HomeMy WebLinkAboutMINUTES Audit Committee 2015-06-26 Town of Estes Park, Larimer County, Colorado, June 26th, 2015
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 June, 2015.
Committee: Mayor Bill Pinkham, Committee Chairman/Trustee John
Ericson, Town Administrator Frank Lancaster, Assistant
Town Administrator Travis Machalek, Finance Officer Steve
McFarland
Attending: Committee: Mayor Pinkham, Trustee Ericson, Town
Administrator Lancaster, Assistant Town Administrator
Machalek, and Finance Officer McFarland
Non-Committee: Assistant Finance Officer Deb McDougall,
Eric Miller, CPA – CliftonLarsonAllen (auditing firm).
Absent: None.
Chairman Ericson called the meeting to order at 9:30 a.m.
NEW BUSINESS
1. 2014 Audit Overview
a. Process/progress – CliftonLarsonAllen (CLA) has completed its 2014
audit of the Town’s financial results for the year ending December
31, 2014. CLA has also worked with the Finance Staff to complete
the Town’s Comprehensive Annual Financial Report (CAFR) for the
same period. The CAFR is expected to be ready to submit to The
Government Finance Officers Association (GFOA) by the June 30,
2015 due date, to be considered for the Certificate for Excellence in
Financial Reporting Award. The CAFR is also due to the Office of
the State Auditor by July 31, 2015.
b. In past years, the Audit Committee reviews the CAFR in mid-June.
The CAFR is then presented to Town Board prior to submission to
the GFOA. This is not a required timeline/task order – it is simply
historic practice. Due to calendar issues/conflicts and time needed to
complete the CAFR, the Audit Committee was authorized by Town
Board to sign off on the CAFR prior to the presentation of the CAFR
to Town Board on July 14, 2015. This would allow the Town to meet
the June 30, 2015, GFOA deadline.
(*) Secretary’s note, July 8, 2015: The Town requested and was
granted a one-month extension (from June 30 to July 31, 2015) by
GFOA to submit the CAFR. The CAFR was submitted to the GFOA
and State Auditor on July 8, 2015.
2. 2014 CAFR
a. CLA will be issuing a clean, unmodified opinion on the 2014 CAFR.
b. Eric Miller, CPA (audit manager for CLA) reviewed the financial
portion of the CAFR with the Audit Committee. Mr. Miller and
Finance Officer McFarland discussed several items in the CAFR,
and the reader is encouraged to review the various components of
the CAFR (transmittal letter, management discussion and analysis,
Audit Committee – June 26, 2015 – Page 2
financial statements, notes to the financial statements, and the
statistical tables).
c. The impact of the 2013 Flood resulted in financial complexities
caused by multiple grants and reimbursement processes from repair
work. Resulting deficiencies in internal control processes were noted
in the Management Letter in the areas of Audit Entries, Journal Entry
Processes, Purchasing Processes, User Access Rights, Control
Procedures, Year-end Financial Reporting, Accounts Payable and
Liability Accounts, and Visit Estes Park (Grant Reporting). These
areas were discussed, and controls/procedures will be implemented
to correct the noted areas.
d. Mr. Miller will be presenting CLA’s report on the CAFR to the Town
Board at the July 14, 2015 7:00pm meeting.
3. Audit Committee Composition
a. The Audit Committee was created by a Policy Directive on February
3, 2003. Its composition and directives have remained unchanged.
Chairman Ericson requested that, at a future Town Board Study
Session, Town Board discuss a potential modification of
membership of the Committee. The gist of the modification would
involve the removal of Staff as Committee members, since the audit
is in part a report on the activities of Staff. The Committee agreed
with the suggestion.
4. Extension of CliftonLarsonAllen contract
a. CLA is completing year 3 of a series of 5 one-year contacts. The Audit
Committee recommends continuing our relationship with CLA for
Fiscal Year 2015.
OTHER NEW BUSINESS
There was no other new business.
There being no further business, Chairman Ericson adjourned the meeting at 11:00 a.m.
s/ Steve McFarland, Finance Officer