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HomeMy WebLinkAbout16 Power Point Auditors Report and 2020 Financial Statements June 2, 2021 2020 Audited Financial Statements ACTION ITEM # 16 •BACKGROUND / HISTORYBACKGROUND / HISTORY Audited Financial Statements for FY20Audited Financial Statements for FY20 Accepted Accounting Principles (GAAP)present the District’s financial position in accordance with General give an opinion as to whether the financial statements fairly Auditors •Boardpresent their findings directly to the Board is responsible for hiring the auditors, and the auditors The •yearThe District is required to have its financial records audited each •BACKGROUND / HISTORYBACKGROUND / HISTORY Audited Financial Statements for FY20Audited Financial Statements for FY20 operationsElectric and water utility •government onlyPrimary •districtsPrimary government and the community facilities •Consolidated •createdare Historically, two financial reports •BACKGROUND / HISTORYBACKGROUND / HISTORY Audited Financial Statements for FY20Audited Financial Statements for FY20 goal”)governments that succeed in achieving that individual recognize the spirit of transparency and full disclosure and then to evidence (“…Reporting Program Certificate of Achievement for Excellence in Financial reviews Report through the GFOA •Introductory, Financial, and Statisticalsections: three report is comprised of the following Report will include Consolidated financials. The •Board entity in accordance with the requirements of the Governmental Accounting Standards complete set of financial statements issued by a government The Annual Report is a •(Annual Report)adding a Comprehensive Annual Financial Report New for 2020 •NEW INFORMATIONNEW INFORMATION Audited Financial Statements for FY20Audited Financial Statements for FY20 the results of the auditAdams, will present -with MossJared Brownson and SimovicKeith •to the Board of Directorsbe presented and ready to audit which is now complete FY20 Adams, LLP conducted the -Moss Truckee Donner Public Utility June 2, 2021GovernanceFinal Audit Communication with Those Charged with District Agenda Required Communications6.Auditor Opinions / Reports5.Audit response to COVID4.Significant Audit Areas3.Nature of Services Provided2.Engagement Team 1. Your Dedicated Team Charge Auditor-InJared BrownsonEngagement ReviewerKeith SimovicReviewer, PartnerConcurring Scott Simpson ResourceTechnical Partner and Julie Desimone Nature of Services Provided with GovernanceCommunication to Those Charged 4 with GovernanceCommunication to Those Charged 3 excellence in financial reportingGAAP and GFOA award for and ACFR for compliance with review of the financial statements Assistance with, and technical 2 Primary Government Only–Donner Public Utility District financial statements of Truckee Independent Auditors' Report on the 1 consolidated-Public Utility District Independent Auditors' Report on the •ACCURACY-CUSTOMER BILLINGS ALLOWANCE-RECEIVABLES CUSTOMER ACCESSIT SECURITY AND ENVIRONMENTIN A REMOTE WORK INTERNAL CONTROLS APPLICATION OF CONSISTENT Significant Audit Areas onClassificatiOrdersWo rk Audit response to COVID Review of the related disclosures for transparency•Internal controls testing of transactions before and after COVID•Updated risk assessments•Utilized technology and electronic audit tools•Audit performed in a remote environment• 12 weaknessesNo material GovernanceCharged with n to Those Communicatio opinionUnmodified OnlyGovernment Primary –Statements Financial (clean) opinionUnmodified consolidated-Statements Financial Audit Opinion/ Reports 13 next slide–Audit observations and recommendations •No difficulties in performing the audit•No disagreements with management•Management’s consultation with other accountants•next slide–Audit adjustments made and passed •Management judgments & accounting estimates•accounting standards adoptedNo impacts from new –Significant accounting policies •Auditor’s responsibility under auditing standards•Required Communication Audit Adjustments 8$998,000plant in service at December 31, 2020To reclassify work orders in commercial operation to AmountsAdjustmentsPassed Reclassification None noted AmountMaterial Audit Adjustments Internal Control Recommendations 11 Best PracticeBest Practiceto existing vendorsReview of changesControl Deficiencyof work order close processTimeliness CategoryControl RecommendationsInternal 16.and discussion pointshelpfulness, candor, and openness in response to audit requests ‘Tone at the Top’ and attitude from management was one of •and fulfilled all our requests in a timely manner.All personnel across all departments were courteous, responsive, •on a timely basis.requested schedules and draft financial statements were received The audit progressed on time and in an orderly fashion; all •their excellent facilitation of the audit process.Thank you Michael Salmon, Melanie Rives, and their staff for Acknowledgements Contact Us 5025-(971) 313@Jared.brownson2315-(503) 478@simpsonScott. +Jared Brownson++2284-(503) 478@ Thank You •FISCAL IMPACTFISCAL IMPACT Audited Financial Statements for FY20Audited Financial Statements for FY20 audit report/financial statementsThere is not direct fiscal impact regarding Board acceptance of the •provides an unqualified or ‘clean’ opinion on the financialsThe independent auditor’s report within the financial statements •2020and financial position as of December 31, FY20 activity for Statements provide the District’s detailed financial The Financial •RECOMMENDATIONRECOMMENDATION Audited Financial Statements for FY20Audited Financial Statements for FY20 OnlyDecember 31, 2020, Consolidated and Primary Government Accept the final draft Audited Financial Reports for fiscal year ending