HomeMy WebLinkAboutAudit Committee Minutes 01 28 2009_201402041939411470
Town of Nantucket
Audit Committee Meeting
Minutes – Audit Committee Meeting January 28th, 2009
Approved February 10th, 2009
Present: Mr. Jim Kelly, Mr. Michael Kopko, Ms. Patricia Roggeveen, Ms. C. Elizabeth Gibson,
Mr. Malachy Rice, and Ms. Constance Voges, Mr. Bob Dickinson
Absent: None.
Also present: Mr. Glenn Field, Mr. Craig Abernathy, Mr. Mark Abrahams (via conference
call), and Mr. Whiting Willauer
Call to Order:
Ms. Roggeveen called the meeting to order at 9:05 AM.
Announcements and Updates:
None.
Discussion of the Abrahams Group Implementation Plan:
Ms. Gibson stated that Mark Abrahams would be joining the meeting via conference
call to speak about progress in the implementation of the recommendations made in his
firm’s organizational study of the Finance Department. She noted that there had been an
intention to have Mr. Abrahams come back to Nantucket to review progress and provide
independent confirmation of implementation.
Mr. Abrahams joined the meeting via conference call at 9:08 AM.
Mr. Abrahams reviewed the work carried out by his firm, stating that the Abrahams
Study yielded thirty‐two recommendations to be implemented in four phases. He pointed
out that the majority of the recommendations for the Finance Department were included in
the first phase of the plan and that in the second phase most items focus on Human
Resources or the Town Manager. Mr. Abrahams commented that the purpose of shifting
responsibilities to other departments is to alleviate some of the workload for the Finance
Department and thereby allow the Finance Department time to focus on work pertinent to
Minutes – Audit Committee
January 28th, 2009 Page 2 of 4
normal finance responsibilities. He then explained that the third phase of the plan was to
begin in January and run through March 31st, but these efforts have been impeded by
continuing work on the FY 2008 Audit. Restating priorities outlined for the department, Mr.
Abrahams highlighted the fact that the current focus of the Finance Department is on the
timely completion of cash reconciliations and completion of the FY 2008 Audit, and stated
that as this was a priority. As such, the implementation plan has been put on hold. Citing
one area that has seen progress, Mr. Abrahams spoke of work with Glenn Field, Assistant to
the Superintendent for Business for Nantucket Public Schools, on the School’s chart of
accounts. Mr. Kopko asked if the work with the School is a part of the second or third
phase, and Mr. Abrahams responded that this work is scheduled to be implemented before
July 1st, 2009.
Update on the Progress of the FY 2008 Audit:
Ms. Roggeveen asked if it is correct to assume there has been a lack of progress.
Mr. Abrahams responded that FY 2009 cash has been reconciled through November and
cash reconciliations for FY 2008 are close to completion but not yet complete. Ms.
Roggeveen noted that an internal deadline for completing FY 2008 cash reconciliations and
fixed assets has been missed and asked when the tasks would be completed. Mr. Dickinson
responded, stating that work on FY 2008 cash reconciliations is close to completion, but the
month of March (FY 2008) has presented more problems than he expected. He added that
he expects to spend the next two days working with Deb Weiner, Treasurer, to identify and
correct problems, and advised that he does not expect to find every penny but he does
expect to find the larger items.
In an effort to clarify the mission of the Committee, Mr. Kelly asked what these
discussions are intended to accomplish; what is the first priority of the Finance Department;
and what is the expected impact of missed deadlines. Ms. Roggeveen stated her intention
to take in information and come up with a decision. She reminded the Committee of the
missed internal deadline and asked that the Committee discuss a proper course of action, as
meeting the Department of Revenue (DOR) deadline of March 31st, 2009, is critical to the
Finance Department and the Town. Ms. Voges commented that the Finance Department
did well on the implementation plan until mid‐October when it became apparent that it
would be necessary to have a Special Town Meeting and resubmit the Tax Recapitulation.
She added that these items were occurring at the same time the Department was working
on audit preparation and the FY 2010 Budget. Ms. Voges also pointed out that the
Department completed many tasks outlined in phase one of the implementation plan other
than cash reconciliations. Mr. Kopko commented that he did not understand the “either or”
nature of the items. Ms. Voges responded, explaining that these items develop in such a
manner due to the amount of time that is available for completing work, pointing out that
each month of FY 2008 cash reconciliations has taken three weeks of work. She noted that
changes made in FY 2009 have improved the process and thereby made it much less time
consuming. Mr. Kelly asked if the process was known when the Committee set the
timeframe for completion of tasks, to which Ms. Voges responded that the process was
known but no one expected each month to take three weeks to complete.
Minutes – Audit Committee
January 28th, 2009 Page 3 of 4
Mr. Kelly then asked if there is a way to predict the timeframe for completion of
overall goals and not focus on incremental goals. Mr. Dickinson pointed out that work on
the current fiscal year is proceeding at a much faster rate, and explained that work on a
month of reconciliations may begin on Monday morning and be completed by mid‐week.
Ms. Roggeveen agreed that keeping up to date with reconciliations for FY 2009 will be
helpful, but reiterated the importance of making the March 31st deadline for completion of
the FY 2008 Audit. She asserted that the audit is a major milestone that is critically
important to both the implementation plan and the Town’s commitments to DOR and
Powers and Sullivan.
Mr. Kelly asked if the goal of the March 31st, 2009, deadline could be clarified. Ms.
Voges answered that this date is the deadline for submission of the Town’s FY 2008 Audit to
DOR, and pointed out that there is a period of time between the submission of final
information to the auditors and the time a final audit is submitted to DOR. She added that
Reneé Davis, Powers and Sullivan, has asked to be informed of all developments for the
sake of making scheduling arrangements. Ms. Gibson stated that she is meeting daily with
all concerned parties to speak about progress in the reconciliation process. She assured the
Committee that everyone is well aware of the March 31st deadline. Mr. Kelly asked if Ms.
Gibson feels certain that the deadline will be met, to which Ms. Gibson responded in the
affirmative. Mr. Kelly then asserted his belief that the audit should be the Finance
Department’s only priority and as such it should be the only task on which the Department
is working. Ms. Gibson asked about other items designated as priorities for the Finance
Department including an agenda item, indirect costs. Discussion followed, and it was
decided that as many tasks as possible should be deferred until such time that the FY 2008
Audit is complete. As Chairman of the Finance Committee, Mr. Kelly asked that Ms. Voges
not feel obligated to attend any meetings of the Finance Committee until after March 31st.
New Business:
Ms. Roggeveen stated that individual interviews with Powers and Sullivan will be
taking place. Mr. Kelly asked what subjects are intended to be discussed with the auditors.
Mr. Kopko asked that the subject of these interviews be placed on the agenda for the next
meeting. Ms. Roggeveen added that she still wished to commission a “line‐item” audit for
the School. Mr. Kelly stated that he believes the matter has been discussed and the Audit
Committee has failed to demonstrate a consensus on the matter. Ms. Roggeveen answered
that she believes the proposal is still “on the table.” Ms. Voges advised the Committee that
commissioning such an audit as a part of the FY 2008 Audit would affect the completion
date of the FY 2008 Audit.
Mark Abrahams left the meeting (via conference call) at 10:02 AM.
Other Business:
None.
Minutes – Audit Committee
January 28th, 2009 Page 4 of 4
Date of Next Meeting:
Ms. Roggeveen proposed that the next meeting should take place on Wednesday,
February 10th, 2009, at 10:00 AM.
Adjournment
Ms. Roggeveen asked for a motion to adjourn which was “so moved” by Mr. Kopko.
The meeting was adjourned at 10:05 AM.
Prepared by Craig Abernathy