HomeMy WebLinkAboutPACKET Audit Committee 2021-08-11Wednesday Aug 11, 2021
4:00 p.m. – 5:00 p.m. Audit Committee Virtual Meeting
The Audit Committee will participate in the meeting remotely due to the Declaration of Emergency
signed by Town Administrator Machalek on March 19, 2020 related to COVID-19 and provided for with
the adoption of Ordinance 04-20 on March 18, 2020.
To view or listen to the Audit Committee by Zoom Webinar
ONLINE (Zoom Webinar): zoom.us/join Webinar ID: 942 8304 1534
CALL-IN (Telephone Option): 877-853-5257 (toll-free) Meeting ID: 942 8304 1534
1.CALL TO ORDER
2.NEW BUSINESS
a) 2020 CAFR and Audit Review
i.Review 2020 Audit Report and Audit Findings with Auditors.
ii.Confirm readiness for Aug 24, 2021 Town Board meeting.
b) Consider appointment of Haynie and Company to perform the 2021 audit.
3.ADJOURN
Attachments:
Attachment A – Auditor Management Representation Letter
Attachment B – Auditor Presentation
CAFR for year ended 12-31-2020 provided separately - Link
AGENDA
Certified Public Accountants
& Management Consultants
1221 W. Mineral Avenue, Suite 202
Littleton, CO 80120
303-734-4800
303-795-3356
www.HaynieCPAs.com
An Association of Independent Accounting Firms
July 23, 2021
To the Board of Trustees and Management
Town of Estes Park, Colorado
We have audited the financial statements of Town of Estes Park, Colorado (the “Town”) for the year ended
December 31, 2020, and have issued our report thereon dated June 25, 2021. Professional standards require that
we provide you with the following information related to our audit.
Our responsibility under U.S Generally Accepted Auditing Standards was provided to you in the engagement
letter dated December 28, 2020. This letter also communicated the general scope and timing of our audit; any
significant updates have been verbally communicated.
We have also requested and received written representations from management regarding the financial statements.
A copy of this letter can be provided to you upon request.
Significant Accounting Policies
The significant accounting policies used by the Town are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies did not materially change during 2020.
We noted no transactions entered into by the Town during the year that were both significant and unusual, and of
which, under professional standards, we are required to inform you, or transactions for which there is a lack of
authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management’s knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the financial statements were:
•Management’s estimate of the depreciable lives and estimated residual value of property and equipment is
based on prior management experience. We evaluated the key factors and assumptions used to develop
the depreciable lives and estimated residual value in determining that it is reasonable in relation to the
financial statements taken as a whole.
•The estimates of the net pension and OPEB liabilities are based on actuarial valuations, which make
certain assumptions and estimations. We reviewed the valuations and key assumptions and found them to
be reasonable.
•The Town estimates the year-end self-insurance claims payable. This estimate is based on past experience
and expected results. We reviewed the calculation of this liability and the key assumptions used to
determine it, and consider the estimated liability to consistent with expectations.
Attachment A
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are clearly trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of
audit procedures and corrected by management were material, either individually or in the aggregate, to each
opinion unit’s financial statements taken as a whole.
Disagreements with Management
None.
Consultations with Other Independent Accountants
None of which we are aware.
Significant Issues Discussed Prior to Retention of Independent Auditors
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the Town’s auditors. However, these discussions
occurred in the normal course of our professional relationship and our responses were not a condition to our
retention.
Significant Difficulties Encountered in Performing the Audit
None.
Other Matters
We applied certain limited procedures to the management’s discussion and analysis and required supplementary
information (RSI), as listed in the table of contents. Our procedures consisted of inquiries of management
regarding the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during
our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any
assurance on the RSI.
We were engaged to report on the budgetary comparison schedules, combining and individual nonmajor fund
financial statements listed in the table of contents, which accompany the financial statements but are not RSI.
With respect to this supplementary information, we made certain inquiries of management and evaluated the form,
content, and methods of preparing the information to determine that the information complies with accounting
principles generally accepted in the United States of America, the method of preparing it has not changed from
the prior period, and the information is appropriate and complete in relation to our audit of the financial
statements. We compared and reconciled the supplementary information to the underlying accounting records
used to prepare the financial statements or to the financial statements themselves.
We were not engaged to report on the introductory section, statistical section and Local Highway Finance Report
which accompany the financial statements but are not RSI. Such information has not been subjected to the
auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an
opinion or provide any assurance on it.
Other Findings or Issues Noted During the Audit
Audit Observations:
During our engagement, we reviewed schedules that could not be converted to excel easily, and noted some
processes that are manual due to system features that limit automation. Additionally, we noted the current
accounting system cannot create functional financial statements. In our experience, a more robust ERP system
can eliminate department inefficiencies and provide robust reporting that can aid the Town with overall
monitoring.
This information is intended solely for the use of the Town Board and management of the Town of Estes Park,
Colorado and is not intended to be and should not be used by anyone other than these specified parties.
Sincerely,
7/28/2021
Town of Estes Park
Report to Board of Trustees-
2020 Audit
HaynieCPAs.com
Report to Board of Trustees
HaynieCPAs.com
Audit Scope and Methodology
Required communications in accordance with Audit
Standards
Walkthrough of CAFR
Financial Highlights
New Accounting Pronouncements, General Observations,
and Comments
Attachment B
7/28/2021
Audit Scope and Methodology
HaynieCPAs.com
Opinion on fair presentation of financial statements
Risk-based approach – procedures tailored to address risks
(including fraud and significant risks)
Vary procedures from year to year
Internal controls
Required Communications
HaynieCPAs.com
Significant new accounting policies – none
Significant estimates
o Pension
o Depreciable lives of capital assets
o Self-insurance claims payable
Audit adjustments – Standard entries to Record Pension
and OPEB adjustments for 2020
Passed Adjustments –
Disagreements with management – none
Other findings or issues – Audit observations
7/28/2021
CAFR – Outline
HaynieCPAs.com
Audit opinion
Introductory Section with Transmittal Letter
Management’s Discussion and Analysis
Government Wide financial statements
Governmental fund financial statements
Proprietary fund financial statements
Footnotes
Supplemental Schedules
Statistical Section
Compliance Section
Single Audit Reports
Financial Highlights
HaynieCPAs.com
7/28/2021
Financial Highlights
HaynieCPAs.com
Financial Highlights
HaynieCPAs.com
7/28/2021
Financial Highlights
HaynieCPAs.com
New Accounting Standards, General
Observations, and Comments
HaynieCPAs.com
Upcoming Accounting Standards Implementation
o GASB 87 – Leases – delayed to 2022
General observations and comments
Contact Information:
o Ty Holman
email: tyh@hayniecpas.com; phone: 303-734-4800