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Home My WebLink About15 Audited Financial Report For FY18AqendaItem#15TRUCKEEDONNERPubIicUtilityDistrictACTIONTo:BoardofDirectorsFrom:ReginaWiseDate:May01,2019Subject:ConsiderationoftheAuditedFinancialReportforFY181.WHYTHISMATTERISBEFORETHEBOARDTheDistrictisrequiredtohaveitsfinancialrecordsauditedeachyear.AstheBoardisresponsibleforhiringauditors,theauditorspresenttheirfindingsdirectlytotheBoard.2.HISTORYIn2016,theBoardextendedthecontractwiththeindependentaccountingfirmMossAdams,LLPtoperformtheDistrict’sauditsforFY16throughFY18.3.NEWINFORMATIONMoss-AdamsconductedtheFY18auditoftheDistrict’sfinancialrecords.InNovember2018,Moss-Adamsconductedinitialassessmentsoffinancialdataandinternalcontrols.TheninMarch2019,conductedfinalfieldworkandtestingofthefinancialstatementbalancesasofDecember31,2018.Theresultoftheauditisan“unmodified”opinionontheannualfinancialstatements(Attachments1and2)whichisthehighestlevelofassuranceanauditorcanproviderelativetothefairnessandaccuracyofthefinancialstatementsbeingpresented.JulieDesimoneandKeithSimovicwithMoss-AdamsarescheduledtopresenttheseresultstotheBoardandwillreviewthecommentsrelatedtointernalcontrolmattersidentifiedinthecommunicationsletter(Attachment3).Inreferencetochangesinsignificantaccountingpolicies,inFY18theDistrictimplementedGASBStatementNo.75,AccountingandFinancialReportingforPosyemploymentBenefitsotherthanPensions.TheprimaryobjectiveofthisstatementistoimproveaccountingandfinancialreportingbystateandlocalgovernmentsforOtherPost-EmploymentBenefits(OPEB)(notincludingpensions)andreplacesGASBstatementsNo.45and57.Statement75establishesstandardsforrecognizingandmeasuringliabilities,deferredoutflowsofresources,deferredinflowsofresources,andexpensesrelatedtoOPEB.TheimplementationofthisstatementrequiredabeginningoftheyearnetpositionrestatementreducingtheDistrict’sbeginningnetpositionjustunder$3.4million(from $84.9Mto$81.5MontheConsolidatedFinancialStatementsandfrom$117.6Mto$114.2MonthePrimaryGovernmentOnlyFinancialStatements).IncompliancewithGASBStatementNo.75,theDistrictattheendofFY18statedaNetOPEBLiabilityontheBalancesheetof$4.4millionwhichisthepresentvalueoffuturebenefitsforOPEBbasedonanactuarialvaluationwithameasurementdateofDecember31,2017rolledforwardusinggenerallyacceptedaccountingprinciplesforthereportingdateofDecember31,2018.4.FISCALIMPACTTheannualConsolidatedFinancialStatementsandPrimaryGovernmentOnlyFinancialStatementsprovidetheDistrict’sdetailedfinancialactivityfortheyearendedDecember31,2018.5.RECOMMENDATIONAcceptandfiletheAuditedFinancialReportsforfiscalyearendingDecember31,2018.q(kU/?ZLisaHallMichaelD.HolleyAdministrativeServicesDirectorGeneralManager