The Fort Bend Subsidence District conducts its financial business using the governmental fund system. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. Fort Bend Subsidence District, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the District are governmental funds. The District has no proprietary funds.
Budgets and Annual Financial Audits
The Fort Bend Subsidence District is required to adopt an annual budget before the commencement of a new fiscal year, which begins on January 1st and ends on the following December 31st as well as complete a timely audit of the Districts Finances for the preceding fiscal year. The budget development schedule is generally a six-month process from June through November and includes the following steps: goal setting, formulation of section budgets, review of proposed budget by General Manager, Finance Committee review of proposed budget, final board review and adoption, monthly budget review and amendments (as necessary).
Operating Budget
The District operating budget supports three programmatic areas: General Operations, Water Conservation, and Science & Research. The General Fund receives revenue from the assessment of groundwater use permits and application fees and supports the day-to-day operations of the District. The Water Conservation Program includes two primary efforts including an elementary school water conservation education program, The Water Detectives, and an outdoor water use water conservation program Water My Yard in cooperation with the Texas A&M Agrilife Extension. The Water Conservation Program is funded entirely through sponsorships. The Science & Research program is supported by revenues generated through the District’s Disincentive Permit Fee and the General Fund, as needed. District Science & Research is guided by the District’s Science and Research Strategic Plan. Current fee schedule can be found within the most recently approved operating budget.
Independent Audit
Annually, the District engages an independent firm to complete a comprehensive audit of the District annual financial report. The audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The auditor considers the internal controls of the District and the fair presentation of the financial statement in the design of the audit procedures. The audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
Conflict of interest disclosure requirements
Pursuant to chapter 176 of the Local Government Code, any person or agent of a person who contracts or seeks to contract for the sale or purchase of property, goods, or services with a local government entity (i.e., Fort Bend Subsidence District) must disclose in the Questionnaire Form CIQ (“Questionnaire”) the person’s affiliation or business relationship that might cause a conflict of interest with the local government entity. By law, the questionnaire must be filed with the Fort Bend Subsidence District Records Retention Officer no later than seven days after the date the person begins contract discussions or negotiations with the Fort Bend Subsidence District, or submits an application or response to a request for proposal or bids, correspondence, or another writing related to a potential agreement with the Fort Bend Subsidence District. Updated questionnaires must be filed in conformance with Chapter 176. The Conflict of Interest Questionnaire (CIQ) can be downloaded by visiting the Texas Ethics Commission website. Mail the completed CIQ to: Fort Bend Subsidence District P.O. Box 427 Richmond, Texas, 77469-0427 Please consult your own legal counsel if you have any questions about compliance requirements. Compliance is the individual responsibility of each person or agent of a person who is subject to the filing requirement. An offense under Chapter 176 is a Class C misdemeanor. The following conflict of interest questionnaires have been received: Intera, Inc. (CIQ form) Klotz Associates, Inc. (CIQ form)
Implementation of House Bill 1295
Certificate of Interested Parties (Form 1295): In 2015, the Texas Legislature adopted House Bill 1295, which added section 2252.908 of the Government Code. The law states that a governmental entity or state agency (i.e. Fort Bend Subsidence District) may not enter into certain contracts with a business entity unless the business entity submits a disclosure of interested parties to the governmental entity or state agency at the time the business entity submits the signed contract to the governmental entity or state agency. The law applies only to a contract of a governmental entity or state agency that either (1) requires an action or vote by the governing body of the entity or agency before the contract may be signed or (2) has a value of at least $1 million. The disclosure requirement applies to a contract entered into on or after January 1, 2016. The Texas Ethics Commission was required to adopt rules necessary to implement that law, prescribe the disclosure of interested parties form, and post a copy of the form on the commissions website. The commission adopted the Certificate of Interested Parties form (Form 1295) on October 5, 2015. The commission also adopted new rules (Chapter 46) on November 30, 2015, to implement the law. The commission does not have any additional authority to enforce or interpret House Bill 1295. Filing Process: Staring on January 1, 2016, the commission will make available on its website a new filing application that must be used to file Form 1295. A business entity must use the application to enter the required information on Form 1295 and print a copy of the completed form, which will include a certification of filing that will contain a unique certification number. An authorized agent of the business entity must sign the printed copy of the form and have the form notarized. The completed Form 1295 with the certification of filing must be filed with the governmental body or state agency with which the business entity is entering into the contract. The governmental entity or state agency must notify the commission, using the commissions filing application, of the receipt of the filed Form 1295 with the certification of filing not later than the 30th day after the date the contract binds all parties to the contract. The commission will post the completed Form 1295 to its website within seven business days after receiving notice from the governmental entity or state agency. Information regarding how to use the filing application will be available on this site starting on January 1, 2016. Additional Information: HB 1295 Certificate of Interested Parties Chapter 46 Ethics Commission Rules