HomeMy WebLinkAbout(2) AUDIT
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Overview
Introductions
Audit Process
Audit Results and Communications
Financial Highlights
Primary Government
Governmental Funds
Proprietary Funds
General Fund
Questions
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Overview
Introductions
Audit Process
Required Communications
Results
Strengths
Opportunities for Improvement
Financial Highlights
New Accounting Pronouncements
Questions
Introductions
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Engagement Leadership
Greg Peterson
Partner,
Assurance Services
Jerry Gaither
Partner,
Assurance Services
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Brittany Drew
Manager, Assurance Services
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Audit Process
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Audit Process
Audit Standards — Performed the audit in accordance with Generally Accepted Auditing Standards (GAAS) and Generally Accepted Government Auditing Standards (GAGAS)
Single Audit — Performed the single audit of federal awards in accordance with the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance)
Compliance — Performed tests of the City’s compliance with certain provisions of laws, regulations, contracts and grant agreements, including items such as compliance with PFIA and procurement.
Basis of Accounting — Government-wide statements are reported on the economic resources measurement focus and the accrual basis of accounting. The governmental fund financial statements
are reported on the current financial resources measurement focus and modified accrual basis of accounting. The proprietary and fiduciary fund statements are reported on the economic
resources measurement focus and the accrual basis of accounting.
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Audit Process
Risk-based approach focused on specific risks, such as:
Improper revenue recognition on exchange and non-exchange revenues and receivables
Management override of controls
Unauthorized cash disbursements and payroll expenditures/expenses
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Audit Process
Obtain an understanding of key internal controls over significant transaction cycles:
Cash receipts and cash disbursements
Financial reporting and closing
Grant payments and compliance audits
Payroll procedures
Purchasing and procurement
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TRANSITION SLIDE TITLE
Audit Results and Communications
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Audit Results:
Financial Statements
Type of report issued: Unmodified
Internal control over financial reporting:
Material weaknesses
identified? Yes 2019-001, 2019-002
Significant deficiencies
that are not material
weaknesses? None reported
Noncompliance material
to financial statements
noted? No
Material Weaknesses
Finding 2019-001: Prior Period Adjustments
Finding 2019-002: Financial Statement Adjustments
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The material weaknesses are described in greater detail in the Yellow Book letter which has been provided as a separate document from the CAFR. The material weaknesses include a corrective
action plan prepared by management which I have reviewed and expect management to have fully implemented by March 31, 2021.
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All material corrected and uncorrected audit adjustments have been provided as attachments in our separately issued governance letter.
No transactions entered into by the City during the year for which there is a lack of authoritative guidance or consensus
No disagreements with management arose during the course of our audit
No independence issues noted
No consultations or request for a second opinion from other accountants
Auditor Communications
Governance Letter
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Financial Highlights
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Financial Highlights
Changes in Net Position
(in Thousands)
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Financial Highlights
Comparison of Revenues by Source-Governmental Funds
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Financial Highlights
Comparison of Revenues by Source-Proprietary Funds
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Financial Highlights
Comparison of Expenditures - Governmental Funds
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Financial Highlights
Comparison of Expenditures- Proprietary Funds
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Financial Highlights
The City’s governmental fund reported in FY 2019 a combined ending fund balance of $52.8 million as follows:
Nonspendable 1.6
Restricted 28.1
Unassigned 23.1
52.8
The governmental fund balance increased approximately $9.6 million.
Governmental Fund Balances
(in millions of dollars)
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Financial Highlights
The City’s proprietary fund reported in FY 2019 a combined ending net position of $151.5 million as follows:
Net Investment
in Capital Assets $ 160.6
Unrestricted (9.1)
$ 151.5
The proprietary net position decreased approximately $9.7 million.
Proprietary Net Position
(in millions of dollars)
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Budgetary Highlights
General Fund Budget
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At the end of the current fiscal year, the unassigned fund balance in the general fund represented 169 days of the total general fund expenditures, which is $17.1M in excess of the City’s
general fund balance policy requirement of 60 days plus $1.5M for extraordinary events.
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Thank you!
We appreciate the opportunity to serve the
City of
Port Arthur, Texas and look forward to working with you next year.
Thank you!
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