HomeMy WebLinkAbout2021-08-16-F01 Presentation_Denman and Co Pre-AuditAGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: August 16, 2021
AGENDA ITEM:Denman & Company on upcoming FY2021 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 16, 2021
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
Unique or irregular transactions (i.e. IFA
sponsored project)
Change in accounting policies/new
accounting 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 23rd – September 3rd
Delivery of final audit report at a
November 2021 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.