HomeMy WebLinkAbout08-15-11 Regular Meeting of Fiscal Affairs Committee CHUCK ENGELKEN, CHAIR L JOHN ZEMANEK
Councilmember District 2 0 C Coun At -Large A
Alternate Member 1
DARYL LEONARD
Councilmember District 3 0 �� �;�m
JAY MARTIN
` ` �} Councilmember District 5
TOMMY MOSER { Alternate Member 2
Councilmember District 4
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MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE
AUGUST 15, 2011
The Fiscal Affairs Committee met on August 15, 2011, at 5:00 p.m. in the La Porte City Hall Council
Chambers, 604 West Fairmont Parkway, La Porte, Texas, to consider the following items of business:
1. Call to Order
Chairman Chuck Engelken called the meeting to order at 5:00 p.m. Committee Members present
were Councilmember Daryl Leonard; Councilmember Tommy Moser; and Councilmember Jay
Martin, Alternate Member 2. Absent: Councilmember John Zemanek, Alternate Member 1.
Councilmember Dottie Kaminski attended the meeting.
2. Approve and sign the engagement letters from Null - Lairson for the City of La Porte and La
Porte Area Water Authority — M. Dolby
Finance Director Michael Dolby and Tom Pedersen with Null - Lairson discussed engagement letters
for the City of La Porte and the La Porte Water Authority. The Committee was informed the La
Porte Development Corporation would be included as a part of the City audit processes utilizing
random sampling. If the Committee desires an additional audit of the La Porte Development
Corporation, a separate engagement letter would be required.
Chairman Engelken advised Mr. Dolby the Committee does want a full audit of the La Porte
Development Corporation transactions for the past two years, and a separate engagement letter
would be needed. The Committee will meet August 22 at 5 :00 p.m. to approve an additional
engagement letter for the La Porte Development Corporation.
Committee Member Leonard questioned Mr. Pederson on how random samplings are determined.
Mr. Pederson responded the population is determined with a random number generator being
applied to the population. The firm is also required, as part of the audit, to form judgments on
transactions that come up during an audit were in compliance with state laws and regulations.
Committee Member Moser questioned if an opinion or findings would be expressed after the audit.
Mr. Pederson responded an opinion would be expressed, but the firm does not provide an opinion
on internal controls. It will provide an opinion on management comments and findings. Mr.
Pederson informed the Committee that the firm is required to report any instances of
non - compliance during an audit.
Chairman Engelken questioned if the water loss during water main breaks would be tested. Mr.
Pederson responded the firm would audit water consumption in utility billings and perform an
analytical type of review.
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August 15, 2011, Fiscal Affairs Committee Minutes
Chairman Engelken also questioned if the firm performed an audit on coding of property /sales taxes
from the State Comptroller's Office. Mr. Pederson responded the firm relies on what is received
from the State and assumes the records are correct.
Committee Member Moser moved to approve the engagement letters from Null - Lairson for the City
of La Porte and the La Porte Area Water Authority. Committee Member Leonard seconded.
MOTION PASSED.
Ayes: Chairman Engelken, Committee Members Moser and Leonard
Nays: None
The Committee directed Finance Director Michael Dolby and Mr. Pederson that the scope of work
for the La Porte Development Corporation is to include an audit of every transaction, not just a
random sampling, for the last two years.
3. Discuss audit for Fiscal Year 2011 — M. Dolby
Finance Director Michael Dolby discussed the audit for Fiscal Year 2011 and reported on GASB 54
reporting standards. Mr. Dolby reviewed the new classifications: non - spendable, restricted,
committed, assigned, and unassigned. Mr. Dolby also presented a sample resolution to the
committee for recommendation to the full City Council. Chairman Engelken directed Mr. Dolby to
bring the resolution back to the August 22, 2011, Fiscal Affairs Meeting for further discussion before
making a recommendation to the full City Council.
4. Administrative Reports — R. Bottoms
There was no administrative report.
5. Committee Comments — Matters appearing on agenda; recognition of community members, City
employees, and upcoming events; inquiry of staff regarding specific factual information or existing
policy.
Chairman Engelken provided the Committee with a re -cap to approve engagement letters for the La
Porte Development Corporation and to discuss a resolution for GASB 54 and possible action for
recommendation to the full City Council in September. Chairman Engelken indicated he would like
to have signature lines for all members of the Committee on the engagement letters.
6. Adjourn — There being no further business, Committee Member Moser moved to adjourn the
meeting at 5:28 p.m.
R ectfully submitted,
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Patrice Fogart City Sed(etary
Passed and approved on the 22 day of August, 2011.
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Chairman Chuck Engelke
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August 15, 2011, Fiscal Affairs Committee Minutes