Loading...
HomeMy WebLinkAbout2020-08-17-F01 Presentation_Denman and Co Pre-AuditAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 17, 2020 AGENDA ITEM:Denman & Company on upcoming FY2020 audit FORMAT:Presentation SYNOPSIS INCLUDING PRO & CON: A representative of Denman & Company will be present to discuss the upcoming audit. GASB regulations require that the company performing the City’s annual audit discuss the matter with Council beforehand. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: ATTACHMENTS: I. Presentation PREPARED BY:Becky Schuett REVIEWED BY: F1 The City of Waukee Communication with Those Charged with Governance rendriss@denman-cpa.com dellis@denman-cpa.com August 17, 2020 Responsibilities Under Auditing Standards Generally Accepted in the United States of America (GAAS) and Government Auditing Standards (GAS) Auditor: Express opinions on financial statements in accordance with Accounting Principles Generally Accepted in the United States of America (GAAP) Evaluate presentation of supplementary information in relation to the financial statements as a whole Management: Responsible for financial statements, all accompanying information and representations therein Responsible for establishing and maintaining effective internal controls Significant Risks of Material Misstatement Non-routine transactions Advance refunding of debt Change in accounting policies (new standards) Judgmental matters requiring estimates Depreciation OPEB obligations Allowance for collection losses Net pension liability Internal Control Internal control will be considered for the purpose of determining audit procedures, not to provide assurance on internal control Materiality- Benchmarks Quantitative Computed for each opinion unit using: Total receipts Total assets Qualitative Based on risk Materiality – Factors Considered Council oversight Funded by tax payors, accountability Cash basis to accrual basis entries Uniform Guidance audit matters, when applicable Significance of debt Capital assets Opinion units Timing Fieldwork August 24th – September 4th Delivery of final audit report at a November 2020 Council meeting Council Views Regarding Business risks that may result in material misstatements due to fraud or error Matters that warrant particular attention during the audit Significant communications with regulators Other matters relevant to the audit Council Comments Questions Thank you for the opportunity to serve you.