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HomeMy WebLinkAbout2014-5-27Minutes for May 27, 2014, adopted July 29 Town of Nantucket Audit Committee www.nantucket-ma.gov MINUTES Tuesday May 27, 2014 J 4 Fairgrounds Road, Training Room — 9:00 a.m. Staff: Libby Gibson, Town Manager; Gregg Tivnan, Assistant Town Manager; Brian Turbitt, Finance Director; Deb Weiner, Treasurer; Bob Dickinson, Assistant Town Accountant; Elizabeth Brown, Tax Collector; Deb Dilworth, Assessor; Martin Anguelov, Assistant Finance Director; Matt Mannino, Accounting Clerk; Terry Norton Town Minutes Taker; Bob Gardner, Manager Wannacomet Water Company; Tom Rafter, Airport Manager; Jamie Miller, Airport Finance Manager Attending Members: Rick Atherton, Bruce Miller, Matt Mulcahy Absent Members: None Public: John Tiffany Auditor: Anthony Roselli & Chad Clark, Roselli, Clark & Associates (RC &A) by remote Documents used: FY2013 Audit Management Letter and responses, March 19, 2014 minutes. 1. CALL 1 ORDER 9:02 a.m. APPROVAL OF March 19, 2014 — Approved by unanimous consent. Nantucket Memorial Airport — 4 Findings Gibson — 1. Accounts Receivable Processing (multiple parts): a. the variance between the Towns's accounting records and the airports — resolved; b. Credit Card Transactions, Finance Department and Airport records need to match — a written document for committee review will be provided; 3. Capital Asset Maintenance, update fixed asset inventory — on going. 4. Vendor Warrants, this item is irrelevant as it was not in the final Management Letter — resolved. Pa roll — 5 Findings Payroll Warrant Totals, Departmental Payroll Transmittal Sheets, Payroll Withholding Amounts Process Improvements, IRS Garnishment, Withholding Account Deficits. Weiner — Explained the background and the implementation plan for resolution of the the Payroll Warrant Totals. Roselli — Said the firm will look what's been done since the last audit and take a more comprehensive look at the payroll to insure everything is progressing as it should or if there are further concerns. Weiner — It appears to be resolving. The auditors will closer at the reports when they visit. Clark — Explained that the amount warrant was not reconciling back to the payroll report activity. Roselli — About the findings in regards to Withholding, IRS garnishment and Withholding Account Deficits, has not yet taken a look at these in depth. These will be reviewed in detail go over how these get posted to the General Ledger will be reviewed by Ms. Weiner and Mr. Clark. Clark — Hope to provide some guidance in regards to the withholding relative to getting it reconciled by year end. Will go over this with everyone in the finance office during the June visit. Page 1 of 3 Minutes for May 27, 2014, adopted July 29 Weiner — She will provide the written report on the payroll process and the remaining items will be provided for the Audit Committee. Sewer and Water Receipts Gibson — All water issues have been resolved. Posting of Water Receipts has been resolved. Refund Posting Error, a written report was provided and is considered resolved. Revenue Detail, this was resolution of procedure for classifying water and sewer revenue. Roselli — Explained the issue with the revenue detail: the way the revenue was being reported, that it was a simple fix. Atherton — One bill is sent for someone on water and sewer and one check for the two is received. Someone has to total that out to the correct account. At some point, separate bills should probably be sent to ensure proper accounting. Gardner — Explained how sewer and water revenue are broken out and posted separately into appropriate funds. Roselli — Reviewed what caused some of the findings and how those were resolved. Health Insurance Trust Payments Roselli — Explained that if the payment isn't made on time, it ends up sitting on the books. During the June visit, he will walk through how that should be reported with Finance. Cash Reconciliation — 3 findings Gibson — Aged reconciling items in the General Depository Account has been resolved. The Health Insurance Trust Bank Account finding will come back to the Audit Committee by the end of FY2014. Bank Account Consolidation is recurring. Weiner — Some have been closed but new ones have been opened. She is reviewing the action necessary to consolidate accounts. Miller — Back to item G.2., Health Insurance Trust fund balance, asked what kind of adjustment would be made. Weiner — She has researched back to 2000 in an attempt to ascertain the source of the out -of -balance discrepancies but couldn't identify what happened. Roselli — Explained this statutorily has to have its own account; explained how the out -of -balance might have occurred. If you can't find where the warrant was reimbursed, suggested moving the money to make correct balance and keep it balanced going forward. MUNIS is set up to charge one account and then money is shifted around. Dickinson — Explained how the money would be moved from one account to another. Atherton — Said he would be interested in the out -of- balance difference between the General Ledger and the checking account is. Dickinson — Health Trust Account making more interest than the General Ledger Account. Wiener — This is not a General Ledger entry; it is a moving money entry. The affect on the Town books is nil. Gibson — At the next meeting, the committee will review the outstanding items. Mulcahy — Health Insurance Trust Fund, there was talk about influx of cash from the reserve fund. Asked if doing that is necessary. Roselli — Cook & Company does a lot of the administration of these plans throughout the state; they feel a balance of about 20% of the expenses is enough for emergencies and reserves. Gibson — There is a statutory requirement to have a percentage in the fund due to claims. $250,000 is the expected percentage. Page 2 of 3 Minutes for May 27, 2014, adopted July 29 IV. REVIEW PREPARATIONS OR FY2014 AUDIT Roselli — For the preliminary phase, the week of June 9 works best for the firm to come out to the Island and meet with Finance. Atherton — Confirmed that the Monthly cycle reconciliations are up to date. DATE OF NEXT MEETING June 24, 2014 Motion to Adjourn: 9:43 a.m. Submitted by: Terry L. Norton Page 3 of 3