HomeMy WebLinkAboutPACKET Audit Committee
Wednesday August 28, 2023 2:30 p.m. – 3:30 p.m. Audit Committee Admin Conference Room
1. CALL TO ORDER
2. NEW BUSINESS
a) 2022 ACFR and Audit Review
i. Review 2022 Audit Report and Audit Findings with Auditors.
ii. Confirm readiness for Sept 12, 2023 Town Board meeting.
b) Consider appointment of Haynie and Company to perform the 2023 Audit.
3. ADJOURN
Attachments:
Attachment A – Auditor Management Letter
Attachment B – Auditor Presentation
Link to the Annual Comprehensive Financial Report for year ended 12-31-2022
AGENDA
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Attachment A
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Town of Estes Park
Audit Presentation To The Audit Committee of the Board of Trustees
For The Year Ending December 31, 2022
August 28, 2023
•Engagement team
•Audit procedures
•Financial highlights
•Required communications
•Uncorrected misstatements
•Corrected misstatements
•Appendices
Agenda
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Attachment B
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ENGAGEMENT TEAM
Ty Holman, CPA, tyh@hayniecpas.com
303-995-4970
Audit Partner
Abbey Irvine, CPA, abbeyi@hayniecpas.com
970-443-0936
Audit Manager
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AUDIT
PROCEDURES
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We issued a clean, or unmodified, audit opinion on the 2022
financial statements effective June 28, 2023.
We conducted our audit in accordance with United States Generally
Accepted Auditing Standards. The objective of our audit was to
obtain reasonable, not absolute, assurance about whether the
financial statements are free from material misstatement.
Engagement status
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FINANCIAL STATEMENT
HIGHLIGHTS
Total Assets, $222,848,687
Total Deferred Outflows, $2,040,382
Total Liabilities, $51,546,539
Total Deferred Inflows, $9,808,561
Net Investment in Capital Assets, $107,892,245
Restricted, $9,944,410
Unrestricted,
$45,697,314
Net Position, …
2022 Government Wide Statement of Net Position
Total Assets Total Deferred Outflows Total Liabilities Total Deferred Inflows Net Investment in Capital Assets Restricted Unrestricted
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Total General Revenues, 25,748,731
Charges for Services, 33,818,635
Operating Grants and Contributions, 483,861
Capital Grants and Contributions, 1,647,947
Program Expenses, 45,812,143
2022 Government Wide Statement of Net Position Highlights
Total General Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Program Expenses
Change in Net
Position
$15,887,031
Total Assets
Total Assets
Total Liabilities
and Deferred
Inflows
Total Liabilities
and Deferred
Inflows
Fund Balance
Fund Balance
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2021 2022
Governmental Fund Financial Highlights - Balance Sheets
Total Assets
Total Liabilities
and Deferred
Inflows Fund Balance
2021 24,902,846 2,864,612 22,038,234
2022 30,339,385 2,579,510 27,759,875
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Business-Type funds Water and Power and Communication
– Statements of Net Position
Assets
Assets
Liabilities Liabilities
Net Position
Net Position
-
20,000,000
40,000,000
60,000,000
80,000,000
100,000,000
120,000,000
140,000,000
2021 2022
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2021 2022
Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances
Total Revenue Total Expenditures Transfers - Net Change in Fund Balances
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(5,000,000)
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
2021 2022
Business-Type Activities Financial Highlights - Statements of Revenues, Expenditures, and Changes in Net Position
Total Operating Revenues Total Operating Expenditures Transfers Total Non- Operating Expenditures Change in Net Position
•Accounting Policies (Note 1)
•Capital assets (Note 4)
•Long-Term Debt (Note 5)
•Budget to actuals (pages 80-81 and 86-94 and 98-102)
•No funds over budget in 2022
Notes and Supplemental Info
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REQUIRED
COMMUNICATIONS
•GASB 87, Leases, was adopted effective January 1, 2022. No material impact to the financial
Statements. A change in accounting principle was also reflected for an Inventory accounting change in
the business-type activities, resulting in a prior period adjustment totaling $390,638 (P&C) and $6,650
(water)
Selection of, or changes in, accounting policies or their application
Accounting estimates
•Based on our review of the Company’s critical accounting estimates, no significant changes were noted
in the current period. Estimates considered:
•Depreciable lives
•Pension liability (asset)
•Self Insurance claims payable
Disagreements with management
•We encountered no disagreements with management about matters that, individually or in the
aggregate, could be significant to
•The District’s interim financial information
•Our audit proceduresDifficultiesencountered in performing the audit
•No difficulties were encountered
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•We are not aware of any consultations management had with other accountants about significant
review or accounting matters.
Management consultation with other accountants
Management representation
•Management provided a signed representation letter prior to issuance of the final report.
Other matters
•Required supplementary information – no opinion and no assurance
•Other supplementary information – in-relation-to opinion
Single Audit
•Performed in 2022 for one major program - Bus and Bus Facilities Formula Program.
•No findings to report.
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UNCORRECTED
MISSTATEMENTS
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•There were no uncorrected misstatements.
Uncorrected misstatements
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CORRECTED
MISSTATEMENTS
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•These are also referred to as audit adjustments
•Standard audit adjustments provided to adjust Pension and OPEB amounts on the
financials statements.
•$64,000 adjustment to P&C capital assets – not considered material or an control
deficiency.
Corrected misstatements
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Upcoming GASB Pronouncements
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Pronouncement Status
Date
Issued
Effective Date
(fiscal years
beginning )
Statement No. 94: Public-Private and Public-Public Partnerships and Availability Payment Arrangements
Improves accounting and financial reporting for (1) public-private and public-public partnership arrangements (both referred
to as "PPPs") that are outside of the scope of the existing guidance for these transactions: Statement No. 60, Accounting and
Financial Reporting for Service Concession Arrangements, and Statement No. 87, Leases, and (2) availability payment
arrangements ("APAs").
Final 4/20/2020 6/15/2022
Statement No. 96: Subscription-Based Information Technology Arrangements
Provides uniform guidance on the accounting and financial reporting of subscription-based information technology
arrangements (SBITAs) for government end users in an effort to provide greater consistency in practice, reduce diversity and
improve comparability in financial reporting by governments. The Statement effectively applies many of the provisions of
Statement No. 87, Leases, to subscription-based transactions
Final 6/5/2020 6/15/2022
Statement No. 100, Accounting Changes and Error Corrections (an amendment of GASB Statement No. 62 )
The primary objective is to provide more straightforward guidance that is easier to understand and is more reliable, relevant,
consistent, and comparable across governments for making decisions and assessing accountability. Improving the clarity of
accounting and financial reporting requirements for accounting changes and error corrections will mean greater consistency in
the application of these requirements in general.
Final 6/13/2022 6/15/2023
Statement No. 101: Compensated Absences
Aligns recognition and measurement guidance for all types of compensated absences under a unified model. It also requires
that a liability for specific types of compensated absences not be recognized until the leave is used. Additionally, it establishes
guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the
financial statements. For example, a liability for leave that has not been used would be recognized if the leave:
Provides an alternative to the existing requirement to disclose the gross annual increases and decreases in long-term liability
for compensated absences, allowing governments to disclose only the net annual change in the liability as long as it is
identified as such; and removes the disclosure of the government funds used to liquidate the liability for compensated
absences.
Final 6/16/2022 12/15/2023
QUESTIONS AND ANSWERS
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THANK YOU!
HaynieCPAs.com
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