HomeMy WebLinkAbout9 Power Point Consideration of FY19 Audited Financials
ACTION ITEM # 9 Financial Reports for FY19Consideration of the Audited Financial Reports for FY19Consideration of the Audited June 3, 2020
Audited Financial Reports for FY19 General Accepted Accounting Principles (GAAP)fairly present the District’s financial position in accordance with Auditors give an opinion as to whether
the financial statements •Electric and water utility operations•Primary government only•Primary government and the community facilities districts•Consolidated •Two reports are created•present
their findings directly to the Boardthe Board is responsible for hiring the auditors, and the auditors The District is required to have its financial records audited each year •BACKGROUND
/ HISTORY Audited Financial Reports for FY19
NEW INFORMATION of the auditAdams, will present the results -and Lucy Xu with MossSimovicKeith •and ready to present to the Board of DirectorsAdams, LLP conducted the FY19 audit which
is now complete -Moss•FY19Audited Financial Reports for FY19Audited Financial Reports for
Truckee Donner Public June 3, 2020with GovernanceFinal Audit Communication with Those Charged Utility District
AGENDA 5 What procedures were performed to identify fraud?–transactions and ending balances for the year?Are the financial statements a fair representation of –What does an audit of
the District entail?–3 Questions and Answers on the Audit Process
Question #1 5 controlsof internal effectiveness the Evaluation of Reporting of control weaknesses•Testing for operational effectiveness•cyclesReview key controls in all significant account
•and balancestransactions verification of Independent Perform substantive test procedures•Analytical review and inquiry procedures•Verification with third parties•Inspection of source
documents•District entail? What does an audit of the –
Question #1 6 audit resultsReporting of Reporting to Board of Directors•statementsfinancial review of the Technical Supplementary information presented accurately•State and legal requirementsFinancia
l statements meet all applicable GAAP, •amounts and documentationBalances and transactions verified against audited •District entail? What does an audit of the –
Question 7 CommentsAdditional Audit during the process governance to discuss any audit adjustments noted Issued our communication to those charged with •Resultswith US GAAP.Financial
statements are presented fairly in accordance •financial statements. Unmodified (clean) opinion provided to the District for its •Audit ProceduresMoss Adams Perform technical review
of financial statements•Perform substantive test procedures•Perform risk assessment to identify significant risk areas•accurate? financial Are the –#2
Audit Adjustments 8 notedNone AmountsAdjustmentsPassed None noted AmountAudit Adjustments
Question 10 CommentsAdditional Audit resources.controls that are appropriate and help protect the District’s Overall, management is able to design and implement •Results No instances
of fraud were identified throughout the audit•Controls found to be effective•ProceduresAudit Moss Adams Perform ‘surprise’ procedures•Interview individuals throughout the District•Brainstorm
session to identify fraud risk areas•transaction cyclesEvaluation of key controls for all significant balances and •performed to identify fraud?What procedures were –#3
Internal Control Recommendations Other Mattersreview of user accessDocumentation of the periodicOther Mattersof review of changes made by super usersDocumentation CategoryControl Findings
(resolved)Internal-Year Prior 11 Other Mattersto existing vendorsReview of changesOther Mattersof work order close processTimeliness CategoryControl FindingsInternal-Current Year
12 TimesNavigating Through Challenging mossadams.com/insights://https alerts:We also encourage you to sign up to receive our insights and implications-19-www.mossadams.com/covid://https
19 dedicated website:-We maintain an active COVIDregulatory and economic changes. utilities need to keep up to speed on various accounting, tax, We are in unprecedented times which
will change daily, and
13 discussion points.response to audit requests and helpfulness, candor, and openness in management was one of ‘Tone at the Top’ and attitude from •manner.fulfilled all of our requests
in a timely were courteous, responsive and All personnel across all departments •of the audit processTricia Phillips and other staff for the excellent facilitation Thanks to the Board,
Michael Holley, Michael Salmon, Acknowledgements
FISCAL IMPACT 2019financial activity for FY19 and financial position as of December 31, Government Only Financial Statements provide the District’s detailed The annual Consolidated Financial
Statements and Primary •FY19Audited Financial Reports for FY19Audited Financial Reports for
RECOMMENDATION the District to release the report and financials statements.ear ending December 31, 2019; authorizing YStatements for the Fiscal Accept Auditor’s Report and accompanying
Audited Financial •FY19Audited Financial Reports for FY19Audited Financial Reports for