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 authorized 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, navigation, drainage, or road or irrigation 

district, or any other character of 

district having for its purpose the 

expenditure of public funds for improvement 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 condition 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 dlstricts, 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 88 2 O-1, Vernon’s Civil Statutes, the County 

Auditor of Cameron County would be re uired 

duties set forth In Articles 1667, 16 % 8, 

to perform those 

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 provides 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 depository,, the assessorand collector and the dlrectors, .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 public 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 Improvement 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 depository 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 conclude 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 

REVIEWED FOR THE ATTORNEY GENERAL 

BY: Houghton Brownlee, Jr.