HomeMy WebLinkAboutMINUTES Audit Committee 01-30-2017
Town of Estes Park, Larimer County, Colorado, January 30, 2017
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 the Administration Conference Room in said Town of Estes Park
on the 30th day of January, 2017.
Committee: Mayor Jirsa, Mayor Pro Tem Koenig, Trustee Holcomb,
Town Administrator Lancaster, and Finance Director
Hudson, and Assistant Finance Officer McDougall
Attending: Mayor Jirsa, Mayor Pro Tem Koenig, Trustee Holcomb,
Finance Director Hudson and Assistant Finance Officer
McDougall; CliftonAllenLarson LLC representatives Paul
Neidermuller and Eric Miller, and Town Clerk Williamson
Absent: Administrator Lancaster
Mayor Jirsa called the meeting to order at 8:30 a.m.
HIGHLIGHT RESPONSIBILITIES OF TOWN STAFF AND AUDITOR UNDER GAAS.
Mr. Neidermuller provided a overview of CliftonAllenLarson’s (CLA) responsibilities
throughout the audit process, including the expression of an opinion on the Town’s
financial statements to ensure they conform with governmental financial standards,
communicate significant matters to the Town Board, report deficiencies and
irregularities, and provide information on laws and regulations. Significant items such
as fraud would be brought to the Board’s attention immediately and not at the end of the
audit process. He reminded the Committee the audit completes a sampling of
transactions and does not provided a 100% review of all transactions completed during
the audit year.
AUDIT PROCESS AND RISK FACTORS.
CLA would perform a risk assessment based on internal and external factors, review
Town systems and controls, and perform a single audit based on the Town’s major
programs in 2016. Discussion was heard on areas the Committee would like to address
in the upcoming audit for 2016. The Committee requested CLA review accounts and
funds with the highest risk of fraud such as credit cards and petty cash, accurate
accounting of revenues, inventory procedures, and disposal of equipment and assets of
the Town.
Mr. Miller reviewed the audit process, Benford analysis used for general disbursements,
detailed review of employee overtime hours, and the need to address external fraud
potentials such as email phishing scams and ACH payments.
ACCOUNTING STANDARD CHANGES AND UPDATES.
The Town would need to comply with three GASB standards during the 2016 audit.
GASB 68 requires the Town to estimate pension liability based off PERA actuary report.
This was included in the 2015 audit as well. GASB 72 requires the Town to report fair
value measurement for investments. GASB 77 requires disclosure of tax abatement
agreements entered into by the Town and an individual or entity in which 1) the Town
promises to forgo tax revenues to which they are entitled and 2) individual or entity
promises to take a specific action after the agreement that contributes to economic
development or benefits the Town.
AUDIT SUCCESS FACTORS AND SCHEDULE.
CLA recommended completing the financial audit and single audit to run concurrently in
2017 for the 2016 audit. The interim audit work to complete the audit assessment and
Audit Committee – January 30, 2017 – Page 2
controls would be completed the week of February 20, 2017. Final audit work would be
completed the weeks of May 8, 2017 and May 15, 2017. The Audit Committee would
meet in June 2017 to review the audit before the final audit has been completed and
reviewed by the full Board. Goals and benchmarks would be established to keep the
audit on schedule, and weekly meetings with Town staff would be established to review
completed items and open items that need to be addressed.
AUDIT COMMITTEE QUESTIONS.
Trustee Holcomb questioned if the Committee would receive a report on the
deficiencies found during the 2015 audit. The 2016 audit report would address the
deficiencies and outline how staff has addressed each issue.
Mayor Jirsa requested CLA communicate any fraud issues to the Board immediately;
any issues that may lead to a Board level policy that needs to be changed to address an
issue; and any significant changes in the audit timeline.
The Audit Committee reached consensus on maintaining the current audit process and
not to increase the level of involvement by the Committee at this point in time.
There being no further business, Mayor Jirsa adjourned the meeting at 9:23 a.m.
Jackie Williamson, Town Clerk