2009 Audit ReportSTATE OF NEW MEXICO
TOWN OF TAOS
ANNUAL FINANCIAL REPORT
JUNE 30, 2009
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2
INTRODUCTORY SECTION
3
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4
STATE OF NEW MEXICO
Town of Taos
Official Roster
June 30, 2009
Town Council
Name Title
Darren Cordova Mayor
Michael A. Silva Councilor
Rudy Abeyta Councilor
Amy Quintana Councilor
Gene Sanchez Councilor
Administration
Daniel Miera Town Manager
Abigail Adame Assistant Town Manager
Marietta Fambro Finance Director
Renee Lucero Town Clerk
Richard Chavez Municipal Judge
Allen Ferguson Town Attorney
5
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2009
Exhibit Page
INTRODUCTORY SECTION
Official Roster 5
Table of Contents 6-7
FINANCIAL SECTION
Independent Auditors’ Report 10-11
BASIC FINANCIAL STATEMENTS
Government-wide Financial Statements
Statement of Net Assets A-1 14-15
Statement of Activities A-2 16-17
Fund Financial Statements
Balance Sheet – Governmental Funds B-1 18
Reconciliation of the Balance Sheet to the Statement of Net Assets 19
Statement of Revenues, Expenditures, and
Changes in Fund Balances – Governmental Funds B-2 20
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities 21
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual – General Fund C-1 23
Statement of Net Assets-Proprietary Funds D-1 24-25
Statement of Revenues, Expenses, and
Changes in Fund Net Assets-Proprietary Funds D-2 26-27
Statement of Cash Flows –Proprietary Funds D-3 28-29
Statement of Fiduciary Assets and Liabilities – Agency Funds E-1 31
NOTES TO THE FINANCIAL STATEMENTS 33-59
SUPPLEMENTARY INFORMATION
Statement
Nonmajor Governmental Fund Descriptions 62-65
COMBINING AND INDIVIDUAL FUND STATEMENTS AND SCHEDULES
Combining Balance Sheet – Nonmajor Governmental Funds A-1 66-71
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 72-77
Statement of Revenues, Expenditures, and Changes in Fund Balance –
Budget (GAAP Basis) and Actual
Governmental Funds:
Fire Protection Special Revenue Fund B-1 79
Recreation Special Revenue Fund B-2 80
Lodger’s Tax Special Revenue Fund B-3 81
Local Government Correction Special Revenue Fund B-4 82
Law Enforcement Protection Special Revenue Fund B-5 83
Civic Center Special Revenue Fund B-6 84
Domestic Violence Shelter Special Revenue Fund B-7 85
Public Transportation Special Revenue Fund B-8 86
Community Grants Special Revenue Fund B-9 87
Municipal Road Gasoline Tax Special Revenue Fund B-10 88
¼ Cent Municipal Gross Receipts Tax Special Revenue Fund B-11 89
Communications Special Revenue Fund B-12 90
2001 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-13 91
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund B-14 92
6
STATE OF NEW MEXICO
Town of Taos
Table of Contents
June 30, 2009
Statement/Schedule Page
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund B-15 93
2008 Gross Receipts Tax Revenue Bond Reserve Debt Service Fund B-16 94
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund B-17 95
2007 NMFA Land Purchase Debt Service Fund B-18 96
2001 Gross Receipts Tax Revenue Bond Reserve Debt Service Fund B-19 97
Facilities Improvements Capital Projects Fund B-20 98
Capital Projects Fund B-21 99
Airport Construction Capital Projects Fund B-22 100
Enhanced 911 Capital Projects Fund B-23 101
Vehicle Replacement Capital Projects Fund B-24 102
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund B-25 103
1999 Gasoline Tax Acquisition Capital Projects Fund B-26 104
Statement of Revenues, Expenses, and Changes in Net Assets –
Budget (GAAP Basis) and Actual –Proprietary Funds
Water and Sewer Fund B-27 105
Solid Waste Fund B-28 106
Taos Regional Landfill Fund B-29 107
SUPPORTING SCHEDULES
Schedule of Deposit and Investment Accounts I 111
Schedule of Collateral Pledged by Depository for Public Funds II 113
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds III 115
Supplementary Schedule of Joint Powers Agreements IV 116-117
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 120-121
FEDERAL FINANCIAL ASSISTANCE
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance
with OMB Circular A-133 124-125
Schedule of Expenditures of Federal Awards V 126-127
Schedule of Findings and Questioned Costs VI 129-135
Other Disclosures 136
7
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8
FINANCIAL SECTION
9
INDEPENDENT AUDITORS’ REPORT
Hector Balderas
New Mexico State Auditor
The 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,as of and for the year ended June 30, 2009, 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
budgetar y comparisons of the proprietar y funds, the capital projects fund and the remaining nonmajor governmental funds
presented as supplementary information in the accompanying combining and individual fund financial statements as of and for the
ye ar ended June 30, 2009 as listed in the table of contents. These financial statements are the responsibility of the Town of Taos’
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 includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made b y 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 financial position of the
governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town
of Taos,New Mexico, as of June 30, 2009, and the respective changes in financial position and cash flows,where applicable,
thereof and the budgetar y c omparison 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 of Taos as of
June 30, 2009, and the respective changes in financial position thereof,and the budgetar y c omparisons for the proprietary funds,
the capital projects fund and the remaining nonmajor governmental funds presented as supplementar y i nformation 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 16, 2009 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.
The Town has not presented the Management’s Discussion and Analysis that accounting principles generally accepted in the
United States of America has determined is necessar y to supplement, although not required to be a part of, the basic financial
statements.
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 budgetar y c omparisons. The
accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required b y the
U.S. Office of Management and Budget Circular A-133, Audits of State, Local Governments, and Non-Profit Organizations,and
is not a required part of the basic financial statements. 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 has been subjected to the auditing procedures applied in the audit of the basic financial statements
and the combining and individual fund statements and budgetary comparisons listed above and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements and the combining and individual fund statements and budgetar y
comparisons taken as a whole.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 16, 2009
11
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12
BASIC
FINANCIAL STATEMENTS
13
Governmental
Activities
Business-type
Activities Total
Assets
Current assets
Cash and cash equivalents 878,415$ 2,744,040$ 3,622,455$
Investments 5,815,441 1,708,374 7,523,815
Receivables:
Property taxes 214,215 - 214,215
Other taxes 896,766 - 896,766
Other 400,610 606,635 1,007,245
Internal balances 13,718 (13,718) -
Total current assets 8,219,165 5,045,331 13,264,496
Noncurrent assets
Restricted cash and cash equivalents 24,836 1,344,425 1,369,261
Bond issuance costs, net of accumulated
amortization of $14,274 170,443 - 170,443
Capital assets 102,470,850 32,716,763 135,187,613
Less: accumulated depreciation (50,275,151) (12,905,074) (63,180,225)
Total noncurrent assets 52,390,978 21,156,114 73,547,092
Total assets 60,610,143$ 26,201,445$ 86,811,588$
STATE OF NEW MEXICO
Primary Government
The accompanying notes are an integral part of these financial statements
June 30, 2009
Statement of Net Assets
Town of Taos
14
Exhibit A-1
Governmental
Activities
Business-type
Activities Total
Liabilities
Current liabilities
Accounts payable 338,151$ 221,737$ 559,888$
Accrued payroll 402,418 47,822 450,240
Deposits held in trust for others 8,466 237,066 245,532
Accrued compensated absences 369,209 42,332 411,541
Accrued interest 41,142 69,498 110,640
Current portion of long-term debt 507,293 244,791 752,084
Total current liabilities 1,666,679 863,246 2,529,925
Noncurrent liabilities
Accrued compensated absences 312,215 21,663 333,878
Accrued landfill closure costs - 325,853 325,853
Bond premiums, net of accumulated
accretion of $5,474 65,368 - 65,368
Bonds payable 6,545,000 2,139,600 8,684,600
Loans and contracts payable 776,379 1,913,015 2,689,394
Total noncurrent liabilities 7,698,962 4,400,131 12,099,093
Total liabilities 9,365,641 5,263,377 14,629,018
Net Assets
Invested in capital assets, net of related debt 44,367,027 15,514,283 59,881,310
Restricted for:
Debt service 1,116,687 1,344,425 2,461,112
Capital projects 3,878,643 - 3,878,643
Special revenue 1,079,781 - 1,079,781
Unrestricted 802,364 4,079,360 4,881,724
Total net assets 51,244,502$ 20,938,068$ 72,182,570$
Primary Government
15
Functions/Programs
Expenses
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Primary Government
Governmental Activities:
General government 7,031,467$ 296,587$ 347,178$ -$
Public safety 2,968,470 - 259,800 -
Public works 3,719,661 - - 1,960,041
Culture and recreation 3,185,944 78,079 - -
Health and welfare 669,840 - 378,128 -
Interest on long-term debt 339,835 - - -
Total governmental activities 17,915,217 374,666 985,106 1,960,041
Business-type Activities:
Water and sewer 3,886,928 2,212,865 - 142,220
Solid waste 1,101,087 1,102,161 - -
Taos regional landfill 1,036,057 1,161,614 - -
Total business-type activities 6,024,072 4,476,640 - 142,220
Total primary government 23,939,289$ 4,851,306$ 985,106$ 2,102,261$
General Revenues:
Taxes:
Property taxes, levied for general purposes
Gross receipts taxes
Gasoline and motor vehicle taxes
Other taxes
Licenses and fees
Interest income
Miscellaneous income
Transfers
Loss on disposal of capital assets
Proceeds from insurance recovery
Special item - donated revenue
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The accompanying notes are an integral part of these financial statements
Program Revenues
STATE OF NEW MEXICO
Town of Taos
Statement of Activities
June 30, 2009
16
Exhibit A-2
Governmental
Activities
Business-Type
Activities Total
(6,387,702)$ -$ (6,387,702)$
(2,708,670) - (2,708,670)
(1,759,620) - (1,759,620)
(3,107,865) - (3,107,865)
(291,712) - (291,712)
(339,835) - (339,835)
(14,595,404) - (14,595,404)
- (1,531,843) (1,531,843)
- 1,074 1,074
- 125,557 125,557
- (1,405,212) (1,405,212)
(14,595,404) (1,405,212) (16,000,616)
671,981 - 671,981
9,995,673 425,682 10,421,355
230,015 - 230,015
1,191,991 - 1,191,991
298,127 - 298,127
145,983 105,583 251,566
485,096 307,571 792,667
20,000 (20,000) -
(2,344) - (2,344)
18,348 - 18,348
598,520 - 598,520
13,653,390 818,836 14,472,226
(942,014) (586,376) (1,528,390)
52,186,516 21,524,444 73,710,960
51,244,502$ 20,938,068$ 72,182,570$
Primary Government
Net (Expense) Revenue and Changes in Net Assets
17
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 1 of 2
Balance Sheet
Governmental Funds
June 30, 2009
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Assets
Unrestricted cash and cash equivalents 622,129$ 108,126$ 148,160$ 878,415$
Restricted cash and cash equivalents 3,384 - 21,452 24,836
Investments 993,120 1,862,990 2,959,331 5,815,441
Receivables:
Property taxes 214,215 - - 214,215
Other taxes 668,615 52,577 175,574 896,766
Other 28,212 182,891 189,507 400,610
Due from other funds 191,145 - - 191,145
Total assets 2,720,820$ 2,206,584$ 3,494,024$ 8,421,428$
Liabilities
Accounts payable 101,628$ 59,726$ 176,797$ 338,151$
Accrued payroll 335,360 - 67,058 402,418
Deposits held in trust for others 3,384 - 5,082 8,466
Deferred revenue 176,588 - - 176,588
Due to other funds - - 177,427 177,427
Total liabilities 616,960 59,726 426,364 1,103,050
Fund balances
Reserved for:
Future debt service payments - - 247,208 247,208
Unreserved, reported in:
General fund 2,103,860 - - 2,103,860
Special revenue funds - - 1,106,667 1,106,667
Capital projects funds - 2,146,858 1,713,785 3,860,643
Total fund balances 2,103,860 2,146,858 3,067,660 7,318,378
Total liabilities and fund balances 2,720,820$ 2,206,584$ 3,494,024$ 8,421,428$
The accompanying notes are an integral part of these financial statements
18
STATE OF NEW MEXICO Exhibit B-1
Town of Taos Page 2 of 2
Amounts reported for governmental activities in the statement of net assets
are different because:
Fund balances - total governmental funds 7,318,378$
The Town has unamortized bond issuance costs. Bond issuance costs are
not a current financial resource and, therefore, are not reported
in the funds 170,443
Capital assets used in governmental activities are not financial resources
and, therefore, are not reported in the funds 52,195,699
Other long-term assets are not available to pay for current period
expenditures and, therefore, are deferred in the funds:
Deferred property taxes 176,588
Interest on long-term debt is not accrued in the fund financial statements
unless it is due and payable:
Accrued interest (41,142)
Some liabilities, including bonds payable, are not due and payable in
the current period and, therefore, are not reported in the funds:
Accrued compensated absences (681,424)
Bond premiums (65,368)
Bonds payable (6,945,000)
Loans payable (793,672)
Contracts payable (90,000)
Total net assets of governmental activities 51,244,502$
June 30, 2009
The accompanying notes are an integral part of these financial statements
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Assets
19
STATE OF NEW MEXICO Exhibit B-2
Town of Taos Page 1 of 2
Statement of Revenues, Expenditures and Changes in Fund Balances
Governmental Funds
For the Year Ending June 30, 2009
General Fund
Capital Projects
Fund
Other
Governmental
Funds Total
Revenues
Taxes
Property 663,242$ -$ -$ 663,242$
Gross receipts 8,358,951 701,453 935,269 9,995,673
Gasoline and motor vehicle taxes 186,781 - 43,234 230,015
Other 282,688 - 909,303 1,191,991
Intergovernmental income
Federal operating grants 5,550 - 150,000 155,550
Federal capital grants - - 319,684 319,684
State operating grants 35,000 - 794,556 829,556
State capital grants - 1,477,405 162,952 1,640,357
Charges for services 276,531 - 98,135 374,666
Licenses and fees 268,373 - 29,754 298,127
Interest income 49,573 64,737 31,673 145,983
Miscellaneous 112,513 - 372,583 485,096
Total revenues 10,239,202 2,243,595 3,847,143 16,329,940
Expenditures
Current
General government 4,081,394 - 1,792,231 5,873,625
Public safety 2,697,268 - 221,060 2,918,328
Public works 1,109,619 188,605 646,809 1,945,033
Culture and recreation 2,158,081 - 506,477 2,664,558
Health and welfare - - 669,840 669,840
Capital outlay - 6,933,277 501,513 7,434,790
Debt service
Principal - - 879,833 879,833
Interest - - 347,481 347,481
Total expenditures 10,046,362 7,121,882 5,565,244 22,733,488
Excess (deficiency) of revenues over
expenditures 192,840 (4,878,287) (1,718,101) (6,403,548)
Other financing sources (uses)
Transfers in 411,461 67,663 3,278,546 3,757,670
Transfers out (899,883) (584,793) (2,252,994) (3,737,670)
Proceeds from insurance recovery 16,143 - 2,205 18,348
Total other financing sources (uses)(472,279) (517,130) 1,027,757 38,348
Net change in fund balances (279,439) (5,395,417) (690,344) (6,365,200)
Fund balances - beginning of year 2,383,299 7,542,275 3,758,004 13,683,578
Fund balance - end of year 2,103,860$ 2,146,858$ 3,067,660$ 7,318,378$
The accompanying notes are an integral part of these financial statements
20
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 (6,365,200)$
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 7,434,790
Depreciation expense (3,601,291)
Loss on disposal of capital assets (2,344)
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenue in the funds:
Change in deferred revenue related to property taxes receivable 8,739
Capital asset recorded as a donated item 598,520
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 (9,143)
Decrease in accrued interest 7,646
Decrease in accrued compensated absences 102,930
Amortization of bond premiums 3,506
Principal payments on bonds payable 775,000
Principal payments on loans payable 86,833
Payments on contracts payable 18,000
Change in net assets of governmental activities (942,014)$
Reconciliation of the Statement of Revenues, Expenditures and Changes
in Fund Balances of Governmental Funds to the Statement of Activities
For the Year Ending June 30, 2009
The accompanying notes are an integral part of these financial statements
21
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22
STATE OF NEW MEXICO Exhibit C-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis) Final to Actual
Revenues
Taxes
Property taxes 665,593$ 665,593$ 663,242$ (2,351)$
Gross receipts 8,997,930 8,338,282 8,358,951 20,669
Gas and motor vehicle 131,817 182,666 186,781 4,115
Other 404,256 398,861 282,688 (116,173)
Intergovernmental income
Federal operating grants 5,550 5,550 5,550 -
Federal capital grants - - - -
State operating grants 35,000 35,000 35,000 -
State capital grants - - - -
Charges for services 337,989 284,829 276,531 (8,298)
Licenses and fees 375,093 274,997 268,373 (6,624)
Interest income 310,167 61,591 49,573 (12,018)
Miscellaneous 141,626 135,404 112,513 (22,891)
Total revenues 11,405,021 10,382,773 10,239,202 (143,571)
Expenditures
Current
General government 5,044,500 4,318,647 4,081,394 237,253
Public safety 2,904,685 2,756,552 2,697,268 59,284
Public works 1,169,845 1,111,333 1,109,619 1,714
Culture and recreation 2,263,720 2,187,982 2,158,081 29,901
Health and welfare - - - -
Capital outlay 20,000 20,000 - 20,000
Debt service
Principal - - - -
Interest - - - -
Total expenditures 11,402,750 10,394,514 10,046,362 348,152
Excess (deficiency) of revenues over
expenditures 2,271 (11,741) 192,840 204,581
Other financing sources (uses)
Designated cash (4,397,393) (4,405,519) - 4,405,519
Transfers in 5,394,201 5,394,201 411,461 (4,982,740)
Transfers out (999,079) (976,941) (899,883) 77,058
Proceeds from insurance recovery - - 16,143 16,143
Total other financing sources (uses)(2,271) 11,741 (472,279) (484,020)
Net change in fund balance - - (279,439) (279,439)
Fund balance - beginning of year - - 2,383,299 2,383,299
Fund balance - end of year -$ -$ 2,103,860$ 2,103,860$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
General Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ending June 30, 2009
23
Water and Sewer Solid Waste
Assets
Current assets
Cash and cash equivalents 1,647,321$ 768,864$ 327,855$
Investments 1,383,874 249,100 75,400
Customer receivables 330,525 154,077 109,476
Other receivables 10,779 1,778 -
Interfund receivable - - 97,000
Total current assets 3,372,499 1,173,819 609,731
...
Noncurrent assets
Restricted cash and cash equivalents 311,534 - 1,032,891
Capital assets 28,390,062 416,514 3,910,187
Less: accumulated depreciation (11,857,712) (337,476) (709,886)
Total noncurrent assets 16,843,884 79,038 4,233,192
Total assets 20,216,383$ 1,252,857$ 4,842,923$
Liabilities and net assets
Liabilities
Current liabilities
Accounts payable 117,845$ 84,962$ 18,930$
Accrued payroll 31,589 3,670 12,563
Meter deposits payable 237,066 - -
Accrued compensated absences 26,622 2,682 13,028
Interfund payable 4,220 97,116 9,382
Accrued interest payable 63,729 - 5,769
Current portion of long-term debt 113,220 - 131,571
Total current liabilities 594,291 188,430 191,243
Noncurrent liabilities
Accrued compensated absences 13,693 - 7,970
Accrued landfill closure costs - - 325,853
Bonds payable 2,139,600 - -
Loans payable 754,843 - 1,158,172
Total noncurrent liabilities 2,908,136 - 1,491,995
Total liabilities 3,502,427 188,430 1,683,238
Net assets
Invested in capital assets, net of related debt 13,524,687 79,038 1,910,558
Unrestricted 3,189,269 985,389 1,249,127
Total net assets 16,713,956$ 1,064,427$ 3,159,685$
June 30, 2009
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Taos Regional
Landfill
Enterprise Funds
Town of Taos
Statement of Net Assets
Proprietary Funds
24
Exhibit D-1
Total
2,744,040$
1,708,374
594,078
12,557
97,000
5,156,049
1,344,425
32,716,763
(12,905,074)
21,156,114
26,312,163$
221,737$
47,822
237,066
42,332
110,718
69,498
244,791
973,964
21,663
325,853
2,139,600
1,913,015
4,400,131
5,374,095
15,514,283
5,423,785
20,938,068$
25
Water and Sewer Solid Waste
Operating revenues:
Charges for services 2,212,865$ 1,182,520$ 1,161,614$
Total operating revenues 2,212,865 1,182,520 1,161,614
Operating expenses:
Personnel services 625,507 77,927 306,512
Contractual services 1,341,958 718,119 405,116
Supplies 33,214 10,961 12,165
Maintenance and materials 145,690 43,425 138,374
Utilities 310,994 247,563 6,871
Depreciation 1,178,578 2,466 106,611
Other costs 34,181 626 15,496
Total operating expenses 3,670,122 1,101,087 991,145
Operating income (loss) (1,457,257) 81,433 170,469
Non-operating revenues (expenses):
Gross receipts taxes 425,682 - -
Interest expense (216,806) - (44,912)
Interest income 63,844 - 41,739
Miscellaneous income 66,191 51,853 109,168
Total non-operating revenues (expenses)338,911 51,853 105,995
Government contributions 142,220 - -
Transfers in 6,130 12,015 -
Transfers out - - (38,145)
Change in net assets (969,996) 145,301 238,319
Net assets, beginning of year 17,683,952 919,126 2,921,366
Net assets, end of year 16,713,956$ 1,064,427$ 3,159,685$
STATE OF NEW MEXICO
Town of Taos
Statement of Revenues, Expenses and Changes in Fund Net Assets
The accompanying notes are an integral part of these financial statements
Taos Regional
Landfill
Enterprise Funds
Proprietary Funds
For the Year Ended June 30, 2009
26
Exhibit D-2
Total
4,556,999$
4,556,999
1,009,946
2,465,193
56,340
327,489
565,428
1,287,655
50,303
5,762,354
(1,205,355)
425,682
(261,718)
105,583
227,212
496,759
142,220
18,145
(38,145)
(586,376)
21,524,444
20,938,068$
27
Water and Sewer Solid Waste
Cash flows from operating activities:
Cash received from user charges 2,226,299$ 1,157,632$ 1,085,064$
Cash payments to employees for services (591,100) (77,861) (290,633)
Cash payments to suppliers for goods and services (1,994,022) (1,019,104) (707,687)
Net cash provided (used) by operating activities (358,823) 60,667 86,744
Cash flows from noncapital financing activities:
Gross receipts taxes 425,682 - -
Miscellaneous income 66,191 51,853 109,168
Change in noncurrent accrued compensated absences (25,937) (1,738) (16,705)
Interfund advances (payments) and transfers 5,678 116 (38,797)
Net cash provided (used) by noncapital
financing activities 471,614 50,231 53,666
Cash flows from capital and related financing activities
State capital grants 142,220 - -
Interest paid (153,077) - (39,143)
Proceeds from issuance of long-term debt 32,480 - -
Principal payments on long-term debt (114,038) - (151,425)
Acquisition of capital assets (471,557) - (639,488)
Net cash provided (used) by capital and
related financing activities (563,972) - (830,056)
Cash flows from investing activities:
Proceeds from sales and maturities 284,552 - -
Purchases of investments (205,000) (100,000) (75,400)
Interest on investments 63,844 - 41,739
Net cash provided (used) by investing activities 143,396 (100,000) (33,661)
Net increase (decrease) in cash and cash equivalents (307,785) 10,898 (723,307)
Cash and cash equivalents - beginning of year 2,266,640 757,966 2,084,053
Cash and cash equivalents - end of year 1,958,855$ 768,864$ 1,360,746$
Reconciliation of operating income (loss) to
net cash provided (used) by operating activities:
Operating income (loss)(1,457,257)$ 81,433$ 170,469$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Depreciation 1,178,578 2,466 106,611
Changes in assets and liabilities
Receivables 13,434 (24,888) (76,550)
Accounts payable (138,346) 1,590 (219,943)
Accrued payroll expenses 7,785 (2,616) 2,851
Current accrued compensated absences 26,622 2,682 13,028
Accrued landfill closure costs - - 90,278
Meter deposits 10,361 - -
Net cash provided (used) by operating activities (358,823)$ 60,667$ 86,744$
The accompanying notes are an integral part of these financial statements
Enterprise Funds
Taos Regional
Landfill
STATE OF NEW MEXICO
Town of Taos
Statement of Cash Flows - Proprietary Funds
For the Year Ended June 30, 2009
28
Exhibit D-3
Total
4,468,995$
(959,594)
(3,720,813)
(211,412)
425,682
227,212
(44,380)
(33,003)
575,511
142,220
(192,220)
32,480
(265,463)
(1,111,045)
(1,394,028)
284,552
(380,400)
105,583
9,735
(1,020,194)
5,108,659
4,088,465$
(1,205,355)$
1,287,655
(88,004)
(356,699)
8,020
42,332
90,278
10,361
(211,412)$
29
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30
STATE OF NEW MEXICO Exhibit E-1
Town of Taos
Statement of Fiduciary Assets and Liabilities - Agency Funds
June 30, 2009
Assets
Cash 863$
Investments 68,500
Total assets 69,363$
Liabilities
Deposits payable 68,260$
Due to other entities 1,103
Total liabilities 69,363$
The accompanying notes are an integral part of these financial statements
31
(This page intentionally left blank.)
32
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
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 b y municipal utilities and revenue-producing projects, including
amounts which the governing body determines to be reasonable in the operation of similar facilities.
This summar y o f 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 Standard 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 proprietar y fu nds 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 primar y government, (b) organizations for which the
primar y government is financially accountable and (c) other organizations for which the nature and
significance of their relationship with the primar y 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.
33
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
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 p ublic 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 nonfiduciar y a ctivities 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 b y 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.
34
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 1.Summary of Significant Accounting Policies (continued)
B.Government-wide and fund financial statements (continued)
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset b y p rogram revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include 1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function or
segment and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietar y fu nds and fiduciar y
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 proprietar y fund and fiduciar y fu nd 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
da ys 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 b y t he 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.
35
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
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 primar y operating fund. It accounts for all financial
resources of the general government, except those required to be accounted for in another
fund.
The Capital Projects Fund was created to accumulate revenue and other financing sources
for the purpose of financing general-purpose capital projects.
The Town reports its proprietar y funds as major funds. Proprietar y 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 the County. All activities necessar y t o 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 government reports the following fund types:
The Special Revenue Funds account for the proceeds of specific revenue sources that are
legally restricted to expenditures for specified purposes.
The Debt Service Funds account for the services of general long-term debt not being
financed by proprietar y or nonexpendable trust funds.
The Capital Projects Funds account for the acquisition of capital assets or construction of
major capital projects not being financed by proprietar y or nonexpendable trust funds.
The Fiduciary Funds account for resources held for others. They are purely custodial in
nature (assets equal liabilities) and do not involve measurement of results of operations.
These funds are used to account for assets that the Town holds for others in an agency
capacity.
As a general rule, the effect of interfund activit y has b een 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.
36
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 1.Summary of Significant Accounting Policies (continued)
C.Measurement focus, basis of accounting, and financial statement presentation (continued)
Program revenues included in the Statement of Activities are derived directly from the program itself
or from parties outside the Town’s taxpayer or citizenr y, 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.
The Town reports all direct expenses b y 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 b y fu nction 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.
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 b y 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.
37
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
All receivables are reported at their gross value and, where appropriate, are reduced b y t he 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.
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 b y N ovember 10th and April 10th. Property taxes
uncollected after November 10th and April 10th are considered delinquent and the Town ma y a ssess
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 San Juan County and remitted
monthly to the Town .
Restricted Assets: Restricted assets consist of those funds expendable for operating purposes but
restricted b y donors or other outside agencies as to the specific purpose for which they may be used.
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 b y t he 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 cost 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 furniture, fixtures 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.Librar y b ooks 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. The total interest expense capitalized b y t he Town
during the current fiscal year was $0. No interest was included as part of the cost of capital assets
under construction.
38
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Property,plant, and equipment of the primary government are depreciated using the straight line
method over the following estimated useful lives:
Assets Years
Land Improvements 20
Buildings and improvements 10-50
Machinery and equipment 5-25
Infrastructure 10-50
Deferred Revenues: Accounting principles generally accepted in the United States of America
require that grant revenue (voluntary nonexchange transactions) be recognized as revenue in the
government-wide financial statements when all eligibility requirements have been met and recognized
as revenue in the governmental fund financial statements based on the same factors subject to the
availability criterion. Amounts received from reimbursement basis grants are recorded as deferred
revenue in the governmental fund financial statements when received more than 60 days after year
end.
Compensated Absences: The Town’s employees earn personal leave at a rate of 22 to 27 days per
ye ar based on years of service. Employees can carr y over unused personal leave each year with a cap
of 500 hours. On an appointed day each year employees may sell back unused personal leave based
on the following: 200 to 299 hours –25% of hourly salary; 300 to 399 hours –50% of hourly salar y;
400 to 499 –75% of hourly salary;500 hours and above –100% of hourly salar y.
Once the employee achieves the 500 hour cap, they can only sell back a total of 136 hours annually;
the other 80 hours accrued annually must be used b y December 31 or forfeited. At retirement or
separation all leave may be sold back at 100% of hourly salary.
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
proprietar y fund that will pay it. In prior years, substantially all of the related expenditures have been
liquidated b y t he 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.
Net Assets or Fund Equity: In the fund financial statements, governmental funds report reservations
of fund balance that are not available for appropriation or are legally restricted by outside parties for
use for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
39
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 1.Summary of Significant Accounting Policies (continued)
D.Assets, Liabilities and Net Assets or Equity (continued)
Net Assets or Fund Equity (continued)
Equity is classified as net assets and displayed in three components:
a. Net assets invested in capital assets, net of accumulated depreciation and reduced b y t he
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 b y (1)
external groups such as creditors, grantors, contributors, or laws or regulation of other
governments; or (2) law through constitutional provisions or enabling legislation.
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.
Reclassifications: Certain amounts included in the financial statements have been reclassified to
conform to the current year presentation.
NOTE 2.Stewardship, Compliance and Accountability
Budgetary Information
Annual budgets of the Town are prepared prior to June 1 and must be approved b y resolution of the
Town Commissioners, and submitted to the Department of Finance and Administration for State
approval. Once the budget has been for mally approved, any amendments must also be approved b y
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 b y fun d.
These 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.
40
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 2.Stewardship, Compliance and Accountability (continued)
Budgetary Information (continued)
The budgetary information presented in these financial statements has been properly amended by
Town Council in accordance with the above procedures. These amendments resulted in the following
changes:
Excess (deficiency)
of revenues over expenditures
Original Final
Budget Budget
Budgeted Funds:
General Fund $2,271 $(11,741)
Capital Projects Fund $(7,151,311)$(6,903,755)
Nonmajor Governmental Funds $(2,536,203)$(3,062,890)
Water and Sewer $(925,470)$(861,827)
Solid Waste $(378,074)$(338,076)
Taos Regional Landfill $(841,213)$(933,891)
The accompanying Statements of Revenues, Expenditures and Changes in Fund Balance –Budget
(GAAP Basis) and Actual presents comparisons of the legally adopted budget with actual data on a
budgetar y 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, 2009.
Deposits of funds may be made in interest or non-interest bearing checking accounts in one or more banks or
savings and loan associations within the geographical boundaries of the Town. Deposits may be made to the
extent that they are insured by an agency of the United States or collateralized as required by statute.
The rate of interest in non-demand interest-bearing accounts shall be set b y t he 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 treasur y
bills of the same maturity on the day of deposit.
Excess of funds may be temporarily invested in securities which are issued b y t he State or b y t he United States
government, or b y t heir departments or agencies, and which are either direct obligations of the State or the
United States or are backed b y t he full faith and credit of those governments.
According to the Federal Deposit Insurance Corporation, public unit deposits are funds owned by the public
unit. Time deposits, savings deposits and interest bearing 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.
On October 14, 2008, the FDIC announced its temporar y Tr ansaction Account Guarantee Program, providing
depositors with unlimited coverage for noninterest-bearing transaction accounts if their bank is a participant in
the FDIC’s Temporar y Liq uidity Guarantee Program. Noninterest-bearing checking accounts include Demand
Deposit Accounts and any transaction account that has unlimited withdrawals and that cannot earn interest.
Also included are low-interest NOW accounts that cannot earn more than 0.5% interest. Interest-bearing
accounts include NOW accounts that can earn more than 0.5% interest, other-interest bearing checking
accounts, Money Market Deposit Accounts, savings accounts, and Certificates of Deposit. This program is
scheduled to end on December 31, 2009.
41
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 3.Deposits and Investments (continued)
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, 2009, $3,848,554 of the Town’s deposits of $6,053,483 was exposed to custodial credit risk.
$3,848,554 was uninsured and collateralized b y collateral held b y the pledging bank’s trust department, not in
the Town’s name and $0 was uninsured and uncollateralized.
Amount of deposits 4,426,252$ 1,627,231$ 6,053,483$
Transactions Deposits Accounts
covered by th e "T ransactions
Accoun t Guarantee Program"(77,698) (1,449,731) (1,527,429)
FDIC Coverage (500,000) (177,500) (677,500)
Total uninsured public funds 3,848,554 - 3,848,554
3,848,554 - 3,848,554
Un insured and uncollateralized -$ -$ -$
Collateral requirement
(50% of uninsured funds)1,924,277$ -$ 1,924,277$
Pledged Collateral 4,272,008 390,000 4,662,008
Over (Under) collateralized 2,347,731$ 390,000$ 2,737,731$
TotalCentinel Bank
Collateralized by securities held by
pledging institutions or by its trust
department or agent in other than the
Town 's name
First Community
Bank
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.
42
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 3.Deposits and Investments (continued)
Investments
The Town invests excess cash in the State Treasurer Local Government Investment Pool. The Pool’s
investments are valued at fair value based on quoted market prices as of the valuation date. The New Mexico
State Treasurer Investment Pool is not SEC registered. Section 6-10-10 I, NMSA 1978, empowers the State
Treasurer, with the advice and consent of the State Board of Finance, to invest money held in the short-term
investment fund in securities that are issued or backed by the United States Government or by its departments
or agencies and are either direct obligations of the United States Government or agencies sponsored b y t he
United States Governments. The Local Government Investment Pool’s investments are monitored by the same
policies and procedures that apply to all other state investments. The pool does not have unit shares. Per 6-10-
10.1 F, NMSA 1978, at the end of each month all interest earned is distributed b y t he State Treasurer to the
contribution entities in amounts directly proportionate to the respective amounts deposited in the fund and the
length of time the amounts were invested. Participation in the fund is voluntar y. See Note 16, Subsequent
Events, for additional information concerning the Town’s investments in the State Treasurer Local Government
Investment Pool.
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, 2009 include the following:
Investments Rated
New Mexico Grow Local Government Investment Pool AAAm 43 Days 6,785,629$
Reserve Contingency Fund Unrated Does not earn interest 263,186$
U.S. Treasury Money Market Mutual Funds *AAA >365 Days 637,927$
New Mexico State Treasurer Debt Service *AAA >365 Days 71,236$
Weighted Average
Maturity Fair Value
*Restricted cash and cash equivalents per Exhibit A-1
Interest Rate Risk –Investments.The Town does not have a formal policy limiting investment maturities that
would help manage its exposure to fair value losses from increasing interest rates.
Recon ci liation to the Statement of Net Assets:
Unrestricted cash and cash equivalents per Exhibit A-1 3,622,455$
Agency funds cash per Exhibit E-1 863
Certificates of deposits (maturity > 3 months)543,500
Taos Regional Landfill restricted cash 419,566
Judicial Bond Fund Municipal Court restricted cash 3,384
Meter deposits restricted cash 237,066
Civic Center security deposits restricted cash 82
Plus reconciling items 1,228,067
Less petty cash (1,500)
Bank balance of deposits 6,053,483$
43
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 4.Receivables
Receivables as of June 30, 2009, are as follows:
Gover nmental Activities:Total
Capital Non major
General Projects Funds Total
Pr operty taxes receivable 214,215$ -$ -$ 214,215$
Other taxes receivable:
Gr oss receipts 658,963 52,577 70,102 781,642
Lodgers tax - - 101,233 101,233
Gasoline tax 9,652 - 3,737 13,389
Cigarette tax - - 502 502
Other receivables:
Licenses and fees 28,212 - - 28,212
State grants - 182,891 189,507 372,398
Total gross receivables 911,042$ 235,468$ 365,081$ 1,511,591$
Business-type Activities:Water and Solid
Sewer Waste Landfill Total
Customer receivables 655,593$ 214,773$ 133,465$ 1,003,831$
Other receivables:
Licenses and fees - 1,778 - 1,778
State grants 10,779 - - 10,779
Total gross receivables 666,372 216,551 133,465 1,016,388
Less: allowance for
doubtful accounts 325,068 60,696 23,989 409,753
Total net receivables 341,304$ 155,855$ 109,476$ 606,635$
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 ye ar ended June 30, 2009 was $176,588.
44
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 5.Transfers and Interfund Receivables
Net operating transfers, made to close out funds and to supplement other funding sources, were as follows:
Transfers In Tr ansfers Out Amount
Gener al Fund 1/4 Cent Municipal GRT 214,860$
Gener al Fund 2008 GRT Revenue Bond Reserve 174,601
Gener al Fund Airport Construction 22,000
Lodger 's Tax General Fund 138,388
Lodger 's Tax Ca pital Projects 96,370
Lodger 's Tax Community Grants 70,000
Lodger 's Tax Facilities Improvements 31,772
Local Gover nment Correction General Fund 9,000
Civic Center General Fund 72,047
Civic Center Lodger's Tax 337,287
Civic Center Facilities Improvements 28,902
Public Transportation General Fund 42,688
Public Transportation Lodger's Tax 180,426
Community Grants General Fund 230,000
Communications General Fund 243,694
2001 GRT Revenue Bond Retirement 1/4 Cent Municipal GRT 74,510
2001 GRT Revenue Bond Retirement Ca pital Projects 200
2001 GRT Revenue Bond Retirement 2001 GRT Revenue Bond Reserve 419,928
2008 GRT Revenue Bond Retirement 1/4 Cent Municipal GRT 402,606
1999 Gas Tax Revenue Bond Retirement General Fund 164,066
1999 Gas Tax Revenue Bond Retirement Municipal Road Gasoline Tax 45,555
1999 Gas Tax Revenue Bond Retirement 1999 Gas Tax Revenue Bond Reserve 4,112
2007 NMFA Land Purchase 1/4 Cent Municipal GRT 107,000
Fa cilities Improvements 1/4 Cent Municipal GRT 91,772
Fa cilities Improvements Ca pital Projects 237,104
Capital Projects 1/4 Cent Municipal GRT 47,663
Capital Projects Taos Regional Landfill 20,000
1999 Gasoline Tax Acquisition Ca pital Projects 251,119
Water and Sewer Taos Regional Landfill 6,130
Sol id Waste Taos Regional Landfill 12,015
3,775,815$
Internal balances have primarily been recorded when funds overdraw their share of pooled cash. The
composition of interfund balances as of June 30, 2009 is as follows:
Due from Other Funds Due to Other Funds Amount
Gener al Fund 2001 GRT Revenue Bond Retirement 177,427$
Gener al Fund Water and Sewer 4,220
Gener al Fund Solid Waste 116
Gener al Fund Taos Regional Landfill 9,382
Taos Regional Landfill Solid Waste 97,000
288,145$
All interfund transactions are short-term and are expected to be repaid within a month.
45
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 6.Capital Assets
A summar y of capital assets and changes occurring during the year ended June 30, 2009 follows. Land is not
subject to depreciation.
Balance Balance
Governmental activities:June 30, 2008 Adjustments Additions Deletions June 30, 2009
Capital assets, not depreciated:
Land 5,943,036$ -$ 108,900$ -$ 6,051,936$
Construction in progress 2,553,198 (427,699) 6,100,643 - 8,226,142
Total capital assets, not depreciated 8,496,234 (427,699) 6,209,543 - 14,278,078
Capital assets, depreciated:
Land improvements 4,490,477 13,616 104,871 - 4,608,964
Buildings and improvements 22,111,118 259,529 920,438 - 23,291,085
Machinery and equipment 13,923,069 28,761 425,713 126,457 14,251,086
Infrastructure 45,543,099 125,793 372,745 - 46,041,637
Total capital assets, depreciated 86,067,763 427,699 1,823,767 126,457 88,192,772
Less accumulated depreciation:
Land improvements (2,864,120) - (244,213) - (3,108,333)
Buildings and improvements (9,010,998) - (745,067) - (9,756,065)
Machinery and equipment (8,915,523) - (1,064,249) (124,113) (9,855,659)
Infrastructure (26,007,332) - (1,547,762) - (27,555,094)
Total accumulated depreciation (46,797,973) - (3,601,291) (124,113) (50,275,151)
Net book value 47,766,024$ -$ 4,432,019$ 2,344$ 52,195,699$
Depreciation expense for the year ended June 30, 2009 was charged to governmental activities as follows:
General Government 883,332$
Public Safety 613,048
Public Works 1,701,393
Culture and recreation 403,518
3,601,291$
46
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 6.Capital Assets (continued)
Balance Balance
Busines-type activities:June 30, 2008 Adjustments Additions Deletions June 30, 2009
Capital assets, not depreciated:
Land 262,422$ -$ -$ -$ 262,422$
Construction in progress 3,383,782 (2,663,298) 823,292 - 1,543,776
Total capital assets, not depreciated 3,646,204 (2,663,298) 823,292 - 1,806,198
Capital assets, depreciated:
Land improvements 104,895 - - - 104,895
Buildings and improvements 3,976,878 - 25,030 - 4,001,908
Machinery and equipment 8,251,571 - 98,930 1,871 8,348,630
Infrastructure 15,612,248 2,663,298 179,586 - 18,455,132
Total capital assets, depreciated 27,945,592 2,663,298 303,546 1,871 30,910,565
Less accumulated depreciation:
Land improvements (71,002) - (5,792) - (76,794)
Buildings and improvements (1,534,557) - (137,198) - (1,671,755)
Machinery and equipment (5,187,668) (3,380) (302,959) (1,473) (5,492,534)
Infrastructure (4,822,285) - (841,706) - (5,663,991)
Total accumulated depreciation (11,615,512) (3,380) (1,287,655) (1,473) (12,905,074)
Net book value 19,976,284$ (3,380)$ (160,817)$ 398$ 19,811,689$
Depreciation expense for the year ended June 30, 2009 was charged to business-type activities as follows:
Water and sewer 1,178,578$
Solid waste 2,466
Landfill 106,611
1,287,655$
47
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 7.Long-term Debt
Governmental Activities:
During the year ended June 30, 2009, the following changes occurred in the liabilities reported in the
government-wide statement of net assets:
Balance Ba lance Due Within
June 30, 2008 Additions Retirements June 30, 2009 One Year
Revenue Bonds 7,720,000$ -$ 775,000$ 6,945,000$ 400,000$
NMFA Loan 880,505 - 86,833 793,672 89,293
USDA Contract Payable 108,000 - 18,000 90,000 18,000
Compensated Absences 784,354 266,279 369,209 681,424 369,209
Total Long-Term Debt 9,492,859$ 266,279$1,249,042$ 8,510,096$ 876,502$
Revenue Bonds
At June 30, 2009, the Town had several 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 Ba lance
Descr iption Issue Date Ra te of Issue June 30, 2009
Series 1999 Gasoline Tax 03/01/99 10/01/12 3.60-4.75%1,955,000$ 700,000$
Series 2008 Gross Receipts Tax 01/30/08 06/01/26 4.00-5.00%6,395,000 6,245,000
Total Revenue Bonds 6,945,000$
The annual requirements to amortize the revenue bonds as of June 30, 2009, including interest payments,are as
follows:
Fi scal Year Total Debt
Ending June 30,Principal Interest Service
2010 400,000$ 282,000$ 682,000$
2011 415,000 265,278 680,278
2012 435,000 247,755 682,755
2013 450,000 229,188 679,188
2014 280,000 209,800 489,800
2015-2019 1,690,000 1,081,250 2,771,250
2020-2024 1,760,000 248,260 2,008,260
2025-2029 1,515,000 63,630 1,578,630
6,945,000$ 2,627,161$ 9,572,161$
48
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 7.Long-term Debt (continued)
NMFA Loan
The Town entered into a loan agreement 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 loan is as follows:
Or iginal
Da te of Due Interest Amount Ba lance
Description Issue Date Rate of Issue June 30, 2009
NMFA Land Purchase Loan 04/13/07 05/01/17 3.32-3.73%954,000$ 793,672$
The annual requirements to amortize the NMFA loan as of June 30, 2009, including interest payments, are as
follows:
Fi scal Year Total Debt
Ending June 30,Principal Interest Service
2010 89,293$ 22,437$ 111,730$
2011 91,860 20,100 111,960
2012 94,540 17,656 112,196
2013 97,362 15,077 112,439
2014 100,326 12,364 112,690
2015-2019 320,291 19,363 339,654
793,672$ 106,997$ 900,669$
USDA Contract Payable
At June 30, 2009, the Town had the following USDA contract payable:
Or iginal
Da te of Due Interest Amount Ba lance
Description Issue Date Rate of Issue June 30, 2009
USDA Contract Payable 02/01/95 06/30/14 0.00%360,000$ 90,000$
The annual requirements to amortize the USDA contract payable as of June 30, 2008,including interest
payments, are as follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2010 18,000$ -$ 18,000$
2011 18,000 - 18,000
2012 18,000 - 18,000
2013 18,000 - 18,000
2014 18,000 - 18,000
90,000$ -$ 90,000$
49
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
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 b y t he facilities improvements capital projects
fund.
Proprietary Funds
The proprietar y 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, 2009:
Balance Ba lance Due Within
June 30, 2008 Additions Retirements June 30, 2009 One Year
Revenue Bonds 2,216,600$ -$ 37,000$ 2,179,600$ 40,000$
NMFA and RUS Loans 2,313,789 32,480 228,463 2,117,806 204,791
Landfill Closure Liability 235,575 90,278 - 325,853 -
Compensated Absences 66,043 40,284 42,332 63,995 42,332
Total Long-Term Debt 4,832,007$ 163,042$307,795$ 4,687,254$ 287,123$
Revenue Bonds
At June 30, 2009, the Town had the following revenue bonds outstanding:
Original
Date of Due Interest Amount Balance
Description Issue Date Rate of Issue June 30, 2009
Series 1993A Water & Sewer 03/16/93 03/16/33 5.63%635,600$ 527,600$
Series 1993B Water & Sewer 03/16/93 03/16/33 5.50%123,000 103,000
Series 1995A Utility 12/05/95 12/05/35 5.125%1,315,000 1,126,000
Series 1998A Water & Sewer 07/01/99 01/01/38 4.75%475,000 423,000
Total Revenue Bonds 2,179,600$
50
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 7.Long-term Debt (continued)
The annual requirements to amortize the revenue bonds as of June 30, 2009, including interest payments, are as
follows:
Fi scal Year Total Debt
Ending June 30,Principal Interest Service
2010 40,000$ 113,477$ 153,477$
2011 41,000 111,382 152,382
2012 43,000 109,235 152,235
2013 46,000 106,982 152,982
2014 49,000 104,572 153,572
2015-2019 286,000 481,498 767,498
2020-2024 369,000 398,309 767,309
2025-2029 477,000 290,787 767,787
2030-2034 577,600 150,979 728,579
2035-2039 251,000 24,576 275,576
2,179,600$ 1,891,797$ 4,071,397$
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:
Or iginal
Da te of Due Interest Amount Ba lance
Description Issue Date Rate of Issue June 30, 2009
RUS Ser ies 2000A Water & Sewer 12/18/00 12/18/40 5.00%250,000$ 231,000$
NMFA Ser ies 2001A Water & Sewer 05/11/01 05/01/21 4.16-5.41%950,391 597,063
NMFA Taos Regional Landfill 04/23/04 05/01/14 .79-3.34%1,372,684 372,554
NMFA Ser ies 2008A Landfill 04/11/08 05/01/18 2.72-3.58%1,000,000 917,189
Total Loans 2,117,806$
51
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 7.Long-term Debt (continued)
The annual requirement to amortize the loans as of June 30, 2009,including interest payments, are as follows:
Fiscal Year Total Debt
Ending June 30,Principal Interest Service
2010 204,791$ 71,014$ 275,805$
2011 210,349 65,728 276,077
2012 216,353 59,921 276,274
2013 222,851 53,597 276,448
2014 230,776 46,765 277,541
2015-2019 762,051 141,497 903,548
2020-2024 103,635 50,321 153,956
2025-2029 33,000 38,600 71,600
2030-2034 44,000 29,350 73,350
2035-2039 56,000 17,150 73,150
2040-2044 34,000 2,750 36,750
2,117,806$ 576,693$ 2,694,499$
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’s have not changed significantly from prior years and coverage’s are expected to be
continued.
At June 30, 2009, 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. No major
lawsuits have been filed against the Town of Taos.
New Mexico Self-Insurers’ Fund has not pr ovided information on an entity b y e ntity basis that would allow for
a reconciliation of changes in the aggregate liabilities for claims for the current fiscal year and the prior fiscal
ye ar.
During 2009, the Town contributed $663,003 to the New Mexico Self-Insurer’s Fund.
52
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
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.The deficit fund balances as of June 30, 2009 were as
follows:
Governmental Funds:
Airport Construction $1,877
The fund balance has a deficit because expenditures were in excess of revenues and available cash and
there were not sufficient transfers to cover the deficit. Budget line items will be strictly monitored and
reviewed to ensure funds operate within the approved budget.
B.Actual expenditures in excess of amount budgeted at the budgetar y a uthority level. Budgetar y l evel is
fund level. The following fund exceeded approved budgetary authority for the year ended June 30, 2009:
Excess
Lodger’s Tax $33,509
The Town will revise and strictly enforce a year-end process throughout all departments.
C.Designated cash appropriations in excess of available balances. Budgetar y l evel is fund level. There were
not any funds in which there were designated cash appropriations in excess of available balances for the
ye ar ended June 30, 2009.
NOTE 10.PERA Pension Plan
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 Employee 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, 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 supplementar y
information. That report may be obtained b y writing to PERA, P. O. Box 2123, Santa Fe, New Mexico 87504-
2123.The report is also available on PERA’s website at www.pera.state.nm.us.
Funding Policy. Municipal general member coverage plan 1 members are required to contribute 9.15% of their
gross salary. The Town is required to contribute 13.15% of the covered salary for “municipal general member
coverage plan 1” members. Municipal police coverage plan 1 members are required to contribute 9.15% of
their gross salar y. The Town is required to contribute 25.65% of the covered salar y for “municipal police
coverage plan 1” members. Municipal fire member coverage plan 1 members are required to contribute 9.15%
of their gross salar y.The Town is required to contribute 28.30% of the covered salary for “municipal fire
member coverage plan 1” members. 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 b y
acts of the legislature. The Town ’s contributions to PERA for the fiscal years ending June 30, 2009, 2008 and
2007 were $964,168, $640,410 and $581,742, respectively, which equal the amount of the required
contributions for each fiscal year.
53
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 11.Post-Employment Benefits –State Retiree Health Care Plan
Plan Description. The Town contributes to the New Mexico Retiree Health Care Fund, a cost-sharing
multiple-employer defined 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 voluntar y benefits like dental, vision,
supplemental life insurance, and long-term care policies.
Eligible retirees are: 1) retirees who make contributions to the fund for at least five years prior to retirement and
whose eligible employer during that period of time made contributions as a participant in the RHCA plan on the
person’s behalf unless that person retires before the employer’s RHCA effective date, in which the 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 b y t he 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 supplementar y i nformation for the postemployment healthcare plan. That report and further
information can be obtained b y wr iting 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 statutor y authority that establishes the
required contributions of participating employers and their employees. The statute requires each participating
employer to contribute 1.3% of each participating employee’s annual salar y; each participating employee is
required to contribute .65% of their salary. Employers joining the program after 1/1/98 are also 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 RCHA on a monthly basis. The statutor y r equirements for the contributions can
be changed b y the New Mexico State Legislature.
The Town’s contributions to the RHCA for the ye ars ended June 30, 2009,2008 and 2007 were $76,488,
$75,902 and $66,225, respectively, which equal the required contributions for each year.
54
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 12.Contingent Liabilities
There is not any pending litigation that would warrant disclosure in the notes to the financial statements.
NOTE 13.Federal and State Grants
In the normal course of operations, the Town receives grant funds from various federal and state agencies.
Amounts received or receivable from grantor agencies are subject to audit and adjustment b y gr antor 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 long accepts waste. The recognition of these landfill closure and postclosure care
costs is based on the amount of the landfill used during the ye ar. The estimated liability for landfill closure and
postclosure care costs is $325,853 as of June 30, 2009, which is based on 25 percent usage (filled) of the
landfill. It is estimated that an additional $977,557 will be recognized as closure and postclosure care expenses
between the date of the balance sheet and the date the landfill is currently expected to be filled to capacity. The
estimated total current cost of the landfill closure and postclosure care ($1,303,410) 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, 2009. 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 b y S tate 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,
2009, cash of $419,566 is part of the pooled funds held b y t he Town and is presented as restricted cash on the
statement of net assets.
NOTE 15.Construction and Other Significant Commitments
The Town has committed to pay for several construction contracts that were not completed at June 30, 2009 in
the amount of $818,053 as follows:
Project Description Contractor
Town Hall Construction 221,090$ November 2009 Ger ald Martin
Taos Community Auditorium 105,323 November 2009 Michael S. Rich Contractors
Sn ow Removal Equipment 302,150 November 2009 Kodiak Northwest
Cell No. 2A & 2B Landfill 189,490 November 2009 Parker Excavating
818,053$
Contract
Amount
Remaining
Estimated Date
of Completion
55
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 16.Subsequent Events
In July 2009, the Town entered into a grant/loan agreement with the New Mexico Water Trust Board (grantors)
and the New Mexico Finance Authority (lenders) totaling $1,300,000. The funding breakdown will consist of a
loan in the amount of $130,000 and a grant in the amount of $1,170,000 for the cost associated with phase two
of a four phase Wastewater Treatment Plant Rehabilitation Project.
In July 2009, the Town entered into a grant/loan agreement with the New Mexico Water Trust Board (grantors)
and the New Mexico Finance Authority (lenders) totaling $3,000,000. The funding breakdown will consist of a
loan in the amount of $600,000 and a grant in the amount of $2,400,000 for the cost associated with the
beginning of phase three of a four phase Wastewater Treatment Plant Rehabilitation Project.
In October 2009, The Town accepted funding under the American Recovery and Reinvestment Act (ARRA) for
wastewater treatment plant phase two and three upgrades. The funding for this project consists of $1,000,000
in loan funds from the base Clean Water State Revolving Fund (CWSRF) program and $2,100,000 in grant
funds from the ARRA CWSRF grant. Both of the funds are through the New Mexico Environment Department
Construction Programs Bureau.
In October 2009, the Town entered into a loan/intercept agreement with the New Mexico Finance Authority
(NMFA), in the principal amount of $2,213,469 for the purpose of constructing phase one of a multi-phase
recreation park. A portion of the Town’s municipal infrastructure gross receipts tax will be redirected by the
New Mexico State Taxation and Revenue Department to NMFA for debt service payments.
LGIP Investment in the Reserve Primary Fund
The New Mexico State Treasurer’s Office invested a portion of the LGIP in the Reserve Primar y Fund (“the
Fund”), a money market fund, in fiscal years 2006, 2007, 2008 and 2009. On September 15, 2008, the balance
of the LGIP’s investment in the Fund was $381.7 million. On September 16, 2008, the Reserve Primary Fund’s
net asset value fell below $1.00 and holdings in the Fund were frozen. Since September 2008, the Reserve
Primary Fund has returned approximately $0.90 per share to shareholders. On February 26, 2009, the Reserve
Primary Fund announced that it was withholding $3.5 billion of the Fund’s assets for anticipated and pending
litigation against it, which amount could increase or decrease as the Fund evaluates information related to such
litigation. As a result, the State Treasurer’s Office cannot anticipate what the actual loss to the LGIP from the
Reserve Primar y Fund may be or when the actual loss may be realized. No actual loss has been realized to
date. The total remaining Reserve Primar y Fund position as of June 30, 2009 is $39.5 million. The LGIP’s
remaining position in the Reserve Primar y Fund is a non-performing asset.
On May 5, 2009, the U.S. Securities and Exchange Commission (“SEC”) filed a civil lawsuit in federal court
against the operators of the Reserve Primar y F und, alleging fraud; seeking the pro rata distribution of the
remaining Fund’s assets; and seeking the release of the $3.5 billion currently being withheld from investors
pending the outcome of the lawsuits against the Reserve Primar y Fund. The court is scheduled to hold a
hearing on the SEC’s proposed plan of distribution on September 23, 2009.
On May 20, 2009, the New Mexico Attorney General filed a civil complaint and injunction petition in state
district court against the Reserve Primar y Fund. The Attorney General’s complaint alleges that the Fund setting
aside $3.5 billion to pay legal fees and expenses is a willful and intentional conversion of the investors’ assets
and a breach of contract. The complaint further alleges that the Fund’s failure to honor redemption requests on
September 16, 2008 is a breach of contract. Additionally, the Attorney General’s injunction petition seeks the
release of the investors’ pro rata share of the $3.5 billion the Reserve Primar y Fund set aside for its anticipated
and pending legal costs.
The New Mexico State Treasurer’s Office believes that the Reserve Primary Fund will ultimately end up
distributing between 98.38% and 98.77% of the balance that the LGIP had in the Reserve Primar y Fund as of
September 15, 2008. This means that of the remaining undistributed balance as of June 30, 2009, it is expected
the LGIP is to recover between 83.84% and 87.78%. Uncertainty remains, however, as to the timing of these
distributions.
56
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 17.Restricted Net Assets
The government-wide statement of net assets reports $7,419,536 of restricted net assets, all of which is
restricted b y e nabling legislation. See pages 62 to 65 for descriptions of the related restrictions for special
revenue, debt service and capital projects funds.
NOTE 18.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 b y t he trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $527,600 and $447,324, respectively. Principal and interest paid for the current year and total
customer net revenues were $40,240 and $(1,457,257), 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 $103,000 and $89,760, respectively. Principal and interest paid for the current year and total customer
net revenues were $7,775 and $(1,457,257), respectively.
The Town of Taos has pledged future revenues from the water and sewer system, net of operation and
maintenance expenses, to repay $1,315,000 in Series 1995A Water & Sewer Revenue 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 b y t he trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $1,126,000 and $978,265, respectively. Principal and interest paid for the current year and total
customer net revenues were $77,682 and $(1,457,257), 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 Januar y 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 b y t he trustee, payable from and
constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on the
bonds is $423,000 and $376,448, respectively. Principal and interest paid for the current year and total
customer net revenues were $26,377 and $(1,457,257), respectively.
57
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 18.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 $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 b y 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 $231,000 and $241,800, respectively. Principal and interest paid for the current year and total customer net
revenues were $14,700 and $(1,457,257), 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 $597,063
and $169,253, respectively. Principal and interest paid for the current year and total customer net revenues
were $67,861 and $(1,457,257), 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 b y t he trustee, payable
from and constituting a lien upon the pledged revenues. The total principal and interest remaining to be paid on
the loan is $372,554 and $35,341, respectively. Principal and interest paid for the current year and total
customer net revenues were $80,921 and $151,037, respectively.
The Town of Taos has pledged future revenues from the Taos Regional Landfill system, net of operation and
maintenance expenses, to repay $1,000,000 in NMFA Series 2008A Landfill Loan, issued in 2008. 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 $917,189
and $130,299, respectively. Principal and interest paid for the current year and total customer net revenues
were $109,647 and $260,747, respectively.
NOTE 19.Related Parties
The Town had transactions with two entities during the year ended June 30, 2009 which are considered to be
related parties. DMC Broadcasting, Inc., owned by Mayor Darren Cordova, performed advertising services for
the Town for a total amount of $30,876 during the year and Abeyta Engineering, Inc., owned by Council
Member Abeyta’s brother, performed engineering services for the Town for a total amount of $44,686 during
the year.
58
STATE OF NEW MEXICO
Town of Taos
Notes to Financial Statements
June 30, 2009
NOTE 20.Subsequent Pronouncements
In July 2007, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 51,
Accounting and Financial Reporting for Intangible Assets, which is effective for periods beginning after June
15, 2009. For governments that were classified as phase 1 or phase 2 governments, retroactive reporting is
required for intangible assets acquired in fiscal years ending after June 30, 1980, except for those considered to
have indefinite useful lives as of the effective date of this Statement and those that would be considered
internally generated. Retroactive reporting of these intangible assets by phase 3 governments is encouraged but
not required. Retroactive reporting is not required but is permitted for intangible assets considered to have
indefinite useful lives as of the effective date of this Statement and those considered to be internally generated.
The objective of this Statement is to establish accounting and financial reporting requirements for intangible
assets to reduce these inconsistencies, thereb y e nhancing the comparability of the accounting and financial
reporting of such assets among state and local governments. The Town is analyzing the effect that this standard
will have on the financial statements, and currently believes it will have no significant effect on the financial
statements for the upcoming year.
In March 2009, the Governmental Accounting Standards Board (GASB) issued GASB Statement No. 54, Fund
Balance Reporting and Governmental Fund Type Definitions, which is effective for financial statements for
periods beginning after June 15, 2010 with earlier implementation encouraged. GASB Statement No. 54
distinguishes fund balance between amounts that are considered nonspendable, such as fund balance associated
with inventories, and other amounts that are classified based on the relative strength of the constraints that
control the purpose for which specific amounts can be spent. This statement is intended to improve the
usefulness of information provided to financial report users about fund balance b y providing clearer, more
structured fund balance classifications, and b y c larifying the definitions of existing governmental fund types.
The Town is analyzing the effect that this standard will have on the financial statements.
59
(This page intentionally left blank.)
60
SUPPLEMENTARY INFORMATION
61
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2009
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. Financing is provided b y p rogram revenue and by a 1-
cent tax on cigarette sales, which is collected and distributed by the State of New Mexico. State 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. Additionally, revenues received 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 is 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 enforcement 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.
62
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2009
Special Revenue Funds (continued)
Community Grants
To account for various small grants for various community purposes. Each grant is authorized b y t he granting agency. The fund is
authorized b y T own Council resolution.
Municipal Road Gasoline Tax
To account for a 1 cent gasoline tax that is used for repairing and construction of roads. 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 b y t he Town from three other government entities to share centralized dispatch services throughout
the County of Taos. Funding is authorized b y a joint power agreement as authorized b y S ections 11-1-1 through 11-1-7 NMSA
1978.
63
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2009
Debt Service Funds
2001 Gross Receipts Tax Revenue Bond Retirement
This fund was created with transfers from Gross Receipts Tax revenues for the purpose of accumulating monies for payment of
principal and interest on Series 2001 Gross Receipts Tax Revenue Bonds. Authority is Town Council resolution.
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.
2008 Gross Receipts Tax Revenue Bond Reserve
This fund was created for the purpose of accumulating monies for payment of principal and interest on Series 2008 Gross Receipts 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.
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.
2001 Gross Receipts Tax Revenue Bond Reserve
To accumulate monies for the payment of interest and principal on Series 2001 Gross Receipts Tax Revenue Bonds. Authority is Town
Council resolution.
64
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
June 30, 2009
Capital Projects Funds
Facilities Improvements
This fund was created to receive transfers fr om other funds for the purpose of improving facilities of the Town. Authority is Town
Council resolution.
Airport Construction
This fund was created to receive proceeds from federal and state grants for the purpose of financing improvements to the Taos
Municipal Airport. Authority is Town Council resolution.
Enhanced 911
This fund was created to receive grants and transfers for the purpose of expanding benefits of the basic 911 emergency telephone
number to achieve faster response time. Authority is Town Council resolution.
Vehicle Replacement
This fund is created to receive transfers from other funds for the purpose of purchasing vehicles for the Town of Taos. Authority is
Town Council resolution.
1994 Gross Receipts Tax Revenue Bond Acquisition
This fund was created to receive the 1994 Gross Receipts Tax Bond proceeds for the purpose of construction of affordable housing.
Authority is Town Council resolution.
1999 Gasoline Tax Acquisition
This fund was created to receive the bond proceeds and to account for the capital outlay associated with the bond issue.Authority is
Town Council resolution.
65
Fire Protection Recreation Lodger's Tax
Local
Government
Correction
Assets
Unrestricted cash and cash equivalents 9,059$ 14,691$ 182$ 10,258$
Restricted cash and cash equivalents - - - -
Investments 299,220 72,000 40,000 7,000
Receivables:
Other taxes - 502 101,233 -
Other - - - -
Total assets 308,279$ 87,193$ 141,415$ 17,258$
Liabilities
Accounts payable -$ 87$ 57,105$ 14,430$
Accrued payroll - - 8,275 -
Deposits held in trust for others - - - -
Due to other funds - - - -
Total liabilities - 87 65,380 14,430
Fund balances
Reserved for:
Future debt service payments - - - -
Unreserved
Special revenue 308,279 87,106 76,035 2,828
Capital projects - - - -
Total fund balances 308,279 87,106 76,035 2,828
Total liabilities and fund balances 308,279$ 87,193$ 141,415$ 17,258$
Town of Taos
Nonmajor Governmental Funds
Combining Balance Sheet
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
June 30, 2009
Special Revenue
66
Statement A-1
Page 1 of 3
Law Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
7,594$ 30,488$ 1$ 3,895$ 5,498$ -$
- 82 - - - -
- 27,000 - - 277,000 -
- - - - - 3,737
32,000 - 451 19,473 43,898 -
39,594$ 57,570$ 452$ 23,368$ 326,396$ 3,737$
2,565$ 3,565$ -$ 3,794$ 22,661$ -$
- 15,551 - 15,845 3,823 -
- 5,082 - - - -
- - - - - -
2,565 24,198 - 19,639 26,484 -
- - - - - -
37,029 33,372 452 3,729 299,912 3,737
- - - - - -
37,029 33,372 452 3,729 299,912 3,737
39,594$ 57,570$ 452$ 23,368$ 326,396$ 3,737$
Special Revenue
67
1/4 Cent
Municipal Gross
Receipts Tax Communications
2001 Gross
Receipts Tax
Revenue Bond
Retirement
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Assets
Unrestricted cash and cash equivalents -$ 25,766$ -$ 230$
Restricted cash and cash equivalents - - - -
Investments - 182,000 177,500 -
Receivables:
Other taxes 70,102 - - -
Other - - - -
Total assets 70,102$ 207,766$ 177,500$ 230$
Liabilities
Accounts payable -$ 116$ -$ -$
Accrued payroll - 23,564 - -
Deposits held in trust for others - - - -
Due to other funds - - 177,427 -
Total liabilities - 23,680 177,427 -
Fund balances
Reserved for:
Future debt service payments - - 73 230
Unreserved
Special revenue 70,102 184,086 - -
Capital projects - - - -
Total fund balances 70,102 184,086 73 230
Total liabilities and fund balances 70,102$ 207,766$ 177,500$ 230$
Special Revenue Debt Service
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Combining Balance Sheet
The accompanying notes are an integral part of these financial statements
June 30, 2009
68
Statement A-1
Page 2 of 3
Capital Projects
1999 Gasoline
Tax Revenue
Bond Retirement
2008 Gross
Receipts Tax
Revenue Bond
Reserve
1999 Gasoline
Tax Revenue
Bond Reserve
2007 NMFA
Land Purchase
2001 Gross
Receipts Tax
Revenue Bond
Reserve
Facilities
Improvements
6,614$ -$ -$ 3,421$ -$ 9,348$
- - - 21,370 - -
20,000 - 195,500 - - 70,000
- - - - - -
- - - - - 5,198
26,614$ -$ 195,500$ 24,791$ -$ 84,546$
-$ -$ -$ -$ -$ 2,881$
- - - - - -
- - - - - -
- - - - - -
- - - - - 2,881
26,614 - 195,500 24,791 - -
- - - - - -
- - - - - 81,665
26,614 - 195,500 24,791 - 81,665
26,614$ -$ 195,500$ 24,791$ -$ 84,546$
Debt Service
69
Airport
Construction Enhanced 911
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
Assets
Unrestricted cash and cash equivalents 4,398$ 309$ 2,028$ 7,707$
Restricted cash and cash equivalents - - - -
Investments 34,000 25,000 201,000 771,238
Receivables:
Other taxes - - - -
Other 23,818 - - -
Total assets 62,216$ 25,309$ 203,028$ 778,945$
Liabilities
Accounts payable 64,093$ -$ -$ 5,500$
Accrued payroll - - - -
Deposits held in trust for others - - - -
Due to other funds - - - -
Total liabilities 64,093 - - 5,500
Fund balances
Reserved for:
Future debt service payments - - - -
Unreserved
Special revenue - - - -
Capital projects (1,877) 25,309 203,028 773,445
Total fund balances (1,877) 25,309 203,028 773,445
Total liabilities and fund balances 62,216$ 25,309$ 203,028$ 778,945$
Capital Projects
Town of Taos
Combining Balance Sheet
June 30, 2009
Nonmajor Governmental Funds
STATE OF NEW MEXICO
The accompanying notes are an integral part of these financial statements
70
Statement A-1
Page 3 of 3
Capital Projects
1999 Gasoline
Tax Acquisition
Total
Nonmajor
Governmental
Funds
6,673$ 148,160$
- 21,452
560,873 2,959,331
- 175,574
64,669 189,507
632,215$ 3,494,024$
-$ 176,797$
- 67,058
- 5,082
- 177,427
- 426,364
- 247,208
- 1,106,667
632,215 1,713,785
632,215 3,067,660
632,215$ 3,494,024$
71
Fire Protection Recreation Lodger's Tax
Local
Governmental
Correction
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - 15,548 893,755 -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 195,200 - - -
State capital grants - - - -
Charges for services - - 20,056 -
Licenses and fees - - - 29,279
Interest income - - - -
Miscellaneous 249 20,535 5,411 -
Total revenues 195,449 36,083 919,222 29,279
Expenditures
Current
General government - - 756,109 -
Public safety 101,311 - - 92,172
Public works - - - -
Culture and recreation - 24,193 - -
Health and welfare - - - -
Capital outlay 46,429 - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 147,740 24,193 756,109 92,172
Excess (deficiency) of revenues over
expenditures 47,709 11,890 163,113 (62,893)
Other financing sources (uses)
Transfers in - - 336,530 9,000
Transfers out - - (517,713) -
Proceeds from insurance recovery - - - -
Total other financing sources (uses)- - (181,183) 9,000
Net change in fund balances 47,709 11,890 (18,070) (53,893)
Fund balances - beginning of year 260,570 75,216 94,105 56,721
Fund balances - end of year 308,279$ 87,106$ 76,035$ 2,828$
The accompanying notes are an integral part of these financial statements
Special Revenue
For the Year Ended June 30, 2009
STATE OF NEW MEXICO
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
72
Statement A-2
Page 1 of 3
Law Enforcement
Protection Civic Center
Domestic
Violence Shelter
Public
Transportation
Community
Grants
Municipal Road
Gasoline Tax
-$ -$ -$ -$ -$ -$
- - - - - 43,234
- - - - - -
- - 150,000 - - -
- - - - - -
64,600 - - 228,128 306,628 -
- - - - - -
- 78,079 - - - -
- 475 - - - -
- - - - - -
- 276 - 54,867 - -
64,600 78,830 150,000 282,995 306,628 43,234
- - - - 485,036 -
27,577 - - - - -
- - - - - -
- 482,284 - - - -
- - 149,549 520,291 - -
- - - - 8,358 -
- - - - - -
- - - - - -
27,577 482,284 149,549 520,291 493,394 -
37,023 (403,454) 451 (237,296) (186,766) 43,234
- 438,236 - 223,114 230,000 -
- - - - (70,000) (45,555)
- - - 2,205 - -
- 438,236 - 225,319 160,000 (45,555)
37,023 34,782 451 (11,977) (26,766) (2,321)
6 (1,410) 1 15,706 326,678 6,058
37,029$ 33,372$ 452$ 3,729$ 299,912$ 3,737$
Special Revenue
73
1/4 Cent
Municipal Gross
Receipts Tax Communications
2001 Gross
Receipts Tax
Revenue Bond
Retirement
2008 Gross
Receipts Tax
Revenue Bond
Retirement
Revenues
Taxes
Gross receipts 935,269$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - 270,695 - -
Total revenues 935,269 270,695 - -
Expenditures
Current
General government - 548,383 - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - 6,948 - -
Debt service
Principal - - 470,000 150,000
Interest - - 24,675 261,825
Total expenditures - 555,331 494,675 411,825
Excess (deficiency) of revenues over
expenditures 935,269 (284,636) (494,675) (411,825)
Other financing sources (uses)
Transfers in - 243,694 494,638 402,606
Transfers out (938,411) - - -
Proceeds from insurance recovery - - - -
Total other financing sources (uses)(938,411) 243,694 494,638 402,606
Net change in fund balances (3,142) (40,942) (37) (9,219)
Fund balances - beginning of year 73,244 225,028 110 9,449
Fund balances - end of year 70,102$ 184,086$ 73$ 230$
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2009
Debt ServiceSpecial Revenue
STATE OF NEW MEXICO
74
Statement A-2
Page 2 of 3
Capital Projects
1999 Gasoline
Tax Revenue
Bond Retirement
2008 Gross
Receipts Tax
Revenue Bond
Reserve
1999 Gasoline
Tax Revenue
Bond Reserve
2007 NMFA
Land Purchase
2001 Gross
Receipts Tax
Revenue Bond
Reserve
Facilities
Improvements
-$ -$ -$ -$ -$ -$
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - -
- - - - - 20,910
- - - - - -
- - - - - -
- 4,101 4,112 612 7,428 -
- - - - - -
- 4,101 4,112 612 7,428 20,910
500 - - 2,203 - -
- - - - - -
- - - - - 215,466
- - - - - -
- - - - - -
- - - - - 66,487
155,000 - - 86,833 - 18,000
36,308 - - 24,673 - -
191,808 - - 113,709 - 299,953
(191,808) 4,101 4,112 (113,097) 7,428 (279,043)
213,733 - - 107,000 - 328,876
- (174,601) (4,112) - (419,928) (60,674)
- - - - - -
213,733 (174,601) (4,112) 107,000 (419,928) 268,202
21,925 (170,500) - (6,097) (412,500) (10,841)
4,689 170,500 195,500 30,888 412,500 92,506
26,614$ -$ 195,500$ 24,791$ -$ 81,665$
Debt Service
75
Airport
Construction Enhanced 911
Vehicle
Replacement
1994 Gross
Receipts Tax
Revenue Bond
Acquisition
Revenues
Taxes
Gross receipts -$ -$ -$ -$
Gasoline and motor vehicle taxes - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 319,684 - - -
State operating grants - - - -
State capital grants 9,771 - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - 10,102
Miscellaneous - - 1,560 18,990
Total revenues 329,455 - 1,560 29,092
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 331,075 - - 93,576
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 35,300 - 56,145 13,232
Debt service
Principal - - - -
Interest - - - -
Total expenditures 366,375 - 56,145 106,808
Excess (deficiency) of revenues over
expenditures (36,920) - (54,585) (77,716)
Other financing sources (uses)
Transfers in - - - -
Transfers out (22,000) - - -
Proceeds from insurance recovery - - - -
Total other financing sources (uses)(22,000) - - -
Net change in fund balances (58,920) - (54,585) (77,716)
Fund balances - beginning of year 57,043 25,309 257,613 851,161
Fund balances - end of year (1,877)$ 25,309$ 203,028$ 773,445$
The accompanying notes are an integral part of these financial statements
STATE OF NEW MEXICO
Capital Projects
Town of Taos
Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
For the Year Ended June 30, 2009
76
Statement A-2
Page 3 of 3
Capital Projects
1999 Gasoline
Tax Acquisition
Total Nonmajor
Governmental
Funds
-$ 935,269$
- 43,234
- 909,303
- 150,000
- 319,684
- 794,556
132,271 162,952
- 98,135
- 29,754
5,318 31,673
- 372,583
137,589 3,847,143
- 1,792,231
- 221,060
6,692 646,809
- 506,477
- 669,840
268,614 501,513
- 879,833
- 347,481
275,306 5,565,244
(137,717) (1,718,101)
251,119 3,278,546
- (2,252,994)
- 2,205
251,119 1,027,757
113,402 (690,344)
518,813 3,758,004
632,215$ 3,067,660$
77
(This page intentionally left blank.)
78
STATE OF NEW MEXICO Statement B-1
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 195,200 195,200 195,200 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 249 249
Total revenues 195,200 195,200 195,449 249
Expenditures
Current
General government - - - -
Public safety 354,770 348,812 101,311 247,501
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 101,000 106,958 46,429 60,529
Debt service
Principal - - - -
Interest - - - -
Total expenditures 455,770 455,770 147,740 308,030
Excess (deficiency) of revenues over
expenditures (260,570) (260,570) 47,709 308,279
Other financing sources (uses)
Designated cash 260,570 260,570 - (260,570)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)260,570 260,570 - (260,570)
Net change in fund balance - - 47,709 47,709
Fund balance - beginning of year - - 260,570 260,570
Fund balance - end of year -$ -$ 308,279$ 308,279$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Fire Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
79
STATE OF NEW MEXICO Statement B-2
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 18,690 18,690 15,548 (3,142)
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 11,824 11,824 20,535 8,711
Total revenues 30,514 30,514 36,083 5,569
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 36,895 36,895 24,193 12,702
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 36,895 36,895 24,193 12,702
Excess (deficiency) of revenues over
expenditures (6,381) (6,381) 11,890 18,271
Other financing sources (uses)
Designated cash 6,381 6,381 - (6,381)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)6,381 6,381 - (6,381)
Net change in fund balance - - 11,890 11,890
Fund balance - beginning of year - - 75,216 75,216
Fund balance - end of year -$ -$ 87,106$ 87,106$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Recreation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
80
STATE OF NEW MEXICO Statement B-3
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other 999,074 946,484 893,755 (52,729)
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - 6,964 20,056 13,092
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - 3,150 5,411 2,261
Total revenues 999,074 956,598 919,222 (37,376)
Expenditures
Current
General government 572,782 722,600 756,109 (33,509)
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 572,782 722,600 756,109 (33,509)
Excess (deficiency) of revenues over
expenditures 426,292 233,998 163,113 (70,885)
Other financing sources (uses)
Designated cash 4,792 (98,646) - 98,646
Transfers in 556,194 754,336 336,530 (417,806)
Transfers out (987,278) (889,688) (517,713) 371,975
Total other financing sources (uses)(426,292) (233,998) (181,183) 52,815
Net change in fund balance - - (18,070) (18,070)
Fund balance - beginning of year - - 94,105 94,105
Fund balance - end of year -$ -$ 76,035$ 76,035$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Lodger's Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
81
STATE OF NEW MEXICO Statement B-4
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees 50,621 50,621 29,279 (21,342)
Interest income - - - -
Miscellaneous - - - -
Total revenues 50,621 50,621 29,279 (21,342)
Expenditures
Current
General government - - - -
Public safety 109,000 109,000 92,172 16,828
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 109,000 109,000 92,172 16,828
Excess (deficiency) of revenues over
expenditures (58,379) (58,379) (62,893) (4,514)
Other financing sources (uses)
Designated cash 42,379 42,379 - (42,379)
Transfers in 16,000 16,000 9,000 (7,000)
Transfers out - - - -
Total other financing sources (uses)58,379 58,379 9,000 (49,379)
Net change in fund balance - - (53,893) (53,893)
Fund balance - beginning of year - - 56,721 56,721
Fund balance - end of year -$ -$ 2,828$ 2,828$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Local Government Correction Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
82
STATE OF NEW MEXICO Statement B-5
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 33,200 33,200 64,600 31,400
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 33,200 33,200 64,600 31,400
Expenditures
Current
General government - - - -
Public safety 33,205 32,605 27,577 5,028
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 33,205 32,605 27,577 5,028
Excess (deficiency) of revenues over
expenditures (5) 595 37,023 36,428
Other financing sources (uses)
Designated cash 5 (595) - 595
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)5 (595) - 595
Net change in fund balance - - 37,023 37,023
Fund balance - beginning of year - - 6 6
Fund balance - end of year -$ -$ 37,029$ 37,029$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Law Enforcement Protection Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
83
STATE OF NEW MEXICO Statement B-6
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services 80,052 85,957 78,079 (7,878)
Licenses and fees - - 475 475
Interest income - - - -
Miscellaneous 1,640 1,640 276 (1,364)
Total revenues 81,692 87,597 78,830 (8,767)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation 525,198 492,001 482,284 9,717
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 525,198 492,001 482,284 9,717
Excess (deficiency) of revenues over
expenditures (443,506) (404,404) (403,454) 950
Other financing sources (uses)
Designated cash (8,189) (75,519) - 75,519
Transfers in 451,695 479,923 438,236 (41,687)
Transfers out - - - -
Total other financing sources (uses)443,506 404,404 438,236 33,832
Net change in fund balance - - 34,782 34,782
Fund balance - beginning of year - - (1,410) (1,410)
Fund balance - end of year -$ -$ 33,372$ 33,372$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Civic Center Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
84
STATE OF NEW MEXICO Statement B-7
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants 150,000 150,000 150,000 -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 150,000 150,000 150,000 -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 150,000 150,000 149,549 451
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 150,000 150,000 149,549 451
Excess (deficiency) of revenues over
expenditures - - 451 451
Other financing sources (uses)
Designated cash - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - 451 451
Fund balance - beginning of year - - 1 1
Fund balance - end of year -$ -$ 452$ 452$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Domestic Violence Shelter Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
85
STATE OF NEW MEXICO Statement B- 8
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis) Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 296,460 296,460 228,128 (68,332)
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 57,705 57,705 54,867 (2,838)
Total revenues 354,165 354,165 282,995 (71,170)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare 526,658 528,031 520,291 7,740
Capital outlay 40,213 40,213 - 40,213
Debt service
Principal - - - -
Interest - - - -
Total expenditures 566,871 568,244 520,291 47,953
Excess (deficiency) of revenues over
expenditures (212,706) (214,079) (237,296) (23,217)
Other financing sources (uses)
Designated cash (10,159) (30,215) - 30,215
Transfers in 222,865 244,294 223,114 (21,180)
Transfers out - - - -
Proceeds from insurance recovery - - 2,205 2,205
Total other financing sources (uses)212,706 214,079 225,319 11,240
Net change in fund balance - - (11,977) (11,977)
Fund balance - beginning of year - - 15,706 15,706
Fund balance - end of year -$ -$ 3,729$ 3,729$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Public Transportation Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
86
STATE OF NEW MEXICO Statement B-9
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants 505,367 607,498 306,628 -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 505,367 607,498 306,628 -
Expenditures
Current
General government 838,801 994,878 485,036 509,842
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 87,865 96,118 8,358 87,760
Debt service
Principal - - - -
Interest - - - -
Total expenditures 926,666 1,090,996 493,394 597,602
Excess (deficiency) of revenues over
expenditures (421,299) (483,498) (186,766) 597,602
Other financing sources (uses)
Designated cash 81,299 291,195 - (291,195)
Transfers in 340,000 262,303 230,000 (32,303)
Transfers out - (70,000) (70,000) -
Total other financing sources (uses)421,299 483,498 160,000 (323,498)
Net change in fund balance - - (26,766) 274,104
Fund balance - beginning of year - - 326,678 326,678
Fund balance - end of year -$ -$ 299,912$ 600,782$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Community Grants Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
87
STATE OF NEW MEXICO Statement B-10
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle 79,460 79,460 43,234 (36,226)
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 79,460 79,460 43,234 (36,226)
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 79,460 79,460 43,234 (36,226)
Other financing sources (uses)
Designated cash - - - -
Transfers in - - - -
Transfers out (79,460) (79,460) (45,555) 33,905
Total other financing sources (uses)(79,460) (79,460) (45,555) 33,905
Net change in fund balance - - (2,321) (2,321)
Fund balance - beginning of year - - 6,058 6,058
Fund balance - end of year -$ -$ 3,737$ 3,737$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Municipal Road Gasoline Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
88
STATE OF NEW MEXICO Statement B-11
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 1,013,745 938,411 935,269 (3,142)
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 1,013,745 938,411 935,269 (3,142)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 1,013,745 938,411 935,269 (3,142)
Other financing sources (uses)
Designated cash - - - -
Transfers in - - - -
Transfers out (1,013,745) (938,411) (938,411) -
Total other financing sources (uses)(1,013,745) (938,411) (938,411) -
Net change in fund balance - - (3,142) (3,142)
Fund balance - beginning of year - - 73,244 73,244
Fund balance - end of year -$ -$ 70,102$ 70,102$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1/4 Cent Municipal Gross Receipts Tax Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
89
STATE OF NEW MEXICO Statement B-12
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous 299,996 271,095 270,695 (400)
Total revenues 299,996 271,095 270,695 (400)
Expenditures
Current
General government 609,147 553,311 548,383 4,928
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 6,948 6,948 6,948 -
Debt service
Principal - - - -
Interest - - - -
Total expenditures 616,095 560,259 555,331 4,928
Excess (deficiency) of revenues over
expenditures (316,099) (289,164) (284,636) 4,528
Other financing sources (uses)
Designated cash 43,503 45,470 - (45,470)
Transfers in 272,596 243,694 243,694 -
Transfers out - - - -
Total other financing sources (uses)316,099 289,164 243,694 (45,470)
Net change in fund balance - - (40,942) (40,942)
Fund balance - beginning of year - - 225,028 225,028
Fund balance - end of year -$ -$ 184,086$ 184,086$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Communications Special Revenue Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
90
STATE OF NEW MEXICO Statement B-13
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 470,000 470,000 470,000 -
Interest 24,675 24,675 24,675 -
Total expenditures 494,675 494,675 494,675 -
Excess (deficiency) of revenues over
expenditures (494,675) (494,675) (494,675) -
Other financing sources (uses)
Designated cash - (4,428) - 4,428
Transfers in 494,675 499,103 494,638 (4,465)
Transfers out - - - -
Total other financing sources (uses)494,675 494,675 494,638 (37)
Net change in fund balance - - (37) (37)
Fund balance - beginning of year - - 110 110
Fund balance - end of year -$ -$ 73$ 73$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2001 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
91
STATE OF NEW MEXICO Statement B-14
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income -
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 150,000 150,000 150,000 -
Interest 261,825 261,825 261,825 -
Total expenditures 411,825 411,825 411,825 -
Excess (deficiency) of revenues over
expenditures (411,825) (411,825) (411,825) -
Other financing sources (uses)
Designated cash 9,219 9,219 - (9,219)
Transfers in 402,606 402,606 402,606 -
Transfers out - - - -
Total other financing sources (uses)411,825 411,825 402,606 (9,219)
Net change in fund balance - - (9,219) (9,219)
Fund balance - beginning of year - - 9,449 9,449
Fund balance - end of year -$ -$ 230$ 230$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2008 Gross Receipts Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
92
STATE OF NEW MEXICO Statement B-15
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government 750 750 500 250
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 155,000 155,000 155,000 -
Interest 39,873 39,873 36,308 3,565
Total expenditures 195,623 195,623 191,808 3,815
Excess (deficiency) of revenues over
expenditures (195,623) (195,623) (191,808) 3,815
Other financing sources (uses)
Designated cash 3,930 (14,385) - 14,385
Transfers in 191,693 210,008 213,733 3,725
Transfers out - - - -
Total other financing sources (uses)195,623 195,623 213,733 18,110
Net change in fund balance - - 21,925 21,925
Fund balance - beginning of year - - 4,689 4,689
Fund balance - end of year -$ -$ 26,614$ 26,614$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Retirement Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
93
STATE OF NEW MEXICO Statement B-16
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 1,491 (1,120) 4,101 5,221
Miscellaneous - - - -
Total revenues 1,491 (1,120) 4,101 5,221
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures 1,491 (1,120) 4,101 5,221
Other financing sources (uses)
Designated cash 170,500 175,722 - (175,722)
Transfers in - - - -
Transfers out (171,991) (174,602) (174,601) 1
Total other financing sources (uses)(1,491) 1,120 (174,601) (175,721)
Net change in fund balance - - (170,500) (170,500)
Fund balance - beginning of year - - 170,500 170,500
Fund balance - end of year -$ -$ -$ -$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2008 Gross Receipts Tax Revenue Bond Reserve Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
94
STATE OF NEW MEXICO Statement B-17
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 3,726 3,339 4,112 773
Miscellaneous - - - -
Total revenues 3,726 3,339 4,112 773
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 3,726 3,339 4,112 773
Other financing sources (uses)
Designated cash - 774 - (774)
Transfers in - - - -
Transfers out (3,726) (4,113) (4,112) 1
Total other financing sources (uses)(3,726) (3,339) (4,112) (773)
Net change in fund balance - - - -
Fund balance - beginning of year - - 195,500 195,500
Fund balance - end of year -$ -$ 195,500$ 195,500$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1999 Gasoline Tax Revenue Bond Reserve Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
95
STATE OF NEW MEXICO Statement B-18
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - 612 612
Miscellaneous - - - -
Total revenues - - 612 612
Expenditures
Current
General government 2,201 1,991 2,203 (212)
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal 86,834 87,243 86,833 410
Interest 24,673 24,484 24,673 (189)
Total expenditures 113,708 113,718 113,709 9
Excess (deficiency) of revenues over
expenditures (113,708) (113,718) (113,097) 621
Other financing sources (uses)
Designated cash 6,708 6,718 - (6,718)
Transfers in 107,000 107,000 107,000 -
Transfers out - - - -
Total other financing sources (uses)113,708 113,718 107,000 (6,718)
Net change in fund balance - - (6,097) (6,097)
Fund balance - beginning of year - - 30,888 30,888
Fund balance - end of year -$ -$ 24,791$ 24,791$
Town of Taos
2007 NMFA Land Purchase Debt Service Fund
The accompanying notes are an integral part of these financial statements
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
Budgeted Amounts
96
STATE OF NEW MEXICO Statement B-19
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 3,000 (1,428) 7,428 8,856
Miscellaneous - - - -
Total revenues 3,000 (1,428) 7,428 8,856
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 3,000 (1,428) 7,428 8,856
Other financing sources (uses)
Designated cash 412,500 421,356 - (421,356)
Transfers in - - - -
Transfers out (415,500) (419,928) (419,928) -
Total other financing sources (uses)(3,000) 1,428 (419,928) (421,356)
Net change in fund balance - - (412,500) (412,500)
Fund balance - beginning of year - - 412,500 412,500
Fund balance - end of year -$ -$ -$ -$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
2001 Gross Receipts Tax Revenue Bond Reserve Debt Service Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
97
STATE OF NEW MEXICO Statement B-20
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 1,107,091 1,107,091 20,910 (1,086,181)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 1,107,091 1,107,091 20,910 (1,086,181)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 345,119 288,577 215,466 73,111
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 1,156,223 1,152,782 66,487 1,086,295
Debt service
Principal 18,000 18,000 18,000 -
Interest - - - -
Total expenditures 1,519,342 1,459,359 299,953 1,159,406
Excess (deficiency) of revenues over
expenditures (412,251) (352,268) (279,043) 73,225
Other financing sources (uses)
Designated cash 55,647 55,664 - (55,664)
Transfers in 356,604 356,604 328,876 (27,728)
Transfers out - (60,000) (60,674) (674)
Total other financing sources (uses)412,251 352,268 268,202 (84,066)
Net change in fund balance - - (10,841) (10,841)
Fund balance - beginning of year - - 92,506 92,506
Fund balance - end of year -$ -$ 81,665$ 81,665$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Facilities Improvements Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
98
STATE OF NEW MEXICO Statement B-21
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts 757,325 757,325 701,453 (55,872)
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants 2,314,259 2,255,562 1,477,405 (778,157)
Charges for services - - - -
Licenses and fees - - - -
Interest income - (4,774) 64,737 69,511
Miscellaneous - - - -
Total revenues 3,071,584 3,008,113 2,243,595 (764,518)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 116,939 262,141 188,605 73,536
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 10,105,956 9,649,727 6,933,277 2,716,450
Debt service
Principal - - - -
Interest - - - -
Total expenditures 10,222,895 9,911,868 7,121,882 2,789,986
Excess (deficiency) of revenues over
expenditures (7,151,311) (6,903,755) (4,878,287) 2,025,468
Other financing sources (uses)
Designated cash 7,359,311 7,382,158 - (7,382,158)
Transfers in 109,104 109,104 67,663 (41,441)
Transfers out (317,104) (587,507) (584,793) 2,714
Total other financing sources (uses)7,151,311 6,903,755 (517,130) (7,420,885)
Net change in fund balance - - (5,395,417) (5,395,417)
Fund balance - beginning of year - - 7,542,275 7,542,275
Fund balance - end of year -$ -$ 2,146,858$ 2,146,858$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
99
STATE OF NEW MEXICO Statement B-22
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants 734,659 835,534 319,684 (515,850)
State operating grants - - - -
State capital grants 113,234 115,888 9,771 (106,117)
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues 847,893 951,422 329,455 (621,967)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 357,757 357,757 331,075 26,682
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 509,203 615,386 35,300 580,086
Debt service
Principal - - - -
Interest - - - -
Total expenditures 866,960 973,143 366,375 606,768
Excess (deficiency) of revenues over
expenditures (19,067) (21,721) (36,920) (15,199)
Other financing sources (uses)
Designated cash 59,067 58,807 - (58,807)
Transfers in - 2,914 - (2,914)
Transfers out (40,000) (40,000) (22,000) 18,000
Total other financing sources (uses)19,067 21,721 (22,000) (43,721)
Net change in fund balance - - (58,920) (58,920)
Fund balance - beginning of year - - 57,043 57,043
Fund balance - end of year -$ -$ (1,877)$ (1,877)$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Airport Construction Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
100
STATE OF NEW MEXICO Statement B-23
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - - -
Total revenues - - - -
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay - - - -
Debt service
Principal - - - -
Interest - - - -
Total expenditures - - - -
Excess (deficiency) of revenues over
expenditures - - - -
Other financing sources (uses)
Designated cash - - - -
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)- - - -
Net change in fund balance - - - -
Fund balance - beginning of year - - 25,309 25,309
Fund balance - end of year -$ -$ 25,309$ 25,309$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Enhanced 911 Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
101
STATE OF NEW MEXICO Statement B-24
Variances
Actual
Favorable
(Unfavorable)
Original Final (GAAP Basis)Final to Actual
Revenues
Taxes
Property taxes -$ -$ -$ -$
Gross receipts - - - -
Gasoline and motor vehicle - - - -
Other - - - -
Intergovernmental income
Federal operating grants - - - -
Federal capital grants - - - -
State operating grants - - - -
State capital grants - - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income - - - -
Miscellaneous - - 1,560 1,560
Total revenues - - 1,560 1,560
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - - - -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 56,000 56,300 56,145 155
Debt service
Principal - - - -
Interest - - - -
Total expenditures 56,000 56,300 56,145 155
Excess (deficiency) of revenues over
expenditures (56,000) (56,300) (54,585) 1,715
Other financing sources (uses)
Designated cash 56,000 56,300 - (56,300)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)56,000 56,300 - (56,300)
Net change in fund balance - - (54,585) (54,585)
Fund balance - beginning of year - - 257,613 257,613
Fund balance - end of year -$ -$ 203,028$ 203,028$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
Vehicle Replacement Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
102
STATE OF NEW MEXICO 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 25,000 - - -
Charges for services - - - -
Licenses and fees - - - -
Interest income 26,400 26,400 10,102 (16,298)
Miscellaneous 110,941 110,941 18,990 (91,951)
Total revenues 162,341 137,341 29,092 (108,249)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works 170,191 179,391 93,576 85,815
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 151,466 142,266 13,232 129,034
Debt service
Principal - - - -
Interest - - - -
Total expenditures 321,657 321,657 106,808 214,849
Excess (deficiency) of revenues over
expenditures (159,316) (184,316) (77,716) 106,600
Other financing sources (uses)
Designated cash 159,316 184,316 - (184,316)
Transfers in - - - -
Transfers out - - - -
Total other financing sources (uses)159,316 184,316 - (184,316)
Net change in fund balance - - (77,716) (77,716)
Fund balance - beginning of year - - 851,161 851,161
Fund balance - end of year -$ -$ 773,445$ 773,445$
The accompanying notes are an integral part of these financial statements
Budgeted Amounts
Town of Taos
1994 Gross Receipts Tax Revenue Bond Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
103
STATE OF NEW MEXICO 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 2,269,558 2,170,645 132,271 -
Charges for services - - - -
Licenses and fees - - - -
Interest income 12,015 12,015 5,318 (6,697)
Miscellaneous - - - -
Total revenues 2,281,573 2,182,660 137,589 (6,697)
Expenditures
Current
General government - - - -
Public safety - - - -
Public works - 6,692 6,692 -
Culture and recreation - - - -
Health and welfare - - - -
Capital outlay 2,764,080 2,945,192 268,614 2,676,578
Debt service
Principal - - - -
Interest - - - -
Total expenditures 2,764,080 2,951,884 275,306 2,676,578
Excess (deficiency) of revenues over
expenditures (482,507) (769,224) (137,717) 2,669,881
Other financing sources (uses)
Designated cash 402,507 518,105 - (518,105)
Transfers in 80,000 251,119 251,119 -
Transfers out - - - -
Total other financing sources (uses)482,507 769,224 251,119 (518,105)
Net change in fund balance - - 113,402 2,151,776
Fund balance - beginning of year - - 518,813 518,813
Fund balance - end of year -$ -$ 632,215$ 2,670,589$
The accompanying notes are an integral part of these financial statements
Town of Taos
1999 Gasoline Tax Acquisition Capital Projects Fund
Statement of Revenues, Expenditures and Changes in Fund Balance
Budget (GAAP Basis) and Actual
For the Year Ended June 30, 2009
Budgeted Amounts
104
STATE OF NEW MEXICO Statement B-27
Budget (GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 2,219,071$ 2,219,071$ 2,212,865$ (6,206)$
Total operating revenues 2,219,071 2,219,071 2,212,865 (6,206)
Operating expenses:
Personnel services 632,546 639,849 625,507 14,342
Contractual services 1,339,081 1,400,869 1,341,958 58,911
Supplies 35,000 36,165 33,214 2,951
Maintenance and materials 319,852 325,508 145,690 179,818
Utilities 336,500 296,359 310,994 (14,635)
Equipment 7,076,631 6,388,397 - 6,388,397
Depreciation - - 1,178,578 (1,178,578)
Miscellaneous 175,959 166,467 34,181 132,286
Total operating expenses 9,915,569 9,253,614 3,670,122 5,583,492
Operating income (loss) (7,696,498) (7,034,543) (1,457,257) 5,577,286
Non-operating revenues (expenses):
Gross receipts taxes 528,584 528,584 425,682 (102,902)
Interest expense (172,728) (171,040) (216,806) (45,766)
Interest income 167,261 167,261 63,844 (103,417)
Government contributions 5,962,400 4,599,920 142,220 (4,457,700)
Miscellaneous income 285,511 1,047,991 66,191 (981,800)
Total non-operating revenues
(expenses)6,771,028 6,172,716 481,131 (5,691,585)
Transfers - - 6,130 6,130
Change in net assets (925,470)$ (861,827)$ (969,996) (108,169)$
Total net assets, beginning of year 17,683,952
Total net assets, end of year 16,713,956$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2009
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Water and Sewer Fund
105
STATE OF NEW MEXICO Statement B-28
Budget (GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 1,038,812$ 1,038,812$ 1,182,520$ 143,708$
Total operating revenues 1,038,812 1,038,812 1,182,520 143,708
Operating expenses:
Personnel services 132,612 104,592 77,927 26,665
Contractual services 712,353 730,813 718,119 12,694
Supplies 6,426 11,190 10,961 229
Maintenance and materials 23,647 58,077 43,425 14,652
Utilities 336,471 283,189 247,563 35,626
Equipment 218,000 200,000 - 200,000
Depreciation - - 2,466 (2,466)
Miscellaneous 2,663 4,313 626 3,687
Total operating expenses 1,432,172 1,392,174 1,101,087 291,087
Operating income (loss) (393,360) (353,362) 81,433 434,795
Non-operating revenues (expenses):
Gross receipts taxes - - - -
Interest expense - - - -
Interest income - - - -
Government contributions - - - -
Miscellaneous income 15,286 15,286 51,853 36,567
Total non-operating revenues
(expenses)15,286 15,286 51,853 36,567
Transfers - - 12,015 12,015
Change in net assets (378,074)$ (338,076)$ 145,301 483,377$
Total net assets, beginning of year 919,126
Total net assets, end of year 1,064,427$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2009
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Solid Waste Fund
106
STATE OF NEW MEXICO Statement B-29
Budget (GAAP Budgetary Basis) and Actual
Variances
Budget Amounts Favorable
Original Final Actual (Unfavorable)
Operating revenues:
Charges for services 1,190,800$ 1,190,800$ 1,161,614$ (29,186)$
Total operating revenues 1,190,800 1,190,800 1,161,614 (29,186)
Operating expenses:
Personnel services 355,083 345,734 306,512 39,222
Contractual services 412,934 483,899 405,116 78,783
Supplies 13,178 16,458 12,165 4,293
Maintenance and materials 127,121 145,694 138,374 7,320
Utilities 5,468 6,824 6,871 (47)
Equipment 1,289,983 1,289,983 - 1,289,983
Depreciation - - 106,611 (106,611)
Miscellaneous 162,257 169,791 15,496 154,295
Total operating expenses 2,366,024 2,458,383 991,145 1,467,238
Operating income (loss) (1,175,224) (1,267,583) 170,469 1,438,052
Non-operating revenues (expenses):
Gross receipts taxes - - - -
Interest expense (40,062) (40,381) (44,912) (4,531)
Interest income 8,000 8,000 41,739 33,739
Government contributions - - - -
Miscellaneous income 366,073 366,073 109,168 (256,905)
Total non-operating revenues
(expenses)334,011 333,692 105,995 (227,697)
Transfers - - (38,145) (38,145)
Change in net assets (841,213)$ (933,891)$ 238,319 1,172,210$
Total net assets, beginning of year 2,921,366
Total net assets, end of year 3,159,685$
The accompanying notes are an integral part of these financial statements
For the Year Ended June 30, 2009
Town of Taos
Statement of Revenues, Expenses and Changes in Net Assets
Taos Regional Landfill Fund
107
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108
SUPPORTING SCHEDULES
109
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110
STATE OF NEW MEXICO Schedule I
Town of Taos
Schedule of Deposit and Investment Accounts
For the Year Ended June 30, 2009
Account Bank Deposits Outstanding Book
Bank Name/Account Name Type Balance in Transit Checks Balance
First Community Bank
Clearing Account Checking 801,061$ -$ 800,603$ 458$
Judicial Bond Fund Municipal Court Checking 4,015 - 631 3,384
Debt Service Fund Checking 338 - - 338
Utility Construction Fund Checking 39,530 - - 39,530
Water & Sewer System Income Fund Checking 3,181,493 12,243 6,403 3,187,333
Utility Improvement Fund Checking 33,815 - - 33,815
General CD 170,500 - - 170,500
1999 Gasoline Tax Revenue Bond Reserve CD 195,500 - - 195,500
Total First Community Bank 4,426,252 12,243 807,637 3,630,858
Centinel Bank
General Fund Checking 1,221,045 11,783 361,510 871,318
Water/Wastewater Improvement Fund Checking 137,363 - - 137,363
Payroll Clearing Checking 38 - - 38
1994 GRT Revenue Bond Acquisition Fund Checking 16,040 - 8,333 7,707
HUD Account - Domestic Violence Shelter Checking 1 - - 1
ACH Transfer Account Checking 75,244 - 74,613 631
2001 Gross Receipts Tax Revenue Bond Retirement CD 177,500 - - 177,500
Total Centinel Bank 1,627,231 11,783 444,456 1,194,558
Bank of Albuquerque - Investments
2001A Water & Sewer Revenue Bond Retirement
U.S. Treasury
Mutual Fund 61,762 - - 61,762
2004 Taos Regional Landfill Acquisition
U.S. Treasury
Mutual Fund 7,386 - - 7,386
2004 Taos Regional Landfill Revenue Bond Reserve
U.S. Treasury
Mutual Fund 137,343 - - 137,343
2008A Taos Regional Landfill Debt Service
U.S. Treasury
Mutual Fund 100,054 - - 100,054
2004 Taos Regional Landfill Acquisition
U.S. Treasury
Mutual Fund 331,382 - - 331,382
Total Bank of Albuquerque 637,927 - - 637,927
New Mexico Finance Authority - Investments
2007 NMFA Land Purchase
State Treasurer
Debt Service 21,370 - - 21,370
2001A Water & Sewer Revenue Bond Retirement
State Treasurer
Debt Service 12,706 - - 12,706
2004 Taos Regional Landfill Revenue Bond Reserve
State Treasurer
Debt Service 16,189 - - 16,189
2008A Taos Regional Landfill Debt Service
State Treasurer
Debt Service 20,971 - - 20,971
Total New Mexico Finance Authority 71,236 - - 71,236
Total deposits and investments 6,762,646$ 24,026$ 1,252,093$ 5,534,579
New Mexico State Treasurer Local Government Investment Pool 7,048,815
Add: petty cash 1,500
Total deposits and investments 12,584,894$
Deposits and investments per financial statements:
Cash and cash equivalents - Exhibit A-1 3,622,455$
Investments - Exhibit A-1 7,523,815
Restricted cash and cash equivalents - Exhibit A-1 1,369,261
Fiduciary funds cash and cash equivalents and investments - Exhibit E-1 69,363
Total deposits and investments 12,584,894$
See accompanying independent auditors' report
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112
STATE OF NEW MEXICO Schedule II
Par /
Description of Type of Fair Market
Name of Pledged Pledged CUSIP Value at Location
Depository Collateral Collateral Maturity Number June 30, 2009 of Safekeeper
First Community Bank
FHR 3229 VA Loan 10/15/2017 31397BRX1 426,709$ Federal Home Loan Bank, Dallas, TX
FNR 2001-71 QE Loan 12/25/2016 31392AXR4 347,615.00 Federal Home Loan Bank, Dallas, TX
Hobbs NM Sch Dist #16 Bond *7/15/2018 433866CP3 1,000,000.00 Federal Home Loan Bank, Dallas, TX
San Juan County NM ISD #22 Bond *8/1/2020 798359HS7 900,000.00 Federal Home Loan Bank, Dallas, TX
MBS FHLMC Gold 15 Yr Loan 3/1/2021 3128M1BF5 158,065.00 Federal Home Loan Bank, Dallas, TX
FNR 2003-64 YA Loan 5/25/2023 31393DKW0 323,391.00 Federal Home Loan Bank, Dallas, TX
Clovis NM Muni SD #001 Bond *8/1/2023 189414GR0 775,000.00 Federal Home Loan Bank, Dallas, TX
MBS GNMA II Loan 11/20/2038 36202EXM6 164,358.00 Federal Home Loan Bank, Dallas, TX
MBS GNMA I Platinum Loan 11/15/2023 36241KWU8 176,870.00 Federal Home Loan Bank, Dallas, TX
Total First Community Bank 4,272,008
Centinel Bank
FHLB Loan 12/9/2011 3133XHRKO 390,000 Texas Independent Bank, Irving, TX
Total Pledged Collateral 4,662,008$
* Bonds are presented at par value
See accompanying independent auditors' report
June 30, 2009
Town of Taos
Schedule of Collateral Pledged by Depository for Public Funds
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114
STATE OF NEW MEXICO Schedule III
Balance Balance
June 30, 2008 Additions Deletions June 30, 2009
Assets
Cash 1,950$ $ 30,225 $ 31,312 863$
Investments 61,500 7,000 - 68,500
Total assets 63,450$ 37,225$ 31,312$ 69,363$
Liabilities
Deposits payable 23,700$ 58,060$ 13,500$ 68,260$
Due to other entities 39,750 9,955 48,602 1,103
Total liabilities 63,450$ 68,015$ 62,102$ 69,363$
Town of Taos
Schedule of Changes in Fiduciary Assets and Liabilities - Agency Funds
For the Year Ended June 30, 2009
See accompanying independent auditors' report
115
Agreement
The Town
Participates with
Party Responsible for
Operation Description
Salazar Property and
Sports Facilities
Taos Municipal
Schools Board of
Education
Taos Municipal
School District
Develop, manage and maintain a multi-purpose athletic
facility on the Salazar Property
Public Restroom Facility County of Taos County of Taos Designing, constructing, operating, and maintaining a
public restroom facility
Enhanced 911-Response
System
County of Taos,
Town of Questa,
Village of Taos Ski
Valley
Town of Taos Provide an answering point for information regarding
needed emergency services
Taos Regional Landfill
Board
County of Taos,
Village of Questa,
Village of Red River,
Village of Taos Ski
Valley
Town of Taos Establish the Taos Regional Landfill Board
See accompanying independent auditors' report
June 30, 2009
STATE OF NEW MEXICO
Town of Taos
Supplementary Schedule of Joint Powers Agreements
116
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
$900,867
during 2009
Town of Taos
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118
COMPLIANCE SECTION
119
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 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
budgetar y c omparison for the general fund, and the aggregate remaining fund information of Town of Taos, New Mexico, as of
and for the year ended June 30, 2009, which collectively comprise the Town’s basic financial statements as listed in the table of
contents and have issued our report thereon dated November 16, 2009.We also have audited the financial statements of each of
the Town’s nonmajor governmental funds, the budgetary comparisons for the proprietar y funds and capital projects fund, and the
remaining nonmajor governmental funds presented as supplementary information in the accompanying combining and individual
fund financial statements as of and for the year ended June 30, 2009 as listed in the table of contents. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered Town of Taos’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 of Taos’internal control over financial reporting. Accordingly, we do
not express an opinion on the effectiveness of the Town of Taos’internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and
would not necessarily identity all deficiencies in internal control over financial reporting that might be significant deficiencies or
material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting
that we consider to be significant deficiencies.
A control deficiency 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 misstatements on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that adversely affects the entity’s ability to initiate, authorize, record,
process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a
remote likelihood that a misstatement of Town of Taos’financial statements that is more than inconsequential will not be
prevented or detected b y Town of Taos’internal control. We consider the deficiencies described in the accompanying schedule of
findings and questioned costs as items FS 2007-01, FS 2009-01, FS 2009-03, FS 2009-05 and FS 2009-06 to be significant
deficiencies in internal control over financial reporting.
120
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote
likelihood that a material misstatement of the financial statements will not be prevented or detected by Town of Taos’internal
control.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of
this section and would not necessarily identify all deficiencies in the internal control that might be significant deficiencies and,
accordingly, would not necessarily disclose all significant deficiencies that are also considered to material weaknesses. However,
of the significant deficiencies described above, we consider item FS 2007-01 to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Town of Taos’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 a n
opinion. The results of our tests did not disclose any 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 under Government Auditing Standards January 2007 Revision
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 findings FS 2009-01, FS 2009-02,FS 2009-04 and FS 2009-07.
Town of Taos’responses to the findings identified in our audit are described in the accompanying schedule of findings and
questioned costs. We did not audit Town of Taos’responses and, accordingly, we express no opinion on them.
This report is intended solely for the information and use of management, others within Town of Taos, the audit committee, the
State Auditor, the New Mexico Legislature,the New Mexico Department of Finance and Administration,and applicable federal
grantors, and is not intended to be and should not be used b y an yone other than these parties.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 16, 2009
121
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122
FEDERAL FINANCIAL ASSISTANCE
123
REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND ON INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
Hector Balderas
New Mexico State Auditor
The Office of Management and Budget and
The Town Council
Town of Taos
Town of Taos, New Mexico
Compliance
We have audited the compliance of Town of Taos, with the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal
programs for the year ended June 30, 2009. Town of Taos’ 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 Town of Taos’
management. Our responsibility is to express an opinion on Town of Taos’ 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 Town of Taos’
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
Town of Taos’ compliance with those requirements.
In our opinion, Town of Taos complied, in all material respects, with the requirements referred to above that are applicable to
each of its major federal programs for the year ended June 30, 2009. However, the results of our auditing procedures
disclosed an instance of noncompliance with those requirements, which is required to be reported in accordance with OMB
Circular A-133 and which is described in the accompanying schedule of findings and questioned costs as item FA 2009-01.
Internal Control Over Compliance
The management of Town of Taos 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 Town of Taos’ internal control over compliance with the requirements that could have a direct and
material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our
opinion on compliance, 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 of Taos’ internal control over
compliance.
124
Our consideration of internal control over compliance was for the limited purpose described in the preceding paragraph and
would not necessarily identify all deficiencies in Town of Taos’ internal control that might be significant deficiencies or
material weaknesses as defined below. However, as discussed below, we identified a certain deficiency in internal control
over compliance that we consider to be a significant deficiency.
A control deficiency in Town of Taos’ internal control over compliance 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
noncompliance with a type of compliance requirement of a federal program on a timely basis. A significant deficiency is a
control deficiency, or combination of control deficiencies, that adversely affects Town of Taos’ ability to administer a federal
program such that there is more than a remote likelihood that noncompliance with a type of compliance requirement of a
federal program that is more than inconsequential will not be prevented or detected by Town of Taos’ internal control. We
consider the deficiency described in the accompanying schedule of findings and questioned costs as item FA 2009-01 to be a
significant deficiency in internal control over compliance.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote
likelihood that material noncompliance with a type of compliance requirement of a federal program will not be prevented or
detected by Town of Taos’ internal control. We do not consider any of the deficiencies described in the accompanying
schedule of findings and questioned costs to be a material weakness in internal control over compliance.
Town of Taos’ response to the finding identified in our audit is described in the accompanying schedule of findings and
questioned costs. We did not audit Town of Taos’ response and, accordingly, we express no opinion on it.
This report is intended solely for the information and use of management, others within Town of Taos, the audit committee,
the State Auditor, the Town Council, the New Mexico Legislature, the New Mexico Department of Finance and
Administration, and applicable federal grantors, and is not intended to be and should not be used by anyone other than these
parties.
Accounting & Consulting Group, LLP
Albuquerque, NM
November 16, 2009
125
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, 2009
CFDA
Number Expenditures
16.58 $ 82,019
14.235 149,549
14.xxx 07-C-NR-I-06-G-17,000
Total U.S. Department of Housing & Urban Development 166,549
Federal Aviation Administration (FAA)
20.106 21,080
Airport Improvements Program - Equipment (1)20.106 10,710
Airport Improvements Program - EIS (1)20.106 314,351
Federal Transportation Administration (FTA) Federal Assistance 20.5xx 9,138
Total U.S. Department of Transportation 355,279
81.xxx 06-521-0500-0053 102,963
10.xxx 9,148
RUS - San Juan Chama 10.xxx 50,000
Total U.S. Department of Agriculture 59,148
$ 765,958
(1) Denotes Major Federal Financial Assistance Program
State of New Mexico, Department of Finance & Administration
3-35-0041-019-2008
3-35-0041-017-2007
NM-03-0041
Community Development Block Grant - Sustainable Building Ordinance
Community Against Violence NM02B601005
3-35-0041-016-2006
Funding Source/Grant or Contact Name
Federal Grantors
Number
U.S. Department of Justice
U.S. Department of Transportation
Airport Improvements Program - PAPI (1)
Enforcement Assistance 2005-DD-BX-1109
U.S. Department of Housing & Urban Development Pass Through the
U.S. Department of Energy
Energy, Minerals & Natural Resources - 2004 Recreational Trails Program
U.S. Department of Agriculture
RUS - Police Equipment
Total Federal Financial Assistance
See accompanying independent auditors' report
126
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, 2009
Notes to Schedule of Expenditures of Federal Awards
Reconciliation of Schedule of Expenditures of Federal Awards to Financial Statements:
765,958$
21,967,530
22,733,488$ Total expenditures
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal grant activity of the Town of Taos
(the Town) 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. 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
1. Basis of Presentation
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128
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 1 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
Section I – Summary of Audit Results
Financial Statements:
1. Type of auditors’ report issued Unqualified
2. Internal control over financial reporting:
a. Material weaknesses identified? Yes
b. Significant deficiencies identified not considered to be material weaknesses? 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? Yes
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? Yes
4. Identification of major programs:
CFDA
Number Federal Program
20.106 Airport Improvements Program
5. Dollar threshold used to distinguish between type A and type B programs: $300,000
6. Auditee qualified as low-risk auditee? Yes
129
STATE OF NEW MEXICO Schedule VI
Town of Taos Page 2 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
Section II –Prior Year Audit Findings
Prior Year Audit Findings
Financial Statement Findings Disposition
2007-1 Bank Reconciliations Repeated and Revised
2007-3 Lodgers Tax Resolved
Section III –Financial Statement Findings and Questioned Costs
FS 2007-01 Bank Reconciliations
Condition: The Town’s clearing bank accounts were not reconciled to the general ledger. In the Town’s clearing
bank account, an adjustment was made to increase cash in the amount of $217,871, and $189,413 of incorrect
outstanding checks were removed from the bank reconciliation. Also, the Town did not prepare a bank reconciliation
for the ACH transfer account; thus, $74,613 of outstanding checks were missing.
Criteria: NMSA 6-10-2 discusses the duty of public officials to balance public money at the close of each business
day. Good accounting practices also require that bank reconciliations are prepared at least monthly.
Effect: Before the adjustments were made, the Town’s cash per the trial balance was understated by $217,871.
Cause: There were internal errors in the daily and monthly procedures regarding bank reconciliations due to
employee turnover within the Finance Department..
Auditors’ Recommendation: We recommend that the Town prepare its bank reconciliations in a timely manner and
ensure that the ban k accounts reconcile to the general ledger.
Agency’s Response: The Finance Department is current with its bank reconciliations for the first quarter of FY 09-10
and will continue as such throughout the remainder of the fiscal year. Finance staff will also adopt a written policy
regarding the internal control processes and procedures, which will include daily, monthly and quarterly monitoring,
self-audits and strict scheduled planning to ensure proper compliance in the future.
FS 2009-01 —Stale-dated Checks
Condition: During cash test work, we found 147 checks totaling $26,064.63 that were written over a year ago and
listed as outstanding checks on the bank reconciliations. The Town has not reported the payees or turned over the
funds to the Unclaimed Property Division of the New Mexico Taxation and Revenue Department.
Criteria: Section 7-8A, NMSA 1978, and related regulations require that the Town provide information about the
payees and the related funds to the Un claimed Property Division of the New Mexico Taxation and Revenue
Department for outstanding checks that were distributed but not cashed within one year.
Effect:The Town’s cash balances could be misstated due to old outstanding items on bank reconciliations. In
addition, this increases the risk of errors or irregularities in the area of cash.
Cause: The Town failed to review the reconciliations for old outstanding checks. In addition, the Town was not
aware of the requirement to remit the stale-dated check funds to the New Mexico Taxation and Revenue Department.
Auditors’ Recommendation: We recommend that the Town implement a monthly review of bank reconciliations and
ensure that all outstanding checks that are older than one year old be voided.We also recommend that the Town
remit the stale-dated check funds to the New Mexico Taxation and Revenue Department.
Agency’s Response: The Finance Department will implement a monthly review of bank reconciliations and will
ensure all outstanding checks that are older than one year are processed according to state statute. The Finance
Department will also review and become familiarized with the governing state statute.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 3 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
FS 2009-02—Travel and Per Diem
Condition: In one instance out of five tested the employee was incorrectly paid a high-cost area per diem rate of $95
for travel to Albuquerque and Ruidoso.
Criteria: The Per Diem and Mileage Act sets limits on travel and per diem expenses of $85 per day per diem for in-
state travel and $135 for in-state high cost areas.
Effect: The Town is overpaying their employees in the amount of $10.00 per day for per diem when they travel to
Ruidoso.
Cause: The Town was under the impression that the Per Diem and Mileage Act allowed for them to develop and
adhere to their own policy; therefore, they instituted their own policy as to which in-state areas qualified for high
cost. The Town’s policy considered Ruidoso to be a high-cost area.
Auditors’ Recommendation: We recommend that Town contact the Department of Finance and Administration and
request information related to the Act, and modify their travel policy to reflect the limits set by the Act.
Agency’s Response: Management agrees with the auditors’ recommendation and will adopt a new travel policy
within this fiscal year, which will reflect the limits set by the Per Diem and Mileage Act and has corrected the
immediate problem and will continue until the policy is adopted.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 4 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
FS 2009-03 Preparation of Financial Statements
Condition: The financial statements and related disclosures are not being prepared by the Town.
Criteria: According to the American Institute of Certified Public Accountants’ Statement on Auditing Standards No.
112, a system of internal control over financial reporting does not stop at the general ledger. Well designed systems
include controls over financial statement preparation, including footnote disclosures.
Effect: Wh en sufficient controls over the preparation of financial statements and related disclosures are not designed,
implemented and operating effectively, an entity’s ability to prevent,detect, and correct misstatements in its financial
statements is limited.
Cause: The Town’s personnel did not have the time and have not been adequately trained in understanding the
elements of external financial reporting,including the preparation of financial statements and related footnote
disclosures.
Auditors’ Recommendation: We recommend Town management and personnel receive training on understanding the
requirements of external financial reporting.
The training should include, but not be limited to:
•Selection of appropriate accounting policies:
§Governmental Accounting Standards Board (GASB)
§Generally Accepted Accounting Principles (specifically as applied to
governmental units)
§Financial Accounting Standards Board (FASB)
•Un derstanding the financial reporting entity
•Government-wide financial statements
•Fund financial statements
•Notes to the financial statements
•Required supplementary information
§Management’s discussion and analysis
•Supplementary information required by the Office of the State Auditor
In addition, we recommend that the Town develop and implement policies and procedures designed to prevent or
detect possible misstatements in its financial statements and related footnote disclosures.
Agency’s Response:The Town will change and update the recording and reporting processes to better facilitate the
preparation of financial statements. The Finance Department will prepare a plan of action detailing the training
program for staff, which will include the services of a consultant who will review and improve upon the internal
accounting processes.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 5 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
FS 2009-04—Expenditures in Excess of Budget
Condition: The Town exceeded the budgeted expen ditures in the following fund:
Governmental Funds Amount
Lodger’s Tax $ 33,509
Criteria: All Town funds, with the exception of agency funds, are to be budgeted by the local governing body and
submitted to the State of New Mexico Department of Finance and Administration –Local Government Division for
approval. Once adopted, any claims or warrants in excess of budget are a violation of New Mexico State Statute 6-6-
6, NMSA 1978 Compilation.
Effect: An y expenditure in excess of the approved budget(s) shall be a liability against the officials so allowing or
paying such claims or warrants, and recovery of such excess amounts so allowed or paid may be had against the
bondsmen of such official.
Cause: Inadequate monitoring of budgeting procedures at year-end.
Auditors’ Recommendation:Budget for future years should be revised to insure all funds have adequate budget
authority for appropriations. Greater attention should be given to the budget monitoring process at year-end.
Agency’s Response:Management agrees with the auditors’ recommendation and will revise and strictly enforce a
year-end process throughout all departments.
FS 2009-05 —Gross Pay is Not Correct
Condition: Dur ing payroll testwork, we noted that 1 out of 5 employees was not being paid in accordance with the
employee’s authorized wages. The employee was being paid correctly for the employee’s regular time but
incorrectly for the employee’s overtime. The employee’s overtime rate was based on the employee’s previous pa y
rate prior to the employee’s promotion.
Criteria: As indicated in NMSA 1978 Section 6-6-3, the Town is required to maintain proper and sufficient internal
controls which reduce the risk of fraudulent activities. Chapter XI, Section 11-1-11, F. Pay Range requires
employees to paid according to scale and in agreement with years of service and annual appraisal document. Sound
business practice requires personnel files to have written authorization on pay rates for each employee and whenever
rates change.
Effect: The Town underpaid the aforementioned employee for the employee’s overtime after the employee wa s
promoted to a new position in November of 2008.
Cause: There was a conflict with whether the employee’s new position was salaried or hourly and the system was
incorrectly calculating the employee’s overtime pay based on the employee’s previous wage rate.
Auditors’ Recommendation: We recommend the Town reimburse the employee for the employee’s overtime based
on the correct wage rate. Also, we recommend the Town make the necessary corrections to the required payroll
forms. Further, we recommend that the Town resolve the issue regarding whether that position is salaried or hourly.
Agency’s Response:The Town has reimbursed the employee in the amount of $396.79 in overtime compensation
and has determined this position should be salaried. The proper documentation reflects this change. The finance
staff will conduct an internal audit of any position changes that have occurred since December 1, 2008.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 6 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
FS 2009-06 —Salary/Fringe Benefits Not Appropriately Authorized
Condition: Dur ing the course of the audit, we noted one instance where there was an increase in an employee’s
salary or fringe benefit without being properly supported by a personnel action notice. Also, the increase in the
employee’s salary/fringe benefit was not approved by someone above that employee’s position.
Criteria: Town policies require personnel action notices to be filled out and authorized by the appropriate personnel
prior to a change in salary or fringe benefits. At the very least, changes in salary or fringe benefits should be
authorized by a person above the respective employee’s position.
Effect: The Town is allowing unauthorized expenditures.
Cause: The increase in salary/fringe benefits was only authorized by an employee that is below the respective
employee’s position.
Auditors’ Recommendation: We recommend that the Town follow their policy requiring any changes in an
employee’s salary or fringe benefits to be supported by the personnel action notice with the appropriate authorization,
including at least one person who is above the respective employee’s position.
Agency’s Response: This increase in salary/fringe benefits was authorized by this employee’s superior; however, the
documentation is not reflective of such action. Moving forward, management will ensure proper adherence to their
policy regarding changes to an employee’s salary or fringe benefits.
FS 2009-07 Lodgers Tax
Condition: The required lodgers tax audit for the year ended June 30, 2008 has not been completed for the Town.
Criteria: The Lodgers Tax Act, Sections 3-38-13 through 3-38-24 NMSA, in conjunction with the Ordinance
imposing the local tax, Ordinance No. 627, Section 19-55 of the Town of Taos Municipal Code, as amended by
Ordinance 83-6, 91-6, 92-4 and 97-32 impose requirements for a yearly audit of the Town’s lodgers tax.
Effect: By the Town not enforcing their policy and following State Constitution the Town is potentially not collecting
funds that are due, which could be utilized for promoting and publicizing such facilities and tourist attractions.
Cause: The Town has not timely scheduled an audit of their lodgers tax for the year ended June 30, 2008.
Auditors’ Recommendation: We recommend that the Town schedule and ensure timely completion of the lodgers tax
audit for the year ended June 30, 2008.
Agency’s Response: The Finance Department acknowledges the oversight and will enter into a contract within sixty
(60) days of this response to remedy this finding. Finance staff will adopt a written policy establishing deadlines in
procuring, contracting and completing this process on a fiscal year basis.
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STATE OF NEW MEXICO Schedule VI
Town of Taos Page 7 of 7
Schedule of Findings and Questioned Costs
June 30, 2009
FINDINGS –FEDERAL AWARDS
FA 2009-01 –Davis Bacon
Federal program information:
Funding agency:Federal Aviation Administration
Title:Airport Improvement Program
CFDA number:20.106
Condition: The Town did not submit certified payroll or use Davis-Bacon wages in accordance with the U.S. Office
of Management and Budget (OMB) Circular A-133 Compliance Supplement.
Criteria: The Town is required to submit certified payroll and use Davis-Bacon wages in accordance with U.S.
Office of Management and Budget (OMB) Circular A-133.
Effect: Non-compliance with the reporting requirement of U.S. Office of Management and Budget (OMB) Circular
A-133 may affect the Town’s federal award future funding.
Cause:The Town was improperly informed by the State of New Mexico Department of Transportation that they
were not required to submit certified payroll or use Davis-Bacon wages.
Auditors’Recommendation: The Town must ensure that they follow the compliance supplements for all future
federal award funding.
Management’s Response:Management agrees with the auditors’ recommendation and will follow the compliance
supplements for all future federally awarded funding per the grant agreements. The Finance Department will also
create a checklist, which describes the proper steps/requirements to follow when receiving and processing grant
agreements.
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STATE OF NEW MEXICO
Town of Taos
Other Disclosures
June 30, 2009
OTHER DISCLOSURES
Exit Conference
An exit conference was held on November 16, 2009. In attendance were the following:
Representing the Town of Taos:
Darren Cordova Mayor
Daniel Miera Town Manager
Marietta Fambro Finance Director
Abigail Adame Assistant Town Manager
Representing Accounting & Consulting Group, LLP:
Jeff W. McWhorter, CPA Audit Director
Auditor Prepared Financial Statements
Although it would be preferred and desirable for the Town to prepare its own financial statements, the Town’s personnel
did not have the time to prepare them. Accounting & Consulting Group, LLP prepared the financial statements of the
Town of Taos from the original books and records provided to them by the management of the Town.Management is
responsible for the financial statements.
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