Untitled Texas Attorney General Opinion ( 1961 )

Honorable F. T. Graham Opinion No. W-1200
Criminal District Attorney
Cameron County Re: Whether the County Auditor
Brownsville, Texas of Cameron County is required
to, audit and issue reports
on Improvement district
finances, and related
Dear Mr. Graham: questions.
You have requested an opinion from this office on
the following questions:
"1. Is the County Auditor of Cameron
County required to audit and issue reports
on improvement district finances?
"2. Are water Improvement districts and
water control and lmprovement districts author-
ized to select an independent auditor to audit
the books and issue reports on'the finances
o'f such Sndependent districts?
“3. If such water improvement districts
and water control and Improvement districts
are so authorized, does this fact relieve
the county auditor from making such audit
and issuing reports on,,the finances of such
improvement districts?
Article 1667, Vernon's Civil Statutes, provides in
part that:
"In all counties which have or may
have a County Auditor and containing a
population of one hundred ten thousand
(110,000) or more . . . and in which
counties there exists or in which there
may be created any improvement, naviga-
tion, drainage, or road or irrigation
district, or any other character of
district having for its purpose the
expenditure of public funds for improve-
ment purposes, or for improvements of
Honorable F. T. Graham, page 2 (WW-1200)
any kind whether derived from the Issuance
of bonds or through any character of
spaclal assessment, the County Auditor shall
exercise such control over the finances of
said district as hereinafter provided.
Article 1671, Vernon’s Civil Statutes, provides In
part that:
“The county auditor shall check ‘all
reports required by law to be filed by any
district,officer, and within thirty days
after the filing thereof shall make a
detailed report to the commissioners court
showing his finding thereon and the con-
dition of such district as shown by said
report, and as shown by the records of his
office. . . .‘I
Article 1672, Vernon’s Civil Statutes, provides In
part that:
‘The county auditor shall receive for hls
services In auditing the affairs of such dls-
tricts, such compensatlon,,as the commissioners
court may prescribe . . .
Since the population of Cameron County Is In excess
of one hundred ten thousand (llO,OOO), and In turn does not
fall within the o ulatlon brackets set forth in Articles
1676a, 1676b or 882 O-1, Vernon’s Civil Statutes, the County
Auditor of Cameron County would be re uired to perform those
duties set forth In Articles 1667, 16 %8, 1669 and 1671,
Vernon’s Civil Statutes, and specifically the auditing and
Issuing of reports on Improvement district finances, unless
relieved of suoh duties by statutory enactment.
Articles 7622-7807n, Vernon’s Civil Statutes, deal
with Water Improvemant Districts , and Article 7761 thereof pro-
vides In part that:
The’dlrectors shall have kept
a compieie’book of accounts,for such district,
and shall~ on September first of each year
select a competent auditor who shall sxamlne
~the accounts, books and reports of the deposi-
tory,, the assessorand collector and the dlrect-
ors, .and make a full report thereon, a copy
oft which shall be filed with the depository
and a,copy with, the directors and one with
.
Honorable F. T. Graham, page 3 (WW-1200)
the county clerk of the county or'counties
in which such district is situated. . . .'
Articles 7880-1-7880-147~6, Vernon's Civil Statutes,
deal with Water Control and Improvement Districts, and Article
7880-45 thereof provides that:
“A complete system of accounts shall
be kept by the district and any district
so electing, In lieu of having audit of
&& affairs by on@ or more County Auditors,
may provide for either monthly, quarterly
or semi-annual audit of its affairs by
an Independent public accountant of
recognized integrity and ability, and the
audits shall conform to January 1st as the
end of the fiscal year for the district;
and, any district failing to procure audits
in January and July of each year shall be
subject to audit, and payment of the actual
cost of such audit, for the omitted period,
by the county auditor of the county in which
the district's principal office is situated,
the cost of such audit to be determined by
the Commissioners Court of the particular
county and paid by the district. Each
report of audit shall be In duplicate, one
of which shall be filed in the district's
office and one filed in the office of the
auditor, where they shall constitute pub-
lic records, open to inspection by any
interested person."
The provisions of both Article 7761 and Article 7880-
45, clearly indicate that it is within the authority of either
a Water Improvement District or a Water Control and Improve-
ment District to select an independent auditor to audit the
books of and issue reports on the finances of such districts.
This, then, raises the third question of whether
or not the County Auditor is relieved from making the audit
and issuing reports on the finances of a Water Improvement
District or a Water Control and Improvement District when such
a district has selected an independent auditor to audit the
books of and issue reports on the finances of such district.
Insofar as Water Control and Improvement Districts
are concerned Article 7880-45 affords an alternative to the
district as to the auditing of the books of the district and
the Issuing of reports as to the finances of the district.
Honorable F. T. Graham, page li (WW-1200)
If the district so elects, It may '. . . in lieu of having
audit of its affairs by one or more County Auditors, provide
for . . . audit of its affairs by an independent public
accountant . . .' In the event such election is not made,
Article 7880-45 provides for the auditing of the books of
the district and the issuing of the reports on the finances
of the district by the County Auditor. Consequently, we are
of the opinion that if a Water Control and Improvement District
electsto select an independent auditor, and if such audit
and reports are made, the County Auditor would be relieved
from the responsibilities of auditing the books of and issuing
reports on the finances of the district.
However, insofar as Water Improvement Districts are
concerned, the decision in the case of Skelton v. Cameron
County Water Control & Improvement Dist. No. 5, 49 S.W.2d
510 (Civ.Anc. 1912. error dism'd.) is Pertinent. While this
case dealt with a Water Control and Improvement District,
rather than a Water Improvement District, the language of
Article 7880-45 at the time of the decision in this case Is
important, and it is set forth as follows:
"A complete book of accounts shall be
kept. During the first week of each year
a competent auditor shall be employed who
shall examine the account books and records
of the district, of the depository and of
the tax assessor and collector and make a
report thereon. Said report shall be in
triplicate, one copy being filed in the
office of the district, one with the deposi-
tory of the district, and one copy In the
office of the auditor, all of,,which shall
be open to public inspection.
As can be readily seen, the provisions of Article
7880-45 at the time of the decision in Skelton v. Cameron
County Water Control & Improvement Dist. No. 5, supra,
were almost identical to those provisions presently found
in Article 7761, which pertain to Water Improvement Districts.
Consequently, it is logical to assume the courts would
follow the reasoning and result reached in Skelton v. Cameron
County Water Control & Improvement Dist. No. 5, supra. This
case arose as a result of the Water Control and Improvement
District obtaining an injunction against the County Auditor
whereby he was restrained from interfering with or taking any
action in regard to the district or its board of directors.
On appeal the judgment of the trial court was reversed, the
injunction against the County Auditor dissolved, and the
cause dismissed. The Court of Civil Appeals in its opinion
stated:
Honorable F. T. Graham, page 5 (WW-1200)
"Article 1667 specifically and fully
grants the powers of the county auditor
in the exercise of which he was restrained."
As a result of the decision in Skelton v. Cameron
County Water Control and Imorovement Dist. No. C,, wQ5ye
similarity of the provisions contained in Article 7
at the time of the decision in the foregoing case and the
present provisions of Article 7761, we must therefore con-
clude that the selection of an independent auditor by a
Water Improvement District does not relieve the County
Auditor from making audits and issuing reports on the finances
of Water Improvement Districts.
SUMMARY
1. The County Auditor of Cameron County
is required to audit and issue reports
on those improvement districts set forth
in Article 1667 unless relieved by other
statutory enactment.
2. Water Improvement Districts and Water
Control and Improvement Districts are
authorized to select an independent auditor
to audit the books and issue reports on the
finances of such districts.
3. If a Water Control and Improvement
District elects to select an independent
auditor to audit the books of and issue
reports on the finances of such district,
and such audit and issuance of reports
is made, the County Auditor would be
relieved from making such audit and issuing
such reports.
The selection of an independent auditor by
a Water Improvement District does not
relieve the County Auditor from auditing
the books of or issuing reports on the
finances of such district.
Yours very truly,
WILL WILSON
Attorney General of Texas
PB:ds:lgh
Honorable F. T. Graham, page 6 (WW-1200)
APPROVED:
OPINION COMMITTEE
W. V. Geppert, Chairman
W. 0. Shultz, II
Leslie King
James H. Broadhurst
Elmer McVey
REVIEWEDFOR THE ATTORNEY GENERAL
BY: Houghton Brownlee, Jr.