Wednesday, March 5, 2014

Live reporting - Audit report


Jim Dacey, Susan Gagner
  • Auditors
Frank Byron, Karen Snow - Melanson, Heath

management discussion an analysis
puts into words what the numbers say
various stabilization account history
skip this for now and go to the number pages, P14

the only place where capital assets appear

long term liabilities, OPEB = other post employment benefits, added per GASB standard changes

$89M = OPEB full liability
$31.8 M, this amount will increase each year when the town does not meet the actuarial funding requirements

GASB 68 - unfunded pension liabilities
required for reporting in 2015, all at once, not in an incremental fashion (like OPEB)

unassigned balances currently at 8% which is right in the range of 5-10 percent that the fund agencies look for

indicates a very strong financial position

page 20 budget vs actual
surplus of state and local revenues, town has been consistent with conservative revenue estimates

page 21 - balance sheet
includes the enterprise funds

strong cash balances in the enterprise accounts

page 25

Q - Padula - p14 clarification on the unfunded pension costs
A - pension vs the health insurance
the whole amount will appear at once, approx. $43M

Nutting - the difference is that the county has a funding schedule to catch up by 2031, after that there will be a lesser requirement. OPEB has no funding schedule currently. It will grow exponentially if we don't fund it.

Nutting we did put a little more since this Jun 30 2013 position. Every dollar into OPEB is not a dollar to be used for operations

Karen - on the management letter, not material deficiencies
4 this year, 5 last year
some are long term issues will take time to resolve (like the risk plan)
need to develop a formal risk plan with formal controls to mitigate the risk

fund balance policy, in process, provided some examples of other clients and how they have handled this; how to define which money to use when

current year recommendations issues 3 and 4
small debit balances, where did they come from, could be posting errors

looked at the library and departmental receipts
they don't have a real process to provide an audit trail for the receipts
look at ways to improve the reporting around the receipts
a frequent issue in municipalities

this is a good letter things are working well

Susan - did visit three departments to work on the risk assessments
have review the samples provided and have a draft to work with, should have one in place before the end of this fiscal year

will be visiting the library to ensure they have a better register process

Jones - each report has come back sparkling, the audits are great indications of good handling of our money

Karen - no adjustments, just some re-classifications, it is good to see that this is in good shape

Nutting - we always take the management letters seriously, every year the auditors come up with something to make us a stronger entity

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