HomeMy WebLinkAbout1997-0902 Audit Minutes Audit Committee Minutes
September 2, 1997 2:00 p.m. Public Works Conference Room
Committee Members present were: Robert Dozier, Barbara Christensen, and Martin
Levine. Yergen & Meyer staff present were: Gerald W. Burns, Jeffery Rehbein, and
Brian Conover. City Staff present were: Jill Turner, Ken Mickelsen, and Patrick
Caldwell. The meeting was called to order at 2:15 p.m. by Chairman Levine.
I. Elect a Chairperson
This was postponed because Emile Amarotico was not present.
II.
Approval of the previous minutes
The minutes from the May 12, 1997, December 13, 1996, and September 5,
1996 meetings were reviewed.
Levine motioned for approval, Christensen seconded. Ayes all, so
moved.
III.
Review Audit Plan and Scope
Burns reviewed the audit plan explaining the methodology of substantive
testing, and the coverage levels he planned to attain. Dozier questioned the
lack of detail testing on Payroll transactions. Burns indicated that, with a
three-year engagement, future years may include greater detail testing. Dozier
commented on the potential for error without detail transaction testing, but
followed with an understanding of materiality to determine a clean opinion.
Burns indicated that the single audit work would include some testing of
detailed payroll transactions on federally funded projects.
Burns went on to the Parks and Recreation audit plan. Levine asked how the
audit materiality levels were arrived at. Burns responded with an explanation
of the level of materiality, and a short discussion of tolerable error that would
not create a material misstatement in the financial statements. He went on to
discuss his presentation of an opinion on the financial statements at a Fund
level rather than a Fund Type level.
Christensen returned to Individually Significant Items questioning whether
certain large dollar transactions would skew results and asked about testing
transaction volume rather than dollar volume. Burns responded with a
discussion of the Flex or Variation Analysis which shows a dollar and
percentage change in accounts over the prior year. Turner stated how useful
the Flex analysis was to her.
Audit Committee Minutes 9/5/97
Christensen asked if Yergen and Meyer intended to follow through with
Coopers and Lybrand's Management Recommendation Letter comments from
last years audit. Burns indicated that the items on the Management letter
would be reviewed with staff as part of the audit. Turner indicated that staff
was following up on the items in the letter, and that from a policy standpoint
there was not much of significance included.
Christensen asked what form Yergen and Meyer's Management Letters would
take. Burns said he prefers to include items that are a matter of policy rather
than accounting function in Management Letters; either a significant reportable
condition or disclosure of a material weakness. Levine agreed that
Management Letters should not be a report card on procedural function and
indicated that we should rely on Mr. Burns' professional judgment as to what
should appear in the Letter. Burns indicated that they had reviewed the prior
years' comments and would follow up on significant items. Christensen
questioned whether the Management Letter would be presented to the Audit
Committee or to management. Burns stated that the Letter should be
presented to management as that is for whom it is intended.
Burns stated that they had reviewed Coopers and Lybrand's work papers in
their Eugene office but had no success in obtaining a computer disc copy of
the CAFR. Levine indicated that we should pursue this as technically it does
belong to the City. Christensen suggested getting City Attorney Paul Nolte
involved. Dozier suggested writing to Coopers and Lybrand with the intent of
getting their response on paper rather than verbally. Turner indicated that she
would see what information she could obtain from Coopers and Lybrand.
Burns and Rehbein presented a review of their Internal Control review just
completed at Oak Knoll Golf Course. Outlining the suggestions that were
given for improvement of census on rounds of golf played.
Meeting adjourned at 3:55 p.m.
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