HomeMy WebLinkAboutAudit Committee Minutes 03 25 2009_201402041939417720
Town of Nantucket
Audit Committee Meeting
Minutes – Audit Committee Meeting March 25th, 2009
Approved April 22nd, 2009
Present: Mr. Jim Kelly, Mr. Michael Kopko, Ms. Patricia Roggeveen, Ms. Constance Voges, and
Mr. Bob Dickinson
Absent: C. Elizabeth Gibson.
Also present: Mr. Malachy Rice, and Mr. Craig Abernathy
Call to Order:
Ms. Roggeveen called the meeting to order at 9:07 AM.
Announcements and Updates:
None.
Approval of Minutes of 4 March 2009:
Ms. Voges asked that the minutes of March 4th, 2009, be amended to show language
stating “prior to 2003” in regard to the submission of Schedule A and changing the word rely to
use in regard to Burke and Lamb audits. Mr. Kelly moved to approve the minutes as amended
for March 4th, 2009; seconded by Mr. Kopko. So voted unanimously.
Discussion of Completion of FY 2008 Audit
Ms. Voges stated that she received a draft of the final report on the previous Friday, and
noted that some changes still need to be made. As examples of required changes, she cited a
change in Massachusetts Waterways Pollution Abatement Trust (MWPAT) reporting, and errors
on the part of the Town, Burke and Lamb, and Powers and Sullivan. She estimated that all
changes and reviews will be completed by March 27th, and stated that she has confirmed with
Reneé Davis, Powers and Sullivan, that she is working on the Report to Management.
In regard to a deadline of submission to the Department of Revenue (DOR), Ms.
Roggeveen asked if the final audit will be submitted on March 31st, 2009. Ms. Voges answered
that she spoke with Jim Powers, Powers and Sullivan, on March 16th and he indicated that he
Minutes – Audit Committee
March 25th, 2009 Page 2 of 3
feels comfortable that the audit will be submitted on time. She added that she has received
similar communications from Ms. Davis, but she does not have this assurance in writing. Ms.
Roggeveen asked if Ms. Voges plans to communicate with DOR in regard to submission of the
audit. Ms. Voges stated that if it looks like the audit will be a bit late, she will communicate the
situation to the DOR. Ms. Roggeveen stated that she hopes to have an update on the audit’s
status in order to make an announcement at the Board of Selectmen’s meeting on April 1st.
Update on Cash Reconciliation
Mr. Dickinson reminded the Committee that at the last meeting his office had not
completed cash reconciliation for January. He announced that his office has now completed
both January and February reconciliations. He noted that most of this work was performed by
Robin LaPiene, Accounting Clerk. Mr. Dickinson stated that she is now working on
reconciliations for FY 2008, adding that the first half of FY 2008 has now been reconciled to .47
cents. Mr. Kelly praised the work of the Finance Department and stated that it is very important
to remember to recognize these achievements. He asserted his belief that everyone should be
proud of their accomplishments and that time should be taken to make sure these
achievements are celebrated. Ms. Roggeveen agreed, stating that she hopes to share this good
news as well at the next Board of Selectmen’s meeting.
New Business
Ms. Voges stated that all free cash information was submitted on Monday, March 23rd,
and that Barbara Dakin, Department of Revenue (DOR), will be reviewing the information today.
Ms. Voges explained that there are deficits in three of the enterprise funds according to MUNIS
accounting but in only one of the enterprise funds according to GAAP accounting. She noted
that during the tax recap process the FY 2007 Audit balance was used, and the DOR did not
require raising anything on the recap for the Solid Waste Enterprise Fund deficit. Ms. Voges
stated that she believes the DOR may ask that the Town use some free cash to fund any deficits,
and that this figure could be between $200,000 (the revenue deficit) and $500,000 (the fund
balance deficit). She stated that the range reflects uncertainty regarding a new DOR procedure
with respect to deficits in enterprise funds. She emphasized that several conversations were
held regarding the Solid Waste fund during the recap process, and that she and the DOR rep
used the audit (GAAP) basis for those discussions.
Ms. Voges continued, stating that Siasconset Water Company has been spending in anticipation
of borrowing, but this borrowing is now in place. She estimated a deficit could be about
$700,000. Ms. Voges then explained that the Airport is also expected to show a deficit, but it
has short term borrowing and some federal funds that should cover the amount. She added
that the process of certifying Free Cash is similar to the “back and forth” communication
experienced in completing annual audits.
Mr. Kelly spoke of a need at the committee level to better understand and reconcile MUNIS
accounting to GAAP accounting in the future. He then asked what amount of Free Cash was
submitted to DOR. Ms. Voges explained that she does not submit any amounts to DOR, and
added that she only makes projections regarding the amount she expects DOR to certify.
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March 25th, 2009 Page 3 of 3
Mr. Kopko spoke of his experience with constituents voicing concern over Free Cash amounts
and concern for how it is spent. He commented that he regularly explains to these individuals
that it is not productive to become attached to any given projection, as in the end the final
number will come from DOR.
Ms. Roggeveen noted that the enterprise funds are affecting the projected amounts of Free
Cash. Ms. Voges said that there is still work to do, but highlighted the fact that the Treasurer
has repeatedly asked that these entities not begin work on projects for which they have not
borrowed money. Regarding a change in the method used to pay for a Sewer Enterprise Fund
project, Ms. Voges explained that originally the project was to be funded from cash on hand but
the funding source was changed to borrowing at Town Meeting, on the advice of a consultant, in
order to apply for a Rural Development Agency loan and grant. Mr. Kopko asked if Ms. Voges
has a projected amount for a deficit in the Sewer Enterprise Fund, to which Ms. Voges
responded that she believes this amount is in the range of $500,000 for this project.
Other Business:
None.
Date of Next Meeting:
Ms. Roggeveen proposed that the next meeting should take place on Wednesday, April
22nd, 2009, at 9:00 AM.
Adjournment
Ms. Roggeveen asked for a motion to adjourn which was “so moved” by Mr. Kelly. The
meeting was adjourned at 9:29 AM.
Prepared by Craig Abernathy