HomeMy WebLinkAbout2021-01-28 Audit Committee Minutes Annual Audit Committee Meeting
MINUTES
CITY OF CALDWELL APPROVED
January 28,2021
12:00 p.m. c -7 ( 2'
Date
(ROLL CALL)
The annual pee-audit committee meeting convened at 12:00 p.m. in the City Hall conference
room.
Those present included; Finance Director Carol Mitchell, Deputy Treasurer Rachelle
Castleberry, Council member John McGee, Eide Bailly Auditor Morgan Browning, and retired
Finance Director ElJay Waite.
(CONSENT CALENDAR)
1) Approve minutes from August 27th,2020,Pre-Audit Meeting
MOVED by Waite,SECONDED by McGee to approve the Consent Calendar as printed.
MOTION CARRIED
(TOPICS DISCUSSED)
Status of FY20 financial statement audit
• A two-partner review is still needed on the FY20 audit.
• Morgan and Carol are working on a draft to get ready for review by Jody, once
Jddy completes her review of the draft and working papers will go for second peer
review.
• The auditors are planning to complete the audit within the first or second week of
February—John McGee identified he would introduce Auditors during the
upcoming council meeting in which the audit would be presented.
Audit of federal expenditures/SEFA :
• SEFA was prepared by Rachelle and reviewed by Carol. Auditors tested was
focused on CDBG and CARES funding programs for FY2020.
• Testing was based on dollar amount and other metrics such as risk.
• Unmodified opinion oncompliance,which is a clean opinion,no material
weaknesses identified. Low risk audit status was determined for the City in
FY2020.
• The city expects to have approx. 700,000 in funding for the FY2021 in CARES
Funding.
City Audit Review:
• Opinion that is planned to issue is un-modified opinion which is a clean opinion.
• The audit is performed under GASB, staff is interviewed to review internal
controls and testing is completed. No finding in relation to internal controls.
• FY20 audit found no instances of non-compliance with other agency regulations.
• Materiality is looked at on the government wide level and each of the funds in the
aggregate.
• Consolidated financial statements are presented with full accrual as in comparison
to private basis which includes long term assets and liabilities,which include
OPEB. Total net position is 319,418,808 on the consolidated financial statements.
There is no longer any long-term debt as of FY2020 for the City of Caldwell.Net
position increased by 19m in governmental activities and 13m in business type
activities.
• On the governmental funds balance sheet, it only shows the short term assets and
liabilities and represents current fund balance. This also shows restricted amounts
that identify usage of fund balance. GF Fund balance increased by 1.9m in FY20
which consists mostly of misc. revenues and an increase in property tax. Misc.
Revenue consist of contributions from wolf field and for Brothers Park made by
outside entities.
• Major impacts of COVID—Caldwell event center took the biggest hit/impact.
The event center had to close. City will continue to monitor moving forward.—
New note to financial statements—Note 19.
• Changes for next year: the agency funds will look different due to GASB 84
which will be restated and/or moved into the Gen Fund. GASB 87 with new
leases will also be implemented. It is not thought that it should impact the city
other than in airport—but they will be monitoring next year. City is looking to use
a program to implement the new standard.
• Struggles this year with having to do everything remotely via zoom and through
file sharing made it more difficult to communicate and took longer to get
documents to the auditors. Finance also had some personnel leave with the AR
Specialist position and the AP position resigned.
Move to executive session.