WOEC Current-News and Notes From the Co-op: Audit Report

We are pleased to report that, as we have for at least the past 10 years, WOEC received a clean opinion from an independent auditor which is the highest rating given.  At its regular Board of Directors meeting held on Tuesday, March 19th, the board and management staff was presented with the annual audit report by Kenneth Kuhns of Kenneth Kuhns & CO. of Salem, Oregon.  The board, staff, and members present each had an opportunity to ask questions of the auditor.  As is normal procedure, the board held an executive session without staff to give them an opportunity to ask any questions of the auditor regarding any staff issues or concerns during the audit, and staff conforming to policies and procedures.  I would like to share with you several of the comments and sections of the Auditors Report and Management Letter.  We will be putting the audit report on our website during the month of April for all members to view in its entirety. “The financial records of West Oregon Electric Cooperative, Inc. are maintained substantially in accordance with the Uniform System of Accounts prescribed by the Rural Utilities Service (RUS), United States Department of Agriculture.”

“In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of West Oregon Electric Cooperative, Inc. as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.”

“As part of obtaining reasonable assurance about whether West Oregon Electric Cooperative, Inc.’s consolidated financial statements are free from 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 consolidated financial statement amounts.”

“The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.”

“We noted no matters involving West Oregon Electric Cooperative, Inc’s internal control over financial reporting and its operation that we consider to be material weaknesses as previously defined with respect to:

•  The accounting procedures and records;

•  The process for accumulating and recording labor, material and overhead costs, and the distribution of these costs to construction, retirement, and maintenance or other expense accounts; and

•  The materials control.”

I appreciate all efforts of staff and management for their excellent work to obtain a clean audit.