Finance Committee Agenda and Packet 2010 09 20

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City Council Finance Committee Meeting Minutes 08/19/2010 Page 2 of 4 Director, Kevin Watson, introduced Mr. DeZutter to the Committee and explained that two letters would be presented and that both communications are required per Statements on Auditing Standards No. 114 and No. 115. Mr. Watson also informed the Committee that Mr. DeZutter would present the 2009 Comprehensive Annual Financial Report at the August 17 Council meeting. Mr. DeZutter stated that three comments were made in the areas of Material Audit Adjustments and the Restatement of Beginning Net Assets, Segregation of Duties and Journal Entries. Each comment was responded to by management and were included in the Finance Committee communique. Mr. DeZutter stated that the City received a clean opinion for 2009 and that the General Fund, Open Space and Capital Improvement funds are strong as well as the Water and Wastewater Funds. Mr. DeZutter stated that audit went well and that the only difficulty was in properly recording the golf course transfers and loans which required the restatement of the retained earnings for 2008 and 2009. Council Member Sackett requested a statement from Mr. DeZutter clarifying that all the deficiencies noted in the management letter had been remedied. Mr. DeZutter stated that while he was confident that the three issues had been addressed, the formal follow -up for those items would not be addressed until the next audit review. Mayor Sisk and Council Member Sackett requested that Kevin Watson, Finance Director speak to each of the three deficiencies noted at the August 17 Council meeting, giving background on each item and emphasizing the actions already taken. Mayor Sisk also expressed concern over the delay in receiving the Management Letter, Audit Findings and Comprehensive Annual Financial Report, which is normally expected by June 30. Mr. DeZutter apologized and indicated that the restatement of the golf course transfers added additional time but that they would work towards meeting the June 30 date for 2010. In closing, Mr. DeZutter stated that the City would need to adopt some new standards in 2010 regarding a new presentation method of fund balances as required under GASB. SALES TAX REPORT FOR THE PERIOD ENDED JUNE 30, 2010 The Tax Manager presented the June 30, 2010 Sales Tax Report and the quarter -end reports on sales tax by area, by industry and the historical revenue report. The reports and the corresponding narrative can be located on the City's website at www.louisvilleco.gov. 3