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HomeMy WebLinkAbout2012-5-29Minutes for May 29, 2012, adopted June 26 Z D Town of Nantucket Audit Committee www.nantucket -ma. og_v M MINUTES Z Tuesday May 29, 2012 C, 16 Broad Street, Conference Room — 9:00 a.m. m N 0 N C_ z � N rn co cn rn —n < Z3 rn 0 co s All or a portion of this meeting is being recorded. If you plan to record this meeting yourself, please check with the chairman of the board before you begin. Staff: Libby Gibson, Town Manager; Debbie Weiner, Treasurer; Gregg Tivnan, Assistant Town Manager; Bob Dickinson, Controller; Debbie Dilworth, Assessor; Elizabeth Brown, Town Collector Attending Members: Matt Mulcahy (Chair Finance Committee), Rick Atherton Absent Members: Patricia Roggeveen (Board of Selectmen Public: None Mulcahy called to order at 9:08 a.m. 11. PUBLIC COMMENTS • 111. APPROVAL OF MINUTES - • for full ••. • Atherton — On the schedule, which has been prepared of management letter findings for recent years, most issues are resolved. Question about capital borrowing. Mulcahy — Question to the staff, is everyone comfortable with the items identified as being resolved? Gibson — The auditor has confirmed the resolved status of issues noted. Will continue sending items to auditor as third -party confirmation of resolution; will find out what they need for that confirmation. Mulcahy — It would help to find out how we are doing in the progress areas. Are we looking favorable going forward; for example the internal control weaknesses? Atherton — In the last update of the Abrahams Report, a number of items had been completed; only five were left. Gibson — This schedule is based upon the Abrahams Report. There is an RFP out for a fraud risk assessment. Mulcahy — Asked about Wannacomet `Sconset Payable. Dickinson — That has to do with monthly sewer and water receipts. Gibson — Procurement Log in progress means the Auditors need to spot check procurement issues for the FY 2012 audit. Open issue of School revolving fund deficits, Mr Cozort asked for a meeting to discuss this with Town Administration and Finance. Some of the revolvers are over spent and the source of where the overage will come from needs to be identified. Finance has put a hold on the revolving line item so that things can't be paid out of that. Page 1 of 3 Minutes for May 29, 2012, adopted June 26 Dickinson — These are reimbursement accounts, and by law money can't be paid out of an account unless there is money in the account. In the meantime, the school must pay out of the school general fund then get reimbursed by the state then move those funds over to the special revenue fund. The issue with the auditors is that in the past these have never been trued up. A reimbursement fund should not have any money in it at the end of the year. Several of these issues are historical, which are being cleaned up now. Gibson — This is an accounting matter that results directly from the management letter. Town Counsel has confirmed that the town accountant is in charge of all the books, including the school. There is a concern that come June 30, there will be no money in the accounts; this also applies to Grant Accounts. In order to make up the difference, funds may have to come out of the operating budget. Dickinson — All of the grant funds are in revolvers. This concerns Fund 21 and Fund 24, which are the Federal Grant funds and State Grant funds. Have reviewed every special revenue fund: school, municipal, fire and safety etc. Mulcahy — Any comments about Police Off -duty Detail in progress? Dickinson — Reconciliation between what's been paid to the police officers and what is in town receivables and whether or not everything has been billed out correctly. The officer must be paid within two weeks of performing the detail and then the cost is billed out; have to ensure the Town has been paid for those hours. Status is still pending. Mulcahy — Any comments about open issues for the purchase orders and capital assets? Dickinson — In 2011 audit, corrected the fixed assets list to reflect properties sold or purchased by the Town. Going forward, we will obtain a regular update of transfers, sales and acquisitions to keep fixed assets list up to date. On the fixed assets list, the Town owns upward of $200M worth of land; selling a piece of property purchased 20 years ago might not be a huge percentage of total capital assets but it still needs to be recorded properly. V. OVERVIEW OF HISTORICAL MANAGEMENT LETTER No comments. ALJDIT COMMITTEE SCORECARD Mulcahy — Under Accounting Performance Measures, the County General Ledger to Cash Book was due May 18. Was that completed? Dickinson — County cash is very small, now that the Sheriff is under the State. Mulcahy — Does it look like deadlines will be met on this tight schedule? Dickinson — There are no evident deficiencies that could cause a delay. Auditors' field work is scheduled for week of August 10. They will also be here preliminarily the week of June 11. Mulcahy — On the 2011 Material weaknesses, would like an overview on clearing up the matter. Irene Larivee is up to date on that and is not available at present to address that. VII. 1-11"DATE ON AIRPORT Gibson — Right now there is only one project that is projected to cost more than the appropriations. The Airport is working hard to get that number down; however some amount will have to be covered at a Special Town Meeting (STM) in the fall and we will have to figure out where to cover the Airport operating expenses, if need, for FY 2013. Absolutely not going to have certified free cash or retained earnings before the STM; no free cash will be certified before the audit is done. STM expected to be held early October. Page 2 of 3 Minutes for May 29, 2012, adopted June 26 V111. DATE OF NEXT MEETING June • 9:00 . Motion to Adjourn: 9:36 a.m. Submitted by: Terry L. 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