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From YouTube: Audit Committee
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A
Hey
cindy,
this
is
jericho
goldberg.
How
are
you
doing
all
right
thanks?
We
are
scheduled
for
tomorrow
morning.
C
Good
afternoon,
everyone
and
thank
you
for
joining
us.
I
would
like
to
welcome
you
to
the
march
30th
audit
committee
meeting.
C
The
audit
committee
was
established
with
responsibilities
to
review
internal
audit
reports,
review
with
management
and
external
auditors.
The
results
of
the
financial
statements,
audit
report
to
city
council
about
committee
activities,
issues
and
related
recommendations,
as
needed
with
a
minimum
of
a
one
time
one
time
a
year
and
provide
an
avenue
of
open
communication
between
internal
audit
and
the
external
auditors
and
the
city
council.
C
C
C
C
Well,
amy
can't
hear
us
right.
We
can't
hear
amy
actually
I'll
go
on
scott
powell
good
afternoon,
gwen
weisler,
councilwoman,
whisper,
hello,
thank
you,
whistler,
and
what
I
say
I
don't
even
know
I
was
thinking
about
amy
amy.
Can
you
on
mute
to
say
hello.
C
I
don't
have
something:
okay,
let's
go
on
and
for
the
committee
agenda
to
help
our
audience
follow
along
I'll
state
each
section
of
the
agenda
aloud.
Additionally,
I
will
ask
the
committee
members
raise
their
hand
to
speak
and
I
will
call
upon
them
so.
C
B
C
Thank
you
agenda
item.
Yes,
I
have
that
too.
Okay,
I
just
sat
down
hang
on
guys.
Thank
you.
We've
introduced
an
approval
of
the
minutes.
Do
I
have
a
first
on
that?
C
B
C
A
C
B
So
I
I
did
want
to
acknowledge
that
today
is
our
first
meeting.
We
have
a
new
audit
committee
member
susan
darno
hutchison,
welcome
aboard
to
the
audit
committee.
Susan,
yes,
thank
you
and
then,
as
I'm
sure
that
you
you
have
read
and
a
lot
of
the
meeting
materials
we've
had
some
turnover
in
our
finance
department,
and
so
I
want
to
introduce
our
new
finance
department
staff
members
and
to
the
audit
committee,
and
I
will
start
with
our
interim
finance
director,
tony
mcdowell.
You
want
to
say
a
few
things.
Tony.
A
D
Sure,
thanks
patricia
good
afternoon
folks,
looks
like
I'm.
D
Not
the
only
one
sitting
outside
looks
like
scott's
sitting
outside
too,
and
so
I'm
hoping
to
hope
the
noise
won't
be
too
bad,
but
if
it
gets
if
it
gets
to
be
bothersome,
just
let
me
know
so
like
patricia
said,
I'm
currently
serving
as
the
interim
finance
director
I've
been
with
the
city
for
22
and
a
half
years
now
so
been
around
for
a
while
and
previous
to
this,
I
was
serving
as
the
assistant
finance
director
for
budget
forecasting,
so
I've
been
part
of
the
budget
important
part
of
the
finance
department
for
a
long
time,
and
it
worked
a
fair
amount
on
the
the
financial
and
audit
side
of
budget.
D
I
mean
of
the
finance
department
as
well
over
the
last
10
years,
or
so
I
actually
supervised
the
financial
reporting
section
of
our
department
for
a
couple
years
back
in
2015
2016.
So
I
would
I
manage
the
group
that
did
the
audit
those
two
years,
I'm
familiar
with
with
the
audit
and
a
lot
of
the
processes
around
it.
D
So
I
look
forward
to
working
with
you
all
and
I
want
to
introduce
a
couple
of
more
new
members
of
the
finance
department
staff,
caleb,
lippard
who's,
our
new
controller
and
holly
ohm,
who
is
our
new
financial
reporting
manager
so
I'll?
Let
both
of
them
tell
you
a
little
bit
about
themselves.
E
I
previously
had
been
working
for
the
city
of
newburgh
here
in
oregon
for
the
last
12
years.
I
was
the
assistant
finance
director
and,
under
that
role,
with
newburgh
being
a
much
smaller
city,
a
city
of
about
a
little
over
24
000
people.
E
In
my
role
as
assistant
finance
director,
I
oversaw
payroll
ap
accounts
receivable,
our
utility
billing
department
and
the
creating
our
our
annual
financial
reports
each
year.
I
was
the
main
lead
on
that
and
reviewed
our
financial
reports
for
the
last,
like
five
or
six
years,
and
I
will
be
getting
to
asheville
sometime
in
the
beginning
to
mid
may.
C
F
Yes,
I'm
holly
it's
nice
to
be
here
and
meet
all
of
you.
I've
been
with
the
city
for
a
little
over
two
years,
started
out
as
a
staff
accountant,
mainly
focusing
on
like
grants
and
sales
and
use
tax,
and
basically
anything
else
that
was
needed
in
august.
I
was,
I
became
the
interim
accounting
supervisor
and
was
named
to
that
position
permanently
in
january.
F
This
is
the
first
year
with
the
city
of
asheville
that
I've
been
really
hands
on
with
the
audit
process,
but
I
have
experience
with
preparing
financial
reports,
both
as
an
external
auditor
and
an
internal
auditor
and
with
home
trust
bank.
I
prepared
all
their
financial
reports
in
belk
out
of
charlotte.
I
have
my
cia
certification
and
that's
it.
It's
been
a
whirlwind
of
learning
this
year,
but
it's
been.
It's
been
good.
F
G
G
G
That's
all
right,
I
believe,
if
I
recall
the
first
meeting
that
we
had
on
this
google
meet
it
had
one
of
my
neighbors
had
used
my
computer
to
log
into
his
email
address
to
pull
something
up,
and
I
saw
I
was
nick
eatman
for
a
good
while
on
their
computer
screens
we
had
these
meetings,
so
I
totally
get
where
that
is
so,
but
with
that
I'll
I'll
give
us
a
kickoff,
it's
good
to
see
several
of
several
familiar
faces
again
this
year.
G
My
name
is
robbie
bittner,
I'm
a
partner
with
pb
mayors,
formerly
was
a
senior
manager
with
rsm
and
with
also
sitting
in
on
today's
meeting
from
our
firm
is
mr
ian
cater
he's
a
supervisor
who
was
really
our
main
hands-on,
as
you
would
say,
boots
on
the
ground
as
much
as
on
the
ground,
as
you
can
see
in
the
in
the
in
the
world
of
covet
here
so
happy
to
have
him
here
and
with
that
we'll
start
off
with
sort
of
our
first
kickoff.
G
Why
did
I
tell
you
my
I'm,
a
partner
with
pb
mayors
and
not
rsm,
since
you
received
an
rsm
opinion
as
of
january
1st
this
past
year,
the
offices,
the
rsm
offices
in
morehead
city
and
new
bern,
split
away
and
broke
away
from
rsm
and
joined
pb
mayor's
llp,
which
is
an
rsm
alliance
firm.
G
G
This
was
really
a
strategic
move
for
not
only
pb
mayors
but
rsm,
as
well
as
they
are
moving
to
focus
on
large
metro
city
offices
only
and
for
our
client
basis.
Pb
mayor's
has
a
very
robust
state
and
local
government
client
base
in
virginia
and
maryland,
so
adding
that
to
our
state
and
local
government
group
in
north
carolina.
G
Definitely
there's
a
lot
of
synergies
there.
So,
but
with
that,
this
just
so
for
clarity.
The
audit
opinion
this
year
for
the
city
is
an
rsm
audit
opinion.
So
from
there
we'll
move
on
to
the
next
slide
and
we'll
just
sort
of
talk
about
the
financial
results.
As
a
whole,
as
it
relates
to
the
city
and
each
year,
you
prepare
a
close
to
200,
if
not
longer,
page
document,
known
as
a
comprehensive
annual
financial
report,
which
in
the
next
slide
you'll
see
has
here,
are
some
of
the
main
sections
of
that
report.
G
You
have
your
md
a
which
is
management's
sort
of
high
level
overview
of
everything,
as
it
relates
to
to
the
financial
statements
as
a
whole.
Then
you
have
your
government-wide
financial
statements
which
take
all
of
the
aspects
of
government
and
sort
of
funnel
them
down
into
a
breakdown
of
business
type
and
government
type
activities.
G
Then
you
have
your
fund
financial
statements,
which
are
built
up
of
your
major
funds
going
from
there
down
to
the
notes,
then
your
required
supplemental
financial
data,
which
is
all
of
that,
is
really
related.
Around
pensions
and
other
post-employment
benefit
plans,
items
that
are
required
by
the
gasby
to
be
put
into
the
financial
statements.
G
Then
you
have
other
supplemental
information.
This
is
most
of
your
non-major
fund
detail
information.
A
lot
of
information
is
relates
to
budget
for
those
smaller
smaller
funds,
and
then
you
go
into
your
statistical
data,
which
is
groups
of
10
years
worth
of
data
from
everything
from
population
all
the
way
to
the
annual
financial
results
and
even
water
rates
for
per
se.
G
The
last
section
is
the
compliance
section
here
is
where
we
report
on
internal
control
and
compliance
in
accordance
with
government
auditing
standards,
as
well
as
have
our
opinions
on
your
compliance
with
the
requirements
of
the
uniform
guidance
and
the
state
single
audit
implementation
act,
so
we'll
kind
of
start
from
the
top
of
the
financial
statements.
G
Why
are
we
here?
As
external
auditors?
We
are
tasked
with
providing
an
opinion
on
the
on
the
financial
statements
as
a
whole
as
to
whether
or
not
we
believe
they
are
fairly
presented
in
accordance
with
the
generally
accepted
accounting
principles
as
auditors,
we
can
provide
four
different
types
of
opinions.
Well,
really,
three
opinions
in
one
report,
the
the
worst
or
the
the
lowest
level
of
assurance
that
we
can
provide
is
an
adverse
where
we
believe
that
your
financial
statements
are
not
presented
fairly
in
accordance
with
generally
accepted
accounting
principles
or
gaap.
G
We
can
disclaim
an
opinion,
and
this
means
that
we
did
not
receive
enough
information
to
render
an
opinion
one
way
or
the
other.
We
can
qualify
or
modify
an
opinion.
This
is
a
but
for
opinion
where
we
believe
that
everything
is
fairly
presented
and
fairly
stated
in
accordance
with
gap
except
for
one
item
and
then
the
highest
level
of
assurance
that
we
can
give
as
auditors
is
an
unmodified
or
clean
opinion
which
the
city
did
get
an
unmodified
opinion
on
their
financial
statements
this
year.
G
So
moving
on
from
there
we'll
just
go
to
talk
about
just
the
the
general
breakdown
of
general
fund
revenues.
As
you
can
see,
this
is
fairly
common
amongst
most
municipalities
in
in
north
carolina,
especially
those
that
do
not
have
an
electrical
system.
G
Your
ad
alarm
tax
makes
up
the
bulk
of
your
of
your
general
fund
revenues,
followed
by
some
other
taxes
that
come
come
in
then
intergovernmental
revenues
such
as
grants
and
those
sort
of
things,
and
then
the
the
last
20
or
so
is
made
up
of
your
investment
earnings
charges
for
services
licenses
that
sort
of
thing
so
and
then
you'll
concede
how
that
has
grown
in
the
next
slide,
how
you
can
see
how
that
has
grown
over
the
past
five
years,
the
slow
growth
of
the
avalorum
tax
and
a
lot
of
that
is
attributable
to
the
the
value
of
property
as
it
increases
in
the
in
the
city
as
where,
as
you
can
see,
the
rest
of
the
different
types
of
revenues
are
really
sort
of
maintaining
their
way
there
and
I'm
not
entirely
sure,
but
patricia
it's
not
on
that.
G
I
just
okay.
I
just
want
to
make
sure
that
it's
it's
just
my
screen,
then,
okay,
all
right,
we're
good.
So
from
there
one
of
the
things
that
we
will
look
at
and
we'd
like
to
just
make
a
comparison
of
is
the
tax
rates
for
the
city,
as
it
relates
to
similar
sized
cities
in
the
state,
as
well
as
all
other
municipalities
within
the
state.
G
Excuse
me
so,
as
you
can
see,
compared
to
similar
sized
units
when
I
say
units
municipalities
in
the
state
of
north
carolina,
which
I
believe
asheville
falls
into
the
greater
than
50
000
population
without
an
electrical
system,
your
tax
rates
are
lower
than
your
peers,
however,
and
and
lower
than
statewide.
So
overall,
that
really
goes
to
show
that
the
value
of
property
in
the
city
is
is
still
continuing
to
grow.
G
If
you
consider
what
we
saw
in
the
previous
slides
of
that
ad
valorem
tax,
going
up
the
tax
rate's
not
going
up
that
much,
but
it's
still
growing,
though
from
there
you
know
another
another
item
we
like
to
look
at
and
this
one
kind
of
tells
a
little
bit
of
story
of
covet.
As
you
can
see,
the
city
has
been
very,
very
good
at
collecting
taxes
over
the
past
several
years,
and
then
you
see
this
bump
down,
which
it
looks
like
it's
bad,
but
really
you're.
G
G
I
would
anticipate
to
see
that
potentially
even
lower,
given
that
you
know,
2021
taxes
were
built
in
august
of
20,
where
you
know
a
lot
of
folks
were
out
of
work,
and
you
know
we're
at
the
height
of
lockdowns
and
that
sort
of
thing
where
people
are
unable
to
get
out
to
work
so,
therefore,
bills
become
harder
to
pay
on
the
next
slide.
This.
This
will
just
kind
of
show
you
how
how
you
compare
to
other
similar
sized
cities
as
well
as
the
state
when
it
comes
to
those
collections.
G
So,
as
you
can
see,
the
city
is
doing
much
better
at
the
collections
than
a
lot
of
their
other
cities,
not
only
similar
size
cities,
but
also
statewide.
G
I
would
expect
that
your
when
we
see
the
data
for
2020
that
similar
size
and
statewide
are
going
to
continue
to
drop
and
even
in
2021
data
as
it
comes
out,
will
drop
even
further.
Obviously,
there's
a
lag
one
year
on
this
on
the
the
information
shown
here.
That's
why
we're
showing
both
19
and
20s
in
this
so
from
here
we'll
go
to
the
expenditure
side
and
as
as,
as
is
in
every
major
municipality
in
north
carolina,
public
safety
is
expenditure
numero
uno.
G
Everyone
spends
a
significant
amount
of
their
general
fund
expenditures
on
public
safety
in
their
police
fire
departments.
So
that's
no
change
there
and
you'll
see
that
for
the
city,
the
breakdown
of
the
types
of
expenditures
that
you
have
each
each
year.
If
you
move
on
to
the
next
slide,
patricia
you'll
see
that
that
breakdown
really
hasn't
changed
a
whole
lot.
G
So
but
from
there
we'll
talk
about
the
fund
balance
breakdown,
your
non-spendable
items,
the
big
one.
There
is
notes
receivable.
These
are
the
community
development
loans.
The
city
has
loaned
out
to
individuals
or
businesses
to
for
economic
development.
G
So,
while
there's
an
asset
on
the
books,
there's
no
way
to
ever
spend
the
money
related
to
that
asset
until
it's
paid
back.
So
it's
listed
into
the
non-spendable
you're
restricted
is
restricted
by
state
statute
that
this
is
a
simple
metric.
That's
in
north
carolina
general
statutes
that
states
that,
for
the
most
part
you
can't
spend,
you
cannot
appropriate.
Excuse
me
any
monies
over
the
cash
minus.
The
current
liabilities
that
you
have,
whereas
your
typical
quick
ratio
looks
at
your
cash
and
receivables.
G
Your
restricted
by
state
statute
does
not
take
a
look
at
those
receivables.
They
sort
of
discount
out
they're
only
focusing
on
the
cash
dollar.
Then
you
have
your
communi
committed
for
community
and
economic
development.
These
are
also
related
to
those
loans
and
the
ability
to
make
more
of
those
loans,
and
then
you
have
your
assigned
items
which
are
assigned
at
the
highest
level
of
non-authoritative
governmental
in
person.
G
So
therefore,
management
can
make
the
assignments
whereas
committed
has
to
be
made
by
by
the
board
and
you're
restricted
is
made
by
a
third
party
so
leaving
you
with
about
an
18
million
unassigned
fund
balance
so
from
there
you
can
see
that
that
unassigned
fund
balances
percentage
of
your
net
expenditures
for
the
next
year.
G
This
is
an
interesting
metric
that
everyone
looks
at
just
to
show.
Okay,
if
we
didn't
bring
everything
in
if
we
didn't
bring
anything
next
year,
what
could
we
spend?
You
know
how
much
could
we
cover?
How
much
can
we
lose
before
we're
not
going
to
make
we're
not
able
to
spend
what
we
want
to
in
our
budget?
G
You
see
the
statewide
number
way
up
in
the
40s.
You
know
near
47
for
2019
that's
pretty
standard,
because
that
includes
a
lot
of
small
municipalities,
their
rainy
day
funds,
although
not
very
big,
tend
to
be
a
larger
percentage
of
their
fund
balance
expenditures
just
simply
because
simply
because
that
they're
just
orders
of
magnitude
of
dollars,
you
know
somebody,
that's
annual
budget
is
only
a
couple
million
versus
someone's
annual
budget
is
in
the
hundreds
of
millions
is
there's
a
big
difference
just
from
an
order
of
magnitude
there.
G
We
did
see
that
go
down
some
this
year,
but
that's
not
totally
unanticipated,
given
that
the
way
that
covett
has
sort
of
rampaged
through
everything
and
some
of
the
initiatives
that
the
city
has
going
on.
But
with
that
that
kind
of
covers
you
know
the
financial.
G
You
know
our
financial
statement,
part
of
the
presentation
stop
here
and
I
will
say
too.
If
anybody
has
any
questions
during
the
course
of
this,
please
raise
your
hand.
The
little
hand
button
I'll
try
to
see
it.
But
please
ask
any
questions
related
this
at
any
time
and
we'll
do
that
before
we
move
on
to
the
compliance.
H
We
don't
really
know
like
we
don't
really
know
what
other
cities
did
reflective
of
anything
with
coven
right.
Okay,.
G
It's
well
and
part
of
it's
to
show
that
the
difference
in
the
jump.
So,
as
you
can
see,
I
put
in
19
here
2019
to
give
you
a
sort
of
the
anchor
of
where
you
would
be
apples
to
apples
comparison
to
the
other
municipalities
and
then
the
20
just
to
show
those
differences,
because
in
the
past,
when
you
haven't
had
covet
and
everything
sort
of
goes
year
to
year,
you
know
18
was
fairly
comparable.
G
That
is
going
to
be
very
indicative
of
what
the
state
will
look
like
next
year
and
I've
seen
that
I've
given
now,
I
don't
know
probably
at
least
six
or
seven
of
these
presentations
this
year
and
everyone's
tax
collections
have
gone
down
but
be
it
in
a
municipality
or
a
county.
Everyone's
collections
are,
are
decreasing,
so
all
right.
Any
anybody
else
have
any
other
questions.
G
Not
seeing
any
all
right,
we'll
move
on
to
the
compliance
section,
so,
in
addition
to
our
opinion
on
the
financial
statements
as
part
of
government
auditing
standards,
we're
required
to
issue
our
report
on
your
compliance
with
laws,
regulations,
grants
contracts
as
well
as
noting
in
that
report,
where
we
may
find
any
significant
deficiencies
or
material
weaknesses
in
internal
control.
G
So
when
it
comes
to
the
uniform
guidance
and
state
single,
auto
implementation
act,
we
tested
four
major
programs.
We
tested
the
coronavirus
release
fund
or
the
cares
act
dollars
that
came
into
the
city.
G
We
tested
the
national
infrastructure
investments,
or
this
is
better
known
as
the
the
tiger
six
grant
and
that's
from
the
federal
perspective
and
then
at
the
state
level
we
tasted
tested
the
power
bill
dollars,
which
is
the
non-state
street
aid
allocation
or
where
this,
the.
That
is,
a
formula
driven
by
the
state
that
they
give
you
money
each
year
for
non-state
streets
and
then
the
commonly
known
as
smap
of
the
state
maintenance
assistance
program,
the
sort
of
an
in
addition
to
the
power
bill.
G
Those
were
the
four
programs
that
came
up
this
year
during
our
testing.
So,
as
I
mentioned
before,
we
have
part
of
what
we
are
supposed
to
do
and
we
are
tasked
with
doing
is
reporting
any
material
weaknesses
or
significant
deficiencies
in
internal
control.
So
we'll
talk
about
that
for
a
second.
So
a
controlled
efficiency
in
and
of
itself
is
a
deficiency
in
the
design
operation
of
a
control
or
a
process
that
could
prevent
management
from
detecting
a
misstatement
in
the
financial
statements.
G
These
are
items
that
we
identify
as
being
important
enough
to
be
communicated
to
those
charged
with
governance,
and,
as
I
mentioned
previously
in
the
internal
control
and
compliance
gas
report
that
we
are
required
to
do,
we
would
be
reporting
any
significant
deficiencies
or
material
weaknesses
there
and
a
material
weakness
is
the
the
most
severe
type
of
deficiency
and
internal
control
and
a
material
weakness
means
that
there
is
a
reasonable
possibility
that
there
either
is
or
has
been
a
misstatement
that
were
was
identified,
or
that
was
not
identified
appropriately
and
detected
and
corrected
in
a
timely
manner.
G
So
this
year,
as
I'm
sure,
you're
aware
at
this
point,
we
had
one
material
weakness
in
internal
control.
This
material
weakness
is
really
for.
Those
of
you
that
have
been
on
the
committee
now
for
several
years
is
a
somewhat
repeat
of
what
we
had
a
few
years
ago
here.
It's
basically,
there
is
a
la
the
lack
of
documented
policies
and
procedures
around
the
year-end
closeout
process
that
resulted
in
significant
adjustments
to
the
items
listed
here
either
in
the
financial
statements
themselves
or
in
the
schedules
used
to
prepare
the
notes
to
the
financial
statements.
G
G
As
you
know,
last
year
we
did
not
report
any
items,
but
it
seemed
like,
and
I
guess
the
way
the
best
way
to
say
this
is
that
the
documentation
was
such
that
the
people
that
were
doing
it
could
follow
it,
but
not,
but
together
as
well.
Well
enough
for
the
other
folks
would
be
able
to
follow
what
was
happening.
G
G
Most
of
these
items
I
mean
scott,
I'm
sure
you
know
you
know,
coming
from
from
the
finance
director's
background
on
these.
Several
most
of
these
items
are
literally
year-end
accrual
items
or
one-time
adjustment
at
the
end
of
the
year
or
one-time
calculations
that
happen
at
year.
End
they're,
not
items
that
would
indicate
that
there's
a
pervasive
problem
of
the
general
operations
of
the
city,
so
I
just
wanted
to
make
sure
that
we
pointed
that
part
out.
G
So
if
you
move
on
to
the
the
next
slide
will
show
you
know
we're
recommending
that
you
have
you:
have
those
policies
and
procedures
well
documented?
Not
only
necessarily
what
to
do.
You
know
from
a
checklist
perspective,
but
also
how
to
perform
some
of
those
items,
because
every
every
municipality
is
a
little
bit
different
in
their
their
general
operations,
but
also
how
to
pull
the
right
reports.
Everybody's
got
a
little
bit,
I
guess
different
taste
in
how
that
happens.
G
So
we
want
to
make
sure
that
there's
good,
strong
policies
and
procedures
put
in
place
and
written
to
note
how
to
do
not
only
what
to
do
but
how
to
perform
perform.
Those
close
out
processes
so
and
as
you'll
see
here,
management
did
concur,
but
I
will
say
that
from
a
closeout
perspective,
caleb
tony
would
holly
really
at
year.
G
End
were
not
a
whole
lot
involved
in
everything
until
until
tony
was
given
his
position
in
january
and
holly's
holly's
been
in
for
the
long
run,
trying
to
help
us
get
get
to
the
finish
line
and
then
caleb
he.
I
don't
know
that
he
knew
what
he
was
stepping
into
when
he
got
there,
but
he
has.
G
They
have
done
a
fantastic
job
since
taking
the
reins
of
of
getting
the
information
that
we
need
to
finish
out
and
perform
the
remaining
pieces
of
the
audit,
and
I
I
would
say
it
is
a
testament
to
them
too,
that
this
was
also
while
it's
not
written
in
here
so
much.
G
There
is
some
of
these
difficulties
that
may
have
been
able
to
be
alleviated
had
folks
been
able
to
be
in
person
just
simply
because
remote
auditing
is
efficient
in
some
manners,
but
also
being
able
to
walk
down
the
hall
and
look
over
someone's,
shoulder
and
help
them
get.
You
know
talk
through
the
issues
would
is
really
helpful
there,
but.
H
I
I
get
you
know
I
I
underst
you
know,
certainly
like
ledgers.
You
know
you
kind
of
have
to
wait
on
them
to
give
you
the
number,
and
I
understand
footnotes,
but
some
of
these
other
items.
H
Would
it
be
helpful
for
the
city
to
be
kind
of
doing
these
or
you
know,
maybe
once
a
quarter
or
something
you
know
so
that
the
year-end
lift
isn't
as
big
as
well?
As
I
mean
one
of
my
concerns
being
on
being
on
city
council?
Is
you
know
at
least
seeing
your
the
adjusting
journ
the
journal
entries
at
the
year-end?
H
I
mean
they
were
fairly
significant,
so
you
know
the
city's
kind
of
going
through
every
quarter
and
they're
updating
city
council
and
we're
possibly
missing
some
big,
some
big
numbers
here
I
I
guess
you
know
I
mean.
I
know
that
this
is
what
the
city
does.
These
are
all
held
to
year-end,
but
could
some
of
them,
or
should
some
of
them
actually
be
done,
maybe
on
a
quarterly
basis,
one
to
alleviate
the
some
of
the
work
at
year
end,
but
also
that
our
quarterly
information
is
a
little
closer
to
to
accurate.
G
Certainly,
certainly
you
know
so,
as
you
say
that
you
know
some
of
these
things
like
elders,
your
oped
stuff,
that
that
comes
in
once
a
year,
you
know
some
of
the
items
that
you
could
be
looking
at
and
it
really
I
want
to
say
I
would.
I
would
split
this
a
little
bit
between
what
your
governmental
activities
are
and
what
your
enterprise
activities
are.
G
Just
simply
because
the
governmental
activities
you
know
like
your
general
funds
and
stuff
are
maintained
on
that
modified
or
cool
basis
and
trying
to
almost
do
what
the
gatsby
34
conversion
in
the
middle
of
the
year
is
it's
not
really
feasible.
I
mean
you
can
do
it.
It
certainly
can
be
done,
but
you're
talking
about
that's,
adding
a
tremendous
amount
of
burden,
but
from
a
tracking
perspective
like
for
capital
assets,
having
someone
go
in
there,
each
quarter
and
track
what's
what's
coming
through
versus
doing
it
at
year.
End
probably
would
save.
G
It
would
definitely
save
some
time
at
urine
because
it's
being
done
quarterly,
but
those
types
of
items
you
know,
say
your
your
capital
asset
footnotes,
your
your
compensated
absences
to
an
extent
you
know,
and
then
probably
your
contributed
water
and
sewer
infrastructure
assets.
G
Those
items,
if
you
did
them
quarterly,
would
would
be
make
things
easier
at
the
year
end
for
sure
and
help
for
tracking
throughout
the
year,
especially
in
the
enterprise
funds,
but,
like
I
said
from
a
governmental
fund
perspective,
it's
it's
very
I'd,
say
very
tedious
to
go
through
that
process,
but
I
think
tony
has
something
he
wants
to
add
here.
So.
D
Yeah-
and
I'm
just
going
to
add
on
you-
know
the
quarterly
reports
that
we
do
for
city
council
when
those
are
really
looking
at
revenues
and
expenses
and
the
booking
of
those
is
happening
in
a
timely
fashion.
The
things
listed
here
really
are
like,
like
robbie's,
saying
kind
of
different,
primarily
year-round
type
adjustments
that
we
make,
and
so
they
they
don't
really
affect
their
revenues
and
expenses,
and
we
all
we're
saving
you
all
on
a
quarterly
basis.
H
H
That
would
could
be
significant
and
certainly
is
you
know
general,
but
anyway,
yes,.
G
I
think
I
think
the
thing
is
is
that
it's
it's
it's
being
tracked
as
long
as
it's
being
tracked,
but
not
necessarily
recorded
into
the
financial
software,
but
being
tracked
in
them,
it's
being
tracked
in
the
payroll
software.
So
it's
just
not,
I
say
batching
over
until
that
year-end
piece,
as
you
would
say,
because
those
items
do
fluctuate.
G
You
know,
as
as
in
and
out
on
a
regular
basis
so,
and
I
believe
the
the
issue
here
was
something
just
didn't
get
reversed
from
a
previous
year
and
when
it
made
at
the
end
of
the
year,
so
it
just
doubled
something
up.
We
backed
it
back
out
it
there's
no
there's
no
actual
cash
effect.
You
know
from
from
that.
H
G
G
And
so
you
know,
as
one
of
the
other
things
that
we're
always
required
to
report
on,
is
the
prior
year
deficiencies.
As
we've
stated
before,
we
did
not
have
any
in
2019
the
one
this
year
really
kind
of
picked
up
18s
we
saw
progress
and
then
it
fell
off
with
the
with
the
major
turnover.
So
so
those
are
the
main
reports
that
we
issue.
In
addition
to
those
reports,
we're
required
to
issue,
what's
known
as
the
auc
260
or
formerly
the
sas
114
communication
letter.
G
This
communication
letter
really
arose
from
the
enrons
and
world
comms
back
in
the
early
late
90s
early
2000s,
where
the
at
the
time,
the
fasb
determined
that
if
those
charged
with
governance
had
been
aware
of
what
was
going
on
during
the
course
of
an
audit
and
the
audit
years
that
some
of
the
major
audit
failures
that
occurred
may
not
have
occurred.
G
G
The
biggest
thing
is,
I
would
say,
if
you
flip
to
the
next
slide,
is
that
gatsby
doesn't
often
give
any
reprieve,
but
this
year
they
issued
statement
number
95
which
effectively
delayed
the
implementation
of
all
new
standards
by
12
months,
except
for
standard
number
87,
which
is
related
to
leases,
which
was
delayed
for
18
months.
So
there
is
no.
There
are
no
new
standards
adopted
in
the
current
year
financial
statements
that
that
are
in
front
of
you.
G
We
did
not
identify
any
significant
or
unusual
transactions
in
this
letter
towards
the
back.
There
is
a
list
of
the
significant
accounting
estimates
that
are
included
in
the
financial
statements
that
includes
items
such
as
the
estimated
lives
of
capital
assets,
the
opeb
liability,
the
local
government
employees,
retirement
system,
liability,
your
compensated
absences,
unbilled
usage
in
the
water
department,
fair
value
of
investments,
those
sorts
of
things
so
from
there.
G
You
know
we
go
back,
and
here
was
where
we
also
report
what
our
audit
adjustments
were.
So
in
your
letter,
you'll
also
see
what
the
audit
adjustments
were
for
the
current
year
as
well
as
the
uncorrected
misstatements.
G
These
are
items
that
identify
are
identified
as
an
error,
but
do
not
rise
to
be.
We
consider
them
to
be
insignificant
to
the
financial
statements
and
do
would
not
require
an
adjustment
or
change
the
minds
of
the
users
of
those
of
the
financial
statements,
so
we
consider
them.
G
I
don't
want
to
say
de
minimis,
because
otherwise,
if
they
were
de
minimis,
we
wouldn't
even
have
them
on
here,
but
they
are
smaller
they're,
not
material,
but
they're
items
that
could
be
corrected
and
likely
will
correct
themselves
in
the
next
year
as
it
is,
could
they
be
just
a
timing
issue,
sort
of
thing
so
with
that
we
didn't
have
any
significant
issues
that
related
to
the
audit
that
we
just
had
to
discuss
with
management.
G
Well,
we
did
have
the
significant
difficulty
in
getting
the
year-end
close-out
items
that
really
arose
from
the
the
material
weakness
as
well
as
all
of
the
the
turnover
that
happened
in
the
city.
Hence
we're
reporting
to
you
now
once
what's
today.
I
think
it's
march
30th
so
from
there.
G
But
with
that
and
also
in
this
letter
you
have
a
separate.
We
issued
a
separate
management
letter
on
some
minor
items
or
suggestions
that
we
have
related
to
operations
and
controls
in
finance,
and
you
also
have
a
copy
of
the
rep
letter
so
with
that.
That
concludes
the
the
formal
portion
of
of
our
presentation.
G
I
do
want
to
say
thank
you
to
tony
caleb
holly
and
patricia
for
really
stepping
up
into
roles
this
year
that
they
had
not
really
been
a
part
of
in
the
in
the
past
to
to
help
us
push
to
the
finish
line
when
when
they
came
on
board
in
their
positions,
so
we
do
certainly
do
appreciate
that
and,
as
always,
you
know
we
do
appreciate
and
enjoy
working
with
the
city.
I
personally
miss
coming
up
there.
G
It's
it's
always
very
enjoyable,
it's
a
beautiful
place
and
I
enjoyed
seeing
the
seeing
folks
there
and
and
being
spending
some
time
in
the
city.
I'm
actually
will
be
coming
up
there
in
two
weeks
for
a
wedding
or
three
weeks
for
a
wedding,
but
I
have
not,
unfortunately,
have
not
been
able
to
come
up
there
from
from
an
audit
perspective
this
year,
but
with
that
I'd
be
glad
to
take
any
additional
questions
or
any
other
discussion
items.
At
this
point.
D
Thank
you
gail
and
thank
you
robbie
and
actually
patricia.
You
took
the
presentation
down
quickly.
I
was
going
to
see
if
we
could
keep
it
up
and
maybe
go
back
to
the
slide
that
had
the
material
weakness
on
it,
because
I
did
want
to
just
give
a
quick
response
and
talk
to
you
all
a
little
bit
about
what
we're
doing
to
correct
that.
But,
as
robbie
noted,
it
really
is
a
in
some
ways,
a
repeat
or
a
over
at
the
deficiency
that
they
noted
fiscal
year.
18.
D
C
Tony
tony,
let
me
interrupt
just
one
minute:
let
people
know
that
you
are
the
interim
chief
financial
officer
and
you're
replying
to
the
audit
presentation,
your
comments
now.
So
that's
where
we
are.
D
Thank
you,
okay,
thank
you,
so
yeah.
So
as
I
was
saying
it,
it
really
is
in
some
ways
a
repeat
of
the
the
significant
deficiency
or
the
material
weakness
that
that
rsm
noted
in
fy18,
and
a
lot
of
it
did
relate
to
the
fact
that
the
year-end
close-out
procedures
that
that
we
need
to
have
in
place
weren't
in
place
and
and
we
had
experienced
staff
on
hand
for
the
fy
19
audit.
D
And
so
it
really
didn't
really
was
not
an
issue
then,
but
because
of
all
the
turnover
we
had
this
year,
it
really
did
expose
the
fact
that
we
we
hadn't
done
as
good
a
job
as
we
should
in
terms
of
putting
those
year-end
close-out
procedures
in
place.
D
At
that
point,
our
financial
reporting
manager
stepped
up
into
that
role,
and
then
he
left
as
well
in
november
of
2020,
and
so
after
that,
a
significant
amount
of
the
work
fell
to
holly,
to
to
finish
out
the
audit
with
with
robbie
and
his
team,
and
she
did
a
great
job
working
with
patricia
and
then
once
caleb
came
on
board.
D
As
well
so
simply
having
folks
in
place
new
staff
in
place,
we
believe
is
going
to
help
us
with
the
with
the
upcoming
audit
and
we're
gonna
already
taking
actions
to
make
sure
that
we
don't
have
a
repeat
of
the
material
weaknesses
that
are
noted
in
this
audit.
The
specific
items
on
this
page.
We
are
already
working
to
put
together
some
policies
and
procedures
around
how
we're
going
to
document
those
items
and
we're
working.
D
We're
gonna
be
working
closely
with
robbie
and
if
we
need
to
get
some
additional
help
from
them
as
well
as
we
go
through
the
process,
so
be
happy
to
take
any
questions
or
deborah,
patricia
or
patricia.
If
you
all
have
anything
else
to
add
to
our
response.
C
Hand:
okay,
no
one
I'll
move
on
to
the
next
agenda
item.
Then,
thank
you
very
much
tony
and
you
it's
apparent.
You've
really
stepped
in
done
the
job.
Thank
you
and
we'll
go
to
patricia.
Now,
if
you
would
patricia
rosenberg
for
internal
audit
update.
B
Thanks
gail
again,
it's
been
over
a
year
since
we
last
met,
so
I
wanted
to
give
you
an
update
on
what's
happening
in
the
internal
audit
office.
So
the
majority
of
what
I
have
done
in
the
past
year
has
deviated
from
my
original
audit
plan
and
a
chunk
of
that
really
is
related
to
cova
19.
B
B
So
I've
done
a
lot
of
work
there.
The
major
report
that
I
have
issued,
I
have
included
in
the
in
the
materials
for
today's
meeting.
I
don't
plan
on
going
in
detail
unless
I
have
any
questions,
but
I
was
asked
to
conduct
an
equity
and
inclusion
assessment
of
the
city,
so
that's
related
to
our
office
of
equity,
inclusion
and
the
work
that
they
have
done
and
the
influence
they've
had
over
city-wide
activities
and
initiatives.
B
I
have
I've
filled
some
gaps
or
tried
to
as
much
as
I
could
with
helping
with
the
audit.
That's
not
something
that
I
traditionally
do
and
is
not
traditionally
done
by
an
internal
auditor,
but
it
was.
It
was
a
matter
of
need
for
the
city
this
year,
so
those
are
my
major
fun,
my
major
projects
and
responsibilities
over
the
past
year.
B
I
don't
have
an
audit
plan
to
present
you
for
moving
forward
for
the
next
year.
Quite
yet-
and
I
will
tell
you
that
as
a
lot
of
those
projects
are
that
our
audit
has
been
issued,
the
equity
and
assessment,
the
equity
and
inclusion
assessment
report
has
been
presented
that
my
la
my
next,
my
next
major
project.
C
B
At
this
point,
I'm
not
sure
that
I
can
give
any
specific
examples,
but
it
will
be
talking
with
people
across
the
whole
organization,
with
department
directors,
with
managers
with
line
level
employees
and
determining
where
our
greatest
risks
in
the
city
are
and
where
the
greatest
need
for
audit
areas
are,
and
it's
not.
So
it's
really
looking
at
the
entire
universe
of
city
initiatives
and
ongoing
projects
and
programs
and
determining
where
our,
where
our
pressure
points
are
to
determine
where
my
time
can
best
be
focused
moving
forward.
So
it's
not
something.
I've
done.
B
So
this
is
a
new
and
exciting
project.
For
me,
it's
it
seems
a
little
overwhelming,
but
I
think
it's
necessary
at
this
point,
especially
because
of
because
so
much
has
changed
in
the
past
year
with
city
operations
to
get
an
understanding
of
where
our,
where
our
risks
are,
where
high
risk
areas
are
good.
C
C
That's
it!
Okay,
all
right!
Thank
you
very
much
and
now
we
move
on
to
some
committee
business
and
it
is
the
election
of
officers
and
our
next
are
scheduled
for
the
upcoming
year
how
we
will
meet
so
if
we
can
start
we'll
have
let
me
just
the
description.
Let
me
tell
you
that
for
the
audience
is
per
audit
committee
bylaws,
we
have
annual
election
for
committee
positions
and
set
the
2020
audit
committee
schedule
and,
if
I
may
do
we
have
any
nominations
for
the
secretary.
A
C
Okay,
a
second
was,
I
allowed
a
second
motion,
I'll
second,
that
thank
you,
gwen,
okay
and
I'll
have
a
voice
vote,
so
I
will
call
the
role
again:
susan
hi
hi,
gwen,
hi,
scott,
I
and
myself
I
and
amy
I
take
it.
You
would
be,
and
I
I.
C
C
I
Well,
I
would
love
to
do
that,
but
I
gwen
do
you
think
I
have
a
conflict
of
interest.
I
potentially
do
being
a
finance
director
of
a
item
I
mean
if,
if
there's
no
conflict
of
interest,
I
would
I
would
definitely
serve
if,
if.
H
No,
no,
I
think
we
we
kind
of
addressed
that
when
you
first
got
you
know
when
you
applied,
I
mean
the
only
potential
conflict.
Is
the
fact
that
the
city
does
your
billing
for
you,
but
you
know
I.
I
don't
think
that
the
audit
committee
has
much
effect
on
that
on
on
how
we
bill
for
msd
fees
so
yeah,
I
don't
really
see
a
conflict.
C
A
C
I
thank
you.
Thank
you
and
the
coming
up
year
shall
we
plan
to
meet
like
we
are
scheduled
like
in
the
past.
Anybody
feel
like
we
should
meet
more
often
or
less
often.
B
The
bylaws
specifically
say
to
me
quarterly
and
to
give
susan,
because
I
know
you're
new,
an
overview
of
what
that
has
looked
like
it's
traditionally
been
the
third
thursday
of
the
month
and
the
quarters
have
been
february
may
august
and
november.
B
B
I
really
really
want
to
promise
that
it
will
be
in
november
this
year
and
the
other
ones
I
will
say
in
the
past-
we've
had
a
february,
but
generally-
and
this
is
something
I
want
to
make
sure
that
we
we
keep
in
mind
as
we
plan
a
year
in
advance
that
we
add
an
additional
meeting
in
january,
because
we
generally
produce
an
annual
report
to
council.
B
H
Yeah
I
mean
I
don't
know
that
moving
it
to
june,
given
the
city
is
in
the
middle
of
you
know
its
audit
and
closing
and
the
budget
etc.
I
mean,
I
think,
not
having
it
on.
H
You
know
traditional
quarterly,
you
know
doing
it
an
offsetting
month
might
make
more
sense.
So
I
mean
I
would
be
okay.
If
we
think
we
would
be
ready
to
go
back
to
the
the
may,
you
know
start
in
may
and
then
every
quarter
and
then,
instead
of
it
being
in
february,
move
it
to
january
and
have
it
the
third
thursday.
H
Amy,
I
don't
know
that
I
think
we'll
probably
do
whatever
the
rest
of
the
boards
and
commissions
do,
and
I
don't
know
what
has
been
discussed
yet.
I
mean
we're
not
nobody's
meeting
in
person
at
this
point,
but
I
would
think
that
by
first
quarter
of
you
know
like
july
and
august,
we
probably
should
be
able
to
get
back
to,
but
I
don't
want
to
commit
because
I
I
haven't
actually
talked
to
the
city
clerk's
office.
About
that
I
mean,
I
think
everybody
would
love
to
get
back
to
in
person
if
possible.
H
B
I
do
not
anticipate
us
having
in-person
meetings
in
may.
I
will
say
that
when
the
city
is
ready
to
have
boards
and
commissions
meetings
that
audit
committee
will
be
included
in
moving
to
in
person
right,
I
think
something
to
keep
in
mind
is
that
we
will
likely
continue
to
have
a
virtual
format,
but
that
doesn't
affect
committee
members
we'll
still
meet
in
person.
B
But
I
can't
I
think
at
this
point
I
don't.
I
can't
promise
when
that
will
be.
C
Okay,
then
patricia,
would
you
send
out
a
schedule
for
us
based
on
that.
B
H
H
Return
it,
and
can
we
just
check
and
make
sure
that
there's
nobody
in
the
public
there
were
no.
There
are
no
public
comments.
B
C
Thank
you.
Okay
with
that
and
a
motion
to
adjourn.
B
Oh,
I
would
before
we
do
that.
I
just
want
to
check
in
because
we,
because
our
next
meeting
is
may
about
agenda
items,
and
this
is
really
throwing
throwing
this
to
the
audit
committee.
What
do
you
want
to
hear
at
our
main
meeting.
H
I'd
like
to
hear
movement
on
the
deficient,
you
know
the
weaknesses
on
what
the
what
we're
doing.
I
I
C
Thank
you,
scott
anyone
else,
okay
and
then
be
again
before
we
adjourn.
Let
me
just
for
the
public
for
more
information
on
the
audit
committee.
Please
visit
the
board's
web
page
at.
C
I
H
And
gail,
thank
you
so
much
for
your
service
as
chair
and
just
being
on
the
audit
committee,
but
also
that
you
stepped
up
and
did
that
so
appreciate.
It.