City Council Subcommittee: Audit Subcommittee Goodyear City Hall 190 N. Litchfield Rd., Room 117 Goodyear, AZ 85338 |
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CALL TO ORDER
Deputy Director of Finance, Jared Askelson, called the meeting to order at 4:03 p.m.
ROLL CALL
- Present:
- Councilmember Brannon Hampton; Councilmember Sheri Lauritano; Councilmember Patrick Bray
- Staff Present:
- Finance Director Doug Sandstrom; Deputy Director of Finance Jared Askelson; Finance Manager, Financial Services Celina Morris; Finance Management Assistant Amie Gressett; Assistant to the City Council John Raeder
| PUBLIC COMMENTS |
Before you begin to speak, identify yourself by clearly stating for the record, your name and address. This is the time for citizens who would like to address the Board on any non-agenda item within the jurisdiction of the Board. The Board will listen to comments, and may take any one of the following:
- Respond to criticism.
- Request that staff investigate and report on the matter.
- Request that the matter be scheduled on a future agenda.
None present.
| BUSINESS |
1.
Discussion of Upcoming Annual Comprehensive Financial Report (ACFR) and Audit
Deputy Director of Finance (Jared Askelson) discussed the history behind auditing processes leading to the development of GASB financial reporting regulations, followed by an overview of this year's Annual Comprehensive Financial Report (ACFR) audit timeline with the following estimated completion dates:
Audit Schedules Completed: 9/23/2022
Audit Fieldwork: 10/10/2022 through 10/14/2022
Financial Statement Drafts Finalized by 11/14/2022
Presentation to Council on12/5/2022
Askelson then reviewed a list of new items being added this year to the financial reporting requirements set forth by GASB. This included:
Statement 87-Leases
Statement 89-Interest Costs Incurred before the End of a Construction Period
Statement 92-Omnibus 2020
Statement 93-Replacement of Interbank Offered Rates
Statement 97-Certain Component Units Criteria and Section 457 Plans
Statement 98-The Annual Comprehensive Financial Report
Implementation Guide 2019-3-Leases
Implementation Guide 2020-1 Update
Possible Early Implementation of Statement 96- Subscription Based IT Arrangements
Financial Services Manager (Celina Morris) discussed specifics of the Statement 87 Lease review process for the City.
Councilmember Hampton asked if the city leases as opposed to buying equipment and vehicles more frequently. Financial Services Manager Morris replied that the city does not opt to lease as frequently as making purchases. Most of our leases are short-term with the option of renewal, but an analysis of current leases are being reviewed this year. The City may implement GASB 96 which calls for review of IT subscription arranged agreements for software packages at the same time as GASB 87, the Lease Standard.
Audit Schedules Completed: 9/23/2022
Audit Fieldwork: 10/10/2022 through 10/14/2022
Financial Statement Drafts Finalized by 11/14/2022
Presentation to Council on12/5/2022
Askelson then reviewed a list of new items being added this year to the financial reporting requirements set forth by GASB. This included:
Statement 87-Leases
Statement 89-Interest Costs Incurred before the End of a Construction Period
Statement 92-Omnibus 2020
Statement 93-Replacement of Interbank Offered Rates
Statement 97-Certain Component Units Criteria and Section 457 Plans
Statement 98-The Annual Comprehensive Financial Report
Implementation Guide 2019-3-Leases
Implementation Guide 2020-1 Update
Possible Early Implementation of Statement 96- Subscription Based IT Arrangements
Financial Services Manager (Celina Morris) discussed specifics of the Statement 87 Lease review process for the City.
Councilmember Hampton asked if the city leases as opposed to buying equipment and vehicles more frequently. Financial Services Manager Morris replied that the city does not opt to lease as frequently as making purchases. Most of our leases are short-term with the option of renewal, but an analysis of current leases are being reviewed this year. The City may implement GASB 96 which calls for review of IT subscription arranged agreements for software packages at the same time as GASB 87, the Lease Standard.
2.
Auditors' Comments and/or Questions
HintonBurdick auditor Crimson Singleton confirmed the timeline that Askelson previously shared with Councilmembers and staff and opened the floor to questions and recommendations of specific areas of concern that Councilmembers would like the auditors to review during this year's audit.
3.
Discussion of Special Audit Issues and Input from Audit Committee
Councilmember Hampton asked that we review any deficiencies from last year's audit including any lessons learned, trends or outstanding items.
Councilmember Lauritano asked that important items such as the purchase cards that we have established baseline testing on continue to be carefully reviewed as we have done in prior years.
Deputy Director of Finance Askelson stated that overtime has also been an area that we continue to review regularly during this process and will continue to be included.
Councilmember Lauritano asked if the current economic conditions such as rising gas prices and inflation causes changes in the outcome of the audit. In response, Askelson stated that those particular issues do not reflect in the ACFR audit.
Councilmember Bray mentioned that we may want to look at the process of pulling permits and payment collection for accuracy and possibly compare to neighboring cities. Askelson stated this is not something that would be covered in this particular audit but is suitable for Development Services to internally audit and they may already have that process in place. Askelson reiterated that we have an upcoming Impact Fee audit which makes sure we are charging and spending correctly on a per project basis.
Councilmember Lauritano asked that important items such as the purchase cards that we have established baseline testing on continue to be carefully reviewed as we have done in prior years.
Deputy Director of Finance Askelson stated that overtime has also been an area that we continue to review regularly during this process and will continue to be included.
Councilmember Lauritano asked if the current economic conditions such as rising gas prices and inflation causes changes in the outcome of the audit. In response, Askelson stated that those particular issues do not reflect in the ACFR audit.
Councilmember Bray mentioned that we may want to look at the process of pulling permits and payment collection for accuracy and possibly compare to neighboring cities. Askelson stated this is not something that would be covered in this particular audit but is suitable for Development Services to internally audit and they may already have that process in place. Askelson reiterated that we have an upcoming Impact Fee audit which makes sure we are charging and spending correctly on a per project basis.
4.
Discussion of Project Reviews
Deputy Director of Finance discussed the objective of Project Reviews. The city plans to review completed projects to ensure compliance with the procurement process, that contracts have been managed and include timely and accurate recording of transactions. It is the city's desire to put procedures in place to ensure proactive project management to mitigate risks.
Councilmember Hampton asked if we have a Project Management Office (PMO), Askelson stated that our project ma nagement is within the Engineering department.
Thoughtful discussion was held and all Councilmembers were in agreement and supportive of establishing project management review processes.
Councilmember Hampton asked if we have a Project Management Office (PMO), Askelson stated that our project ma nagement is within the Engineering department.
Thoughtful discussion was held and all Councilmembers were in agreement and supportive of establishing project management review processes.
| INFORMATION ITEMS |
Comments, Commendations, Report on Current Events and Presentations by Board, Commission or Committee Members, staff or members of the public. The members may not propose, discuss, deliberate or take any legal action on the information presented pursuant to A.R.S. § 38-431.02.
None.
| NEXT MEETING |
Review the date, time and location of the next meeting, if applicable.
Not scheduled at this meeting.
| ADJOURNMENT |
There being no further business to discuss, Deputy Director of Finance, Jared Askelson, adjourned the meeting at 4:43 p.m.
Respectfully Submitted by:
Respectfully Submitted by:
____________________________ Amie Gressett, Management Assistant |
____________________________ Doug Sandstrom, Finance Director |
Date:___________________ |