HomeMy WebLinkAbout2014-7-23 (2)Nantucket Regional Transit Authority
3 East Chestnut Street, Nantucket, MA 02554
Phone: 508-325-9571 9 Fax: 508 - 325 -0788 • TTY: 508-325-7516 �Y9
www.nrtawave.com - nrta@nantucket- ma.gov
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Minutes of the Finance and Audit Committee Meeting of July 23, 2014. The meeting
took place in the Training Room of the Nantucket Police Station, 4 Fairgrounds Road,
Nantucket, MA 02554. Members of the Board present were: Rick Atherton, Robert
DeCosta, Bruce Miller, Matthew Fee, and Tobias Glidden. Absent was Karenlynn
Williams. Chairman Atherton opened the meeting at 5:55 p.m.
Approval of Minutes from the February 19 2014 Meeting The minutes of the February
19, 2014 meeting were approved by unanimous consent of the Board.
Discussion of the Fiscal Affairs of the Authority. Paula Leary, NRTA Administrator
provided the Board with the following information: The NRTA has an independent
accountant that reviews the financial activities of the NRTA on a monthly and annual
basis. The independent accountant understands the entity and is familiar with all
transactions of the NRTA. An internal controls checklist has been developed that
verifies various transactions, for example but not limited to: computer controls, farebox
and pass sale controls, revenue and receivables controls, expenditures, payroll controls
and all balance sheet accounts, and inventories. A review of various areas is done to
identify fraud risk and inherent risk and make sure they don't exist and are covered by
controls. An example of inherent risk is cash. The independent accountant completes
and does an internal audit of balance sheet accounts both monthly and annually. An
analytical review is done monthly and annually. A review of the following areas is done:
related party transactions, minutes, review commitments and contingency testing.
The NRTA has an Accounting Procedure Manual in accordance with the Federal
Government's Office of Management and Budget's (OMB) Common Rule (49 CFR Part
18). Attached is a copy of the Table of Contents of the Account Procedure Manual.
There are internal controls Relative to Federal Award Programs that include, but not
limited to: risk of materials non - compliance assessment, inherent risk of non compliance
assessment, compliance with activities allowed and not allowed, cash management,
allowable costs, and matching compliance. There is also OMB Compliance Supplement
Testing, FTA cross - cutting section compliance, and formula grants for rural areas
compliance testing. The independent auditor reviews internal controls over financial
reporting and testing internal controls and transactions. Recommendations for
improvements would be made the auditor in the management letter that is part of the
audited financial statements and communicated to the Advisory Board. The NRTA has
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O"t slan Nantucket Regional Transit Authority
Nantucket Regional Transit Authority
3 East Chestnut Street, Nantucket, MA 02554
Phone: 508-325-9571 • Fax: 508 - 325 -0788 • TTY: 508-325-7516
www.nrtawave.com * nrta @nantucket - ma.gov
not had any findings relative to internal controls for the past several and the fiscal affairs
of the Authority are sound. The FY14 audit is currently being conducted and the auditor
will make a report to the Finance and Audit Committee upon it's issuance in September.
Mr. Atherton commented that the NRTA has a small staff and feels comfortable with
segregation of duties with the independent work being done monthly. Mr. Fee moved to
accept the report given; seconded by Mr. Miller. So voted.
The meeting was unanimously adjourned at 5:59 p.m.
Approved: October 22, 2014
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Nantucket Regional Transit Authority