,215 - (297,215)
Charges for services - - - -
Licenses and fees - - - -
Investment income (loss)2,000 2,000 503 (1,497)
Miscellaneous - - - -
Total revenues 1,391,135 799,215 503 (798,712)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - 25,041 25,042 (1)
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 3,274,274 2,682,354 54,838 2,627,516
Debt service
Principal - - - -
Interest - - - -
Total expenditures 3,274,274 2,707,395 79,880 2,627,515
Excess (deficiency) of revenues over expenditures (1,883,139) (1,908,180) (79,377) 1,828,803
Other financing sources (uses)
Designated cash (budgeted increase in cash)89,937 89,937 - (89,937)
Proceeds from issuance of debt 1,500,000 1,525,041 1,525,041
Transfers in 293,202 293,202 293,202 -
Transfers out - - - -
Total other financing sources (uses)1,883,139 1,908,180 1,818,243 (89,937)
Net change in fund balance - - 1,738,866 1,738,866
Fund balance - beginning of year - - 153,403 153,403
Fund balance - end of year -$ -$ 1,892,269$ 1,892,269$
1999 Gasoline Tax Acquisition Capital Projects Fund
Town of Taos
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
For the Year Ended June 30, 2012
Budget (GAAP Basis) and Actual
Statement of Revenues, Expenditures and Changes in Fund Balance
108
STATE OF NEW MEXICO Statement B-28
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 2,588,940$ 2,588,940$ 2,891,725$ 302,785$
Total operating revenues 2,588,940 2,588,940 2,891,725 302,785
Operating expenses
Personnel services 708,320 727,646 711,133 16,513
Contractual services 1,065,916 1,188,887 1,086,651 102,236
Supplies 178,085 256,505 190,678 65,827
Maintenance and materials 75,800 75,345 69,927 5,418
Utilities 336,110 347,066 329,415 17,651
Equipment 4,215,046 4,030,027 - 4,030,027
Depreciation - - 1,076,331 (1,076,331)
Miscellaneous 214,315 213,634 30,147 183,487
Total operating expenses 6,793,592 6,839,110 3,494,282 3,344,828
Operating income (loss) (4,204,652) (4,250,170) (602,557) 3,647,613
Non-operating revenues (expenses)
Gross receipts taxes 458,184 458,184 379,820 (78,364)
Interest expense (142,635) (142,635) (132,281) 10,354
Interest income 28,530 28,530 1,205 (27,325)
Miscellaneous income - - 980 980
Total non-operating revenues
(expenses)344,079 344,079 249,724 (94,355)
Transfers - - - -
State and federal capital grants 3,112,555 3,112,555 2,452,263 (660,292)
Change in net assets (748,018)$ (793,536)$ 2,099,430 2,892,966$
Total net assets, beginning of year 23,022,826
Total net assets, end of year 25,122,256$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Water and Sewer Proprietary Fund
109
STATE OF NEW MEXICO Statement B-29
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 1,176,407$ 1,188,237$ 1,230,466$ 42,229$
Total operating revenues 1,176,407 1,188,237 1,230,466 42,229
Operating expenses
Personnel services 108,983 103,009 118,688 (15,679)
Contractual services 771,700 760,277 759,526 751
Supplies 3,525 7,602 7,602 -
Maintenance and materials 26,300 61,641 60,966 675
Utilities 267,080 268,360 231,322 37,038
Equipment 248,000 468,408 - 468,408
Depreciation - - 23,643 (23,643)
Miscellaneous 1,775 1,648 1,502 146
Total operating expenses 1,427,363 1,670,945 1,203,249 467,696
Operating income (loss) (250,956) (482,708) 27,217 509,925
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Miscellaneous income 15,286 15,286 21,788 6,502
Total non-operating revenues
(expenses)15,286 15,286 21,788 6,502
Transfers - - - -
State and federal capital grants - - - -
Change in net assets (235,670)$ (467,422)$ 49,005 516,427$
Total net assets, beginning of year 1,379,309
Total net assets, end of year 1,428,314$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Solid Waste Proprietary Fund
110
STATE OF NEW MEXICO Statement B-30
Budget (GAAP Basis) and Actual
Variances
Favorable
Budget Amounts Actual (Unfavorable)
Original Final (GAAP Basis)Final to Actual
Operating revenues
Charges for services 977,801$ 977,801$ 897,186$ (80,615)$
Total operating revenues 977,801 977,801 897,186 (80,615)
Operating expenses
Personnel services 349,027 286,496 271,302 15,194
Contractual services 263,177 254,362 336,701 (82,339)
Supplies 3,665 4,314 3,949 365
Maintenance and materials 119,550 130,647 113,379 17,268
Utilities 6,944 6,762 6,654 108
Equipment 451,475 421,073 - 421,073
Depreciation - - 188,331 (188,331)
Miscellaneous 169,810 171,796 6,265 165,531
Total operating expenses 1,363,648 1,275,450 926,581 348,869
Operating income (loss) (385,847) (297,649) (29,395) 268,254
Non-operating revenues (expenses)
Gross receipts taxes - - - -
Interest expense (26,993) (26,993) (26,447) 546
Interest income 148 148 1,167 1,019
Miscellaneous income 65,791 65,791 2,846 (62,945)
Total non-operating revenues
(expenses)38,946 38,946 (22,434) (61,380)
State and federal capital grants 366,073 366,073 - (366,073)
State and federal operating grants - - 7,898 7,898
Transfers - - - -
Change in net assets 19,172$ 107,370$ (43,931) (159,199)$
Total net assets, beginning of year 1,929,581
Total net assets, end of year 1,885,650$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2012
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Taos Regional Landfill Proprietary Fund
111
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112
SUPPORTING SCHEDULES
113
STATE OF NEW MEXICO Schedule I
Town of Taos Page 1 of 2
Schedule of Deposit and Investment Accounts
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
US Bank
Clearing Account Checking 381,969$ -$ 381,969$ -$
Judicial Bond Fund Municipal Court Checking 1,269 313 - 1,582
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 3,210,215 48,368 593 3,257,990
Certificate of Deposit - Investment CD 170,500 - - 170,500
Total US Bank 3,803,483 48,681 382,562 3,469,602
Centinel Bank
General Fund Checking 1,885,624 6,941 - 1,892,565
Water/Wastewater Improvement Fund Checking 454,595 - 57,863 396,732
Payroll Clearing Checking 3 - - 3
1994 GRT Revenue Bond Acquisition Fund Checking 13,419 - - 13,419
HUD Account - Domestic Violence Shelter Checking 3,175 - 3,174 1
ACH Transfer Account Checking 84,615 - 84,515 100
Total Centinel Bank 2,441,431 6,941 145,552 2,302,820
Bank of Albuquerque - Investments
2001A Water & Sewer Revenue Bond
Retirement
U.S. Treasury
Mutual Fund 62,003 - - 62,003
2004 Taos Regional Landfill Revenue Bond
Reserve
U.S. Treasury
Mutual Fund 137,877 - - 137,877
2008A Taos Regional Landfill Debt Service U.S. Treasury
Mutual Fund 100,444 - - 100,444
2008 Gross Receipts tax Revenue Bond Reserve U.S. Treasury
Mutual Fund 169,599 - - 169,599
1999 Gasoline Tax Acquisition U.S. Treasury
Mutual Fund 1,500,355 - - 1,500,355
2010a Phase I multi phased recreation park U.S. Treasury
Mutual Fund 181,559 - - 181,559
Total Bank of Albuquerque 2,151,837 - - 2,151,837
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase State Treasurer
Debt Service 32 - - 32
2004 Taos Regional Landfill Revenue Bond
Reserve
State Treasurer
Debt Service 168 - - 168
2008A Taos Regional Landfill Debt Service State Treasurer
Debt Service 357 - - 357
2010 Phase II Wastewater Treatment Plant
Rehab
State Treasurer
Debt Service 7 - - 7
2010 Phase I Multi-phased Rec. Park State Treasurer
Debt Service 243 - - 243
1999 Gasoline Tax Acquisition State Treasurer
Debt Service 2 - - 2
Total New Mexico Finance Authority 809 - - 809
Total 8,397,560$55,622$ 528,114$ 7,925,068
New Mexico State Treasurer Local Government Investment Pool 4,651,769
Add: petty cash 1,450
Total deposits and investments 12,578,287$
See independent auditors' report
June 30, 2012
114
STATE OF NEW MEXICO Schedule I
Town of Taos Page 2 of 2
Schedule of Deposit and Investment Accounts
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 4,658,195$
Investments - Exhibit A-1 4,762,269
Restricted cash and cash equivalents - Exhibit A-1 937,443
Restricted investments- Exhibit A-1 2,152,646
Fiduciary funds cash and cash equivalents and investments - Exhibit E-1 67,734
Total deposits and investments 12,578,287$
June 30, 2012
115
STATE OF NEW MEXICO Schedule II
Description of Fair Market/Par
Name of Pledged CUSIP Value at Location
Depository Collateral Maturity Number June 30, 2012 of Safekeeper
US Bank
FNMA 8/1/2025 31410K7E8 521,321$ Federal Home Loan Bank, Dallas, TX
GNMA REMIC 2010-
45KA 5/16/2035 38376X7G2 3,603,695 Federal Home Loan Bank, Dallas, TX
4,125,016
Centinel Bank
FNMA 11/1/2019 31371LXX2 605,259 Independent Bankers Bank, Dallas TX
FHLB 4/17/2014 31331GTJ8 780,393 Independent Bankers Bank, Dallas TX
Ruidoso SD GO 8/1/2021 781338HR2 250,000 *Independent Bankers Bank, Dallas TX
1,635,652
Total Pledged Collateral 5,760,668$
See independent auditors' report
June 30, 2012
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
* As per NMSA 2.2.2.10 (N) (4), the value of collateral consisting of obligations of the State of New Mexico, its
agencies, institutions, counties, municipalities or other subdivisions shall be par value.
116
Schedule III
Balance Balance
June 30, 2011 Additions Deletions June 30, 2012
Assets
Cash 10,582$ $ 21,443 $ 24,291 7,734$
Investments 62,500 - 2,500 60,000
Total assets 73,082$ 21,443$ 26,791$ 67,734$
Liabilities
Deposits payable 71,335$ 8,180$ 12,338$ 67,177$
Due to other entities 1,747 8,833 10,023 557
Total liabilities 73,082$ 17,013$ 22,361$ 67,734$
STATE OF NEW MEXICO
See independent auditors' report
For the Year Ended June 30, 2012
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
Town of Taos
117
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
June 30, 2012
STATE OF NEW MEXICO
Town of Taos
Schedule of Joint Powers Agreements
See independent auditors' report
118
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
119
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120
COMPLIANCE SECTION
121
Accounting & Consulting Group, LLP
Certified Public Accountants
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, 2012, which collectively comprise the Town’s basic financial statements as
listed in the table of contents, and have issued our report thereon dated November 27, 2012. We also have audited the financial
statements of each of the Town’s nonmajor governmental funds and budgetary comparisons for the proprietary funds, 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, 2012 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
Management of the Town is responsible for establishing and maintaining effective 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.
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 misstatements 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.
Our consideration of internal control over financial reporting 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 financial reporting that might be deficiencies,
significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting
that we consider to be material weaknesses, as defined above. However, we identified certain deficiencies in internal control
over financial reporting, described in the accompanying schedule of findings and questioned costs that we consider to be
significant deficiencies in internal control over financial reporting as items FS 2010-01 and FS 2012-01. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
122
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 material 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 or other matters that are required to be reported under
Government Auditing Standards.
We noted certain matters that are required to be reported pursuant to Government Auditing Standards paragraphs 5.14 and 5.16,
and Section 12-6-5, NMSA 1978, which are described in the accompanying schedule of findings and questioned costs as items
FS 2011-01 and FS 2012-02.
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 27, 2012
123
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124
FEDERAL FINANCIAL ASSISTANCE
125
Accounting & Consulting Group, LLP
Certified Public Accountants
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 Town of Taos, New Mexico’s (“the Town”) compliance 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, 2012. 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, 2012.
Internal Control Over Compliance
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.
126
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 27, 2012
127
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, 2012
CFDA
Number Federal Grant Number
Federal
Expenditures
16.523 11-690-12421-3 $ 130,990
Community Development Block Grant 14.228 10-C-NR-I-01-G-27 300,000
14.235 NM02B601005 150,000
Total U.S. Department of Housing & Urban Development 450,000
Federal Aviation Administration (FAA)
Airport Improvements Program - EIS Phase 3A 20.106 3-35-0041-021-2009 438,393
Federal Transportation Administration (FTA) Federal Assistance-ARRA 20.509 69-8350-0-7-401 4,494
Federal Transportation Administration (FTA) - Capital Investment Grants 20.500 NM-03-0041 7,385
Total U.S. Department of Transportation 450,272
Mexico Environment Department
66.458 CWSRF 15 931,709
81.128 11-690-12422 48,378
$ 2,011,349
(1) Denotes Major Federal Financial Assistance Program
See independent auditors' report
U.S. Department of Energy
U.S. Environmental Protection Agency Passed Through the State of New
EPA- Clean Water State Revolving Fund- ARRA (1)
ARRA Conservation Block Grant
Federal Grantor or Pass-Through Grantor/ Program Title
U.S. Department of Justice
Taos County Juvenile Justice
U.S. Department of Housing & Urban Development Passed Through the
State of New Mexico, Department of Finance & Administration
Community Against Violence (1)
Total Federal Financial Assistance
U.S. Department of Transportation
128
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, 2012
Notes to Schedule of Expenditures of Federal Awards
3. Loan amounts
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
2,011,349$
13,521,859
15,533,208$
See independent auditors' report
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 $36,000 to U.S. Department of Agriculture and $222,000 to the Rural Utilities Service as of June 30, 2012.
1. Basis of Presentation
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 5
Schedule of Findings and Questioned Costs
June 30, 2012
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? No
b. Significant deficiencies identified not considered to be material weaknesses? Yes
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
14.235 Community Against Violence
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
130
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 5
Schedule of Findings and Questioned Costs
June 30, 2012
Section II – Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings
2010-01 Design Deficiencies in Internal Control
over Financial Reporting Repeated and Modified
2011-01 Noncompliance of Town Policy Repeated and Modified
Section III – Financial Statement Findings and Questioned Costs
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Significant Deficiency)
Condition: During our internal control evaluations, we noted the following deficiencies:
Management and the board of governance have not established practices for monitoring processes.
Unable to recalculate utility billing due to missing documentation in regards to agreement with
customer.
During our review of annual leave and timesheet hours, we noted there is not review, oversight, or
monitoring process of employees leave cards and leave balances and hours worked.
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 with 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.
(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.
131
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 5
Schedule of Findings and Questioned Costs
June 30, 2012
FS 2010-01 Design Deficiencies in Internal Control over Financial Reporting (Significant Deficiency) (continued)
(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 in all departments.
Auditors’ Recommendations: The Town should ensure that a comprehensive internal control structure over financial
information is designed, documented, and implemented for each department. 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: The Town is finalizing its update of its internal Accounting Manual along with other related
policies and procedures. A three-member Audit Committee has been formally established by the Council that will
include a member from the Council and a representative from a local financial institution and business owner to assist
the Town in reviewing its reports, internal controls, and financial management policies and procedures. Management
has also started the practice of presenting to the Council at its regular public meetings a detailed Financial
Performance Report on a monthly basis.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 5
Schedule of Findings and Questioned Costs
June 30, 2012
FS 2011-01 Noncompliance of Town Policy (Other Matter)
Condition: During our testwork of personal use of vehicles, it was noted that one employee of the Town is allowed
to take a marked vehicle home beyond the 30 mile range set forth in the Town’s policy. In addition, the Town does
not have a process in place to determine the usage of the vehicle outside of the Town’s limits is strictly limited to
commuting. The Town’s policy does not address usage outside the Town’s limits or prohibit personal use and any
use of the vehicle outside the Town’s limits that is personal would be considered taxable income.
Criteria: 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 limits.
Effect: Because the internal policy structure is not followed, management and staff are unable to prevent
unauthorized travel and the Town may not be properly taxing personal usage of its vehicles.
Cause: 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.
Auditors’ Recommendations: We recommend that 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. The Town Manager has issued a
directive to the Human Resources Director and Police Chief acknowledging the exceptions that were made in the past
making clear that from now on under no circumstances may a car be issued to any police officer who lives 30 or more
miles (actual driven miles) from the Town limits. The Town Manager has also directed the Finance Department to
review the police car mileage logs periodically to ensure that the vehicles do not exceed the allotted home-work
mileage allowance. The Town will review its take-home car policy to reduce the number of vehicles driven home by
the police officers by instituting a standard shared-vehicle pool.
FS 2012-01 Weakness in Design Related to Internal Controls Over Receipts (Significant Deficiency)
Condition: During our inquiry and observation of the Town’s landfill, it was noted that there was a lack of internal
control in regards to cash collection processes.
Criteria: According to NMSA 6-10-2 Public money; cash books; daily balance; public record, it is the duty of every
public official or agency of this state the receives or disburses public money to maintain a cash record in which it is
entered daily, in detail, all items of receipts and disbursements of public money. The cash record shall be balanced
daily so as to show the balance of public money on hand at the close of each day’s business.
Effect: Because these departments collect public funds in multiple forms including cash, misappropriation of assets
can occur.
Cause: Management and those in charge of governance have not developed a formal monitoring or risk assessment
process for all departments.
Auditors’ Recommendations: We recommend the Town implement a review process of all departments and assess
risks associated. Furthermore, develop an internal control process to mitigate the risk of fraud or misappropriation of
assets.
Agency’s Response: Management agrees with the auditors’ recommendations and will institute a review process of
all departments and assess risks associated, including developing an internal control process to mitigate the risk of
fraud or misappropriation of assets. The Town has installed a credit card payment machine at the landfill to reduce
cash payments. The Town will also immediately change its procedures for receiving cash payments at the landfill to
guard against the mishandling of cash by linking customer counts to receipts.
133
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 5 of 5
Schedule of Findings and Questioned Costs
June 30, 2012
FS 12-02 Cash Appropriations in Excess of Available Cash Balances (Other Matter)
Condition: The Town maintained a deficit budget in excess of available cash balances in the following funds:
1999 Gasoline Tax Revenue Bond Retirement
Debt Service Fund $ 220,540 $ 197,584 22,956$
Facilities Improvements Capital Projects Fund 234,196 231,665 2,531
Cash
Appropriation in
excess of
availableDesignated Cash
Beginning Year
Cash & AR
Available
Criteria: Section 2.2.2.10. (P) (1), NMAC, requires all Town funds, with the exception of agency funds, to be
budgeted by the local governing body and submitted to the Department of Finance and Authority for approval. Cash
balances rebudgeted to make up for deficit budgeted revenues that do not cover the budgeted expenditures, cannot
exceed the actual cash balance available at the end of the prior year.
Effect: The Town will have to supplement the budget deficit with other funds, which may lead to financial
difficulties and deplete the budget in other funds.
Cause: The Town does not have internal controls in place to ensure sufficient beginning cash balances exist to
absorb budget deficits.
Auditors’ Recommendations: Budget deficits for future years should be reviewed to insure all funds have adequate
budget authority and sufficient cash balances for budgeted deficits. Greater attention should be given to the budget
monitoring process end-of-the-year cash balance estimates.
Agency’s Response: Management agrees with the auditors’ recommendations in future years will be reviewed to
insure all funds have adequate budget authority and sufficient balances. The Town has also instituted the practice of
reporting to the Council on a monthly basis its projected year-end balances to detect potential excesses in time for
them to be addressed.
FINDINGS – FEDERAL AWARDS
None
134
STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2012
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 27, 2012. In attendance were the following:
Representing the Town of Taos:
Darren Cordova Mayor
Frederick Peralta Councilor
Oscar Rodriguez Town Manager
Abigail Adame Assistant 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 Taos from
the original books and records provided to them by the management of the Town. The responsibility for the financial statements
remains with the Town.
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