Stephens County Appraisal District
Appraisal Standards Review Follow Up Report
January 15, 2008
Mr. C.O. Thompson Jr., Board Chairman
Ms. Sherry Duggan, Chief Appraiser
Stephens County Appraisal District
P.O. Box 351
Breckenridge, Texas 76424-0351
Dear Chairman Thompson and Chief Appraiser Duggan:
This letter constitutes the Comptroller's follow-up review of the Appraisal Standards Review (ASR) of Stephens County Appraisal District (Stephens CAD) originally released in August 2006. We commend the cooperation of Stephens CAD's board, chief appraiser and staff in conducting this follow-up review.
CADs play an integral part in setting property values because they have the statutory responsibility for determining local property values, which in turn affect funding to public schools.
The ASR made nine recommendations to help Stephens CAD achieve accurate local value in the annual Property Value Study and improve operations. The Comptroller acknowledges the work Stephens CAD has performed over the last year. The CAD has completed recommendations 1, 2, 4, 5, 6, 7, 8, 9, 10 and 11. These completed recommendations have assisted the CAD in improving its staffing, management and appraisal practices.
We reviewed the implementation of the remaining recommendation, and, while work is in progress, Stephens CAD has not fully implemented recommendation 3. Enclosed is more detail on what the CAD still needs to do.
The Comptroller's office will continue to monitor CAD operations and require quarterly reports until the CAD has implemented all recommendations. Stephens CAD must implement the recommendations within one year.
This letter is available on our Window on State Government Web site at www.window.state.tx.us/taxinfo/proptax/cadreports/asr/stephens01/.
I hope this information is helpful. Please let us know if we can be of any further assistance.
Sincerely,
Susan Combs
Enclosure
Superintendent and Board of Trustees, Breckenridge Independent School District
Stephens CAD Board of Directors
Stephens County Appraisal District Appraisal Standards Review Follow-Up Report
What Remains to Be Done
The Comptroller's office will continue to monitor Stephens CAD's progress toward meeting the state's legal requirements. The following outlines specific steps the CAD still needs to take.
RECOMMENDATION 3:
Obligate existing surplus funds in the budget, either at the beginning of the year or via budget amendment, for specific purposes.
On April 4, 2007, the CAD's independent auditor released the 2006 audit report. The report showed the CAD ended fiscal 2006 with an unreserved fund balance of $28,654.
Unreserved fund balances are funds the CAD retains without obligating them for a specific purpose. According to Property Tax Code Section 6.06(j), appraisal districts must proportionately credit all unobligated surplus monies back to the taxing entities. If an appraisal district retains unreserved surplus funds, it must obligate them in the budget with the approval of each taxing entity.
In order to comply with this statute, the CAD must provide documentation of an amended budget by Dec. 31, 2008, that reflects the proportionate credit of the CAD's unobligated surplus back to the taxing entities or a line item showing how the surplus amount is obligated. In the latter alternative, the CAD must provide written documentation from each taxing unit directing the CAD to retain and obligate its pro rata share of the annual budget surplus.