HomeMy WebLinkAboutMINUTES Audit Committee 2015-09-25 Town of Estes Park, Larimer County, Colorado, September 25th,
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 25th day of September,
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: Trustee Ericson, Town Administrator Lancaster,
Assistant Town Administrator Machalek, and Finance Officer
McFarland
Non-Committee: Paul Neidermuller, CPA –
CliftonLarsonAllen (auditing firm).
Absent: Mayor Pinkham.
Chairman Ericson called the meeting to order at 8:00 a.m.
NEW BUSINESS
1. 2014 Single Audit (A-133) review
a. Paul Neidermuller, CPA, of CliftonLarsonAllen (CLA), presented the
Audit Committee with the Federal Awards Report in Accordance with the
Single Audit Act and OMB Circular A-133, December 31, 2014. A Single
Audit is required when over $500,000 in Federal grant monies are spent in
a calendar year. The report is due by September 30th for the previous year.
The Single Audit focuses on issues of internal control and compliance. It
also reports schedules of expenditures of Federal Awards, notes to the
same, findings and questioned costs, and a schedule of prior year findings.
Highlights of the report include:
i. CLA issued a “clean” opinion (page 3) in regards to the Single
Audit.
ii. The Town expended $2,129,543 (page 6) in Federal monies in
2014.
Audit Committee – September 25th, 2015 – Page 2
iii. Page 8 identifies that significant deficiencies were identified
during the course of the audit. A “significant deficiency” is
present when control procedures are such that a financial
misstatement could occur (not necessarily that a misstatement
did occur. The findings are listed on pp 9-13. The activity as
well as the proposed remedy is listed for each finding.
2. Presentation to Town Board at October 13, 2015 Board meeting
a. Paul Neidermuller, CPA, of CliftonLarsonAllen, confirmed that he will
be in attendance and will be presenting the findings of the Single
Audit at the October 13, 2015 Board meeting.
3. Other New Business
a. Finance Officer McFarland asked Mr. Neidermuller to give a cursory
review of the ramifications of GASB 68 on the Town’s 2015 Financial
Statements/Comprehensive Annual Financial Report (CAFR). GASB
68 dictates that government employers that sponsor defined benefit
plans will now recognize a net pension liability (unfunded accrued
liability) in their statement of net position (balance sheet) in their
2015 financial statements. This is the difference between total
pension liability (actuarial accrued liability) and plan assets (at fair
value). This may or may not have adverse effects on the Town’s
financial statements, particularly in the proprietary (utilities) funds.
b. Trustee Ericson discussed the importance of timeliness on the parts
of both Staff and CLA for the 2015 Audit process. Specifically, the
Town does not want to file for an extension with the Government
Finance Officers’ Association in 2016 for the 2015 CAFR.
There being no further business, Chairman Ericson adjourned the meeting at 9:00 a.m.
s/ Steve McFarland, Finance Officer