HomeMy WebLinkAboutAudit Committee Minutes 05 13 2009_201402041939426314
Town of Nantucket
Audit Committee
Minutes – Audit Committee Meeting, held May 13th, 2009
Approved June 10, 2009
A duly noticed meeting of the Audit Committee was held in the conference room at 16 Broad
Street on Wednesday, May 13th, 2009, commencing at 8:30 AM.
Present: Chairman Patty Roggeveen, Jim Kelly and Michael Kopko
Absent: None.
Also present: Bob Dickinson, C. Elizabeth Gibson, Malachy Rice, Constance Voges and Whiting
Willauer
Call to Order:
Ms. Roggeveen called the meeting to order at 8:34 AM.
Announcements/Updates:
None.
Approval of Minutes; 22 April and 29 April 2009:
Mr. Kelly moved to approve the minutes of April 22nd and April 29th, 2009; seconded by
Mr. Kopko. So voted unanimously.
Discussion of Abrahams Group Implementation Plan:
Ms. Roggeveen spoke of fresh accomplishments by the Town in the area of financial
reporting. She also noted that recent Board of Selectmen elections will ensure a continuation of
current membership in the Audit Committee. In light of these events, she stated her desire for
the Audit Committee to continue to move forward and cited implementing the
recommendations of the Abrahams Group as the next critical objective.
Minutes – Audit Committee
May 13th, 2009 Page 2 of 4
Ms. Roggeveen asked Ms. Voges to update membership on progress in implementing
the recommendations of the Abrahams Group. Ms. Voges stated that two weeks prior to the
meeting, Mr. Abrahams travelled to Nantucket for discussions with the Town Manager and
Assistant Town Manager. She said that these discussions were primarily regarding
recommendations to be implemented during Phase 2. She added that during this visit she also
had the opportunity to meet with Mr. Abrahams and noted that their discussions centered
primarily on the recommendations outlined in Phase 1 the Abrahams Group report. Ms. Voges
explained that her office will be providing a large amount of information to Mr. Abrahams prior
to his next visit at the end of the month in which he and Kathy Griffin will review progress in the
implementation of recommendations.
Ms. Roggeveen asked Ms. Voges to update the Committee on items that have been
accomplished during Phase 1. Ms. Voges responded that Phase 1 contained twelve
recommendations that solely impact the Finance Department. She highlighted the following
accomplishments:
Cash reconciliations and reporting
Accounts Receivable reconciliations
Removing the Treasurer’s posting authority in the General Ledger
Shifting abatement entries from the Collector to the Assessor
Implementation of a Personnel Action form requiring authorized signatures
Assigning additional responsibilities to the Executive Assistant
Clearly defining the responsibilities of the Finance Director and the Controller
Ms. Roggeveen highlighted a desire to see a copy of the Abrahams Group report with an
update of progress on each recommendation listed beneath the corresponding
recommendation. Mr. Rice stated that approximately one quarter of the work necessary to
implement all of the recommendations has been completed. He added that the next step will
be to have Mr. Abrahams verify that recommendations have been implemented and noted that
it will be easier to provide an update on progress after the next Abrahams Group visit. Ms.
Roggeveen asked that an update on the Abrahams Group Implementation Plan and the timeline
for Phase 2 be added to the agenda of the next meeting.
Discussion of Independent Meetings with Powers and Sullivan:
Mr. Kelly spoke of his wish to brainstorm what the Committee hopes to accomplish
through independent meetings with Powers and Sullivan. He asked if these types of meetings
have taken place in the past. Mr. Kopko answered that independent meetings have not taken
place but the Audit Committee has met with Powers and Sullivan each year. Mr. Kelly asked
what takes place during the meetings. Mr. Kopko stated that normally the Committee hears a
report on the audit.
Mr. Kopko asserted his belief that these types of meetings would allow for free
communication and a wide range of discussions. He added that he is always interested to see
what the audit firm has to say. Mr. Kelly stated his desire to speak with Powers and Sullivan
regarding assurances that future audits will be completed on time. Specifically, Mr. Kelly
highlighted his interest in hearing the opinion of the audit firm on the ability of the Town to
Minutes – Audit Committee
May 13th, 2009 Page 3 of 4
deliver information in such a manner that these audits will be completed prior to established
deadlines.
Additionally, Mr. Kelly spoke of his interest in an audit of the Town’s pay practices and
stated that independent meetings might offer the opportunity to discuss an audit of these
practices. Ms. Roggeveen agreed and cited a similar interest in studying these areas at
Nantucket Public Schools. Mr. Kopko noted that this kind of audit may have been useful in
discovering pay and benefit practices at Nantucket Memorial Airport.
Ms. Roggeveen proposed that the Audit Committee set a date for independent
meetings with Powers and Sullivan. She proposed that the meeting be scheduled for the date of
the next Audit Committee meeting. June 10th, 2009. After discussion it was decided that the
Audit Committee will meet with the audit firm in an open meeting and then meet independently
with the audit firm following the meeting.
Update on Cash Reconciliation, March 2009:
Mr. Dickinson stated that he has identified all of the anomalies for March 2009, but he
has not yet been able to meet with the Treasurer to discuss correcting the anomalies. He added
that if the Committee would like a synopsis of March cash reconciliations he could provide one
via e‐mail by the end of the day.
Mr. Kelly asked if Mr. Dickinson has made progress in delegating more of the cash
reconciliation work to others within the Finance Department. Mr. Dickinson answered that the
majority of cash reconciliation work is performed by Robin LaPiene, Accounting Clerk. He added
that Ms. LaPiene will also begin reviewing cash receipts prior to posting which should result in a
lower incidence of posting errors.
New Business:
Ms. Roggeveen asked about projected timeframes for the auditors to begin and
complete work on the FY 2009 Audit. Ms. Voges responded that she and Renée Davis will be
working on establishing dates for this timeline. Mr. Kopko asked if the traditional deadline for
completion of the audit is the end of the calendar year; to which Ms. Voges responded in the
affirmative. She noted that this date will be used for the purpose of working backwards to build
a timeline.
Mr. Kopko commented that a Finance Committee meeting would be held the next day
and asked Mr. Kelly if he would give a brief summary of agenda items. Mr. Kelly stated that
items for consideration include:
Solid Waste Enterprise Fund retained earnings
Health Insurance Trust Fund balance
Employee turnover statistics
Finance Committee Self‐Assessment
Reserve Fund Transfer for Nantucket Police Department
Airport Indirect Costs
Minutes – Audit Committee
May 13th, 2009 Page 4 of 4
Old Business:
None.
Date of Next Meeting:
The date of the next meeting was scheduled for June 10th, 2009, at 8:30 AM in the
conference room at 16 Broad Street.
Adjournment:
Ms. Roggeveen asked for a motion to adjourn that was “so moved” by Mr. Kelly. The
meeting was adjourned at 9:06 AM.
Prepared by Craig Abernathy