HomeMy WebLinkAbout12-16-2004 Audit Committee MinutesJ eoo.(). Zl. r]
Minutes
AUDIT COMMITTEE MEETING
City of Orange - WeimerRoom Thursday,
December 16, 2004, 3:00 p.m.ATTENDEES:
AUDIT
COMMITTEE Voting
Members)Present
David
E. Sundstrom CPA, Chair Dwight
Nakata CPA David
Piper, CPA Dave
Rudat, City Manager Jeanne
Arehart, CPA, Internal Audit Mgr.Absent
Eric
Woolery, CPA CITY
STAFF Richard
Jacobs, Finance Director CITY
COUNCIL MEMBERS Carolyn
Cavecche EXTERNAL
AUDITORS Gary
Caporicci, CPA, Caporicci & Larson 1.
Call to Order - Chairman DavidSundstrom called the meeting to order at 3 :20 p.m.2. Approval
of Minutes of Julv 22,2004 - Reviewed and approvedas submitted.3. Presentation of
2003-04 Financial Audit - Gary Caporicci, Caporicci & Larson.Gary Caporicci passed
out copies of the 2003-04 Financial Audit.4. Accounting
Issues Update - Other Post EmplovmentBenefits (OPEB) - Gary Caporicci, Caporicci & Larson Rich
Jacobs stated that
on page 22 of the city's CAFR is the balance sheet for our governmental funds. The fund
for the assessment district did not technically meet the requirement of being a
major fund but it has in the past and we will again show it as one. Approximately 2 years
ago, this issue was brought to the Audit Committee and the decision was made
to show only those funds that exactly meet the requirements to be a major fund.
In this case, it met the requirement last year; it did not meet it this year but next year
or the year after, we're going to have the Del Rio CFD and we'll issue approximately $30-40
million dollars in bonds and it will meet the requirements at that time.
Gary Caporicci reported
on GASB 43 and GASB 45 and stated GASB 43 is on the plan itself and
GASB 45 is on the employer's accounting and financial reporting. The actuarial study depends
on how many members you have.
Rich Jacobs stated the only medical the City provides is the PERS which is now $32
and is going up to $98 a month. That's the full extent of our liability.
Gary Caporicci stated that plans all over the state vary significantly.
5. Status of 2004-05 Audit Plan - Jeanne Arehart - The TOT tax audit is complete. It's costing
more to do the audit than we're getting in audit findings. We found $7,400 and
the cost was $11,500 to finance it. Everyone is on track on the petty cash and cash
drawer audits. A review has been done of the cash receipts portion of the building
permits software module. As building officials had concerns about the software,
an extensive review was done. There were some bugs in that system but we'
re reporting the revenue correctly with a few minor exceptions. The recommendation
has been made to get the bugs fixed.The
Fair Labor Standards Act audit is complete. It is a lot of detailed information and we'
re compiling it in an understandable, readable format for the department heads and
the audit committee and you should have that by the next Audit Committee meeting.
The auditor said we are better than most of the cities he's audited in terms of
compliance. He's made some changes already and has some other ones in the works.
A
review of the Fire Department procedures for issuing hazardous materials occupancy
permits is on hold due to staffing and workload issues. An agreement has been
made for a company to review our city telephone bills to make sure that we're not
overpaying and is doublechecking our charges. David Sundstrom has requested that
the City look into a fraud policy and the Internal Auditor is doing that.A
summary of where the Internal Auditor has spent her time was provided. David Sundstrom
commended Jeanne Arehart for the excellent job she does during her part-time
status.6.
Other Audits - Jeanne Arehart - The Department of Housing and Urban Development did an
off-site monitoring of our CDBG program and our home investment partnership.
There were no findings. There were two minor concerns which were
both resolved before they issued the report and they actually commended the city
for managing the program.7. Public
Comment -There was no
public comment.8. Adiournment - 4:
08 p.m.