HomeMy WebLinkAbout2010-04-12 Audit Commission MinutesAUDIT COMMITTEE MEETING APRIL 12, 2010 PAGE 1 of 3
Audit Committee Draft Minutes April 12, 2010 3:00pm Council Chambers 1175 East Main Street Call to Order The Audit Committee meeting was called to order at 3:05.
Roll Call Audit Committee members Stebbins, Nutter, Everson, Christensen were present. Silbiger was absent.
Everson/Stebbins ms Nutter to be chair. All ayes. Approval of Minutes Audit Committee Minutes of November 6, 2009 Everson/Stebbins ms to approve minutes. All ayes. Updates by Staff Mr. Tuneberg discussed Resolution 2008-24 (see attached). This resolution clarifies the duties and responsibilities of the Municipal Audit Committee. He stated that there must be three voting members constitute a quorum. The
Audit Committee must meet twice a year. Mr. Robertson stated that he is in charge the Parks audit and Ms. Bennett is in charge of the City’s audit. Mr. Tuneberg discussed the Management Reports (see attached). He discussed item number two and stated that in January changes were identified to Council, for now the requirements have been met and will continue to work through the elements. Mr. Tuneberg went over question item number three regarding using third parties. Mr. Tuneberg discussed the Governmental Accounting Standard Board (GASB) Statement No. 51 (see attached).
There will be a new pronouncement from GASB that will need to be addressed this year. One example is internally developed software. GASB Statement No. 54 will not be applicable until 2011.
Ms. Everson questioned if the ending fund balances have temporary restricted monies. Mr. Tuneberg answered yes; many ending fund balances have different restrictions or reserves within them. The Ending Fund Balances may also have self imposed restrictions.
Ms. Stebbins questioned item number one. She stated that there seems to be a lot of work and asked how the City will work to satisfy all issues. Mr. Tuneberg answered that the City will take a step approach to satisfy all issues. The Committee discussed the Audit and what the Auditors look for. Mr. Tuneberg stated that as long as progress
is being made towards what the Auditors want they will be happy. The auditors work on what is written down and whether or not documentations match.
AUDIT COMMITTEE MEETING APRIL 12, 2010 PAGE 2 of 3 The Committee discussed Parks item number two. Parks is still waiting for an upgrade from Recware Software. The Committee discussed item number three regarding the Intergovernmental Agreement (IGA). Parks went to Council and got the format of the IGA between the Parks and City. Ms. Christensen questioned if Parks got the
system running at the golf course. Mr. Robertson answered no not yet and stated Parks is still waiting to see what the budget numbers will be. 2010 Audit Scope Interim Field Work Schedule is April 20th to April 23rd (see attached).
The Auditors schedule included testing software in utilities, testing Court issues as far as compliance with state requirements, collection of payments to the state, computer policies, TOT audits, travel reimbursements and identified credit card use. Ms. Everson questioned if the City of Ashland still provides passport service. Ms. Christensen answered that the City stopped doing the passport service June 1, 2008. Discussion of 2011 Audit Contract The Committee discussed the Audit contract (see attached). The contract was renewed this year for less money
then last year. Mr. Tuneberg stated that thanks to Cindy Hanks the Accounting Department went above and beyond this year and did a great job. One of the Audit Committees responsibilities is selecting the Auditors. The decision that needs to be made now is whether or not to use the one year extension or go out to bid. The decision
does not need to be made immediately. Some things to consider are how well the current audit firm is working for the City and Parks and whether the City believes that there should be new insight from a new audit firm. This contract needs to go through a bid process on a routine basis. Mr. Tuneberg stated that the problem has been
getting qualified bidders to bid. This topic will be brought up again in October. Ms. Bennett stated that at the end of five years we have to bid the contract. It has been a long time since there has been a change but feels it is healthy to get a new firm. Ms. Christensen stated that since working at the City there has been one change of auditors the first year is a lot of work but it is good to make the change. Adjournment The meeting was adjourned at 4:00 p.m. Respectfully Submitted,
Melissa Huhtala Administrative Secretary