Finance Committee February 12, 2019 6:15 pm Action It Item A: : - - PowerPoint PPT Presentation

Finance Committee

February 12, 2019 6:15 pm

Action It Item A: :

Approval of the Min inutes

• From the December 11, 2018 meeting.

Action It Item B: :

Dis iscuss Fis iscal Year 2017-2018 Audit it

Presented by Kent Willis, CPA Pattillo, Brown & Hill, LLP

PRESENTED TO

CITY OF WESTWORTH VILLAGE, TEXAS

Annual Financial & Compliance Audit

FINANCE COMMITTEE/CITY COUNCIL

February 12, 2019

Kent Willis, CPA

Government Audit

• Audit process
• Audit results
• Required auditor communications
• Financial highlights
• Discussion/questions

INTRODUCTION & AGENDA

AUDIT PROCESS

• The audit was performed in accordance with Generally

Accepted Auditing Standards (GAAS) and Government Auditing Standards (GAS).

• Interim testing performed in June of 2018 including:

‒ Walkthroughs of accounting controls over significant transaction cycles ‒ Tests of controls over cash disbursements, payroll, and utility billing ‒ Tests of compliance with laws, regulations, contracts and grants

• Fieldwork performed in November 2018.

AUDIT PROCESS

AUDIT RESULTS

• Independent Auditors’ Report, found on pages 1 – 3 of the

Comprehensive Annual Financial Report. ‒ Unmodified opinion - highest form of opinion that can be issued.

• Independent Auditors’ Report on Internal Control Over Financial

Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards, found on pages 61 – 62 of the Annual Financial Report. ‒ No material instance of non-compliance ‒ One deficiency in internal control identified to be a material weakness ‒ Capital Assets (recurring deficiency) – page 63

AUDIT RESULTS

COMMUNICATION

COMMUNICATION

REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE

• Reasonable assurance that the financial statements are

free of material misstatement.

• Express an opinion about whether the financial

statements prepared by management are fairly presented, in all material respects.

AUDITOR’S RESPONSIBILITY UNDER GENERALLY ACCEPTED AUDITING STANDARDS (GAAS)

COMMUNICATION

No fraud, irregularities, or illegal acts were noted. One material weaknesses noted. Management’s estimates were evaluated and determined to be reasonable in relation to the financial statements as a whole. No difficulties or disagreements during the course of

• ur audit.

FRAUD & ILLEGAL ACTS MATERIAL WEAKNESS IN INTERNAL CONTROL MANAGEMENT JUDGMENTS AND ACCOUNTING ESTIMATES DIFFICULTIES ENCOUNTERED

REQUIRED COMMUNICATION TO THOSE IN CHARGE OF GOVERNANCE

FINANCIAL HIGHLIGHTS

FINANCIAL HIGHLIGHTS

2018 2017

2 4 6 Net Investment in Capital Assets Restricted Unrestricted

5.358 2.585 3.43 4.22 2.877 3.715

MILLIONS

COMPARISON OF GOVERNMENTAL ACTIVITIES Net Position

FINANCIAL HIGHLIGHTS

COMPARISON OF BUSINESS-TYPE ACTIVITIES Net Position

2018 2017 0.000 2.000 4.000 6.000 8.000 Net Investment in Capital Assets Unrestricted 6.556 0.624 6.775 0.891

M I L L I O N S

GOVERNMENTAL FUNDS

Net Position As of year end, the City’s governmental funds reported a combined ending fund balance of $6.22 million as follows:

• General Fund

$3,550,753

• Capital Projects

211,346

• Debt Service

369,557

• WRA

1,522,512 $3,551 $211 $370 $1,522

FUND BALANCE

(in thousands)

General Fund Capital Projects Debt Service WRA

Unassigned General Fund Balance, $3.48 million, is 105% of total General Fund expenditures for fiscal year 2018. Restricted fund balance in the General Fund includes $72,163 for various items.

FINANCIAL HIGHLIGHTS

COMPARISON OF GOVERNMENTAL FUNDS

Revenues

Overall total revenues for fiscal year 2018 were 18% higher. Governmental Funds revenues totaled $4.79 million, a $44 thousand increase from fiscal year 2017. $0 $1,000,000 $2,000,000 $3,000,000 2018 2017

$2,538,880 $2,190,571 $370,013 $176,893 $96,664 $72,505 $11,969 $806 $315,564 $439,946 $191,105 $113,589 REVENUE

Other Fines and Forfeitures Charges for Services Intergovernmental License and Permits Taxes

FINANCIAL HIGHLIGHTS

500,000 1,000,000 1,500,000 2,000,000 2,500,000 2018 2017

1,773,668 1,303,753 1,322,249 1,250,027 151,879 150,740 314,494 277,667 85,647 94,709 26,993 90,306 1,652,175 2,094,809 1,152,713 1,056,598

EXPENDITURES

Debt Service Capital Outlay Redevelopment Culture and Recreation Fire Judicial Police General Government

Expenses increased by $161 thousand in fiscal year 2018.

FINANCIAL HIGHLIGHTS

COMPARISON OF GOVERNMENTAL FUNDS

Expenditures

PROPRIETARY FUNDS

Net Position

As of year end, the City’s proprietary funds reported a combined ending net position of $7.2 million as follows:

$4,885,594 $2,304,242 NET POSITION

Water and Sewer Hawks Creek Golf Course

FINANCIAL HIGHLIGHTS

COMPARISON OF PROPRIETARY FUNDS

Operating Revenues & Expenses 0.000 0.200 0.400 0.600 0.800 1.000 1.200 1.400 1.600 1.800 2.000 2018 Revenues 2018 Expenses 2017 Revenues 2017 Expenses 1.457 1.425 1.248 1.444 1.499 1.688 1.600 1.915

MILLIONS

Water and Sewer Hawks Creek Golf Course

FINANCIAL HIGHLIGHTS

DISCUSSION

Action It Item C: Next xt Meeting

• Next meeting is scheduled for March 12th.

Meeting Adjourned