HomeMy WebLinkAboutMINUTES Audit Committee 2024RECORD OF PROCEEDINGS
Town ofEstes Park, Larimer County, Colorado, September 23, 2024
Minutes of a Regular 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 23rd day of September, 2024.
Committee: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town
Administrator Machalek, Interim Finance Director Hudson,
and Account Manager Garcia
Attending: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town
Administrator Machalek, Interim Finance Director Hudson,
Account Manager Garcia, Town Clerk Williamson,
Superintendent Lockhart, and Director Bergsten
Absent: None
Mayor Hall called the meeting to order at 9:37 a.m.
2023ACFR AND SiNGLE AUDIT REVIEW.
Ty Holman and Abbie Irvine of Haynie and Company reviewed the audit completed for
fiscal year ending 2023, stating they utilized general and governmental auditing
standards to review both governmental and enterprise revenue recognitions, accounts
receivable and allowances, near term reporting, capital assets and depreciation, long-
term debt, pension and OPEB reporting, single audit, workforce housing regulatory
linkage fee (new enterprise fund in 2023), workforce housing 6E revenue (new in 2023),
and a focus on inventory. They reported the Estes Park Housing Authority was a new
component in 2023 and a delay in completing the audit occurred as the Authority's audit
was required to be completed by June 30, 2024 and included in the Town's audit due to
the 6E funding. A new accounting standard for subscription-based software was
required in 2023. The Town identified $111,000 in new assets that met the definition of
the new standard in the General fund and $9,600 in the Enterprise funds. The auditors
provided an unmodified opinion, a clean opinion, of the Town's financial statements
issued on August 15, 2024.
Single audits were conducted for and audited four grants provided for the Fall River
Trail, Prospect Mountain Water project, and Trailblazer Broadband with federal funds
over $10 million and ARPA funds. The revenues and expenditures were found to be in
compliance with grant requirements. FEMA grant funds were reimbursed for the 2013
flood as the reimbursement was found to be ineligible.
It was noted that audit adjustments were found to be more than in previous years due to
a new Finance Director and additional grant funding. Items adjusted included recording
the pension and OPEB, adjustment for the new software standard, $318,000 for a
Water fund grant which was found to be insignificant, $200,000 adjustment to reduce
liability for the Town's medical self-insurance because it was booked backwards, a
material weakness was identified with inventory and internal controls for Power and
Communications. A letter was submitted to address and assist with the inventory
controls. Finance would provide additional guidance and accounting assistance moving
forward to address the concerns raised.
Mayor Pro Tem Cenac left the meeting at 10:15 a.m.
Committee questions and comments were heard and summarized: questioned who
receives the final audit report; how bond and credit rates use the report to determine the
Town's bond rating; questioned if Power and Communication funds should be audited in
relation to the electric rate increases; and questioned if anything significant should be
addressed in the management and analysis of the audit.
RECORD OF PROCEEDINGS
Audit Committee - September 23, 2024 - Page 2
Director Hudson stated the audit would be presented to the Town Board on October 8,
2024 as an action item.
CONSIDER OF APPOINTMENT OF AUDITORS FOR 2024 AUDIT
Interim Director Hudson stated the 2024 audit would be the fifth year of the contract with
Haynie and Company. Committee consensus was to recommend appointment of
Haynie and Company for the completion of the 2024 audit.
There being no further business, Mayor Hall adjourned the meeting at 10:55 a.m.
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;kie Williamson, Town Clerk