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HomeMy WebLinkAbout2025-08-18 F01 Presentation_Denman and Co Pre-AuditAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 18, 2025 AGENDA ITEM:Denman & Company on upcoming FY2025 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 City of Waukee Communication with Those Charged with Governance rendriss@denman.cpa emullins@denman.cpa August 18, 2025 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) Issue reports on internal control and compliance as required by GAS and Uniform Guidance Report of supplementary information in relation to the financial statements as a whole Required supplementary information (RSI) will not be audited and we will not express an opinion or provide any assurance on RSI Responsibilities Under Auditing Standards Generally Accepted in the United States of America (GAAS) and Government Auditing Standards (GAS) – (Continued) Management: Responsible for financial statements, all accompanying information and representations therein Responsible for establishing and maintaining effective internal controls Our audit does not relieve you or management of your responsibilities Significant Risks of Material Misstatement Non-routine transactions Judgmental matters requiring estimates New accounting standards We have identified the following significant risks of material misstatement as part of our audit planning: Management override of internal controls Improper revenue recognition Internal Control Internal control over financial reporting 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 Accountability – funded by tax payors Cash basis to accrual basis entries Uniform Guidance audit matters, when applicable Significance of debt Capital assets Opinion units Timing Fieldwork August 25th – September 5th Delivery of final audit report at a December 2025 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! Thank you for the opportunity to serve you.