2020 Dry Pea And Lentil Council - ND Portal
CLIENT CODE 123
KEY PERSONNELState Auditor’s Office StaffDustin Walcker, Audit ManagerBreck Hendrickson, Lead AuditorAlandra Kist, CFE, Auditor
ContentsIndependent Auditor’s Report1Financial Statement3Comparative Statement of Revenues and Expenditures3Notes to the Financial Statement4Exhibits6Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and OtherMatters Based on an Audit of a Financial Statement Performed in Accordance with Government AuditingStandards6Responses to LAFRC Audit Questions8LAFRC Audit Communications9Governance Communication10
Independent Auditor’s ReportMembers of the Legislative AssemblyMembers of the North Dakota Dry Pea and Lentil CouncilMr. Kim Saueressig, Chairman, North Dakota Dry Pea and Lentil CouncilReport on the Financial StatementWe have audited the accompanying Comparative Statement of Revenues and Expenditures ofthe North Dakota Dry Pea and Lentil Council Fund, for the two years ended June 30, 2020 andthe related notes as listed in the table of contents.Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of this financial statement inaccordance with accounting principles generally accepted in the United States of America; thisincludes the design, implementation, and maintenance of internal control relevant to thepreparation and fair presentation of the financial statement that is free from material misstatement,whether due to fraud or error.Auditor’s ResponsibilityOur responsibility is to express an opinion on the financial statement based on our audit. Weconducted our audit in accordance with auditing standards generally accepted in the UnitedStates of America and the standards applicable to financial audits contained in GovernmentAuditing Standards, issued by the Comptroller General of the United States. Those standardsrequire that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statement is free from material misstatement.An audit involves performing procedures to obtain audit evidence about the amounts anddisclosures in the financial statement. The procedures selected depend on the auditor’sjudgment, including the assessment of the risks of material misstatement of the financialstatements, whether due to fraud or error. In making those risk assessments, the auditorconsiders internal control relevant to the entity’s preparation and fair presentation of the financialstatement in order to design audit procedures that are appropriate in the circumstances, but notfor the purpose of expressing an opinion on the effectiveness of the entity’s internal control.Accordingly, we express no such opinion. An audit also includes evaluating the appropriatenessNorth Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20201
of accounting policies used and the reasonableness of significant accounting estimates made bymanagement, as well as evaluating the overall presentation of the financial statement.We believe that the audit evidence we have obtained is sufficient and appropriate to provide abasis for our audit opinion.OpinionIn our opinion, the financial statement referred to above presents fairly, in all material respects,the revenues and expenditures of the North Dakota Dry Pea and Lentil Council Fund, for the twoyears ended June 30, 2020, in accordance with accounting principles generally accepted in theUnited States of America.Emphasis of MattersAs discussed in Note 1, the financial statement presents only the North Dakota Dry Pea and LentilCouncil Fund’s revenues and expenditures, and does not purport to, and does not present fairlythe financial position of the state of North Dakota as of June 30, 2020 or 2019, for the years thenended in accordance with accounting principles generally accepted in the United States ofAmerica. Our opinion is not modified with respect to this matter.As discussed in Note 1, the financial statement is presented and audited in accordance with NorthDakota Century Code 4.1-44-04. This financial statement is not intended to be a completepresentation of the North Dakota Dry Pea and Lentil Council Fund’s assets and liabilities. Ouropinion is not modified with respect to this matter.Other Reporting Required by Government Auditing StandardsIn accordance with Government Auditing Standards, we have also issued our report datedOctober 19, 2020 on our consideration of the North Dakota Dry Pea and Lentil Council’s internalcontrol over financial reporting and on our tests of its compliance with certain provisions of laws,regulations, contracts, and grant agreements and other matters. The purpose of that report is todescribe the scope of our testing of internal control over financial reporting and compliance andthe results of that testing, and not to provide an opinion on internal control over financial reportingor on compliance. That report is an integral part of an audit performed in accordance withGovernment Auditing Standards in considering the North Dakota Dry Pea and Lentil Council’sinternal control over financial reporting and compliance./S/Joshua C. GallionState AuditorBismarck, North DakotaOctober 19, 2020North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20202
Financial StatementComparative Statement of Revenues and ExpendituresNorth Dakota Dry Pea and Lentil CouncilFor the Years Ended June 30, 2020 and 2019REVENUES:Gross Assessment RevenueLess:RefundsAssessment Revenue Remitted to Other StatesNet Assessment RevenuesMiscellanious RevenuesInterest IncomeTotal RevenuesEXPENDITURES:Grants to AssociationsOperating FeesSalaries and BenefitsLegal/Audit ServicesTravelPostagePrintingMisc. ExpendituresTotal ExpendituresRevenue Over/(Under) ExpendituresJune 30, 2020 1,489,468 (92,587)(191,029)1,205,852 4,6186,5521,217,022 June 30, 20191,198,589 (59,263)(99,895)1,039,431 6,0541,045,485 903,000193,8563,4221,2241,1861,0031901691,104,050 112,972 244,976)See Notes to the Financial Statement.North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20203
Notes to the Financial StatementNOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESThe responsibility for the financial statement, the internal control structure, and compliance withlaws and regulations belongs to management of the North Dakota Dry Pea and Lentil Council. Asummary of the significant accounting policies follows:A. Reporting EntityFor financial reporting purposes, the North Dakota Dry Pea and Lentil Council includes allfunds, programs, and activities over which it is financially accountable. The North Dakota DryPea and Lentil Council does not have any component units as defined by the GovernmentAccounting Standards Board. The North Dakota Dry Pea and Lentil Council is part of thestate of North Dakota as a reporting entity.The North Dakota Dry Pea and Lentil Council was established by North Dakota Century Code,section 4.1-07, and is responsible for funding research, education programs, and marketdevelopment efforts. The North Dakota Dry Pea and Lentil Council may participate inprograms under the auspices of the United States Dry Pea and Lentil Council. In addition, theNorth Dakota Dry Pea and Lentil Council shall develop and disseminate information regardingthe purpose of the dry pea and lentil assessment and ways in which the assessment benefitsdry pea and lentil producers. The North Dakota Dry Pea and Lentil Council receives its fundingthrough an assessment of 1% of the net value of dry peas and lentils grown in the state orsold to a first purchaser. The North Dakota Dry Pea and Lentil Council operates on acontinuing appropriation and received no funding from the State Legislature.B. Reporting StructureThe financial statement includes all activities of the reporting entity as defined above. Theseactivities are funded from the North Dakota Dry Pea and Lentil Council’s operating fund.C. Basis of PresentationNorth Dakota Century Code section 4.1-44-04 requires certain commodity promotion groupsto prepare a report for the legislative assembly. As part of this report the applicable commoditygroups are required to prepare a single-page uniform statement of revenues andexpenditures.Revenues and expenditures on the comparative statement of revenues and expenditures arereported on the modified accrual basis of accounting which is generally accepted accountingprinciples (GAAP) for governmental fund types.Under the modified accrual basis of accounting, revenues are recognized when susceptibleto accrual (i.e. measurable and available). Measurable means the amount can be determined,available means due and collectible within the current period or soon enough thereafter to beused to pay liabilities of the current period. Revenues are considered available if they arecollected within a year after fiscal year end. Expenditures are recorded when goods orNorth Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20204
services are received. Exceptions include: principal and interest expenditures which arerecorded when due and compensated absences which are recorded when paid.D. GAAP Reporting DifferencesGAAP financial statements would include a balance sheet. GAAP financial statements wouldalso provide additional note disclosures.NOTE 2 – RELATED PARTIESThe North Dakota Dry Pea and Lentil Council contracts with Northern Pulse GrowersAssociation and the USA Dry Pea and Lentil Council to implement and administer programsintended to contribute to the betterment of the North Dakota dry pea and lentil industry. Suchprograms include, but are not limited to: research, education, publicity, promotion, andtransportation. The Northern Pulse Growers Association also provides the North Dakota DryPea and Lentil Council with administrative, financial, and reporting services. Payments underthe contracts with Northern Pulse Growers Association and with USA Dry Pea and LentilCouncil for the two-year period ended June 30, 2020 were 1,256,859.08 and 825,617.91respectively.NOTE 3 – OTHER SIGNIFICANT ITEMSThe Council has cash and investment reserves of 1,130,033 and 908,311 as of June 30,2020, and June 30, 2019, respectively. Based on the average monthly expenditures for fiscalyear 2020 and 2019, this amount represents approximately 12.3 and 8.4 months ofexpenditures, respectively.North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20205
ExhibitsIndependent Auditor’s Report on Internal Control over FinancialReporting and on Compliance and Other Matters Based on anAudit of a Financial Statement Performed in Accordance withGovernment Auditing StandardsMembers of the Legislative AssemblyMembers of the North Dakota Dry Pea and Lentil CouncilMr. Kim Saueressig, Chairman, North Dakota Dry Pea and Lentil CouncilWe have audited, in accordance with auditing standards generally accepted in the United Statesof America and the standards applicable to financial audits contained in Government AuditingStandards issued by the Comptroller General of the United States, the financial statement of theNorth Dakota Dry Pea and Lentil Council, for the two-year period ended June 30, 2020, and therelated notes to the financial statement and have issued our report thereon dated October 19,2020.Internal Control over Financial ReportingIn planning and performing our audit of the financial statements, we considered North Dakota DryPea and Lentil Council's internal control over financial reporting (internal control) to determine theaudit procedures that are appropriate in the circumstances for the purpose of expressing ouropinion on the financial statement, but not for the purpose of expressing an opinion on theeffectiveness of North Dakota Dry Pea and Lentil Council’s internal control. Accordingly, we donot express an opinion on the effectiveness of North Dakota Dry Pea and Lentil Council’s internalcontrol.A deficiency in internal control exists when the design or operation of a control does not allowmanagement or employees, in the normal course of performing their assigned functions, toprevent, or detect and correct, misstatements on a timely basis. A material weakness is adeficiency, or a combination of deficiencies, in internal control, such that there is a reasonablepossibility that a material misstatement of the entity’s financial statements will not be prevented,or detected and corrected on a timely basis. A significant deficiency is a deficiency, or acombination of deficiencies, in internal control that is less severe than a material weakness, yetimportant enough to merit attention by those charged with governance.North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20206
Our consideration of internal control was for the limited purpose described in the first paragraphof this section and was not designed to identify all deficiencies in internal control that might bematerial weaknesses or significant deficiencies. Given these limitations, during our audit we didnot identify any deficiencies in internal control that we consider to be material weaknesses.However, material weaknesses may exist that have not been identified.Compliance and Other MattersAs part of obtaining reasonable assurance about whether the North Dakota Dry Pea and LentilCouncil’s financial statement is free of material misstatement, we performed tests of itscompliance with certain provisions of laws, regulations, contracts, and grant agreements,noncompliance with which could have a direct and material effect on the determination of financialstatement amounts. However, providing an opinion on compliance with those provisions was notan objective of our audit, and accordingly, we do not express such an opinion. The results of ourtests disclosed no instances of noncompliance or other matters that are required to be reportedunder Government Auditing Standards.Purpose of this ReportThe purpose of this report is solely to describe the scope of our testing of internal control andcompliance and the results of that testing, and not to provide an opinion on the effectiveness ofthe entity’s internal control or on compliance. This report is an integral part of an audit performedin accordance with Government Auditing Standards in considering the entity’s internal control andcompliance. Accordingly, this communication is not suitable for any other purpose./S/Joshua C. GallionState AuditorBismarck, North DakotaOctober 19, 2020North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20207
Responses to LAFRC Audit QuestionsThe Legislative Audit and Fiscal Review Committee (LAFRC) requests that certain items beaddressed by auditors performing audits of state agencies.1. What type of opinion was issued on the financial statement?Unmodified.2. Was there compliance with statutes, laws, rules, and regulations under which the agency wascreated and is functioning?Yes.3. Was internal control adequate and functioning effectively?Yes.4. Were there any indications of lack of efficiency in financial operations and management of theagency?No.5. Has action been taken on findings and recommendations included in prior audit reports?There were no recommendations in the prior audit report.6. Was a management letter issued? If so, provide a summary below, including anyrecommendations and the management responses.No.North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20208
LAFRC Audit Communications1. Identify any significant changes in accounting policies, any management conflicts of interest,any contingent liabilities, or any significant unusual transactions.None noted.2. Identify any significant accounting estimates, the process used by management to formulatethe accounting estimates, and the basis for the auditor’s conclusions regarding thereasonableness of those estimates.None noted.3. Identify any significant audit adjustments.None.4. Identify any disagreements with management, whether or not resolved to the auditor’ssatisfaction relating to a financial accounting, reporting, or auditing matter that could besignificant to the financial statement.None.5. Identify any serious difficulties encountered in performing the audit.None.6. Identify any major issues discussed with management prior to retention.This is not applicable for audits conducted by the Office of the State Auditor.7. Identify any management consultations with other accountants about auditing and accountingmatters.None.8. Identify any high-risk information technology systems critical to operations based on theauditor’s overall assessment of the importance of the system to the agency and its mission,or whether any exceptions identified in the six audit report questions to be addressed by theauditors are directly related to the operations of an information technology system.ConnectND Finance is the most high-risk information technology system critical to the NorthDakota Dry Pea and Lentil Council.North Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 20209
Governance CommunicationOctober 19, 2020To:The North Dakota Dry Pea and Lentil CouncilThe Legislative Audit and Fiscal Review CommitteeWe have audited the financial statement of the North Dakota Dry Pea and Lentil Council for thetwo-years ended June 30, 2020 and have issued our report thereon dated October 19, 2020.Professional standards require that we provide you with information about our responsibilitiesunder generally accepted auditing standards and Government Auditing Standards, as well ascertain information related to the planned scope and timing of our audit. We have communicatedsuch information in our letter to you dated August 27, 2020. Professional standards also requirethat we communicate to you the following information related to our audit.Significant Audit FindingsQualitative Aspects of Accounting PracticesManagement is responsible for the selection and use of appropriate accounting policies. Thesignificant accounting policies used by the North Dakota Dry Pea and Lentil Council are describedin Note 1 to the financial statements. No new accounting policies were adopted, and theapplication of existing policies was not changed during the two-year period. We noted notransactions entered into by the governmental unit during the year for which there is a lack ofauthoritative guidance or consensus. There are no significant transactions that have beenrecognized in the financial statements in a different period than when the transaction occurred.Difficulties Encountered in Performing the AuditWe encountered no significant difficulties in dealing with management in performing andcompleting our audit.Corrected and Uncorrected MisstatementsProfessional standards require us to accumulate all known and likely misstatements identifiedduring the audit, other than those that are trivial, and communicate them to the appropriate levelof management. There were no corrected or uncorrected misstatements noted in the audit.Disagreements with ManagementFor purposes of this letter, professional standards define a disagreement with management as afinancial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, thatcould be significant to the financial statements or the auditor’s report. We are pleased to reportthat no such disagreements arose during the course of our audit.Management RepresentationsNorth Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 202010
We have requested certain representations from management that are included in themanagement representation letter dated October 19, 2020.Management Consultations with Other Independent AccountantsIn some cases, management may decide to consult with other accountants about auditing andaccounting matters, similar to obtaining a “second opinion” on certain situations. If a consultationinvolves application of an accounting principle to the governmental unit’s financial statements ora determination of the type of auditor’s opinion that may be expressed on those statements, ourprofessional standards require the consulting accountant to check with us to determine that theconsultant has all the relevant facts. To our knowledge, there were no such consultations withother accountants.Other Audit Findings or IssuesWe generally discuss a variety of matters, including the application of accounting principles andauditing standards, with management each year prior to retention as the governmental unit’sauditors. However, these discussions occurred in the normal course of our professionalrelationship and our responses were not a condition to our retention.This information is intended solely for the use of the North Dakota Dry Pea and Lentil Council,management of the North Dakota Dry Pea and Lentil Council, and the Legislative Audit and FiscalReview Committee, and is not intended to be and should not be used by anyone other than thesespecified parties.Respectfully,Dustin WalckerAudit ManagerNorth Dakota Dry Pea and Lentil CouncilAudit Report for the Two-Year Period Ended June 30, 202011
The North Dakota Dry Pea and Lentil Council was established by North Dakota Century Code, section 4.107, and - is responsible for funding research, education programs, and market development efforts. The North Dakota Dry Pea and Lentil Council may participate in programs under the auspices of the United States Dry Pea and Lentil Council.
The USA Dry Pea & Lentil Council the USa Dry pea and lentil council represents everyone involved in the production and marketing of USa peas, lentils and chickpeas. our members are engaged in growing, processing, exporting, broker-ing, warehousing, and related activities. the council began in 1965, when the pea and lentil commissions for the .
USA Dry Pea and Lentil Council 2780 W. Pullman Road Moscow, ID 83843 (208) 882-3023 pulse@pea-lentil.com; www.pea-lentil.com Northern Pulse Growers Association 1710 Burnt Boat Drive Bismarck, ND 58503 (701) 222-0128 info@northernpulse.com www.northernpulse.com Kurt Braunwart and Mike Wood ProGene 860 S. Crestline Othello, WA, 99344
3 USA Dry Pea, Lentil & Chickpea Production, USA DRY PEA & LENTIL COUNCIL . 2 The production pattern for dry peas is like that of lentils. For example, 54% of the 2014 dry pea production took place in the Northwest Agricultural District of North Dakota.4 Another 20% of the
US Dry Bean Council . USA Dry Pea & Lentil Council . FAS Ankara . Seminars Two GBI seminars were organized: one in Antalya on November 3, 2009, and the other in Istanbul on November 5, 2009. The seminars werebacked and co- sponsored by Turkish trade
Dry Pea and Lentil Council Since 1965, the USA Dry Pea and Lentil Council (USADPLC) has become the catalyst for the development of the pulse industry. The Council represents multiple grower and industry organizations in the entire production, marketing, and end-use applications for dry peas, lentils, and chickpeas. The members, that create the
pea green manure, Austrian winter pea harvested, summer fallow and spring barley in northern Idaho (Table 1). They found the agronomic benefit of Austrian winter pea harvested was similar to Austrian winter pea green manure, but the economic benefit of Austrian winter pea harvested was greater because it could be sold as a crop.
Lentil production began in the Palouse in 1916, dry pea production in the 1920s, and chickpea production in 1981. The region offered excellent growing conditions and a growing season with annual rainfall of 15 inches to 24 inches (400 mm to 600 mm), most of which fell in the fall and winter months. More recently, the Northern Plains regionFile Size: 1MBPage Count: 14
The dynamics of group size is an important component of group work. A small group is often considered to consist of three or more people (Beebe & Masterson, 2003). Groups of two are called dyads and are not encouraged for group work because there are not a sufficient number of individuals to generate creativity and a diversity of ideas (Csernica et al., 2002). In general, it is suggested that .
