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HomeMy WebLinkAbout2016-08-01-G01 Presentation_Denman and Co Pre-Audit AGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: August 1, 2016 AGENDA ITEM: Denman & Company on upcoming FY2016 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 1, 2016 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 taxes, 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 8 through August 19, 2016Delivery of final audit report at a November 2016 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 CommentsQuestions Thank you for theopportunity to serve you.