Audit Wrap-up Town of Morrisville April Adams, CPA Partner - PowerPoint PPT Presentation

Audit Wrap-up Town of Morrisville April Adams, CPA Partner October 24, 2017

Client Service Team Role of External Auditor Key Highlights - Results Internal Controls Agenda Significant Audit Areas Financial Results Summary Questions and Comments

Client Service Team Eddie Burke April Adams Relationship Audit Partner Service Audit Partner LeAnn Bagasala Audit Manager Alex Harris Audit Senior Accountant 3

Role of the External Auditor Required Actions Results Communications Policy Changes Plan and Perform Express Opinions on: Procedures -Financial Statements Estimates -Yellow Book Obtain Reasonable -State Compliance Assurance Journal Entries 4

Key Highlights Results Internal Single Other Opinions SAS 114 Controls Audit Matters Unmodified No Significant PAJE for Opinion – Deficiencies or Municipal Prior Period Financial Material Service District Adjustments: Statements Weaknesses Fund CIP OPEB restatement Unmodified No Findings Opinion – Yellow LEOSSA Book Observations: restatement Closure of Water IT Related Shiloh Sewer and Sewer Fund Unmodified Matters CPF restatement Opinion – State Single Audit 5

Internal Controls Financial Statements Significant Journal Entries IT Controls Cycles    Payroll Active Data IT Entity Level   Cash Receipts Backup & Recovery   Cash Disbursements Access & Security  (including use of P- Network Security  Cards) Cyber Security  Budgeting  Financial Statement Close 6

Significant Audit Areas Financial Statements Liabilities and Assets and Revenues Other Items Expenses    Accounts /Notes Receivable Payroll Cash    Revenues Debt Accounts Payable and Accrued Liabilities  Capital Assets  Net Position  Expenses  Related Parties  Estimates  Legal 7

Significant Audit Areas Internal Controls & Compliance – Single Audit State  Administrative Controls  Monitoring Reports Major • Powell Bill  Compliance Matrix Programs  Compliance Testing 8

Financial Results General Fund Revenues (thousands) 2016 2017 614 491 1,109 1,143 8,516 8,986 17,909 16,675 1,768 1,841 2016 Total: $28,682 2017 Total: $30,370 Taxes Permits and Fees Intergovernmental Services Sales for Services Miscellaneous 9

Financial Results General Fund Expenses (thousands) 2016 2017 2,231 1,989 8,167 3,542 4,303 8,159 1,618 1,728 5,925 1,148 5,207 1,723 1,458 1,665 2016 Total: $23,121 2017 Total: $25,742 Public Safety Public Works Debt Service Capital Outlay Cultural and Recreation General Government Development Services 10

Financial Results General Fund – Fund Balance (thousands) 2016 2017 7,385 7,133 15,255 15,258 9 40 931 2,246 2,305 2,823 2016 Total: $25,667 2017 Total: $27,718 Restricted Non Expendable Committed Assigned Unassigned 11

Financial Results Cash and Investments (thousands) 2016 2017 3 3 3,882 13,375 33,542 30,135 2016 Total: $34,020 2017 Total: $46,919 Petty Cash Carrying Amounts NC Capital Management 12

Financial Results Capital Assets (thousands) Governmental Activities 2016 2017 1,717 1,814 1,616 2,189 36,675 34,002 62,770 56,506 5,047 11,187 10,616 3,961 10,299 4,125 2016 Total: $113,827 2017 Total: $128,697 Vehicles Equipment Land CIP Buildings Other Improvements Infrastructure 13

Financial Results Long Term Debt (thousands) Governmental Activities 2016 2017 561 895 945 852 3,466 1,603 69 2,012 1,015 19,330 8,982 2016 Total: $12,810 2017 Total: $26,920 Compensated Absences Bonds LEOSA Installment Notes Net Pension Obligation Other Post Employment Benefits 14

Summary Clean Opinion Full Cooperation Journal with Entries Management No Good Significant Internal Deficiencies Controls Identified 15

Questions & Comments? April Adams, CPA Service Audit Partner aadams@cbh.com 919.782.1040 Eddie Burke, CPA Relationship Audit Partner eburke@cbh.com 919.782.1040