Audit Committee November 15, 2005 minutes
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Audit Committee November 15, 2005 minutes

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Poudre School District Audit Committee MINUTES November 15, 2005 Members Present Debbie Bostak, Community Member, Chairperson Molly Janzen, Controller, Poudre School District Jim Sarchet, Assistant Superintendent of Business Services/CFO, Poudre School District Terri Sunset, Community Member Cheryl Zimlich, Community Member Updates The Audit Committee approved the minutes for the meeting held October 18, 2005. Sample & Bailey Audit Opinion and Adjustments Vicki Sweet, of Sample & Bailey, Certified Public Accountants, attended the meeting to report to the Audit Committee the results of the 2005 fiscal year audit. • Audit opinion—Vicki stated that Sample and Bailey issued an unqualified opinion on the financial statements presented in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2005. She also expressed that no findings or questioned costs relating to the Single Audit were discovered. Vicki explained that an audit conducted in accordance with GAAP is designed to provide reasonable, not absolute, assurance that the financial statements are presented fairly. • Audit adjustments and passed adjustments—Vicki provided the Audit Committee with a list of adjustments and passed adjustments. Audit adjustments included two entries related to the reclassification of balances and transactions related to certificates of participation activity. Principal and interest payments for the certificates of ...

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Poudre School District Audit Committee MINUTESNovember 15, 2005 Members Present Debbie Bostak, Community Member, Chairperson Molly Janzen, Controller, Poudre School District Jim Sarchet, Assistant Superintendent of Business Services/CFO, Poudre School District Terri Sunset, Community Member Cheryl Zimlich, Community Member Updates The Audit Committee approved the minutes for the meeting held October 18, 2005. Sample & Bailey Audit Opinion and Adjustments Vicki Sweet, of Sample & Bailey, Certified Public Accountants, attended the meeting to report to the Audit Committee the results of the 2005 fiscal year audit. Audit opinionVicki stated that Sample and Bailey issued an unqualified opinion on the financial statements presented in the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2005.She also expressed that no findings or questioned costs relating to the Single Audit were discovered.Vicki explained that an audit conducted in accordance with GAAP is designed to provide reasonable, not absolute, assurance that the financial statements are presented fairly. Audit adjustments and passed adjustmentsVicki provided the Audit Committee with a list of adjustments and passed adjustments.Audit adjustments included two entries related to the reclassification of balances and transactions related to certificates of participation activity.Principal and interest payments for the certificates of participation previously accounted for in the Capital Reserve Fund will now be accounted for in the Poudre Facilities Corporation Fund, a blended component unit.Other adjustments included an increase to the workers compensation reserve for incurred but not reported claims and an increase to accounts payable in the Capital Reserve Fund for goods/services received prior to June 30, 2005.The one passed entry relates to recording a liability for hourly employee time worked prior to June 30, 2005, but not paid until July 2005. Review 2005 Preliminary and Tentative Management Comments The Audit Committee discussed the preliminary Management Comments provided to the District by Sample & Bailey.Sample & Bailey proposed that the sixth recommendation be deleted from the document.After discussing this proposal, the Committee agreed with this recommendation, and approved the Comments as written with this one change. Molly Janzen stated that she would send a copy of the Districts responses to these
Preliminary Minutes November 15, 2005 Page 1
Management Comments to the Committee for their consideration and input prior to distribution to the Board of Education. Item 7 (Computer Systems) in the preliminary Management Comments was discussed at length. MollyJanzen provided to the Audit Committee a document describing specific control procedures that the District has implemented and maintained applicable to this recommendation. Jim Sarchet stated he takes the Management Comments very seriously and looks at the recommendations as an opportunity to improve the Districts controls and processes. Vicki stated that Sample & Bailey strive to provide the District with meaningful recommendations. Other Comments and Items of Discussion Vicki reported to the Committee the following required auditor communications: 1.All significant accounting policiesNo significant changes in accounting policies. are discussed in Note 1 in the Notes to Basic Financial Statements presented in the Comprehensive Annual Financial Report. 2.Primary change in accounting estimates relates to worker's compensation reserve discussed above. 3.No disagreements with management. 4.No consultation with other accountants regarding audit and accounting matters. 5.No difficulties encountered in performing the audit. Every year,The Committee asked Sample & Bailey if they evaluate non-routine areas. routine areas such as payroll, cash receipts, and travel are tested as well as new areas. This year, Sample & Bailey did look in-depth at one-time pays.Vicki Sweet provided to the Audit Committee the Sample & Bailey 2005 peer review report and answered questions regarding the peer review process and the results of the peer review. Terri Sunset asked if other districts have internal audit functions. Currently, Sample & Bailey provide services that might be handled by an internal auditor if the District had this type of function.Vicki Sweet will obtain some information from other districts related to this topic. The Audit Committee will discuss at future meetings external auditor evaluation and selection. The idea that the Audit Committee is in the beginning stages was reiterated. The main role is to provide information to the Board of Education annually. The Audit Committee discussed voting members of the Committee and agreed that the Board of Education has to be represented. Preliminary Minutes November 15, 2005 Page 2
There was discussion about policies related to employees using District assets for personal use.Molly Janzen said Poudre School District does have Board policies and procedures in place and reminders are sent out by the Information Technology Department. Molly Janzen will provide information on fiscal trends as well as current year quarterly information at a future meeting. The meeting was adjourned without discussing items 4-6 on the agenda. Tentative Future Meetings January 17, 2005 March 21, 2005 May 16, 2005
Preliminary Minutes November 15, 2005 Page 3