ALAMOSA — Independent auditor Wildrose Appraisal Inc. just released its report on the Alamosa County Assessor’s Office revealing no recommendations for improvement.

The annually required audit of work performed in the assessor’s office gave the office a clean bill of health on all areas included in the audit.

“I am proud of the results,” said Alamosa County Assessor Sandra Hostetter. “They show the hard work of the assessor and the staff to make sure that Alamosa County is abiding by the laws and procedures prescribed by the state of Colorado.”

She said this process is required every year, and auditors review the work of the assessor and her staff “to make sure we are consistently valuing all property in the county.”

The audit was the result of two analyses, a procedural audit and a statistical audit. The procedural audit examined all classes of property, specifically looking at how the assessor qualified sales, developed time adjustments and performed periodic physical property inspections.

The audit also reviewed the procedures for determining subdivision absorption and subdivision discounting and examined the valuation for residential properties and commercial properties. Procedures were also reviewed for producing mines, oil and gas leaseholds and lands producing, producing coal mines, producing earth and stone products, severed mineral interests and non?producing patented mining claims.

Statistical audits were performed on vacant land, residential properties, commercial/industrial properties and agricultural land. A statistical analysis was also performed for personal property compliance.

In the ratio analysis, all significant classes of properties were analyzed. Sales were collected in a random sampling for each property class over the appropriate sale period, which was typically defined as the 18-month period between January 1, 2015 and June 30, 2016. Auditors concluded from the sales ratios that Alamosa County is in compliance with the State Board of Equalization, Division of Property Taxation and State Statute and made no recommendations for improvement.

Regarding sold/unsold analysis, Alamosa County was tested for the equal treatment of sold and unsold properties to ensure that “sales chasing” had not occurred. The auditors employed a multi-step process to determine if sold and unsold properties were valued in a consistent manner. Auditors concluded that Alamosa County is reasonably treating its sold and unsold properties in the same manner and made no recommendations for improvement.

An analysis of the agricultural land data indicated an acceptable appraisal of this property type as well.  Directives, commodity prices and expenses provided by the property tax administrator were properly applied, auditors stated. County yields compared favorably to those published by Colorado Agricultural Statistics, the auditor added. Expenses used by the county were allowable expenses and were in an acceptable range. Grazing lands carrying capacities were also in an acceptable range. Auditors found that Alamosa County had substantially complied with the procedures provided by the Division of Property Taxation for the valuation of agricultural outbuildings and had no recommendations for improvement.

Regarding sales verification, Colorado Revised Statutes require assessors to use a representative body of sales when considering the market approach to appraisal. The auditors reviewed the sales verification procedures in 2018 for Alamosa County.  This study was conducted by checking selected sales from the master sales list for the current valuation period. They examined the manner in which sales had   been classified as qualified or unqualified, including a listing of each step in the sales   verification process, any adjustment procedures, and the county official responsible for making the final decision on qualification.

Auditors also reviewed with the assessor any analysis indicating that sales data was inadequate, failed to reflect typical properties, or had been disqualified for insufficient cause. In addition, the auditors reviewed the disqualified sales by assigned code. If there appeared to be any inconsistency in the coding, the   contractor conducted further analysis to determine if the sales included in that code have been assigned appropriately.

“Alamosa County appears to be doing a good job of verifying their sales,” Wildrose auditors stated. They agreed with the county’s reason for disqualifying each of the sales selected in the sample and made no recommendations or suggestions.

Regarding subdivision analysis, auditors stated, “Alamosa County has implemented proper procedures to adequately estimate absorption periods, discount rates, and lot values for qualifying subdivisions.” Again, the auditors had no recommendations for improvement.

Auditors reviewed the county’s procedures and adherence to guidelines regarding assessing and valuing agricultural and commercial possessory interest properties (private interests on government land, such as grazing leases) and found: “Alamosa County has implemented a discovery process to place possessory interest properties on the roll.  They have also correctly and consistently applied the correct procedures and valuation methods in the valuation of possessory interest properties.” Auditors had no recommendations for improvement.

Alamosa County was also audited for procedural compliance with the personal property assessment, which must comply with state requirements. The personal property audit standards narrative must be in place and current.  A listing of businesses that have been audited by the assessor within the 12-month period reflected in the plan is given to the auditor. The audited businesses must be in conformity with those described in the plan.

The auditor reviews about 25 percent of the personal property assessments each year, or roughly about 80.

“Alamosa County submitted their personal property written audit plan and was current for the 2018 valuation period,” the auditing firm stated. “The number and listing of businesses audited was also submitted and was in conformance with the written audit plan.”

Audit triggers used by the county to select accounts to be audited included: new businesses filing for the first time; non-filing accounts-best information available; and businesses that have not been audited for four years or more.

Auditors found that Alamosa County employed adequate discovery, classification, documentation, valuation, and auditing procedures for their personal property assessment and was in statistical compliance with State Board of Equalization requirements. No recommendations were made for improvement in this category either.

“We pass the audit every year with no recommendations ever,” Hostetter said. “We have never had a recommendation on any class of property. There’s never been a compliance issue.”

Caption: Alamosa County Assessor’s staff responsible for another clean audit are from left Ray WhiteBuffalo, Assessor Sandra Hostetter, Jean Christensen, Janice DeHerrera, Bette Arellano and Barry Lee. Not pictured is Barbara Meredith./Courier photo by Ruth Heide