HomeMy WebLinkAboutPACKET Audit Committee 2022-08-31Wednesday, August 31, 2022
3:00 p.m. – 4:30 p.m.
Audit Committee Admin Conference Room
1.CALL TO ORDER
2.NEW BUSINESS
a) 2021 CAFR and Audit Review
i.Review 2021 Audit Report and Audit Findings with Auditors.
ii.Confirm readiness for Sept 13, 2022 Town Board meeting.
b) Consider appointment of Haynie and Company to perform the 2022 Audit.
3.ADJOURN
Attachments:
Attachment A – Auditor Management Letter
Attachment B – Auditor Presentation
Link to the Annual Comprehensive Financial Report for year ended 12-31-2021
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
June 27, 2022
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, 2021, and have issued our report thereon dated June 27, 2022. 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 November 29, 2021. 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
significant new accounting policies were adopted and the application of existing policies did not materially
change during 2021.
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 performed inventory test count of the Power and Communications department
inventory that had not been test counted by Town staff prior to our arrival. The Power and Communication
department performed a count in December 2021, but did not coordinate with Finance or the external auditors. A
departure at the management level of the department contributed to the miscommunication that the test counts
should be coordinated with other areas in order to follow proper year-end accounting protocols. The audit test
counts performed on January 11, 2022 were materially close to the perpetual records maintained in the work order
system. We recommend test counts be scheduled in advance in 2022, with coordination with the Finance
department and external auditors to ensure a proper inventory observation can occur.
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,
8/22/2022
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Town of Estes Park
Report to Board of Trustees
2021 Audit
HaynieCPAs.com
Report to Board of Trustees
HaynieCPAs.com
Audit Scope and Methodology
Required communications in accordance with Audit
Standards
Financial Highlights
New Accounting Pronouncements,General Observations,
and Comments
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2
ATTACHMENT B
8/22/2022
2
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 2021
Passed Adjustments None
Disagreements with management None
Other findings or issues Audit observations
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4
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ACFR 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 none for 2021)
Financial Highlights
HaynieCPAs.com
2019 2020 2021
Government Revenues 24,206$ 20,773$ 28,327$
Proprietary Revenue 25,404 26,609 28,200
Total Revenue (000's) 49,610$ 47,382$ 56,527$
Change 000's)(2,228)$ 9,145$
5,000
10,000
15,000
20,000
25,000
30,000
2019 2020 2021
Revenue (000's)
Government Revenues Proprietary Revenue
2019 2020 2021
2019 2020 2021
Government Expenditures 19,337$ 20,853$ 23,139$
Proprietary Expenditures 18,243 20,718 22,321
Total Revenue (000's) 37,580$ 41,571$ 45,460$
Change 000's)3,991$ 3,889$
5,000
10,000
15,000
20,000
25,000
2019 2020 2021
Expenditures (000's)
Government Expenditures Proprietary Expenditures
5
6
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Financial Highlights
HaynieCPAs.com
2019 2020 2021
Long-Term Debt (000's) 45,592$ 43,474$ 41,790$ ,,,,
Principal due in 2022 (000's) 1,728$
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2019 2020 2021
Long-Term Debt (000's)
Financial Highlights
HaynieCPAs.com
2019 2020 2021
Ending Governmental
Net Position (000's)72,599$ 74,377$ 81,368$
Ending Proprietary Net
Position (000's)57,786$ 61,819$ 65,895$
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2019 2020 2021
Net Position (000's)
Ending Governmental Net Position (000's)
Ending Proprietary Net Position (000's)
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New Accounting Standards,General
Observations,and Comments
HaynieCPAs.com
Upcoming Accounting Standards Implementation
o GASBS 87 Leases:Requires recognition of assets and liabilities
for certain leases that were previously expensed as incurred
effective for 2022)
o GASBS 91 Conduit Debt Obligations:Clarifies existing definition
and establishes standards for accounting and reporting of
additional and voluntary commitments extended by issuers
effective for 2022)
o GASBS 96 Subscription Based IT Arrangements effective for
2023)
General observations and comments
Contact Information:
o Ty Holman
email:tyh@hayniecpas.com;phone:303 734 4800
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