06-20-11 Fiscal Affairs Committee Meeting

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G. Component Units The financial audit of the City of La Porte will include an audit of the La Porte Area Water Authority, which is a blended component unit of the City. The audit of the LPAWA will be perFormed in compliance with the laws and regulations of the Texas Commission on Environmental Quality. The financial statements of the Tax Investment Reinvestment Zone (La Porte Redevelopment Authority) will be included as a special revenue fund of the city. This entity is audited under a separate engagement. The La Porte Development Corporation (Section 4B Sales Tax) will also be reported as a blended component unit. H. Joint Ventures The City does not participate in joint ventures with other governments. I. Magnitude of Finance Operations The Finance Department is directed by Michael G. Dolby, Director of Finance and it is made up of 4 divisions: Accounting, Tax, Utility Billing, and Purchasing. The auditors will work primarily with the Controller; however, all Division Managers are expected to have limited involvement. The Director of Finance has 11 years of municipal governmental experience and is a Certified Public Accountant. The remaining managerial staff has over 40 years of collective experience in governmental finance. J. Computer Systems The City's uses an ASP system for the financial system, and the financial and accounting records are maintained by Sungard's (HTE) application, Government Management and Budgetary Accounting (GMBA). The Finance Department uses IBM compatible personal computers that are networked. Most audit working papers and lead schedules are prepared on Excel and can be accessed electronically. It is anticipated that the auditors will have limited access into the city's financial system. Also staff prepares the CAFR in Prosystems. K. Internal Audit Functions The City does not currently have an internal audit function. Za