T own of F air vie w Counc il Me e ting | Apr il 3, 2018 Ove r - - PowerPoint PPT Presentation
Pr e se ntation to T own of F air vie w Counc il Me e ting | Apr il 3, 2018 Ove r vie w I ntro duc tio n Audit Pro c e ss Re q uire d Co mmunic a tio ns Audit Re sults F ina nc ia l Hig hlig hts Ne w Ac c o unting
Pr e se ntation to
Counc il Me e ting | Apr il 3, 2018
2
3
4
We ave r is the lar ge st inde pe nde nt ac c ounting fir m base d in T e xas and the Southwe st. We ’ve se r ve d T e xas public se c tor e ntitie s for 66 ye ar s.
Da lla s F
Midla nd Ho usto n Austin Sa n Anto nio Co nro e
5
Pa rtne r, Assura nc e Se rvic e s
Ma na g e r, Assura nc e Se rvic e s
6
Clair e Wootton, CPA
Aud it Ma na g e r
Kayc e Stillings
Aud it Asso c ia te I
E lisa Gilbe r tson, CPA
Ad viso ry Se rvic e s -ACL Da ta Spe c ia list
Consulting
John De Bur r
E ng a g e me nt Pa rtne r
Audit
7
8
Initial Audit Planning Inte r im F ie ldwor k
Jul 17 – Jul 21
F inal F ie ldwor k
Ja n 15 – Ja n 26
Re le ase Audit Opinion
Ma rc h 16
Counc il Me e ting
April 3
Disc uss De ve lopme nts/ Issue s
Co ntinuo us Co mmunic a tio n
he a udit wa s pe rfo rme d in a c c o rda nc e with
Ge ne ra lly Ac c e pte d Auditing Sta nda rds
(GAAS) a nd Ge ne ra lly Ac c e pte d Gove rnme nt
Auditing Sta nda rds (GAGAS)
he a udit pro c e ss wa s a risk- ba se d a pproa c h in whic h we ide ntifie d po te ntia l a re a s o f risk tha t c o uld le a d to ma te ria l missta te me nt o f the fina nc ia l sta te me nts. We ta ilo re d o ur a udit pro g ra ms a nd re so urc e s to spe c ific a lly a ddre ss the fo llo wing a re a s o f risk:
re c e iva b le s
c o mplia nc e with b idding pro c e dure s
e xpe nditure s
9
tra nsa c tio n c yc le s:
e st o f inte rna l c o ntro ls:
e st o f c o mplia nc e
unds I nve stme nt Ac t
10
Inte r im fie ldwor k and r isk asse ssme nt we r e pe r for me d in July 2017. Pr
e s inc lude d:
e sting o f sig nific a nt a c c o unt b a la nc e s using a c o mb ina tio n
a nd a pplying a na lytic a l pro c e dure s.
11
F inal fie ldwor k- pe r for me d in Januar y 2018 Pr
e s inc lude d:
12
fo r the ye a r e nde d Se pte mb e r 30, 2017
13
Communic ation Re sults
Audito r’ s re spo nsib ility unde r g e ne ra lly a c c e pte d a uditing sta nda rds (GAAS)
T he fina nc ia l sta te me nts a re the re spo nsib ility
a c c o rda nc e with GAAS in the U.S. a nd pro vide s fo r re a so na b le ra the r tha n a b so lute a ssura nc e tha t the fina nc ia l sta te me nts a re fre e o f ma te ria l missta te me nt. Our re spo nsib ility is to e xpre ss a n o pinio n a b o ut whe the r the fina nc ia l sta te me nts pre pa re d b y ma na g e me nt with yo ur o ve rsig ht a re fa irly pre se nte d , in a ll ma te ria l re spe c ts, in c o nfo rmity with U.S. g e ne ra lly a c c e pte d a c c o unting princ iple s. Our a udit o f the fina nc ia l sta te me nts do e s no t re lie ve yo u o r ma na g e me nt o f yo ur re spo nsib ilitie s. T he a udit o f the fisc a l ye a r 2017 fina nc ia l sta te me nts ha s b e e n c o mple te d a nd we ha ve issue d a n unmo difie d o pinio n.
14
Communic ation Re sults
Audito r’ s Re spo nsib ility unde r Go ve rnme nt Auditing Sta nda rds
I n a dditio n to the GAAS re spo nsib ilitie s, we a re re q uire d to issue a writte n re po rt o n o ur c o nside ra tio n o f inte rna l c o ntro ls a nd ide ntify sig nific a nt de fic ie nc ie s, inc luding ma te ria l we a kne sse s, if a ny. Our re po rt do e s no t pro vide a ssura nc e o n inte rna l c o ntro ls. We de sig n o ur a udit to pro vide re a so na b le a ssura nc e o f de te c ting ma te ria l missta te me nts re sulting fro m no nc o mplia nc e with pro visio ns o f c o ntra c ts o r g ra nt a g re e me nts tha t ha ve a dire c t o r ma te ria l e ffe c t o n the fina nc ia l sta te me nts. We issue d a writte n re po rt o n the re sults o f the se pro c e dure s; ho we ve r, o ur re po rt do e s no t e xpre ss a n o pinio n o n c o mplia nc e . No ma te ria l we a kne sse s ide ntifie d, no sig nific a nt de fic ie nc ie s ide ntifie d.
15
Communic ation Re sults
Unusua l tra nsa c tio ns a nd the a do ptio n o f ne w a c c o unting princ iple s
T he sig nific a nt a c c o unting po lic ie s use d b y the T
sta te me nts. Ne w GASB pro no unc e me nts imple me nte d in 2017 inc lude GASB Sta te me nt No . 77. T he e ffe c t o f the imple me nta tio n o f GASB Sta te me nt No . 77 is a n a dditio na l disc lo sure (No te 10). Othe r pro no unc e me nts imple me nte d in 2017 inc lude GASB Sta te me nt No . 78, 80, a nd 82. T he imple me nta tio n ha d no sig nific a nt e ffe c ts o n the fina nc ia l sta te me nts. We no te d no tra nsa c tio ns e nte re d into b y the T
a utho rita tive g uida nc e o r c o nse nsus.
16
Communic ation Re sults
F ra ud a nd ille g a l a c ts
No fra ud, irre g ula ritie s, o r ille g a l a c ts we re no te d.
Ma te ria l we a kne ss in inte rna l c o ntro l
No ma te ria l we a kne sse s no te d.
Othe r info rma tio n c o nta ine d in do c ume nts c o nta ining a udite d fina nc ia l sta te me nts
We pe rfo rme d limite d pro c e dure s o n the Ma na g e me nt’ s Disc ussio n a nd Ana lysis (MD&A) a nd Re q uire d Supple me nta ry I nfo rma tio n (RSI ). We did no t pro vide a ny a ssura nc e o n this info rma tio n.
Ma na g e me nt judg me nts a nd a c c o unting e stima te s
Ma na g e me nt’ s e stima te s o f unc o lle c tib le re c e iva b le s, ne t pe nsio n lia b ility a nd use ful live s o f c a pita l a sse ts we re e va lua te d a nd de te rmine d to b e re a so na b le in re la tio n to the fina nc ia l sta te me nts a s a who le .
Ma na g e me nt re pre se nta tio ns
We re q ue ste d c e rta in re pre se nta tio ns fro m ma na g e me nt tha t we re inc lude d in the ma na g e me nt re pre se nta tio n le tte r.
17
Communic ation Re sults
Diffic ultie s e nc o unte re d
No sig nific a nt diffic ultie s we re e nc o unte re d during
Ma na g e me nt c o nsulta tio ns
We a re no t a wa re o f ma na g e me nt c o nsulting with
Audito r inde pe nde nc e
No inde pe nde nc e issue s no te d.
Disa g re e me nts with Ma na g e me nt
No disa g re e me nts a ro se o ve r the c o urse o f o ur a udit.
18
Communic ation Re sults
Audit a djustme nts
Pro fe ssio na l sta nda rds re q uire us to a c c umula te a ll kno wn a nd like ly missta te me nts ide ntifie d during the a udit, o the r tha n tho se tha t a re trivia l, a nd c o mmunic a te the m to the a ppro pria te le ve l o f ma na g e me nt. We ha d o ne a udit a djustme nt to re c la ss the po rtio n o f c a sh re c e ive d tha t wa s re c e ive d in a dva nc e o f c o mple ting the wo rk o n va rio us ro a d pro je c ts fro m Re ve nue to Une a rne d Re ve nue (Ca pita l Pro je c ts F und). I n a dditio n, the re we re no unc o rre c te d missta te me nts disc o ve re d a s a re sult o f o ur a udit pro c e dure s.
Othe r ma te ria l writte n c o mmunic a tio ns b e twe e n We a ve r a nd T idwe ll, L .L .P., a nd the T
No thing to no te .
nde pe nde nt Audito r’ s Re po rt o n the fina nc ia l sta te me nts
Unmo difie d o pinio n o r “c le a n” o pinio n
nde pe nde nt Audito r’ s Re po rt o n I nte rna l Co ntro l o ve r F ina nc ia l Re po rting a nd o n Co mplia nc e a nd Othe r Ma tte rs Ba se d o n a n Audit o f F ina nc ia l Sta te me nts Pe rfo rme d in Ac c o rda nc e with Go ve rnme nt Auditing Sta nda rds
No ma te ria l we a kne sse s no te d
No sig nific a nt de fic ie nc ie s no te d
20
21
22
Compa r ison of Gove r nme nta l F unds E xpe nditur e s by F und (in millions of dolla r s)
57% 30% 13% 0%
FY 2017
General Fund Debt Service Fund Capital Projects Funds Nonmajor Governmental Funds Gove r nme ntal F unds E xpe nditur e s for F Y 2017 totale d $15 million, a $2.6 million or 21% inc r e ase
Y16 due to the pa yo ff o f the 2012 CO’ s. T he se b o nds we re pa id o ff with the pro c e e ds fro m the No a h’ s b uilding sa le .
57% 15% 27% 1%
FY 2016
General Fund Debt Service Fund Capital Projects Funds Nonmajor Governmental Funds
23
Compar ison of Gove r nme ntal F unds E xpe nditur e s
$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0
General government Public safety Public works Inspections Municipal court Parks and recreation Debt service Capital outlay
2017 2016 2015
(3-ye a r c o mpa riso n – c urre nt ye a r a nd two prio r ye a rs – in millio ns)
24
Compar ison of Gove r nme ntal Re ve nue s by Sour c e
Go ve rnme nta l Re ve nue s fo r F Y 2017 to ta le d $10.4 millio n, a $0.2 millio n o r 2% inc re a se . I nc re a se is prima rily a ttrib uta b le to Pro pe rty T a x inc re a se (a ttrib uta b le to inc re a se in pro pe rty va lue s a s we ll a s ne w T I F zo ne ), a lo ng with de c re a se s in Stre e t I mpa c t F e e s a nd Misc e lla ne o us Re ve nue .
54.9% 15.1% 6.3% 4.3% 4.6% 3.9% 0.2% 10.6%
FY 2017 Revenues
Property taxes Sales taxes Franchise taxes Fines and forfeitures Charges for service Permits Intergovernmental Other
52.3% 16.0% 6.4% 4.2% 5.2% 4.3% 0.2% 11.6%
FY 2016 Revenues
Property taxes Sales taxes Franchise taxes Fines and forfeitures Charges for service Permits Intergovernmental Other
25
Compar ison of Gove r nme ntal Re ve nue s by Sour c e
(3-ye a r c o mpa riso n – c urre nt ye a r a nd prio r ye a r – in millio ns)
$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 2017 2016 2015
26
F und Balanc e s
Go ve rnme nta l F unds’ F und Ba la nc e s As o f Se pte mb e r 30, 2017, the T
e nding fund b a la nc e o f $10.3 millio n a s fo llo ws:
und $5,006,322
247,290
unds 278,495 $10,337,253
unds de c re a se d b y $1.2 millio n.
und b a la nc e in the Ca pita l Pro je c ts F und de c re a se d b y $1.3 millio n during fisc a l ye a r 2017. T his de c re a se wa s due to the c a pita l o utla y in F Y17 fo r c o ntinua tio n o f the F a irvie w Pkwy/ F risc o Rd de sig n, E a st Sta c y Rd c o nstruc tio n, a nd ro a d c o nstruc tio n a nd e q uipme nt purc ha se d in F Y17.
48.4% 2.4% 46.5% 2.8% General Fund Debt Service Capital Projects Other Funds
27
Budge tar y Highlights – Ge ne r al F und
T he T
(ne t c ha ng e in fund b a la nc e ):
mo re tha n b udg e te d .
mo re tha n b udg e te d .
mo re tha n b udg e te d.
le ss tha n b udg e te d.
28
Compar ison of Pr
ie tar y F unds Ope r ating Re ve nue s and E xpe nse s – F Y 2017 and the two pr ior ye ar s (in millions)
$- $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0
Operating Revenues Operating Expenses
2017 2016 2015
during fisc a l ye a r 2017.
prima rily due to inc re a se d wa te r ra te s a nd # o f c usto me rs in F
due to hig he r wa te r purc ha se c o sts.
29
E ffe c tive for the ye ar e nde d Se pte mbe r 30, 2018
his sta te me nt a ddre sse s a va rie ty o f to pic s inc luding issue s re la te d to b le nding c o mpo ne nt units, g o o dwill, fa ir va lue me a sure me nt a nd a pplic a tio n, a nd po ste mplo yme nt b e ne fits (pe nsio ns a nd
he re q uire me nts o f this Sta te me nt will e nha nc e c o nsiste nc y in the a pplic a tio n o f a c c o unting a nd fina nc ia l re po rting re q uire me nts.
xting uishme nt I ssue s” - T he o b je c tive o f this Sta te me nt is to impro ve c o nsiste nc y in a c c o unting a nd fina nc ia l re po rting fo r in- sub sta nc e de fe a sa nc e o f de b t b y pro viding g uida nc e fo r tra nsa c tio ns in whic h c a sh a nd o the r mo ne ta ry a sse ts a c q uire d with o nly e xisting re so urc e s – re so urc e s
fo r the so le purpo se o f e xting uishing de b t. T his sta te me nt a lso impro ve s a c c o unting a nd fina nc ia l re po rting fo r pre pa id insura nc e o n de b t tha t is e xting uishe d a nd no te s to fina nc ia l sta te me nts fo r de b t tha t is de fe a se d in sub sta nc e .
30
John De Burro, CPA | E ng a g e me nt Pa rtne r 972.448.6970| john.de burro@we a ve r.c om Cla ire Wootton, CPA | Ma na g e r 972.448.6934 | c la ire .wootton@we a ve r.c om