HomeMy WebLinkAbout2018-01-24 Audit Committee Meeting Annual Audit Committee Meeting
MINUTES APPR y
CITY OF CALDWELL CC 9
January 24,2018
12:00 p.m.
(ROLL CALL)
The annual audit committee meeting convened at 12:00 p.m. in the City Hall conference room.
Those present included; Deputy Treasurer Carol Mitchell, Accounting Services Specialist Rachelle Castleberry,
Commissioner Stadick, Commissioner Callsen, Eide Bailly Auditors Morgan Browning and Jodi Daugherty, and
Columbia Bank Representative Gaye Doanato.carcar
(TOPICS DISCUSSED)
Engagement software challenges:
• Accounting changes for the year-end journal entries as well as year-end processes were implemented
as recommended by the auditors. These changes will help with efficiency in the future but required
more time from staff this year.
• There were also problems with linking within engagement as well as upgrades that were required in
order for the city to synchronize to the auditor's engagement software. This caused some delays in
processing.
• Current cost for engagement is 1,300.00/year.
Golf course changes:
• The city will be taking over the purple sage golf course as of 2/1/18 instead of the intended 9/30/18
date.The city is currently looking for a new golf professional.
• The city plans to keep the golf course open.
• Potential additional costs arising from this situation include the purchase of the golf cart inventory
from John Watson.
Auditor Review of FY2017 Audit:
• Morgan mentioned his satisfaction with the response time of the city.
• The audit is pending partner review and a management representation letter. Once these are
completed,the final draft will be delivered.
• Findings from prior years are similar this year:
o Financial Statement preparation finding went from a material weakness to a significant
deficiency, which was an improvement from last year. The basic financial statements are
presented on pages 14-30,and are the primary focus of the audited financials.
o The auditors presented a qualified opinion on these financials because the city does not have
an actuarial report on the HRA Veba OPEB liability. It has been determined that the
acquisition of an actuarial report each year is not necessary for the city at this time.
o March 31,2018 is deadline for financials and the auditors expect to be completed by then.
o No opinion is given on the required supplemental information, which includes;net pension
liability and the budget review statement.No opinion is given on the other financials shown
on page 67-76.
o There was no single audit report this year because federal expenditures were below
$750,000.00
o February 20th 2018 the financials will be presented to council.
• Changes in the federal funding procurement procedures will be reviewed in a training with auditors
scheduled for February 20, 2018. The auditors recommend that the oversite of procurement be
structured threw one department to centralize the tracking of the procurement requirements. Details
will be discussed further at the training.
• Major Transactions occurring in FY2017:
o The URA board is now appointed through an application process and the city can no longer
have majority control. Because of this, URA financials have not been included within the
City financial statements.This has a positive effect on the City financial statements.
o Golf land was transferred to the City in exchange for debt owed.This transaction is presented
on page 72 of the statement of cash flows.This transaction increases the fund balance of the
• golf course but does not effect cash flow directly.