HomeMy WebLinkAbout2022-02-03 Audit Committee MinutesAnnual Audit Committee Meeti
MINUTES
CITY OF CALDWELL
February 3,2022
2:00 p.m.
(ROLL CALL)
The annual pre-audit committee meeting convened at 2:00 p.m. at City Hall.
Those present included; Finance Director Carol Mitchell, Deputy Treasurer Rachelle
Castleberry, Eide Bailly Auditor Jodi Daugherty, Council members Chuck Stadick and Brad
Doty, Washington Trust Bank Representative Eric Randall, Columbia Bank Representative
Holly Lyons, and Bright Bank Representative Kahlia Morin.
(CONSENT CALENDAR)
I ) Approve minutes from August 24'h, 2021 Post-Audit Meeting
MOTION To Adopt by Eric Randall, SECONDED by Chuck Stadick to approve the Consent Calendar as
printed.
MOTION CARRIED
(TOPICS DISCUSSED)
2021 Audit Year in revieu':
o This year the auditors were on site with a hybrid schedule which worked better this year as
compared to last year which was all remote.o Audit Challenges included implementation ofGASB 84 which required reporting on agency
funds. This entailed a review of the Cities event funds "Fund 9l" used in the past to separate
revenue and costs from events from intemal depanment divisions. These event funds did not
qualifu as agency funds under GASB 87 definition. All events funds were closed out all except 2
for centennial band and metro task force-
o Centennial bank we closed out returning the balance ofthe event funds to Centennial
band who is now managing their own funds.o Treasure Valley Metro Task Force will be reviewed and is planned to close out in the
near future.
r The audit was fully prepared by the finance department for the City, URA, and Health Trust. The
Finance department continues to work on processes to make the audit as efficient as possible in
order to have the financial statement ready upon auditor arrival.
Audit presentation:
o Review ofauditors report, opinion/s and compliance, and review ofSEFA expenditures for FY2lo Review of financial information for FY2 I. Review of upcoming CASB Implementation including GASB87, GASB 94 and GASB 96
APPR o VED4c--
City Audit Review:
o Opinion that is planned to issue is un-modified opinion which is a clean opinion.
o The audit is performed under GASB, staff is interviewed to review intemal
controls and testing is completed. No finding in relation to internal controls. Note
that review of effectiveness of intemal controls was not completed.
o Review of City OPEB plan that is funded once a year and used by retirees for
medical expenses. The City did not used to have an actuarial calculation and it
does now which allows for a clean opinion to be issued.
Audit of federal expenditures/SEFA:
A single audit was performed for FY22 as federal expenditures exceeded the 750,000 threshold. Last year
the auditors reviewed the CDBG program along with CFAC (coronavirus relieffirnds). The Auditors are
required to audit 20o% of expenditures with low risk auditee. The City is deemed a low risk auditee and
this year's focus was the FAA airport grant. Auditors look at compliance and found no finding related to
internal controls.
Move to executive session 3:26
Returned after executive session 3:48
Councilman Doty agreed to present to council at the February 7,h Council meeting.
Side discussion took place on fund balance, identified unrestricted general fund balance of approx.
10,209,750, a recommendation was made to perform an analysis offund balance to identi! how much of
this should be held onto and a providing an amount included in this that can be used in future budget
meetings.
Upcoming audit changes related to GASB 87 relating to leases and how to report them will have to be
implemented inFY22, including embedded leases within public/private contracts. GASB 96, value of
subscriptions, will also be implemented.
The city is looking to use a software for the leases at airport and contracting Eide Bailly to manage, the
City plans to take on the leases after a year or so to complete themselves.
Motion to adjourn by Doty, seconded by Stadick.