HomeMy WebLinkAboutMINUTES Audit Committee 2013-08-07
Town of Estes Park, Larimer County, Colorado, August 7th, 2013
Minutes of a meeting of the AUDIT COMMITTEE of the Town of Estes
Park, Larimer County, Colorado. Meeting held in the Municipal
Building in said Town of Estes Park on the 7th day of August, 2013.
Committee: Mayor Pinkham, Trustee Ericson, Town Administrator
Lancaster, Assistant Town Administrator Richardson,
Finance Officer McFarland
Attending: Committee: Mayor Pinkham, Trustee Ericson, Town
Administrator Lancaster, Finance Officer McFarland
Non-Committee: Assistant Finance Officer McDougall,
Bruce Ely and Marc McClure of Cutwater Asset
Management
Absent: Assistant Town Administrator Richardson
Chairman Ericson called the meeting to order at 11:00 a.m.
INVESTMENTS
1. DISCUSSION OF INVESTMENT PERFORMANCE/ACTIVITY Cutwater Asset
Management (CAM). Bruce Ely and Marc McClure of CAM delivered the
Investment Management Program Review document. The document
discusses 1) Market Environment and Strategies, 2) Portfolio Performance
and Review, 3) 2nd Quarter 2013 Performance, 4) Broker/Dealer
information, and 5) Bank Credit Analysis.
Approximately $8m of the $22m portfolio is under the care of CAM. The
monies have been deployed into a variety of US Treasuries and
Instrumentalities. The investment accounts are reconciled monthly to
Market Value. Gains/losses are a combination of realized and unrealized.
The first 6 months of 2013 have resulted in a slight negative return due to a
recent spike in interest rates. Current portfolio strategy is to keep
durations short due to forecasted increases in interest rates.
2. INVESTMENT POLICY UPDATE Finance Officer McFarland reported the
Investment Policy (2001) is in the process of being updated, along with the
rest of the Finance Policies (target date – 12/31/2013). CAM has offered a
“go-by” that can be used. Discussion was had regarding expanding
investment parameters to include commercial paper (this is now common
practice among Colorado municipalities).
3. RFP/CONTINUATION OF RELATIONSHIP WITH CAM CAM was hired in
2011 to a series of one-year contracts to provide the Town with Investment
Advisory Services. The Audit Committee is pleased with the level of service
and return provided by CAM, and will recommend extending CAM’s
contract for the fourth year when the time comes (contract periods run
March 1 – February 28). The contract is currently in its third year. The
current contract extension was placed on the consent agenda 02/27/2013,
extending the agreement through February 28, 2014.
Audit Committee – August 7, 2013 – Page 2
2012 CAFR (Comprehensive Annual Financial Report)/AUDIT
DISCUSSION OF AUDIT FINDINGS It has not been the practice of the Town
to place the annual CAFR Letter to Management on the internet.
McFarland reported that the Letter to Management was requested by, and
provided to, a citizen within the last month, under an open records request.
The findings of the Letter included Material Weaknesses and Significant
Deficiencies. McFarland reported that Finance Staff is in the process of
addressing these items, and will be conferring with the Auditors
(CliftonLarsonAllen, LLC) in the near future to make sure both parties are
working together to ensure compliance for 2013. These compliance issues
will be presented to the Audit Committee as completed.
BUDGET 2014
DISCUSSION OF 2014 BUDGET PROCESS The 2014 Budget calendar was
provided for review. Finance Officer McFarland and Town Administrator
Lancaster reported that the Budget process is on schedule, with the end
product goal being a flat budget (not counting capital) for 2014. The Salary
Compensation Study (in progress) is likely to suggest an overall increase of
5%. Health insurance is forecasted to increase 10%, although final numbers
are not yet available.
OTHER NEW BUSINESS
There was no other new business.
There being no further business, Chairman Ericson adjourned the meeting at 12:00 p.m.
s/ Steve McFarland, Finance Officer