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HomeMy WebLinkAbout2013-12-3Minutes for December 3, 2013, adopted Mar. 19, 2014 Town of Nantucket Audit Committee ® www.nantucket-ma.gov RECEIVED MINUTES Tuesday December 3,2013 �friUCKETTOWNCLERi< 4 Fairgrounds Road, Training Room — 9:00 a.ur.' p Staff: Libby Gibson, Town Manager; Debbie Dilworth, Interim Finance Director; Deb Weiner, Treasurer; Bob Dickinson, Assistant Town Accountant; Elizabeth Brown, Tax Collector; Martin Anguelov, Budget Analyst Attending Members: Rick Atherton, Bruce Miller, Matt Mulcahy Absent Members: None Public: Dan Drake, Chairman Airport Commission Auditor: Anthony Roselli, Roselli, Clark & Associates (RC &A) by remote call Documents used: Copy October 1, 2013 minutes; Draft Financial Statement APPROVAL 1. CALL TO ORDER OF 1. October 1, 2013 - ,Adopted by unanimous consent. Dan Drake — The role of Burke and Lamb (accounting firm used by the Airport) serves two purposes: assist with the preparation of the Airport finance for the Town audit and prepare the Single Audit for the FAA. Their contract has been renewed for the coming year at a substantial reduction. Second relates to the Fixed Assets Inventory comments made by Mr. Roselli: The records of the airport are maintained separately to comply with the FAA and the State. Roselli — The maintaining of the Fixed Assets is spread out: Airport maintains its own and Wannacomet maintains its own and the Town maintains everything else. In the end, RC &A is auditing the Town and has to look at everything. That is how they report: a total at the end. He recommends for now that the three entities continue doing what they are doing. He has pulled all of the fixed assets into one central area. Now the Town has a data base of fixed assets from every single department including the Enterprise Funds held at the Finance Department. At the end of the year, the adjustment should be made in Finance to bring it all into the central data base. If there is an on -going project with a lot of activity, it should he incorporated on a quarterly basis. Stated he will include that recommendation in the Management Letter as a comment. He will set up a process with Mr. Dickinson and Ms LePiene to set up a system for them to do that. Atherton — Asked Mr. Roselli to address the single audit so that Burke and Lamb have responsibility for it. Roselli — In April/May, stated that he had not understood what Burke and Lamb's role was. Contracts came to RC &A that they were asked to evaluate; so they signed for them. Going through the process, they learned how vital Burke and Lamb is to the process. The Airport needs to have an individual with a lot of accounting knowledge to help reconcile back to the Town accounting process. In the Management Letter, he is recommending that relationship continue for now. Atherton — Asked Mr. Roselli for assurance that there is no problem with the Town running two systems. Roselli — No. Explained the difference between the Great Plains system versus MUNIS. In the Management Letter, he is recommending that on a monthly basis, the Great Plains information needs Page 1 of 2 Minutes for December 3, 2013, adopted Mm. 19, 2014 to be reconciled with MINIS, similar to the way the water company is reconciled to MINIS. Stated the RC &A views Burke and Lamb as the Airport accounting office since there is no accountant on the airport payroll. Also, recommending that Burke and Lamb on a monthly basis make sure that what is happening at the airport and what's in the MINIS reconcile. Gibson — Been talking with Mr. Roselli about finalizing the financial statement; it is almost done. Mr. Roselli is working on the management letter and is prepared to make a formal presentation of the Audit to the Audit Committee before the end of the year. Roselh — Everything is done in draft stage; will email the final draft of the Management Letter and the draft Student Activities Letter by close of business December 3, 2013. Once everyone has vetted and deliberated through the Management Letter, a meeting can be arranged to do the audit presentation in person which will take about an hour to l Y, hours. Gibson — A draft of the Management Letter is sent to admin and finance to be reviewed for accuracy. Would then plan to give it to the committee with any comments; that would not constitute a final response to the Management Letter and the Audit. Reviewed the format of the Letter and how comments would be added. The first or second week of January would be better for a meeting. Atherton — Asked when does the Letter have to be submitted to the state and how that ties in. Gibson — Mr. Roselli had a conversation with Mr. Gerry Perry, who indicated that he would not hold up any town approvals pending receipt of the Audit. Ms Dilworth has been in contact with Mr. Perry; and he did not bring up any issues. Discussion about meeting on Tuesday, January 14, 2014 for the presentation of the final Audit. Gibson — All final documents should be issued to the committee by then. Roselli — Explained how he organized the Management Letter and the memorandum. Miller — Asked how the OPEB discount rate is evaluated. Roselli — The rule of thumb is that if it is not being funded, the discount rate is between 3% and 4 %. If it is being funded, that rate is about 8 %. Anything going into OPEB has to be invested; if the Town is doing that, the rate is about 4.5% since there is no funding schedule. Miller — Pointed out that if he understands what Mr. Roselli said, the Town could lower liability by increasing the funding. Further discussion about ways to lower OPEB liability. Weiner — Stated that she and Amanda Johnson have been auditing the health insurance subscriber list. Atherton — In regards to the sewer accounts, asked how the Town would become comfortable that each sewer connection flows through the right fee list. Roselli — Stated he doesn't know if a list exists unless there is an engineer overseeing the sewer activity. With increased build out, that monitoring is something that should be looked at. Gibson — Suggested the Town monitor that more carefully. Stated there is no documented report on how that would be corrected going forward. Roselli — Suggested it would be a good idea to hire an engineer or engineer firm to review the sewer billing. January 14, 2014, 10:30 a.m., 4 Fairgrounds Road, Motion to Adjourn: 9:41 a.m. Submitted by: Terry L. Norton Page 2 of 2