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Home My WebLink AboutPACKET Audit Committee Wednesday August 28, 2023 2:30 p.m. – 3:30 p.m. Audit Committee Admin Conference Room 1. CALL TO ORDER 2. NEW BUSINESS a) 2022 ACFR and Audit Review i. Review 2022 Audit Report and Audit Findings with Auditors. ii. Confirm readiness for Sept 12, 2023 Town Board meeting. b) Consider appointment of Haynie and Company to perform the 2023 Audit. 3. ADJOURN Attachments: Attachment A – Auditor Management Letter Attachment B – Auditor Presentation Link to the Annual Comprehensive Financial Report for year ended 12-31-2022 AGENDA Page 1 Page 2 Attachment A Page 3 Page 4 Page 5 Page 6 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> Town of Estes Park Audit Presentation To The Audit Committee of the Board of Trustees For The Year Ending December 31, 2022 August 28, 2023 •Engagement team •Audit procedures •Financial highlights •Required communications •Uncorrected misstatements •Corrected misstatements •Appendices Agenda 1 2 Attachment B Page 7 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> ENGAGEMENT TEAM Ty Holman, CPA, tyh@hayniecpas.com 303-995-4970 Audit Partner Abbey Irvine, CPA, abbeyi@hayniecpas.com 970-443-0936 Audit Manager <Any extra information that doesn’t match agenda but needs to be on section break slide> AUDIT PROCEDURES 3 4 Page 8 8/24/2023 We issued a clean, or unmodified, audit opinion on the 2022 financial statements effective June 28, 2023. We conducted our audit in accordance with United States Generally Accepted Auditing Standards. The objective of our audit was to obtain reasonable, not absolute, assurance about whether the financial statements are free from material misstatement. Engagement status 5 6 Page 9 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> FINANCIAL STATEMENT HIGHLIGHTS Total Assets, $222,848,687 Total Deferred Outflows, $2,040,382 Total Liabilities, $51,546,539 Total Deferred Inflows, $9,808,561 Net Investment in Capital Assets, $107,892,245 Restricted, $9,944,410 Unrestricted, $45,697,314 Net Position, … 2022 Government Wide Statement of Net Position Total Assets Total Deferred Outflows Total Liabilities Total Deferred Inflows Net Investment in Capital Assets Restricted Unrestricted 7 8 Page 10 8/24/2023 Total General Revenues, 25,748,731 Charges for Services, 33,818,635 Operating Grants and Contributions, 483,861 Capital Grants and Contributions, 1,647,947 Program Expenses, 45,812,143 2022 Government Wide Statement of Net Position Highlights Total General Revenues Charges for Services Operating Grants and Contributions Capital Grants and Contributions Program Expenses Change in Net Position $15,887,031 Total Assets Total Assets Total Liabilities and Deferred Inflows Total Liabilities and Deferred Inflows Fund Balance Fund Balance - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Governmental Fund Financial Highlights - Balance Sheets Total Assets Total Liabilities and Deferred Inflows Fund Balance 2021 24,902,846 2,864,612 22,038,234 2022 30,339,385 2,579,510 27,759,875 9 10 Page 11 8/24/2023 Business-Type funds Water and Power and Communication – Statements of Net Position Assets Assets Liabilities Liabilities Net Position Net Position - 20,000,000 40,000,000 60,000,000 80,000,000 100,000,000 120,000,000 140,000,000 2021 2022 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances Total Revenue Total Expenditures Transfers - Net Change in Fund Balances 11 12 Page 12 8/24/2023 (5,000,000) - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 2021 2022 Business-Type Activities Financial Highlights - Statements of Revenues, Expenditures, and Changes in Net Position Total Operating Revenues Total Operating Expenditures Transfers Total Non- Operating Expenditures Change in Net Position •Accounting Policies (Note 1) •Capital assets (Note 4) •Long-Term Debt (Note 5) •Budget to actuals (pages 80-81 and 86-94 and 98-102) •No funds over budget in 2022 Notes and Supplemental Info 13 14 Page 13 8/24/2023 <Any extra information that doesn’t match agenda but needs to be on section break slide> REQUIRED COMMUNICATIONS •GASB 87, Leases, was adopted effective January 1, 2022. No material impact to the financial Statements. A change in accounting principle was also reflected for an Inventory accounting change in the business-type activities, resulting in a prior period adjustment totaling $390,638 (P&C) and $6,650 (water) Selection of, or changes in, accounting policies or their application Accounting estimates •Based on our review of the Company’s critical accounting estimates, no significant changes were noted in the current period. Estimates considered: •Depreciable lives •Pension liability (asset) •Self Insurance claims payable Disagreements with management •We encountered no disagreements with management about matters that, individually or in the aggregate, could be significant to •The District’s interim financial information •Our audit proceduresDifficultiesencountered in performing the audit •No difficulties were encountered 15 16 Page 14 8/24/2023 •We are not aware of any consultations management had with other accountants about significant review or accounting matters. Management consultation with other accountants Management representation •Management provided a signed representation letter prior to issuance of the final report. Other matters •Required supplementary information – no opinion and no assurance •Other supplementary information – in-relation-to opinion Single Audit •Performed in 2022 for one major program - Bus and Bus Facilities Formula Program. •No findings to report. <Any extra information that doesn’t match agenda but needs to be on section break slide> UNCORRECTED MISSTATEMENTS 17 18 Page 15 8/24/2023 •There were no uncorrected misstatements. Uncorrected misstatements <Any extra information that doesn’t match agenda but needs to be on section break slide> CORRECTED MISSTATEMENTS 19 20 Page 16 8/24/2023 •These are also referred to as audit adjustments •Standard audit adjustments provided to adjust Pension and OPEB amounts on the financials statements. •$64,000 adjustment to P&C capital assets – not considered material or an control deficiency. Corrected misstatements Any additional information needed for sub-section break slide Upcoming GASB Pronouncements 21 22 Page 17 8/24/2023 Pronouncement Status Date Issued Effective Date (fiscal years beginning ) Statement No. 94: Public-Private and Public-Public Partnerships and Availability Payment Arrangements Improves accounting and financial reporting for (1) public-private and public-public partnership arrangements (both referred to as "PPPs") that are outside of the scope of the existing guidance for these transactions: Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, and Statement No. 87, Leases, and (2) availability payment arrangements ("APAs"). Final 4/20/2020 6/15/2022 Statement No. 96: Subscription-Based Information Technology Arrangements Provides uniform guidance on the accounting and financial reporting of subscription-based information technology arrangements (SBITAs) for government end users in an effort to provide greater consistency in practice, reduce diversity and improve comparability in financial reporting by governments. The Statement effectively applies many of the provisions of Statement No. 87, Leases, to subscription-based transactions Final 6/5/2020 6/15/2022 Statement No. 100, Accounting Changes and Error Corrections (an amendment of GASB Statement No. 62 ) The primary objective is to provide more straightforward guidance that is easier to understand and is more reliable, relevant, consistent, and comparable across governments for making decisions and assessing accountability. Improving the clarity of accounting and financial reporting requirements for accounting changes and error corrections will mean greater consistency in the application of these requirements in general. Final 6/13/2022 6/15/2023 Statement No. 101: Compensated Absences Aligns recognition and measurement guidance for all types of compensated absences under a unified model. It also requires that a liability for specific types of compensated absences not be recognized until the leave is used. Additionally, it establishes guidance for measuring a liability for leave that has not been used, generally using an employee's pay rate as of the date of the financial statements. For example, a liability for leave that has not been used would be recognized if the leave: Provides an alternative to the existing requirement to disclose the gross annual increases and decreases in long-term liability for compensated absences, allowing governments to disclose only the net annual change in the liability as long as it is identified as such; and removes the disclosure of the government funds used to liquidate the liability for compensated absences. Final 6/16/2022 12/15/2023 QUESTIONS AND ANSWERS 23 24 Page 18 8/24/2023 THANK YOU! HaynieCPAs.com 25 Page 19