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HomeMy WebLinkAboutMINUTES Audit Committee 2025-10-01RECORD OF PROCEEDINGS Town ofEstesPark, Larimer County, Colorado, October 1, 2025 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 1st day of October, 2025. Committee: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town Administrator Machalek, Finance Director Zimmemnan, and Account Manager Garcia Attending: Mayor Hall, Mayor Pro Tem Cenac, Trustee Brown, Town Administrator Machalek, Deputy Town Administrator Damweber, Finance Director Zimmerman, Account Manager Garcia, ERP Project Manager Hudson, and Town Clerk Williamson Absent: None Mayor Hall called the meeting to order at 2:08 p.m. 2024 ACFR AND SINGLE AUDIT REVIEW. Ty Holman and Abbie Irvine of Haynie and Company reviewed the audit completed for fiscal year ending 2024 which consisted of five areas including planning, understanding the entity, developing the audit approach, audit fieldwork, and reporting. The auditors 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, and workforce housing 6E revenue. The Town's audit was delayed as the Estes Park Housing Authority's audit was not completed until late September and must be included in the Town's audit due to the 6E funding. A new accounting standard, GASB 101, requires that liabilities for compensated absences be recognized for (1) leave that has not been used and (2) leave that has been used but not yet paid in cash or settled through noncash means. The standard added approximately $900,000 in additional liability accrued on the Town's financial statement. The liability would be required to be captured moving forward for the annual audit. The auditors provided an unmodified opinion, a clean opinion, of the Town's financial statements. Mayor Pro Tem Cenac arrived at the meeting at 2:34 p.m. Single audit was conducted for Water and Waste Disposal Systems for Rural Communities grant, from the USDA, for the Prospect Mountain Project. The revenues and expenditures were found to be in compliance with grant requirements. It was noted that audit adjustments were found to be more than in previous years with adjustments to the pension and OPEB amounts on the financial statements. It was further stated there was one adjustment that was material and four larger adjustments that were noted. An adjustment was missed for police equipment and was reported as a material weakness. Recommendations were provided and it was understood that the new ERP would enhance capability and should address a number of the issues. The Audit committee requested the Auditors present the audit to the full board at the October 28, 2025 meeting. RECORD OF PROCEEDINGS Audit Committee - October 1, 2025 - Page 2 CONSIDER OF APPOINTMENT OF AUDITORS FOR 2025 AUDIT Director Zimmerman stated the Town's contract with Haynie and Company would end in 2025. Staff recommended appointing Haynie and Company for an additional year to complete the 2025 annual audit at an updated rate of approximately 20 - 25% increase over the current rate due to a need for continuity with the conversion to the new ERP system in 2026. The Audit committee supported the request and recommended the appointment of Haynie and Company to complete the 2025 annual audit. Discussion ensued on the need to address the ongoing delay with the Estes Park Housing Authority's audit and to address the underlining issues in order for the Town to complete its annual audit in a timely manner. There being no further business, Mayor Hall adjourned the meeting at 3:09 p.m. .Jx: U. Jackie Williamson, Town Clerk :^ _..}