2012 CAFR - Encina Wastewater Authority

INDEPENDENT AUDITORS' REPORTBoard of DirectorsEncina Wastewater AuthorityCarlsbad, CaliforniaWe have audited the accompanying basic financial statements of Encina Wastewater Authority as of and for theyear ended June 30, 2012, as listed in the table of contents. These basic financial statements are theresponsibility of the Encina Wastewater Authority’s management. Our responsibility is to express an opinion onthese financial statements based on our audit. The financial statements of Encina Wastewater Authority as ofJune 30, 2011, were audited by other auditors whose report dated January 25, 2012, expressed an unqualifiedopinion on those statements.We conducted our audit in accordance with auditing standards generally accepted in the United States ofAmerica, the State Controller’s Minimum Audit Requirements for California Special Districts, and the standardsapplicable to financial audits contained in Government Auditing Standards, issued by the Comptroller Generalof the United States. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free of material misstatement. An audit includes consideration ofinternal control over financial reporting as a basis for designing audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internalcontrol over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on atest basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includesassessing the accounting principles used and significant estimates made by management, as well as evaluatingthe overall financial statement presentation. We believe that our audit provides a reasonable basis for ouropinion.In our opinion, the basic financial statements referred to above present fairly, in all material respects, thefinancial position of the Encina Wastewater Authority as of June 30, 2012, and the respective changes infinancial position and cash flows for the year then ended in conformity with accounting principles generallyaccepted in the United States of America.In accordance with Government Auditing Standards, we have also issued our report dated March 5, 2013 on ourconsideration of the Authority’s internal control over financial reporting and our tests of its compliance withcertain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that reportis to describe the scope of our testing of internal control over financial reporting and compliance and the resultsof 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 andshould be considered in assessing the results of our audit.122965 Roosevelt Street, Carlsbad, CA 92008-2389 • Tel: 760.729.2343 • Fax: 760.729.2234Offices located in Orange and San Diego Counties