HomeMy WebLinkAboutMINUTES Audit Committee 2012-06-14RECORD OF PROCEEDINGS
Town of Estes Park,Larimer County,Colorado,June 14,2012
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 14th day of June,2012.
Committee:Mayor Pinkham,Trustee Ericson,Town Administrator
Lancaster,Assistant Town Administrator Richardson,
Finance Officer McFarland,and Assistant Finance Officer
McDougall
Attending:Mayor Pinkham,Trustee Ericson,Town Administrator
Lancaster,Finance Officer McFarland,and Assistant
Finance Officer McDougall;Swanhorst &Company LLC
representatives Wendy Swanhorst and Austin Bump
Absent:Assistant Town Administrator Richardson
Chair Ericson called the meeting to order at 3:00 p.m.
CAFR PRESENTATION
The 2011 Comprehensive Annual Financial Report (CAFR)has been completed.
Wendy Swanhorst and Austin Bump of Swanhorst &Company,LLC (Swanhorst)
discussed the Management Letter.The Financial Statements have been issued with an
Unqualified Opinion.Highlights include:
•The Town implemented a new accounting standard,Governmental Accounting
Standards Board (GASB)#54,which requires more detailed definition of fund
balances than in the past.
•The Town is also required to adhere to new requirements limiting the use of
special revenue fund types.To comply with the new standard,Swanhorst
recommends that the Town Board approve a formal action to commit the
revenues of the Community Services Fund (staff will bring this recommendation
to the Town Board at a future Board meeting).The other option is the close the
Fund into the General Fund.
•The Town received Federal Awards/Grants in 2011 in excess of $500,000,which
in turn triggered the requirement for the A-133 Single Audit,which appears near
the end/back of the CAFR.Swanhorst noted that the Town should continue
moving towards centralized policies and procedures to identify and monitor these
awards,and that ongoing training should be maintained.
The CAFR will be presented to the Town Board at the June 26,2012 Board meeting.
UPDATE ON INVESTMENTS
Finance Officer McFarland reported that he met with Cutwater Asset Management (the
Town’s investment advisors)on May 25th 2012,at which point the Town’s investments
were reviewed.Due to Colorado House Bill 12-1005 (March 7,2012),the Town can
now once again invest in government-backed securities.The Town has increased its
position in said securities,but is also keeping the duration of its investments very short,
as interest rates are believed to be in a “bottoming”process.Cutwater and Finance
Officer McFarland would like to update the Town’s investment policy.The current policy
works well,but is from 2001,and needs verbiage updating.
DISCUSSION OF RFP OF AUDITING FIRM
Swanhorst is in year 5 of a 5-year agreement with the Town for auditing services.
Finance Officer McFarland stated he would prepare the RFP for the 2012-16 CAFRs in
RECORD OF PROCEEDINGS
Audit Committee —June 14,2012 —Page 2
early July.The audit committee will shepherd the process,making a final
recommendation for Town Board upon completion.
OTHER NEW BUSINESS
There was no other new business.
There being no further business,Chair Ericson adjourned the meeting at 3:45 p.m.
Steve McFarland,Finance Officer