Audit Committee 070908

Craig Abernathy

Description

Town of Nantucket  Audit Committee Meeting  thMinutes – Audit Committee Meeting December 10 , 2008  thApproved January 14 , 2009   Present: Mr. Jim Kelly, Mr. Michael Kopko, Ms. Patricia Roggeveen, Ms. C. Elizabeth Gibson, Mr. Malachy Rice, and Ms. Constance Voges, Mr. Bob Dickinson  Absent: None.  Also present: Mr. Rick Atherton, Ms. Reneé Davis (via conference call), Mr. Glenn Field, Ms. Jane Miller, Mr. Craig Abernathy, Mr. Jason Graziadei, and Mr. Whiting Willauer  Call to Order:    Ms. Roggeveen called the meeting to order at 9:00 AM.  Announcements and Updates:    Ms. Roggeveen moved that the agenda be modified to change language of “Discussion with Powers and Sullivan Regarding an Independent Audit of the School” to  with  and   an  Audit of Systems and Procedures;” seconded by Mr. Kopko.  So voted unanimously.  Approval of Minutes:   Mr. Kelly made a motion to approve the minutes from the meeting of November th5 , 2008; seconded by Mr. Kopko.  So voted unanimously.  Cash Reconciliation Update for FY 2009: Mr. Dickinson reported that the cash reconciliations for the first three months of the year have been completed and submitted to the State.  Mr. Kelly asked if there were any surprises in the reconciliations, to which Mr. Dickinson responded that most errors were common misposting errors.  Mr. Kelly noted that over time the list of reconciled items has become shorter.  Mr. Dickinson agreed ...

Informations

• Publié par: Nufor
• Nombre de lectures: 65
• Langue: Español

Extrait

TownofNantucket AuditCommitteeMeeting th Minutes–AuditCommitteeMeetingDecember10 ,2008 th ApprovedJanuary14 ,2009 Present:Mr.JimKelly,Mr.MichaelKopko,Ms.PatriciaRoggeveen,Ms.C.Elizabeth Gibson,Mr.MalachyRice,andMs.ConstanceVoges,Mr.BobDickinson Absent:None. Alsopresent:Mr.RickAtherton,Ms.ReneéDavis(viaconferencecall),Mr.GlennField, Ms.JaneMiller,Mr.CraigAbernathy,Mr.JasonGraziadei,andMr.WhitingWillauer CalltoOrder: Ms.Roggeveencalledthemeetingtoorderat9:00AM. AnnouncementsandUpdates: Ms.Roggeveenmovedthattheagendabemodifiedtochangelanguageof “DiscussionwithPowersandSullivanRegardinganIndependentAuditoftheSchool”to “DiscussionwithPowersandSullivanRegardinganIndependentAuditofSystemsand Procedures;”secondedbyMr.Kopko.Sovotedunanimously. ApprovalofMinutes:

Mr.KellymadeamotiontoapprovetheminutesfromthemeetingofNovember th 5 ,2008;secondedbyMr.Kopko.Sovotedunanimously.

CashReconciliationUpdateforFY2009:

Mr.Dickinsonreportedthatthecashreconciliationsforthefirstthreemonthsof theyearhavebeencompletedandsubmittedtotheState.Mr.Kellyaskediftherewere anysurprisesinthereconciliations,towhichMr.Dickinsonrespondedthatmosterrors werecommonmispostingerrors.Mr.Kellynotedthatovertimethelistofreconciled itemshasbecomeshorter.Mr.Dickinsonagreed,statingthatascommonerrorsare

Minutes–AuditCommittee th December10 ,2008 Page2of5 identifiedtheyareeliminated.Ms.VogesnotedthattheFinanceDepartmentisfacing challengesfromtheSpecialTownMeeting,theFY2008Audit,andcashreconciliations, andcommentedthattheworkdonesofarhasbeenagoodstart. StatusofFY2008Audit: Ms.VogesstatedthatshehasspokenwithReneéDavis,PowersandSullivan Partner,andthatdespitethesetbackscausedbypreparationsforSpecialTown Meeting,herofficebegansendinginformationfortheauditattheendofNovember. Ms.Roggeveenaskedaboutthetimelinefortheaudit,towhichMs.Vogesresponded th thattheauditorswillcometoNantucketonJanuary5 ,2009,fortwoweeksoffield st work.SheaddedthatthedeadlineforadraftauditisJanuary31 ,2009,andthe st finishedaudithasadeadlineofMarch31 ,2009. DiscussionwithPowersandSullivanRegardinganIndependentAuditofSystemsand Procedures: Ms.RoggeveenstatedthatshehasdiscussedSchoolauditingparameterswith ReneéDavis,andthatshehaslearnedthattheseauditsdonotlookatsystemsand proceduresusedattheSchool. Ms.Davisjoinedthemeetingviaspeakerphone. Ms.Roggeveenexplainedthatshewouldliketodiscussoptionsforreviewingthe systemsandproceduresusedbytheSchool.Ms.DavisexplainedthattheSchoolhasa largebudgetandalsohavetheabilitytomanagefinancesfreelyaslongasthebudget bottomlineismaintained.SheaddedthatalthoughtheSchoolmakesupalargepartof theTown’sfinances,theauditoftheSchooldoesnotrevieweachlineitem.Ms.Davis notedthattheSchoolmustreportonitsfinancialcontrolstotheDepartmentof Education. Mr.Athertonaskedifthenormalaudittestsrandomtransactions.Ms.Davis answeredthattheregularauditteststransactionsforenterprisefunds,theTownand theSchool,butaddedthatanauditsimilartooneperformedattheLandfillcouldbe conductedattheSchool.Shesaidthatsuchandauditwouldmakesurethatfinancial statementscan’tbemateriallymisstatedduetoalackofcontrols.Ms.Davisaskedif theCommitteeisseekingmoreinformationonbudgetarycontrolsontheexpenseside ofSchoolfinances.Mr.Kellyansweredthathedidnotbelievethereisaconsensuson whattheCommitteeislookingfor,andstatedthathebelievesthecurrentdiscussionis inregardtofinancialauditsofinternalcontrols,managementprocesses,andsystems withindepartments.Ms.DavisofferedtomeetwithGlennField,Assistanttothe SuperintendentforBusiness,whenshecomestoNantucketinJanuary.Shesaidthat shecouldlookattheprocessofbudgetinganddiscusstheneedtohaveagoodsystem ofcontrolsinordertoidentifycosts.Mr.Kellyaskedifthenormalauditlooksat

Minutes–AuditCommittee th December10 ,2008 Page3of5 internalcontrols,towhichMs.Davisansweredintheaffirmative.Ms.Roggeveenstated thatshethoughtMs.Davishadpreviouslyindicatedthatthesecontrolswerenot scrutinized.Ms.DavisansweredthatduringtheauditoftheSchoolherorganization looksatbillsandinvoices,testingthecontrolsofthewarrantprocess.Sheaddedthat theauditdoesnotlookatbudgetmonitoringsystemsorbudgetarytransactions. Ms.Roggeveenstatedherbeliefthattherearesomeadvantagestohaving PowersandSullivanconducttheaudit.Mr.KellypointedoutthatMs.Roggeveen’s concernoverinternalcontrolsisaddressedinthenormalaudit.Mr.Kopkocommented thathebelievesthediscussionisaboutpolicymorethatfinancialmanagement,noting thatthetypeofscrutinyMs.Roggeveenisseekingmightbebetterachievedthrough otherchannels.Mr.KellystatedthathebelievesthattheAuditCommitteehasfulfilled itsobligationtomakesurethemunicipalfinancesareproperlyauditedandreported. Ms.VogesaskedMs.Davistoexplainthefinancialnatureofstudentactivity accounts.Ms.Davisansweredthatstudentactivityaccountsaregovernedspecifically bylawandthattheyenabletheprincipalsofaschooltocollectfundsandwritechecks forexpenseswithoutgoingthroughthewarrantprocess.SheaddedthattheSchool Committeehastheauthoritytosetguidelinesfortheprincipal’suseoftheaccount. Mr.KellystatedthathehasobservedthatTownandSchoolfinancesdonot interfaceclearly,notingthatitmightbehelpfulfromamanagementperspectiveforMr. FieldandMs.Vogestoworkthroughsomemanagementquestionstogetherinlieuof furtherauditdiscussions.Ms.Roggeveenassertedherbeliefthatsheisnotconvinced theSchoolisnotinneedofalineitemaudit,statingthatshebelievestheissuescenter aroundvoterconfidenceandcorrectivepractice.Mr.KopkonotedthattheSchoolalso hasotherauditsofitsfinances.Mr.FieldechoedMr.Kopko’sstatementnotingthatthe Schoolhasacomplianceaudit,addingthatinthepastthreeyearstheSchoolhas undergonetenaudits.Ms.DavisstatedthataspartoftheTown’saudita“singleaudit” isalsoperformed.Sheexplainedthatthisauditstudiesinternalcontrolsinrelationto federalgrants.Afterfurtherdiscussionoftheneedforaseparateaudit,Mr.Kopko suggestedthatthematterbeconsideredfurtherbeforeanydecisionismade.Mr. KopkothankedMs.DavisforhelpingtoeducatetheCommitteeandprovideabaseline forwhatproceduresarefollowedintheauditprocess. Ms.Davisleftthediscussion. InconsideringfutureoptionsforperformingaSchoolaudit,Mr.Kopkosuggested thattheinterestsofallpartieswouldbebetterservedifthesediscussionsareheldwith theAdHocBudgetCommittee.Ms.RoggeveenaddedherdesiretospeakwithTown Counselagainregardingthenecessaryauthorityforalineitemaudit.Mr.Kellystated thathebelievesthatthiskindofconversationisunnecessary,astheCommitteehasnot cometoaconsensusontheneedforsuchanaudit.Ms.Vogesremindedthe

Minutes–AuditCommittee th December10 ,2008 Page4of5 Committeethatwhenconsideringadditionalauditsthesubstantialcostassociatedwith theaudithastobecarefullyconsidered. NewBusiness: Ms.VogesannouncedthatshehasresubmittedtheTaxRecapandthatsheis notsurehowmuchlongeritwillbebeforeitisapproved.Mr.Kopkoaskedaboutother deadlineswiththeAbrahamsGroupandtheDepartmentofRevenue(DOR).Ms.Voges answeredthatallpartiesarehappythattheTownisontherighttrackdespitesetbacks tosometimelines.Ms.GibsonstatedthatMarkAbrahamswishestheTownwasfurther alongtheprocessofimplementationofitsrecommendations,butthathealso understandsthechallengestheTownhasfacedinthecurrentfiscalyear.

OtherBusiness: None. DateofNextMeeting: Ms.Roggeveenproposedthatthenextmeetingshouldtakeplaceon th Wednesday,January14 ,2008,at9:00AM. Adjournment Ms.Roggeveenaskedforamotiontoadjournwhichwas“somoved”byMr. Kopko.Themeetingwasadjournedat9:45AM. ”””””””””””””””””””””””””””””””””””””””” PreparedbyCraigAbernathy

Minutes–AuditCommittee th December10 ,2008

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