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HomeMy WebLinkAbout2018-08-06-G01 Presentation_Denman and Co Pre-AuditAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 6, 2018 AGENDA ITEM:Denman & Company on upcoming FY2018 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. Denman & Company presentation PREPARED BY:Becky Schuett REVIEWED BY: G1 The City of Waukee Communication with Those Charged with Governance dellis@denman-cpa.com rendriss@denman-cpa.com August 6, 2018 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 – 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 Materiality- Benchmarks Quantitative Computed for each opinion unit using: Total receipts Total assets Qualitative Based on risk Timing Fieldwork August 20 - 31, 2018 Delivery of final audit report at a November 2018 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.