HomeMy WebLinkAboutMINUTES Audit Committee 2014-09-26 Town of Estes Park, Larimer County, Colorado, September 26th,
2014
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 26th day of September,
2014.
Committee: Mayor Pinkham, Trustee Ericson, Town Administrator
Lancaster, Finance Officer McFarland
Attending: Committee: Mayor Pinkham, Trustee Ericson, Town
Administrator Lancaster, and Finance Officer McFarland
Non-Committee: Justin Petrone, CPA, of CliftonLarsenAllen
(CLA), was present by telephone conference call.
Absent: None.
Chairman Ericson called the meeting to order at 4:00 p.m.
2013 A-133 SINGLE AUDIT REVIEW
1. SINGLE AUDIT FINDINGS The 2013 Single Audit (SA) was completed prior
to the September 30, 2014 filing deadline. The Single Audit is performed
when the Town expends more than $500,000 in Federal funds in one year.
Some portions of the SA refer solely to the Federal Awards, while other
portions refer back to the 2013 Comprehensive Annual Financial Report
(CAFR). There are several sections to the SA. The key highlights include:
a. Page 1 - CLA did not identify and deficiencies in internal control
considered to be material weaknesses.
b. Page 3 – CLA issued a clean opinion on the Town’s compliance with
the SA that could have a direct and material effect on its major
federal program for the year ending December 31, 2013.
c. Page 5 – CLA stated that the schedule of expenditures of federal
awards is fairly stated in all material respects in relation to the basic
financial statements as a whole.
d. Page 6 shows the schedule of expenditures of Federal Awards.
Audit Committee – September 26, 2014 – Page 2
e. Page 8 is the schedule of findings and questioned costs for 2013. The
“Financial Statements” section applies to the CAFR, whereas the
Federal Awards applies to the SA. There are no areas of concern on
this page.
f. Pages 9-12 discuss significant deficiencies (defined on page 4). In all
3 cases, corrective actions steps are included. These include:
i. Misstatement of Grants receivables. Grants were not missing
– they were merely mis-posted on the financial statements.
ii. In grant expenditures, $512 was listed as a duplicate
expenditure.
iii. Eligible payroll costs were not correctly stated - $448.
g. Pages 13-14 lists prior year (2012) Audit concerns that were
corrected, and did not reappear in 2013.
2. MANAGEMENT LETTER CLA included a Management Letter for the Board
of the Trustees. The Letter covers activity in both the CAFR and the SA. In
the Letter, CLA identifies two areas where controls may be improved upon
(user access rights to the accounting software, and capital asset
classification). Neither of these items rise to the level of material
weaknesses or significant deficiencies, but staff will address both items.
The management letter is intended solely for the use of the Board of
Trustees and management, and is not intended to be, used by anyone
other than these specified parties.
The Single Audit will be filed with appropriate authorities at the Federal and State
levels by September 30, 2014.
ANNUAL RENEWAL OF CLIFTON LARSON ALLEN CONTRACT FOR 2014
CAFR/SINGLE AUDIT The Audit Committee discussed the relationship
between CLA and the Town. This is the 2nd year of a series of 5 1-year contracts
with CLA. The Audit Committee recommends that the Board of Trustees
considers continuing to use CLA for the 2014 CAFR/SA. It was decided that the
most expedient way to convey this to the Board of Trustees is through these
minutes, through a report to be given by Finance Officer McFarland at the
Audit Committee – September 26, 2014 – Page 3
October 14, 2014 Town Board meeting, and through the Consent Agenda when
CLA submits their 2014 engagement letter in the near future.
OTHER NEW BUSINESS
There was no other new business.
There being no further business, Chairman Ericson adjourned the meeting at 5:00 p.m.
s/ Steve McFarland, Finance Officer