Audit Committee 070908
4
pages
Español
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
4
pages
Español
Documents
Le téléchargement nécessite un accès à la bibliothèque YouScribe Tout savoir sur nos offres
Town of Nantucket Audit Committee Meeting thMinutes – Audit Committee Meeting January 14 , 2009 thApproved February 10 , 2009 Present: Mr. Jim Kelly, Ms. Patricia Roggeveen, Ms. C. Elizabeth Gibson, Mr. Malachy Rice, and Ms. Constance Voges, Mr. Bob Dickinson Absent: Mr. Michael Kopko. Also present: Mr. Rick Atherton, Ms. Reneé Davis, Mr. Glenn Field, Mr. Craig Abernathy, and Mr. Whiting Willauer Call to Order: Ms. Roggeveen called the meeting to order at 9:00 AM. Announcements and Updates: None. Approval of Minutes: Mr. Kelly made a motion to approve the minutes from the meeting of December th10 , 2008; seconded by Ms. Roggeveen. So voted unanimously. Discussion of FY 2008 Audit with Powers and Sullivan: Reneé Davis, of Powers and Sullivan Certified Public Accountants, stated that after working for eight days on the FY 2008 Audit she believes the Town’s financial statements are in good shape. She noted that she does expect some slippage in the draft timeline due to delays in receiving cash reconciliations, the Treasurer’s Cash Book and updated fixed assets for FY 2008. Ms. Davis added that she expects to receive these documents by the rd23 of January, 2009. Ms. Gibson asked if Ms. Davis expects to meet the deadline for stsubmitting a FY 2008 Final Audit on March 31 , to which Ms. Davis responded that she believes that to be a realistic deadline. Mr ...
Voir
Publié par
Langue
Español
TownofNantucketAuditCommitteeMeetingth Minutes–AuditCommitteeMeetingJanuary14 ,2009th ApprovedFebruary10 ,2009Present:Mr.JimKelly,Ms.PatriciaRoggeveen,Ms.C.ElizabethGibson,Mr.MalachyRice,andMs.ConstanceVoges,Mr.BobDickinsonAbsent:Mr.MichaelKopko.Alsopresent:Mr.RickAtherton,Ms.ReneéDavis,Mr.GlennField,Mr.CraigAbernathy,andMr.WhitingWillauerCalltoOrder:Ms.Roggeveencalledthemeetingtoorderat9:00AM.AnnouncementsandUpdates:None.ApprovalofMinutes:
Mr.KellymadeamotiontoapprovetheminutesfromthemeetingofDecemberth 10 ,2008;secondedbyMs.Roggeveen.Sovotedunanimously.
DiscussionofFY2008AuditwithPowersandSullivan:
ReneéDavis,ofPowersandSullivanCertifiedPublicAccountants,statedthatafterworkingforeightdaysontheFY2008AuditshebelievestheTown’sfinancialstatementsareingoodshape.Shenotedthatshedoesexpectsomeslippageinthedrafttimelineduetodelaysinreceivingcashreconciliations,theTreasurer’sCashBookandupdatedfixedassetsforFY2008.Ms.Davisaddedthatsheexpectstoreceivethesedocumentsbytherd 23ofJanuary,2009.Ms.GibsonaskedifMs.Davisexpectstomeetthedeadlineforst submittingaFY2008FinalAuditonMarch31 ,towhichMs.Davisrespondedthatshebelievesthattobearealisticdeadline.Mr.KellyaskedifaoneweekdelayinreceivingcashreconciliationsandfixedassetswillresultinaoneweekdelayfortheFY2008DraftAudit.Ms.Davisrespondedthatthedelayinreceivinginformationwillresultinaonetotwoweek
Minutes–AuditCommitteeth January14 ,2009 Page2of4 delayinthedraftduetoschedulingissues.Ms.RoggeveenaskedthatMs.Davissendane‐ mailtoconfirmthattheauditscheduleisontrack.Ms.VogesaskedifadraftoftheFederalFinancialshasbeencompleted,towhichMs.DavisrespondedthattheFederalFindingsareingoodshapeandthattherewerenonewfindingsinthisyear’saudit.Shealsostatedthatthesamematerialweaknessesfrompreviousyearswillagainappearintheaudit.Mr.Ricecommentedthatthishasbeentheexpectationofallstakeholders,sincetherehasbeenlittletimebetweenthecompletiondatesforseveralyearsoffinancialreporting.
Mr.KellyaskedMs.Davistodescribetheprocessusedtoperformthepayrollaudit.Ms.Davisstatedthatherfirmlooksattwoareaswhenperformingapayrollaudit:ensuringthatitemsarecategorizedinthecorrectfiscalyearandreviewingpoliciesandprocedures.Mr.KellythenaskedifPowersandSullivanperformsa“paystub”audit.Ms.Davisansweredthatherfirmdoesnotperformthistypeofaudit.Mr.Kellythenaskedifthefirmlooksatovertimeandothertypesofpremiumpaytoensurethattheyarecalculatedinthecorrectmanner.Ms.Davisansweredthatasapartoftheaudittheaccrualofsickandvacationtimeisscrutinizedandtested.
CashReconciliationUpdateforFY2009:
Ms.VogesstatedthattwoweekspriortothemeetingshedirectedtheFinanceDepartmenttofocusitseffortsontheFY2008Audit,soworkoncashreconciliationsforFY2009hasbeenputonhold.Mr.DickinsoncharacterizedworkontheFY2008cashreconciliationsas“thorny,”butstatedthattheFinanceDepartmentwillbeinamuchbetterpositionregardingcashreconciliationsforFY2009.HeaddedthatworkonFY2009cashreconciliationshashelpedidentifyissueswithcashreconciliationsinFY2008.Ms.Davisrd askedMr.DickinsonifheiscomfortablewithadeadlineofJanuary23forcompletingtheFY2008cashreconciliationsandfixedassets.Mr.DickinsonansweredthatDebPalmer,StaffAccountant,isworkingonfixedassetsandheisworkingwithDebWeiner,Treasurer,tocompletethecashreconciliations,andstatedthathefeelscomfortablethathewillbeabletomeetthedeadline.
InreferencetoanauditoftheimplementationofnewcashreconciliationsperformedforFY2009,Ms.Davisaskedifanyonewouldliketodiscussthefindingsofthiswork.Ms.Roggeveencommentedthatshefeelsanauditofanothermonth’scashreconciliationswouldbeappropriate,asitwouldallowforcomparisonbetweentwomonthsofcashreconciliations.Ms.Davisnotedthatmostoftheerrorsdiscoveredintheauditwere“firstmontherrors”thatshouldhavebeencorrectedinsubsequentmonths.Ms.VogesaskedthatthecurrentfocusremainoncompletingtheFY2008Auditbeforecommissioningfurtherauditwork.Ms.GibsonremindedtheCommitteethattheauditworkperformedoncashreconciliationswascostly,andthatiffurtherauditworkiscommissionedamethodoffinancingtheworkwillneedtobefound.
DiscussionofIndirectCosts:
Minutes–AuditCommitteeth January14 ,2009 Page3of4 Describingaformulausedtodeterminecostsincurredthroughjointusageofadministrativeservices,Ms.GibsonstatedthattheFinanceDepartmentisdevelopingaformulaforassessingindirectcoststhatisreasonableandcalculatedinafairandconsistentbasis.ShecommentedthattheAirportandtheWaterCompanyhavedisputedtheamountsassessedforindirectcostsinrecentyears.Ms.Vogesstatedthattherearefourissueswithindirectcosts:theformulaforassessingindirectcosts,budgetingforindirectcosts,achangeintheDepartmentofRevenue(DOR)instructionsonhowtobudgetforindirectcosts,andhowtohandlerevenuedeficitissueswiththeSolidWasteEnterpriseFund.Providinghistoryontheprocess,Ms.Vogesexplainedthatinthepastthepaymentwasbasedonpropertyvalueandassessedasapaymentinlieuoftax.ShenotedthattheAbrahamsGrouphasrecommendedthataformulaforassessingindirectcostsbedeveloped.Ms.Vogesstatedthatshehascontactedothermunicipalitiesthatoperateairportenterprisefundsinordertocomparemethodsofassessingthesecosts.Mr.Kellyaskedhowthecurrentamountoffundscollectedforindirectcostsisassessed.Ms.VogesansweredthattheFinanceDepartmentpresentstheAirportandtheWaterCompanywithanamountbaseduponareasonableformulathatiscalculatedinafairmannerthatisconsistentwithothermunicipalitiesintheCommonwealth,buttheseentitieshavedeclinedtopaytheassessedamounts.Mr.Kellyaskedwhatamounttheseentitiespay,towhichMs.Vogesstatedthattheypayaself‐ determinedamountthatisincludedwithintheirexistingbudgets.SheaddedthatifareasonableformulaisassessedtheTownwouldaddanadditional$150,000to$200,000totheGeneralFund.
Ms.RoggeveenassertedherbeliefthatthedevelopmentofsuchapolicyshouldbeapolicydecisionfortheBoardofSelectmen,notingthatsuchapolicywouldbesimilartoexistingpoliciesthatareenactedbytheBoardandimplementedbytheFinanceCommittee.Ms.Gibsonagreed,statingthatshebelievesaBoardendorsementwilladdweightandvaliditytotheformula.Mr.KellynotedthattheAirport’sproposedcapitalplanincludesfundingaresidencefortheAirportManager($800,000),addingthatthisexpenditurewaspartiallyjustifiedbyaneedtoallocateunrestrictedassets.Mr.KellythenaskedifitiswithinthepurviewoftheAuditCommitteetoconsiderapolicydecisionregardingindirectcosts,towhichMr.RiceansweredthatasthematterisarecommendationoftheworkperformedbytheAbrahamsGroupfortheCommitteeitiswithinthepurviewoftheCommittee.
InregardtoimpendingchangestobudgetingmethodsforindirectcostsproposedbyDOR,Ms.VogesstatedthatthereissomeconfusionaboutthesechangesasBarbaraDakin,DORRepresentative,statesthesechangeswilltakeplacewhileMarkAbrahamsstatesthattheywillnottakeplace.Ms.Vogesalsonotedthatanyformuladevelopedtoassessindirectcostsappliestoallenterprisefundsandassuchitshouldbeapplieduniformly.Ms.Davisstatedheropinionthatwhatevermethodisuseditisimportanttodemonstratethatacalculationisperformedandindirectcostsareassessedequally.Mr.Riceagreed,notingthatitisimportanttoconsiderallcostswhenlookingatrevenuestreams.Mr.Kellyencouragedpartiesnegotiatingfortheuseofaformulaindetermining
Minutes–AuditCommitteeth January14 ,2009 Page4of4 indirectcoststolookbackatrecentyearsanddocumenttheamountofindirectcoststhathavebeenpaidaswellastheamountthatcouldhavebeenallocated.NewBusiness:
Ms.RoggeveenspokeofherinterestindevelopingaTownpolicyforprovidingcompensationintheformofahousingallowance.ShenotedthatcurrentlytheTownhasnopolicyforprovidingortrackingtheseallowances,andnotedthatinrecentyearstheamountofhousingallowanceshasbecomesubstantial.Ms.Gibsonaskedwhichdepartmentsreceivesuchallowances,towhichMs.VogesrespondedthattheSchool,Airport,andWaterCompanyprovidehousingallowances.Ms.GibsonnotedthatthesedepartmentslieoutsideoftheauthorityofTownAdministration.Ms.RoggeveenproposedthattheBoardofSelectmencanimplementarecommendedpolicyforprovidingadditionalcompensationintheformofahousingallowance.Discussionofotherformsofcompensationfollowed,including:freehousing,take‐homevehicles,andcommutingexpenses.
OtherBusiness:None.DateofNextMeeting:Ms.RoggeveenproposedthatthenextmeetingshouldtakeplaceonWednesday,th January28 ,2009,at9:00AM.AdjournmentMs.Roggeveenaskedforamotiontoadjournwhichwas“somoved”byMr.Kopko.Themeetingwasadjournedat9:57AM. PreparedbyCraigAbernathy
