HomeMy WebLinkAbout01-14-19 Fiscal Affairs Committee Meeting
REQUEST FOR FISCAL AFFAIRS AGENDA ITEM
Amount Budgeted
Agenda Date Requested: January 14, 2019
Source of Funds:
Requested By: Michael Dolby, Director of Finance
Account Number:
Department: Finance
Amount Budgeted
Report: xx Resolution: Ordinance:
Amount Requested: $
Exhibits:
Budgeted Item: YES NO
Exhibits:
The current audit firm of the City of La Porte is Whitley Penn. Whitley Penn is in the process of performing an
audit on the City of La Porte for the fiscal year 2018. They will make a presentation.
Action Required by Council:
Approved for City Council Agenda
Corby Alexander, City Manager Date
City of La Porte, Texas
FY18 Audit Planning Presentation
Audit Team
Engagement Partner Lupe Garcia, CPA
Concurring Partner Tom Pedersen, CPA
Senior Manager Laura Lynch, CPA
In-charge staff Jordan Henneman
Staff Dustin Hicks
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Whitley Penn Audit Approach
We communicate early and often with management.
We and management will agree on the facts.
We perform procedures in areas prone to
noncompliance early in the audit process.
We are believers in nosurprises.
We will provide guidance and information that may be
helpful to the City.
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The Audit Process
Risk
Assessment
Substantive
Test of
Analytics
Controls
Opinion
Verification,
Confirmation,
and
Corroboration
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Audit Process
Interim Fieldwork Procedures
Documenting processes and controls over:
Payroll
Human Resources
Non-payroll transactions (Accounts Payable)
Purchasing
Municipal Court
Permits
Utility Billing
Cash collections Parks Department
Bank reconciliations, financial close and reporting
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Audit Process
Interim Fieldwork Procedures
Test of controls over the following:
Payroll
Non-payroll (Accounts Payable)
P-cards
Purchasing
Municipal Court
Licenses and Permits
Parks Department
Utilities
Test of compliance with Public Funds Investment
Act (PFIA)
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Audit Process Year-End
Information to be confirmed with third parties:
Cash and investment accounts
Pledged collateral
Property taxes collected
Property value assessed
Significant franchise fees
Long-term debt
Hotel/Motel taxes State of Texas open records request
Sales taxes State website
Other substantive procedures to include analytics
and testing of significant items
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New accounting standards FY18
GASB Statement No. 75 Accounting and financial
reporting for postemployment benefits other than
Replaces GASB Statement No. 45
OPEB Retiree Medical Plan
Net OPEB Liability at 9/30/2017 = $42.1M
Net OPEB Liability at 9/30/2018 = $47.5M
Change in accounting principle resulted in a prior
period adjustment of ($26.4 M)
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Audit Process Timing
On-site Field Work:
January 7 January 18, 2019
Reporting:
February 15, 2019 Comprehensive Annual Financial
Report (CAFR) Draft due for client review
February 18, 2019 comments back from client for
changes
February 19, 2019 concurring partner review
February 22, 2019 CAFR draft due for Council packet
March 11, 2019 FFAC and Council presentation
March 30, 2019 deadline to file with GFOA
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