Finance Committee Agenda and Packet 2016 09 19

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City Council Finance Committee Meeting Minutes 08/15/16 Page 2 of 8 PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA None. PRESENTATION OF 2015 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) AND COMMUNICATION IN COMPLIANCE WITH AU -C 260 — EIDE BAILLY LLP Ms. Sara Kurtz, Audit Partner with Eide Bailly LLP, and Finance Director Kevin Watson presented to the Finance Committee the 2015 CAFR. Ms. Kurtz summarized for the Committee the audit and review performed by Eide Bailly including preliminary work which started in December 2015 followed by the actual audit fieldwork which began in April 2016. Ms. Kurtz stated that her firm conducted the audit in accordance with Government Auditing Standards and that the CAFR document meets all GASB and GFOA requirements. Highlights reviewed and discussed with the Finance Committee included: ■ A single audit was conducted and grant testing performed due to federal grant funding and the CWRPDA loan for the Wastewater Plant. ■ A significant amount of capital assets were added in 2015. ■ The City's net position for Governmental Activities increased $4.2M and Business -type Activities increased $6.5M. ■ The overall Actual -to -Budget review reflects well thought out activities approved by City Management and City Council. ■ Eide Bailly did issue a report on Internal Control over Financial Reporting which stated a deficiency (not considered to be a material weakness) in internal controls related to the review of journal entries. Director Watson stated that it was his decision to review the journal entry results as opposed to the individual journal entries conducted throughout each month. Mr. Watson stated that this was a cost/benefit decision and informed the Finance Committee that the new ERP system mandates a 2nd review of all journal entries and will satisfy this control. Ms. Kurtz asked the Finance Committee if there were any questions or concerns. 3