HomeMy WebLinkAboutPACKET Audit Committee 2020-09-17Thursday Sept 17, 2020
3:00 p.m. – 5:00 p.m.
Audit Committee Virtual Meeting
The Audit Committee will participate in the meeting remotely due to the Declaration of Emergency
signed by Town Administrator Machalek on March 19, 2020 related to COVID-19 and provided for with
the adoption of Ordinance 04-20 on March 18, 2020.
To view or listen to the Audit Committee by Zoom Webinar
ONLINE (Zoom Webinar): zoom.us/join Webinar ID: 942 8304 1534
CALL-IN (Telephone Option): 1-346-248-7799 Meeting ID: 942 8304 1534
1. CALL TO ORDER
2. NEW BUSINESS
a) 2019 CAFR and Single Audit Review
i. Review 2019 Audit Report and Single Audit Findings with Auditors.
ii. Confirm readiness for Oct 13, 2020 Town Board meeting.
b) Consider issuing a request for auditor proposals for the 2020 audit.
3. ADJOURN
AGENDA
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Finance Department
Duane Hudson, Finance Director
970-577-3560
dhudson@estes.org
170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG
Sept 8, 2020
Audit Committee
Town of Estes Park
170 MacGregor Ave
Estes Park Co, 80517
RE: Auditor Reappointment
During the prior year’s audit for 2018, I became concerned with the quality and timeliness
of the audit. After conclusion of the audit for 2018, I advised the audit committee of my
concerns and observations, ultimately leading to the attached July 31, 2019 letter to the
engagement partner Randall Watkins of ACM LLP. Upon receipt of their response dated
August 12, 2019, it was decided to give the auditing firm another chance and they were
appointed to conduct the audit for 2019.
They began preliminary fieldwork on Jan 20, 2020 and then a couple of months later
COVID hit taking everything into the remote audit environment. ACM LLP was scheduled
to complete the final audit fieldwork in May but it was hard to tell if they actually completed
the work with everything done remotely. Almost two months later on July 23rd, the Town
received the first partial draft financial statements. It took another full month before the
Town received the first full draft of the financial statements on August 24th at 5:14 PM.
The final, completed audited financial statements (Comprehensive Annual Financial
Report - CAFR) was ultimately delivered August 31st at 1:17PM. This is a full three
months from the time the audit fieldwork had been completed.
As a result of this delay, the Town had to file for extensions prior to the July 31st deadline
with the State Auditor’s Office, the Colorado Dept. of Local Affairs (DOLA), and the
Government Finance Officers Association (GFOA) financial statements awards program.
We had to submit a “Failure to File” notice on the new P&C Revenue Bonds, specifying
August 31st as the new expected date to submit the CAFR and continuing disclosure
tables. I even had to draft interim financial statements so PRPA could meet their ongoing
bond disclosure requirements. In a normal year, we should have the final CAFR by the
end of June, avoiding all of this.
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Finance Department
Duane Hudson, Finance Director
970-577-3560
dhudson@estes.org
170 MACGREGOR AVE. P.O. BOX 1200, ESTES PARK CO. 80517 WWW.ESTES.ORG
Realizing time was of the essence, Finance staff made a point in quickly responding to
any requests, proofing reports very quickly, and doing everything we could to aid in the
timely completion of the audit and CAFR. However, it came down to the wire again, for
the third year in a row.
If it had just been this year, I would have attributed this delay to the impacts of COVID-
19. However, this has been an ongoing pattern of procrastination. This had been one of
the most critical issues raised during the last audit with no real change. ACM LLP had
three full months after the fieldwork was done in May to finish the CAFR document and it
still came down to the wire with only hours to spare.
To their credit, ACM LLP tried to address most of the items identified last year. However,
the inability to deliver the report in a timely manner continues to negatively impact the
Town and finance staff.
With all of this in mind, I suggest the audit committee consider bidding out audit services
for the year ended Dec. 31, 2020 and conducted in 2021. Even though this fall is
extremely busy for the Finance Department, the Town’s audit is important enough to
justify late hours and weekends to make this happen. However, this is the audit
committee’s decision, not staff’s. We will follow whatever direction the audit committee
decides to do.
Sincerely,
Duane Hudson
Finance Director
Attachments
July 31, 2019 Letter to ACM LLP
August 12, 2019 Response from ACM LLP
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AUDIT COMMITTEE MEETING
September 17, 2020
CAFR for year ended 12-31-2019
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Audit Wrap Up
September 17, 2020
Town of Estes Park, Colorado
This presentation was prepared as part of our audit, has consequential
limitations, is restricted to those charged with governance and, if
appropriate, management, and is not intended and should not
be used by anyone other than those specified parties.
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September 17, 2020
Mr. Duane Hudson, Finance Director
Members of the Town Board
Town of Estes Park, Colorado
170 Macgregor Avenue
Estes Park, CO 80517
Professional standards require us to communicate with you regarding matters related to the audit,
that are, in our professional judgment, significant and relevant to your responsibilities in overseeing
the financial reporting process. We presented an overview of our plan for the audit of the financial
statements of the Town of Estes Park, Colorado (the “Town”) as of and for the year ended December
31, 2019, including a summary of our overall objectives for the audit, and the nature, scope, and
timing of the planned audit work.
This communication is intended to elaborate on the significant findings from our audit, including our
views on the qualitative aspects of the Government’s accounting practices and policies, management’s
judgments and estimates, financial statement disclosures, and other required matters.
We are pleased to be of service to the Town and look forward to meeting with you to discuss our audit
findings, as well as other matters that may be of interest to you, and to answer any questions you
might have.
Respectfully,
ACM LLP
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Discussion Outline
Page
Status of Our Audit .............................................................................................................. 3
Results of Our Audit ............................................................................................................. 4
Internal Control Over Financial Reporting ................................................................................... 6
Other Required Communications .............................................................................................. 7
Independence Communication ................................................................................................. 8
GASB Standards .................................................................................................................. 9
Cybersecurity ................................................................................................................... 11
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AUDIT WRAP-UP – DECEMBER 31, 2019
Status of Our Audit
We have completed our audit of the financial statements and federal awards as of and for the year ended
December 31, 2019. Our audit was conducted in accordance with auditing standards generally accepted in the
United States of America and Government Auditing Standards. This audit of the financial statements does not
relieve management or those charged with governance of their responsibilities.
The objective of our audit was to obtain reasonable - not absolute - assurance about whether the financial
statements are free from material misstatements whether due to error or fraud.
The scope of the work performed was substantially the same as that described to you in our earlier Audit
Planning communications, except that in light of the COVID-19 pandemic, we have performed additional
procedures over going concern assumptions used in determining the Town’s ability to continue as a going
concern entity.
We issued an unmodified opinion on the financial statements and released our report on August 31, 2020.
We issued an unmodified opinion on compliance requirements that could have a direct and material effect
on each major federal program.
Our responsibility for other information in documents containing the Government’s audited financial
statements does not extend beyond the financial information identified in the audit report, and we are not
required to perform procedures to corroborate such other information. However, in accordance with
professional standards, we have read the information included by the Government and considered whether
such information, or the manner of its presentation, was materially inconsistent with its presentation in the
financial statements. Our responsibility also includes calling to management’s attention any information
that we believe is a material misstatement of fact. We have not identified any material inconsistencies or
concluded there are any material misstatements of facts in the other information that management has
chosen not to correct.
All records and information requested by ACM LLP were freely available for our inspection.
Management’s cooperation was excellent. We received full access to all information that we requested
while performing our audit, and we acknowledge the full cooperation extended to us by all levels of
Government personnel throughout the course of our work.
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AUDIT WRAP-UP – DECEMBER 31, 2019
Results of Our Audit
ACCOUNTING PRACTICES, POLICIES, ESTIMATES
The following summarizes the more significant required communications related to our audit concerning the
Government’s accounting practices, policies, and estimates:
The Government’s significant accounting practices and policies are those included in Note 1 to the financial
statements. These accounting practices and policies are appropriate, comply with generally accepted accounting
principles and industry practice, were consistently applied, and are adequately described within Note 1 to the
financial statements.
There were no changes in significant accounting policies and practices during 2019.
Significant estimates are those that require management’s most difficult, subjective, or complex judgments,
often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The
Government’s significant accounting estimates, including a description of management’s processes and
significant assumptions used in development of the estimates, are disclosed in Note 1 of the financial statements.
Primary Areas of Focus and Considerations and Findings
Revenue Recognition: The Town’s major source of revenue consists of sales taxes, property taxes,
charges for services, and intergovernmental revenues. The Town records revenue when earned.
Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as soon as all eligibility requirements imposed by the provider have been met.
Accounts Receivable and Allowances: Accounts receivable represents amounts due from citizens
and businesses for property and sales taxes, customers for utilities, and other governmental entities.
Capital Assets and Depreciation: Capital assets of the Town are a significant area of the Town’s
financial statements. Accordingly, as part of the audit, we paid particular attention to the costs of
newly acquired assets, repairs and maintenance expenditures on existing capital assets, and the
depreciation expense of these assets.
Long-Term Debt: The Town’s governmental activities have long-term debt totaling $8,656,408 (including
compensated absences of $673,649), and the Town’s business-type activities have long-term debt totaling
$36,936,168 (including compensated absences of $338,443).
Pension Reporting: The Town has one separate defined benefit plans administered by the Colorado
Public Employees’ Retirement Association of Colorado (“PERA”). Additionally, the Town has a single
employer Retiree Medical Insurance Plan. The PERA plans are cost-sharing, multiple employer defined
benefit and OPEB plans. As such, the City has reported net pension and OPEB liabilities and related
deferred outflows/inflows for these plans in their financial statements. In addition, changes in net
pension and OPEB liabilities were recognized as pension or OPEB expense or reported as deferred
outflows/inflows of resources depending on the nature of change.
Single Audit Procedures: Because the Town expended in excess of $750,000 of federal grant funds, the
Town was subject to a single audit pursuant to the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements
for Federal Awards (Uniform Guidance). Accordingly, ACM performed procedures on internal controls,
and certain compliance requirements associated with the Town’s major federal awards.
Evaluation of Going Concern: No going concern issues were noted during our audit.
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Results of Our Audit
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AUDIT WRAP-UP – DECEMBER 31, 2019
Management did not make any significant changes to the processes or significant assumptions used to develop
the significant accounting estimates in 2019.
CORRECTED AND UNCORRECTED MISSTATEMENTS
Please refer to the schedule of corrected misstatements attached to this report.
There were no uncorrected misstatements, other than those that were clearly trivial, related to accounts and/or
disclosures that we presented to management.
QUALITY OF THE DISTRICT’S FINANCIAL REPORTING
A discussion was held regarding the quality of the Government’s financial reporting, which included the following:
Qualitative aspects of significant accounting policies and practices
Our assessment of critical accounting policies and practices
Our conclusions regarding significant accounting estimates
Significant unusual transactions
Financial statement presentation
New accounting pronouncements
Alternative accounting treatments
Evaluation of Estimates: Estimates were determined to be reasonable, and free of bias.
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AUDIT WRAP-UP – DECEMBER 31, 2019
Internal Control Over Financial Reporting
In planning and performing our audit of the Town’s financial statements, we considered the Town’s internal
control over financial reporting (internal control) as a basis for designing our auditing procedures for the purpose
of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the
effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of
the Town’s internal control.
Our consideration of internal control was for the limited purpose described above and was not designed to
identify all deficiencies in internal control that might be significant deficiencies or material weaknesses.
We are required to communicate, in writing and in a timely manner, to those charged with governance all
material weaknesses and significant deficiencies that have been identified in the Government’s internal controls
over financial reporting. The definitions of control deficiency, significant deficiency and material weakness
follow:
Category Definition
Deficiency in Internal
Control
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct misstatements on a
timely basis.
Significant Deficiency
A deficiency or combination of deficiencies in internal control that is less
severe than a material weakness, yet important enough to merit attention by
those charged with governance.
Material Weakness
A deficiency or combination of deficiencies in internal control, such that there
is a reasonable possibility that a material misstatement of the Government’s
financial statements will not be prevented, or detected and corrected on a
timely basis.
In conjunction with our audit of the financial statements, we noted no material weaknesses. However, material
weaknesses may exist that have not been identified.
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AUDIT WRAP-UP – DECEMBER 31, 2019
Other Required Communications
Following is a summary of those required items, along with specific discussion points as they pertain to the
Government:
Requirement Discussion Points
Significant changes to planned
audit strategy or significant risks
initially identified
There were no significant changes to the planned audit strategy or
significant risks initially identified and previously communicated to
those charged with governance as part of our Audit Planning
communications. However, in light of the COVID-19 pandemic, we have
performed additional procedures over going concern assumptions used
in determining the Town’s ability to continue as a going concern entity.
Obtain information from those
charged with governance relevant
to the audit
There were no matters noted relevant to the audit, including, but not
limited to: violations or possible violations of laws or regulations; risk
of material misstatements, including fraud risks; or tips or complaints
regarding the Government’s financial reporting that we were made
aware of as a result of our inquiry of those charged with governance.
If applicable, nature and extent of
specialized skills or knowledge
needed related to significant risks
There were no specialized skills or knowledge needed, outside of the
core engagement team, to perform the planned audit procedures or
evaluate audit results related to significant risks
Our evaluation of the
Government’s relationships and
transactions with related parties
and their impact on the financial
statements
We have evaluated the Government’s process to identify, authorize and
approve, account for, and disclose its relationships and transactions
with related parties and noted no significant issues.
Disagreements with management There were no disagreements with management about matters,
whether or not satisfactorily resolved, that individually or in aggregate
could be significant to the Government’s financial statements or to our
auditor’s report.
Significant difficulties
encountered during the audit
There were no significant difficulties encountered during the audit.
If applicable, other matters
significant to the oversight of the
Government’s financial reporting
process, including complaints or
concerns regarding accounting or
auditing matters
There are no other matters that we consider significant to the oversight
of the Government’s financial reporting process that have not been
previously communicated.
Representations requested from
management
Please refer to the management representation letter.
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AUDIT WRAP-UP – DECEMBER 31, 2019
Independence Communication
Our engagement letter to you describes our responsibilities in accordance with professional standards and certain
regulatory authorities with regard to independence and the performance of our services. This letter also
stipulates the responsibilities of the Town with respect to independence as agreed to by the Town. Please refer
to that letter for further information.
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AUDIT WRAP-UP – DECEMBER 31, 2019
GASB Standards
SUMMARY OF STATEMENT NO. 95 POSTPONEMENT OF THE EFFECTIVE DATES OF CERTAIN
AUTHORITATIVE GUIDANCE (ISSUED 05/20)
The primary objective of this Statement is to provide temporary relief to governments and other
stakeholders in light of the COVID-19 pandemic. That objective is accomplished by postponing the
effective dates of certain provisions in Statements and Implementation Guides that first became effective
or are scheduled to become effective for periods beginning after June 15, 2018, and later.
The effective dates of certain provisions contained in the following pronouncements are postponed by
one year:
• Statement No. 83, Certain Asset Retirement Obligations
• Statement No. 84, Fiduciary Activities
• Statement No. 88, Certain Disclosures Related to Debt, including Direct Borrowings and Direct
Placements
• Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period
• Statement No. 90, Majority Equity Interests
• Statement No. 91, Conduit Debt Obligations
• Statement No. 92, Omnibus 2020
• Statement No. 93, Replacement of Interbank Offered Rates
• Implementation Guide No. 2017-3, Accounting and Financial Reporting for Postemployment
Benefits Other Than Pensions (and Certain Issues Related to OPEB Plan Reporting)
• Implementation Guide No. 2018-1, Implementation Guidance Update—2018
• Implementation Guide No. 2019-1, Implementation Guidance Update—2019
• Implementation Guide No. 2019-2, Fiduciary Activities.
The effective dates of the following pronouncements are postponed by 18 months:
• Statement No. 87, Leases
• Implementation Guide No. 2019-3, Leases.
Earlier application of the provisions addressed in this Statement is encouraged and is permitted to the
extent specified in each pronouncement as originally issued.
GASB STATEMENT NO. 87, LEASES
This standard will require recognition of certain lease assets and liabilities for leases that are currently
classified as operating leases.
New definition of a lease - a contract that conveys the right to use another entity’s nonfinancial asset for
a period in an exchange or exchange-like transaction.
Eliminates the distinction between operating and capital leases.
Excludes short-term leases.
Excludes leases that transfer ownership and service concession arrangements that are covered by GASB
Statement No. 60.
Lessees would recognize a lease liability and an intangible right-to-use lease asset which would be
amortized in a systematic and reasonable manner over the shorter of the lease term or the useful life of
the underlying asset.
Lessors would recognize lease receivable and deferred inflow of resources which would be recognized as
revenue in a systematic and rational manner over the term of the lease.
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AUDIT WRAP-UP – DECEMBER 31, 2019
GASB STATEMENT NO. 89, ACCOUNTING FOR INTEREST COST INCURRED BEFORE THE END
OF A CONSTRUCTION PERIOD
Upon implementation, in financial statements using the economic resources measurement focus (business-
type activities and enterprise Districts) interest incurred during construction should be recognized as an
expense of the period.
Interest costs on construction-in-progress will be capitalized only to the implementation date of this
Statement. The provisions of this Statement are to be applied prospectively and will therefore not require
a restatement of any balances.
In financial statements using the current financial resources measurement focus, interest incurred during
construction should be recognized as an expenditure (no change).
If a government has regulated operations as defined by paragraph 476 of GASB Statement No. 62, this
Statement does not eliminate or remove the requirement to capitalize qualifying interest costs as a
regulatory asset.
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AUDIT WRAP-UP – DECEMBER 31, 2019
Cybersecurity
The Committee’s role in the oversight of organizational risk is increasingly complicated by cybersecurity concerns.
Trustees need to maintain continual knowledge about evolving cyber issues and management’s plans for allocating
resources and otherwise responding to cyber risks. Such knowledge helps boards assess the priorities and investment
decisions made by management in critical areas. Often, particularly in smaller organizations, those charged with
governance oversee and monitor management’s strategy for protecting its digital assets.
In April 2017, the AICPA published the new Cybersecurity Risk Management Reporting Framework to its website
—also known as “SOC (System and Organization Controls) for Cybersecurity”—that provides entities with a proactive
approach for designing a risk management program and communicating about its effectiveness to their senior
management teams, boards, and external stakeholders. The Independent Audit Committee is urged to refer to BDO’s
SOC for Cyber resources to learn more about attestation serves with respect to management programs.
Here are recent tools/materials for use by those charged with governance in this area:
Recommended Resources Release Date
BDO Webinar: Cybersecurity – Resources Boards Want to Know About August 22, 2018
September 27, 2018
CAQ’s Cybersecurity Risk Management Oversight : A Tool for Board Members April 2018
BDO Archived Webinar: What’s on the Minds of Boards? November 2017
Are You Cyber Aware?: 10 Cybersecurity Questions for Senior Executives? October 2017
Cyber Risk Management: What You Need to Know Now October 2017
2017 BDO Cyber Governance Survey September 2017
Breaking Down the Equifax Data Breach September 2017
BDO Knows Cybersecurity: Petya Cyber Attack June 2017
BDO Highlights Important DHS - FBI Cyber Alert on North Korea - Hidden Cobra June 2017
Introducing SOC for Cybersecurity: Translating Cyber Risk For Every Stakeholder June 2017
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Estes AJE
Year End: December 31, 2019 Started by Completed by Detail Review
Adjusting Journal Entries ALH 6/17/2020 ALH 6/17/2020
Date: 1/1/2019 To 12/31/2019 General Review Partner FC Review
Account No: 1 To 99 RLW 8/19/2020
Number Date Name Account No Reference Debit Credit Net Income (Loss)Amount Chg Recurrence Misstatement
Net Income (Loss) Before Adjustments 9,010,959.00
1 12/31/2019 FUND BALANCE / UNRESERVED FUND BALANCE 236-0000-253.00-00 236 WW 1.00
1 12/31/2019 GENERAL LONG-TERM LIAB. / CAPITAL LEASE PROCEEDS 236-0000-388.70-00 236 WW 1.00
1 12/31/2019 FUND BALANCE / UNRESERVED FUND BALANCE 244-0000-253.00-00 244 WW 1.00
1 12/31/2019 PERSONAL SERVICE/SALARIES / REGULAR STAFF 244-3400-434.11-02 244 WW 1.00
1 12/31/2019 FUND BALANCE / UNRESERVED FUND BALANCE 260-0000-253.00-00 260 WW 1.00
1 12/31/2019 REGULAR STAFF 260-2000-420.11-02 260 WW 1.00
1 12/31/2019 RETAINED EARNINGS / UNRESERVED 502-0000-279.00-00 502 WW 3.00
1 12/31/2019 MISCELLANEOUS REVENUE / GAIN/LOSS REVENUE 502-0000-380.40-00 502 WW 3.00
1 12/31/2019 RETAINED EARNINGS / UNRESERVED 503-0000-279.00-00 503 WW
1 12/31/2019 MISCELLANEOUS REVENUE / GAIN/LOSS REVENUE 503-0000-380.40-00 503 WW
1 12/31/2019 RETAINED EARNINGS / UNRESERVED 606-0000-279.00-00 606 WW 1.00
1 12/31/2019 MISCELLANEOUS REVENUE / OTHER 606-0000-380.20-00 606 WW 1.00
1 12/31/2019 RESERVE FOR ENCUMBRANCES / PRIOR YEAR 625-0000-244.10-00 625 WW 1.00
1 12/31/2019 OTHER 625-0000-380.20-00 625 WW 1.00
1 12/31/2019 RETAINED EARNINGS / UNRESERVED 635-0000-279.00-00 635 WW 1.00
1 12/31/2019 MISCELLANEOUS REVENUE / SALES OF FIXED ASSETS 635-0000-380.30-00 635 WW 1.00
1 12/31/2019 FIXED ASSET / INVEST GEN FIXED ASSETS 850-0000-280.00-00 850 WW 1.00
1 12/31/2019 MISCELLANEOUS REVENUE / GAIN/LOSS REVENUE 850-0000-380.40-00 850 WW 1.00
To true up fund balance.
10.00 10.00 9,010,953.00 (6.00 )
2 12/31/2019 OTHER ASSETS / DO-CONTR AFTER MEASU DATE 502-0000-170.00-00 502 FF.03.02.1 313,371.00
2 12/31/2019 DEFERRED OUTFLOW / PERA CONT SUBS MEAS DATE 502-0000-190.00-00 502 FF.03.02.1 264,215.00
2 12/31/2019 DEFERRED OUTFLOW / PERA CHG PROPORTION SHARE 502-0000-191.00-00 502 FF.03.02.1 26,742.00
2 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN EXPERIENCE 502-0000-192.00-00 502 FF.03.02.1 51,300.00
2 12/31/2019 DEFERRED OUTFLOW /CHANGE IN ASSUMPTIONS 502-0000-193.00-00 502 FF.03.02.1 37,348.00
2 12/31/2019 DEFERRED POSTEMPLOY BENEF / NET PENSION LIABILITY 502-0000-238.10-00 502 FF.03.02.1 527,265.00
2 12/31/2019 DEFERRED POSTEMPLOY BENEF / PROJ AND ACTUAL EARNIN 502-0000-238.60-00 502 FF.03.02.1 687,216.00
2 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6301-540.14-90 502 FF.03.02.1 483,106.00
2 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6401-550.14-90 502 FF.03.02.1 58,571.00
2 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6501-560.14-90 502 FF.03.02.1 133,954.00
Entry to record GASB 68 for Light
and Power fund
1,291,544.00 1,291,544.00 9,686,584.00 675,631.00
3 12/31/2019 OTHER ASSETS / DO-CONTR AFTER MEASU DATE 503-0000-170.00-00 503 FF.03.02.1 159,608.00
3 12/31/2019 DEFERRED OUTFLOW / PERA CONT SUBS MEAS DATE 503-0000-190.00-00 503 FF.03.02.1 166,876.00
3 12/31/2019 DEFERRED OUTFLOW / PERA CHG PROPORTION SHARE 503-0000-191.00-00 503 FF.03.02.1 16,887.00
3 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN EXPERIENCE 503-0000-192.00-00 503 FF.03.02.1 32,401.00
3 12/31/2019 DEFERRED OUTFLOW / CHANGE IN ASSUMPTION 503-0000-193.00-00 503 FF.03.02.1 23,589.00
3 12/31/2019 DEFERRED POSTEMPLOY BENEF / NET PENSION LIABILITY 503-0000-238.10-00 503 FF.03.02.1 333,014.00
3 12/31/2019 DEFERRED POSTEMPLOY BENEF / PROJ AND ACTUAL EARNIN 503-0000-238.60-00 503 FF.03.02.1 434,041.00
3 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6200-530.14-90 503 FF.03.02.1 83,783.00
3 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6300-540.14-90 503 FF.03.02.1 202,124.00
3 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6400-550.14-90 503 FF.03.02.1 35,266.00
3 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6500-560.14-90 503 FF.03.02.1 67,235.00
Entry to record GASB 68 for Water
fund.
9/17/2020
4:57 AM Page 1 Page 27
Estes AJE-1
Year End: December 31, 2019 Started by Completed by Detail Review
Adjusting Journal Entries ALH 6/17/2020 ALH 6/17/2020
Date: 1/1/2019 To 12/31/2019 General Review Partner FC Review
Account No: 1 To 99 RLW 8/19/2020
Number Date Name Account No Reference Debit Credit Net Income (Loss)Amount Chg Recurrence Misstatement
777,412.00 777,412.00 10,074,992.00 388,408.00
4 12/31/2019 DEFERRED OUTFLOW / PERA CONT SUBS MEAS OPEB 502-0000-190.01-00 502 HH.05. 04 4,064.00
4 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN PROP SH OPEB 502-0000-191.01-00 502 HH.05. 04 65.00
4 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN EXPER OPEB 502-0000-192.01-00 502 HH.05. 04 316.00
4 12/31/2019 DEFFERED OUTFLOWS / PERA Change in Asumptions OPEB 502-0000-193.01-00 502 HH.05. 04 2,346.00
4 12/31/2019 DEFFERRED OUTFLOW / PERA EARNINGS OPEB 502-0000-194.01-00 502 HH.05. 04 1,923.00
4 12/31/2019 DEFERRED POSTEMPLOY BENEF / PERA HCTF NET OPEB LIA 502-0000-238.11-00 502 HH.05. 04 16,714.00
4 12/31/2019 DEFERRED INFLOW / PERA EARNINGS OPEB 502-0000-238.61-00 502 HH.05. 04 5,316.00
4 12/31/2019 Defferred Outflow / PERA CHG in EXP OPEB 502-0000-238.62-00 502 HH.05. 04 509.00
4 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6301-540.14-90 502 HH.05. 04 2,827.00
4 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6401-550.14-90 502 HH.05. 04 343.00
4 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6501-560.14-90 502 HH.05. 04 785.00
Entry to record OPEB for Health
Care Trust Fund for Light Fund.
17,604.00 17,604.00 10,071,037.00 (3,955.00 )
5 12/31/2019 DEFERRED OUTFLOW / PERA CONT SUBS MEAS OPEB 503-0000-190.01-00 503 HH.05. 04 515.00
5 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN PROP SH OPEB 503-0000-191.01-00 503 HH.05. 04 41.00
5 12/31/2019 DEFERRED OUTFLOW / PERA CHG IN EXPER OPEB 503-0000-192.01-00 503 HH.05. 04 200.00
5 12/31/2019 DEFFERED OUTFLOW / PERA CHANGE IN ASSUMPTIONS OPEB 503-0000-193.01-00 503 HH.05. 04 1,482.00
5 12/31/2019 DEFFERRED OUTFLOW / PERA EARNINGS 503-0000-194.01-00 503 HH.05. 04 1,215.00
5 12/31/2019 PERA HCTF NET OPEB LIABILITY 503-0000-238.11-00 503 HH.05. 04 10,550.00
5 12/31/2019 DEFERRED POSTEMPLOY BENEF / DEF INFL-PERA EXPERIEN 503-0000-238.20-00 503 HH.05. 04 321.00
5 12/31/2019 DEFERRED INFLOW / PERA EARNINGS OPEB 503-0000-238.61-00 503 HH.05. 04 3,357.00
5 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6200-530.14-90 503 HH.05. 04 1,202.00
5 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6300-540.14-90 503 HH.05. 04 2,901.00
5 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6400-550.14-90 503 HH.05. 04 506.00
5 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6500-560.14-90 503 HH.05. 04 964.00
Entry to record OPEB for Health
Care Trust Fund for Water Fund.
11,627.00 11,627.00 10,065,464.00 (5,573.00 )
6 12/31/2019 DEFERRED OUTFLOW / RMIP CONT SUBS MEAS OPEB 502-0000-190.02-00 502 FF.03.RPT 5,818.00
6 12/31/2019 DEFERRED OUTFLOW / RMIP CHANGE IN ASSUMP 502-0000-193.02-00 502 FF.03.RPT 89.00
6 12/31/2019 RMIP NET OPEB LIABILITY 502-0000-238.12-00 502 FF.03.RPT 2,901.00
6 12/31/2019 OPEB _ Change in assumptions RMIP 502-0000-238.63-00 502 FF.03.RPT 6,352.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6301-540.14-90 502 FF.03.RPT 10,840.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6401-550.14-90 502 FF.03.RPT 1,314.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 502-6501-560.14-90 502 FF.03.RPT 3,006.00
6 12/31/2019 DEFERRED OUTFLOW / RMIP CONT SUBS MEAS OPEB 503-0000-190.02-00 503 FF.03.RPT 4,670.00
6 12/31/2019 DEFERRED OUTFLOW / RMIP CHANGE IN ASSUMP 503-0000-193.02-00 503 FF.03.RPT 404.00
6 12/31/2019 RMIP NET OPEB LIABILITY 503-0000-238.12-00 503 FF.03.RPT 17,101.00
6 12/31/2019 OPEB - Change in assumptions RMIP 503-0000-238.63-00 503 FF.03.RPT 3,235.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6200-530.14-90 503 FF.03.RPT 4,575.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6300-540.14-90 503 FF.03.RPT 798.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6400-550.14-90 503 FF.03.RPT 1,522.00
6 12/31/2019 EMPLOYER BENEFITS / PENSION BENEFIT EXPENSE 503-6500-560.14-90 503 FF.03.RPT 1,897.00
Entry to Record the OPEB balances
related to the Retiree Medical Insurance Plan.
32,261.00 32,261.00 10,059,096.00 (6,368.00 )
9/17/2020
4:57 AM Page 2 Page 28
Estes AJE-2
Year End: December 31, 2019 Started by Completed by Detail Review
Adjusting Journal Entries ALH 6/17/2020 ALH 6/17/2020
Date: 1/1/2019 To 12/31/2019 General Review Partner FC Review
Account No: 1 To 99 RLW 8/19/2020
Number Date Name Account No Reference Debit Credit Net Income (Loss)Amount Chg Recurrence Misstatement
2,130,458.00 2,130,458.00 10,059,096.00 1,048,137.00
9/17/2020
4:57 AM Page 3 Page 29