HomeMy WebLinkAboutAudit Committee Minutes 07 09 2008_201402041939435845
Town of Nantucket
Audit Committee Meeting
Minutes – Audit Committee Meeting July 9, 2008
Present: Ms. Libby Gibson, Mr. James Kelly, Mr. Michael Kopko, Ms. Patricia Roggeveen,
Mr. Malachy Rice, and Ms. Constance Voges
Absent: None
Also present: Mr. Rick Atherton, Ms. Irene Larivee, and Mr. Craig Abernathy
1. Announcements and Updates:
None.
2. Progress Report on Fiscal Year 2006 and 2007 Audits:
Ms. Voges presented each committee member with copies of completed, final reports
that have been filed with the state in regard to the 2006 Audit. She stated that Renee
Davis of Powers and Sullivan, is back in the office and she is working on producing a
draft of the 2007 Audit by Friday, July 11th, 2008. Ms. Davis has worked on the Trust
fund, the Footnotes, and she is now working on the Enterprise Fund. Ms. Voges stated
that she is working closely with Renee Davis, and that if there are any changes to the
financials she will update Ms. Davis. While Ms. Davis was out of the office some review
work, and some debt work was done. Ms. Davis also reported to Ms. Voges that work
on Fixed Assets is complete. Mr. Dickinson is reviewing the material to incorporate any
changes into Town & County files.
Ms. Roggeveen asked about the timeline for finishing the 2007 Audit. Ms. Voges
responded that the Department of Revenue letter included a timeline with a mid‐August
date. She stated from the time she receives a draft audit until the time the audit is
completed there is about a two week period of revision between her office and the
office of the auditor. During this period the auditors will also draft the Federal
Financials and the Report to Management.
Minutes – Audit Committee
July 9, 2008 Page 2 of 4
3. Accomplishments since Meeting of 6/25/08
Ms. Voges highlighted some of the accomplishments since the last meeting of the Audit
Committee. Two new bank accounts with Citizens Bank are in use, and the payroll office
has processed two weekly payroll cycles using direct deposit. Mr. Kelly asked about any
error reporting, and Ms. Voges responded that there were no errors to report. Mr. Kelly
stated that the fact that the transition went smoothly was a testament to the
preparation that went into the transition.
Mr. Kopko asked if the use of direct deposit was a “union issue.” Ms. Gibson stated that
requiring union employees to use direct deposit would require bargaining with the
union. She also stated that there were two items the Town has been attempting to
negotiate with the unions, direct deposit and bi‐weekly payroll. She explained that even
when items do not have a specific reference in a union contract they still require
bargaining with the local unit. Any items without a previous mandate require
negotiations in order to implement a change in procedure.
Mr. Kopko continued to question why people choose not to use the benefit. Ms. Gibson
stated that some employees prefer to receive a check. Mr. Kelly asked if there were
now two systems in place, direct deposit and payroll checks. Ms. Gibson stated that the
two systems have been in place from the time the Town started offering direct deposit.
Mr. Kelly asked if it would be possible to demonstrate the benefit of direct deposit to
employees. Ms. Voges stated that new employees are strongly encouraged to use
direct deposit. Ms. Larivee added that two weeks ago a communication was sent to
every employee in the Town highlighting the benefits of direct deposit. She also added
that we will continue to promote this benefit throughout the fiscal year.
Ms. Voges stated that the 2007 Schedule A was submitted on July 2nd to the computer
division of the Department of Revenue (DOR). She expects there to be some discussion
and review between the Town’s DOR representative Barbara Dakin, Controller Bob
Dickinson, and the computer division. The computer division typically looks for
inconsistencies, and then inquires as to the reason for changes in reporting amounts.
Ms. Voges reported that the Abrahams Group has finished their first round of internal
and external interviews. Kathy Griffin will be back to do follow‐up interviews. Mr. Kelly
asked when the group would submit its findings, and Mr. Rice replied that the findings
will be submitted on August 29th, 2008. Mr. Kelly added that he appreciated the fact
that the Abrahams Group will report their findings and then seek agreement on those
findings before moving on to making recommendations.
Cash reconciliation is in progress, and Ms. Voges stated that thus far in the financial year
there have been two payrolls for $2.3 million, one small accounts payable run, and
$207,000 in receipts.
Minutes – Audit Committee
July 9, 2008 Page 3 of 4
Ms. Roggeveen stated that Mark Abrahams reported that as of July 1st everything was
posted. She felt that this was an outstanding achievement. She also inquired about the
change in cash reconciliation. Ms. Voges reported that there had been no problems
with the new accounts. She stated that the primary focus point of the auditing changes
was the Treasurer’s Office, and that the Treasurer’s Office has done monumental work
in getting the two accounts established. In addition to establishing the new accounts,
the Treasurer’s Office had to perform testing of the new procedures and implement the
normal year‐end/year‐beginning procedures.
4. Other Business
Mr. Kopko asked about the Department of Revenue letter, and where the Finance
Department is in relation to examination and implementation of new procedures and
controls. Ms. Roggeveen responded that the cash reconciliation was a major
achievement from the proposed new procedures. Mr. Kopko stated that he believed
that the Audit Committee was to have a report drafted to the DOR outlining the plans of
the Finance Department. Ms. Voges asked if he was referring to the Abrahams Group
report, and Mr. Kopko indicated that he was. Ms. Gibson responded that there is work
to be done, but the final report is expected to be completed by the end of August.
Mr. Kopko then asked about a response to the Department of Revenue letter that was
presented at the last meeting. Ms. Gibson stated that she sent the letter on the
previous Friday, and that she will follow up with a phone call to Barbara Dakin later
today. Mr. Kopko added that Mark Abrahams had expressed concern with some of the
timeline’s dates in the DOR letter. Ms. Gibson said that she spoke extensively with Mr.
Abrahams and accepted his timeline with the intention of beating each deadline.
The Audit Committee discussed charges assessed by Bank of America.
Mr. Kelly stated that he appreciated the fact that the accomplishments of the Finance
Committee were well documented. He went on to say that he was aware that Ms.
Voges’ staff had been under a lot of pressure, and that he would like the Audit
Committee to publicly recognize the achievements of the Finance Department. Ms.
Gibson stated that some of the achievements were on the agenda for the Board of
Selectmen Meeting later that evening. Ms. Roggeveen proposed that she make a public
statement of thanks on behalf of the Audit Committee at the Board of Selectmen
Meeting.
5. Date of Next Meeting:
Ms. Voges informed the members that according to Powers & Sullivan, a draft of the
2007 Audit should be ready in two weeks. Ms. Roggeveen proposed that the date of the
next meeting should be on July 23rd, 2008.
Minutes – Audit Committee
July 9, 2008 Page 4 of 4
6. Adjournment
Ms. Roggeveen asked for a motion to adjourn which was “so moved” by Mr. Kopko.
Prepared by Craig Abernathy