HomeMy WebLinkAbout2017-08-07-G02 Presentation_Denman and Co Pre-Audit AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: August 7, 2017
AGENDA ITEM: Denman & Company on upcoming FY2017 audit
FORMAT: Presentation
SYNOPSIS INCLUDING PRO & CON: David Ellis with 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:
The City of WaukeeCommunication with Those Charged with Governancedellis@denman-cpa.comrendriss@denman-cpa.comAugust 7, 2017
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 wholeManagement:Responsible for financial statements, all accompanying information and representations thereinResponsible for establishing and maintaining effective internal controls
Significant Risks of Material MisstatementNon-routine transactionsAdvance refunding of debtChange in accounting policies (new standards)Judgmental matters requiring estimatesDepreciationOPEB obligationsAllowance for collection lossesNet pension liability
Internal ControlInternal control will be considered for the purpose of determining audit procedures, not to provide assurance on internal control
Materiality –Factors ConsideredCouncil oversightFunded by taxes, accountabilityCash basis to accrual basis entriesUniform Guidance audit matters, when applicableSignificance of debtCapital assetsOpinion units
Materiality-BenchmarksQuantitativeComputed for each opinion unit using:Total receiptsTotal assetsQualitativeBased on risk
TimingFieldwork August 21 through September 1, 2017Delivery of final audit report at a November 2017 Council meeting
Council Views RegardingBusiness risks that may result in material misstatements due to fraud or errorMatters that warrant particular attention during the auditSignificant communications with regulatorsOther matters relevant to the audit
Council CommentsQuestions
Thank you for theopportunity to serve you.