HomeMy WebLinkAboutAudit Committee Minutes 11 18 2009_201402041938567092
Town of Nantucket
Audit Committee
Minutes – Audit Committee Meeting, held November 18, 2009
A duly noticed meeting of the Audit Committee was held in the conference room at 16 Broad
Street on Wednesday, November 18, 2009, commencing at 9:00 AM.
Present: Chairman Patty Roggeveen, Jim Kelly, and Michael Kopko
Absent: None
Also present: Bob Dickinson, Constance Voges, Rick Atherton, and Deb Palmer
Call to Order:
Ms. Roggeveen called the meeting to order at 9:00 AM.
Announcements/Updates:
Ms. Voges stated that the 2009 Audit Field work was done in the first two weeks in
November plus one week in the summer in the month of July. Ms. Voges met with Auditor
Renee Davis and the Sr. Auditor on Veteran’s Day to discuss the 2009 Audit, and Renee feels
that they have all the information needed to send a draft to Ms Voges within two weeks with a
turn around time of one week back to them. Ms Voges also stated that Renee, and her group
said the audit should be on schedule and completed by December 31, 2009.
Mr. Kopko asked Ms Voges if the auditors review the Schedule A. Ms. Voges stated that
the State of Massachusetts reviews the Schedule A, but it has not been approved as of yet.
Mr. Kopko would like to have a meeting with Renee at a future time and place, as she
was not available to attend this meeting.
Update on Cash Reconciliation, March 2009:
Minutes – Audit Committee
November 18th, 2009 Page 2 of 3
Ms. Roggeveen asked that the committee be updated on the cash reconciliation for September.
Mr. Dickinson handed out copies of the September cash reconciliation to everyone, and
explained the handout.
The differences are as follows:
deposits in transit
timing differences
sweeps
The carry forward variance amount of 36K from FY2008 will be charged off during the
close out of the FY2009 audit.
Review of Abrahams Group Implementation Plan dated August 2009:
Ms. Roggeveen asked Ms. Voges for a broad useful overview with regards to the
recommendations of the Abrahams Group.
Ms. Voges responded that there were thirty‐six recommendations in total. She stated that
there are other priorities going on right now, and the following are at the top of the priority list.
FY2009 Audit
FY2011 Budget
Mark Abrahams Group Implementation
Ms. Voges stated that she still has some questions regarding the detail within the
report. She continued to explain that they are a third of the way through Phase I, and will be
working the remainder of Phase I over the next three months. Phase II contains about a third of
the items within the overall recommendations. Some longer range projects are under way such
as the school chart of accounts, and Mark Abrahams had made some comments during the last
meeting about the posting to general ledger, and the phased in posting plan. Ms Voges went on
to explain that this process takes a little bit longer than what others think it should, but other
things have been completed that don’t normally happen during this time of year such as the
State reporting and Free Cash certification.
Ms. Roggeveen asked Ms. Voges what they should expect from the management letter
that will be submitted to the Town of Nantucket from the audit firm. Ms. Voges responded that
she has asked Renee for a draft of the comments from her when she sends in the draft of the
audit. She needs to clarify with her staff with regards to some items that Renee wants to see
happen with the way the cash reconciliation is being prepared. These items have been written
out and specifically identified. The way the descriptions are written out for the twelve accounts
that are being reconciled is what Renee is talking about.
Additionally, Mr. Kopko asked if Ms. Voges thought that Renee and Mark happy with the
Town of Nantucket. Ms. Voges responded that Renee is happier than she has been during past
audits. Ms. Voges has not spoken with Mark since he was here, but he did mention priorities.
State Reports
Assistant Treasurer
Moving general ledger posting
Minutes – Audit Committee
November 18th, 2009 Page 3 of 3
Mark has also acknowledged that work has been done, and progress has been made with
regards to the certification of Free Cash, and the state reports were submitted to the state for
approval in September. He has indicated more satisfaction than before with the improvements.
Mr. Kelly asked if Mark Abrahams had come back to verify that the work plan was being
implemented and where the town was with the process. Ms. Voges stated that he has fulfilled
his contract so far, and has not been since he was here last in July. He will be coming back at
some time in the future. Mr. Kelly would like further information as to whether there will be an
additional payment for Mark Abrahams in the future. Ms. Voges will get back to him with that
information.
New Business:
None.
Old Business:
Mr. Kopko stated that in a prior meeting there were some questions about extra
payments to non‐union administration staff that is offline from the normal payroll. This does not
conform to the way the town pays its employees, but is not out of the scope of the Airport and
how they pay their employees. It was discovered that the Airport was paying for health
insurance benefits. They have been asked to stop these payments due to the fact that it is
illegal. Similar payments are being issued by the Water Company. Ms. Roggeveen agreed and
cited a similar interest in studying these areas at the enterprise funds and the Nantucket Public
Schools. Mr. Atherton is concerned that the extra Airport payments are being described as a
bonus, but at the same time being paid for something entirely different.
Ms. Roggeveen stated that she wants to make sure that the bonus is not being calculated into
their base making it part of the salary when it comes time for the next step up in pay.
Ms. Voges stated that the Wannacomet water dept is now giving the Finance department
reports that are not useable without spending a considerable amount of time unlike any other
reconciliation, and she will be pushing back regarding this issue.
Future Agenda:
Mr. Kelly made a motion to have a letter drafted to the Airport, Water Dept, and NPS
with a request for information regarding support for bonuses that are being paid to non‐union
administration/ management level. Ms. Voges and Ms. Roggeveen will meet to discuss content
of such a letter.
Date of Next Meeting:
The date of the next meeting will be made at a later date.
Adjournment:
Ms. Roggeveen asked for a motion to adjourn that was “so moved” by Mr. Kopko. The
meeting was adjourned at 9:43 AM.
Prepared by Deborah Palmer