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From YouTube: Special Joint Audit – Finance & HR Committee
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A
All
council,
members
and
staff
are
and
council
members
committee
members
and
staff
are
participating
virtually.
We
appreciate
your
patience
as
we
continue
to
work
through
holding
these
committee
meetings
a
bit
differently
to
help
our
audience
follow
along
I'll
state.
Each
section
of
the
agenda
aloud
we're
streaming
live
on
our
virtual
engagement
hub,
which,
which
is
accessible
through
the
virtual
engagement
hub
link
on
the
front
page
of
the
city
website.
We
also
have
an
option
for
the
public
to
listen,
live
by
phone
for
those
of
you
out
there
with
us
today.
A
A
Meeting
code
5257,
your
phone
will
be
muted
and
you
will
hear
the
meeting
live
at
this
point.
Speakers
will
need
to
push
star
3
to
enter
the
speaker
queue.
So
I'm
going
to
go
through
now
and
introduce
the
committee
members
and
staff
and
the
audit
committee,
and
I'm
just
gonna,
ask
you
to
say
a
quick
hello
when
I
introduce
you
and
then
when
you're
done
speaking,
if
you
remember
to
mute
your
phone
it'll,
make
it
easier.
A
Amy
kemp
wasn't
able
to
join
the
call
today,
so
we're
gonna
go
ahead
and
start
the
agenda.
I
will
be
calling
out
where
we
are
in
the
agenda
to
allow
people
to
follow
along
a
little
more
closely.
So
our
first
item
is
the
fiscal
2021
audit
presentation
and
I'm
going
to
go
ahead
and
turn
it
to
our
guest
robbie
bittner
with
pb
mars
mayors.
Is
it
mayors.
E
No,
no
problem
at
all.
Thank
you.
Thank
you,
madam
chair
again,
thank
you
for
the
introduction.
My
name
is
robbie
bittner,
I'm
the
engaged
audit
engagement
partner
of
this
data,
bill's
annual
annual
audit
happy
happy
to
be
here
and
to
start
off.
I
just
want
to
say
thank
you
to
both
the
committee
and
staff
for
allowing
us
to
continue
to
serve
the
city.
We
we
certainly
do
appreciate
it
and
we
enjoy
working
with
everyone
here.
E
You
know
tony
and
becky
have
really
done
a
fantastic
job
this
year
in
improvements
and
as
you
can
see,
we
are
here
in
december,
presenting
and
not
in
march-
so
definitely
have
seen
a
lot
of
improvements
there.
So
with
that,
I
believe
I
would
have
a
presentation.
Tony
who's
am
I
sharing
mine
or
you've
got
someone
pulling
that
up
at
this
point
there
it
goes.
B
E
So
you
can
go
ahead
and
go
to
the
next
slide.
Please
we're
just
gonna
a
brief
agenda
kind
of
talk
about
the
financial
results
this
year,
you'll
see
that
it's
now
called
the
annual
comprehensive
financial
report,
we'll
go
through
our
opinion
and
then
some
of
the
comparative
results
to
other
like
size,
cities
in
the
state
of
north
carolina.
E
Then
we'll
go
through
some
of
our
compliance
results.
I
will
say
at
this
time
we
have
not
completed
our
audit
in
accordance
with
the
uniform
guidance
and
state
single
audit
act
and
that's
due
to
a
delay
with
the
office
of
management
and
budget
and
then
the
last
thing
that
we're
going
to
do
something
new
this
year
is
go
through
what
are
called
the
performance
indicators
of
concern,
as
defined
by
the
local
government
commission
in
north
carolina
here.
E
These
are
items
and
benchmarking
areas
where,
if
you
fall
below
a
certain
threshold
according
to
the
lgc,
it
requires
a
formal
presentation
or
formal
letter
from
the
governing
city
council
to
the
lgc
in
response
to
these
performance
indicators
that
may
have
trip.
So
with
that
we'll
move
on
to
kind
of
the
key
takeaways.
If
you'll
go
to
the
next
slide
for
me
this
year,
the
statements
were
uploaded
to
the
lgc
on
december
1st,
which
is
their
deadline.
So
you
have
met
the
lgc's
financial
reporting
deadlines.
E
We
issued.
We
had
an
unmodified
or
clean
opinion,
which
is
the
highest
level
of
assurance
we
can
provide
as
auditors,
we
didn't
have
one
material
weakness
and
internal
control
is
very
similar
to
the
one
provided
that
was
communicated
last
year.
However,
I
say
it's
similar
in
that
it's
some
year-end
items.
However,
it
was
much
less
severe
than
what
some
of
the
area
areas
that
we
had
concerned
with
last
year
and
then
again,
our
uniform
guidance
audit
is
not
complete
at
this
time.
E
Happy
to
say,
though,
the
arpa
supplement
for
what
we've
been
waiting
on
was
released
yesterday.
So
we
are
now
in
the
process
of
evaluating
our
testing.
What
our
testing
techniques
and
our
plan
of
attack
is
going
to
be
there
as
a
firm
and
then
we'll
begin
bugging,
becky
and
tony
for
more
information,
as
it
relates
to
those
grants.
E
So
with
that,
we'll
move
right
on
into
sort
of
the
the
components
of
the
annual
comprehensive
financial
report,
and
let
me
stop
here:
if
anyone
has
any
questions
during
the
course
anytime,
please
feel
free
to
stop
me.
I
believe,
there's
a
hand
raising
tool
on
this,
and
I
will
do
my
best
to
try
to
follow
it.
If
not
tony,
can
I
put
you
on
standby
to
be
monitoring
that
for
me?
So
thank
you
very
much
so
just
kicking
off
here
with
the
the
annual
comprehensive
financial
report.
E
As
you
know,
it's
quite
a
robust
document.
I
have
a
printed
copy
here.
You
know
just
under
100
pages
double-sided,
so
not
not
a
very
short
document,
but
it
starts
off
with
a
transmittal
letter
and
some
and
just
a
communication
from
the
management
of
the
city
to
the
to
the
constituents
and
to
the
citizens.
E
You
go
to
your
government-wide
financial
statements,
which
is
that's
your
most
aggregate
level
of
financial
statements
and
then
after
which
follows
into
the
fund
statement,
starting
to
break
it
down,
typically
by
by
your
major
funds,
and
then
your
aggregate
non-major
funds.
Then
you
move
into
the
notes,
which
is
really
the
I
would
say
the
meat
and
potatoes
of
what's
in
the
financial
statements
and
providing
you
the
most
detailed
information
after
which
you
have
the
what's
called
rsi
or
required
supplemental
information.
E
This
is
items
that
are
required
to
be
presented
in
relation
to
other
post-employment
benefits
than
the
local
government
employees,
retirement
system,
as
well
as
the
law
enforcement
officers.
Special
separation
analysis,
special
separation
allowance,
and
this
just
provides
10
years
worth
of
trend
information
well
10
years,
once
it's
available
in
accordance
with
gatsby's
67,
68,
73,
74
and
75..
E
That's
a
mouthful
with
that.
You
go
to
the
other
supplemental
information.
This
is
really
where
you
get
to
the
breakdown
of
your
budget
to
actual
by
fund
at
the
non-major
fund
level,
then
you
go
into
statistical
data.
Statistical
data
is
another
unaudited
section
of
the
financial
statements,
along
with
the
md
a
and
the
rsi.
E
E
If
you
can
please-
and
as
I
mentioned
earlier,
the
city
did
earn
a
clean
or
unmodified
opinion,
which
is
the
highest
level
of
assurance
that
we
can
provide
as
external
auditors
the
other
types
of
opinions
we
can
provide
or
the
adverse
opinion.
We
can
disclaim
an
opinion
or
issue
the
qualified
opinion
and
those
kind
of
go
in
order.
Severity
adverse
is
basically
where
we're
saying.
We
don't
think
that
your
financial
statements
are
presented
in
accordance
with
generally
accepted
accounting
principles
or
gaap.
E
E
So
from
here
we'll
move
on
to
sort
of
some
breakdown
of
some
some
of
the
financial
results
and
just
looking
at
your
general
fund
as
a
whole
and
what
your
general
fund
revenues
are
something's,
not
coming
through
properly
right
there.
It's
supposed
to
be
in
a
in
a
list
of
percentages,
but
in
any
case
we'll
go
through
that
with
that
so
53
or
the
number
that
is
showing
at
73
million
dollars.
There
is
53.
E
Is
your
ad
valorem
taxes,
which
is
your
highest
source
of
revenue,
the
32
million
or
excuse
me
not
32
million
the
320
32
million
dollar
number.
That's
in
red
is
23.3
percent
of
your
general
fund
revenues
and
that's
really
made
up
of
other
taxes,
other
things
such
as
occupancy
tax
sales
tax
and
that
sort
of
thing
moving
from
there
we'll
go
to
the
next
slide,
just
sort
of
show
some
trends
for
those.
B
E
B
The
presentations
and
everything
we
do
here
at
the
city
we
do
in
in
google,
but
occasionally
you
know
some
of
our
external
consultants
use
powerpoint
and
when
you
try
and
bring
the
two
together,
sometimes
you
end
up
with
situations
like
we
have
right
now.
So
if
we
can
take
just
a
moment,
I
think
and
get
it
switched
out.
I
think
we'll
be
okay.
E
That's
all
right
well,
while
she's
bringing
that
up.
What
I
was
going
to
say
is
that
your
avalorm
tax
revenues
are
increasing.
However,
your
tax
rate
is
not
so
that
just
means
to
goes
to
show
that
the
how
the
city
is
growing
property
values
in
the
area
are
are
growing
so
that
that
was
kind
of
where
I
was
where
I
was
moving
there.
There
we
go.
B
E
Okay,
thank
you
sounds
good,
so,
as
I
was
saying,
the
your
tax
rate
hasn't
increased
year
over
year
and
the
room
really
compared
to
similar
size
cities.
Your
tax
rate
is
still
lower
than
your
similar
size
cities,
which,
just
to
clarify
your
similar
size.
Cities
are
cities
greater
than
fifty
thousand
in
population
that
do
not
have
an
electric
system,
and
that's
really
related
to
that
payment
in
lieu
of
taxes.
E
E
So
from
here
we'll
go
looking
at
your
overall
property
tax
levies
collected
as
you
can
see,
it's
fluxed
down
a
little
bit
does
not.
It
is
not
as
bad
as
it
looks
there
just
from
that
drop
from
19
to
20.,
which
was
anticipated
with
covet
somewhat,
and
we
saw
that
last
year
and
then
the
drop
to
21
really
is
is
not
much
there.
E
A
Robbie,
can
you
go
back
to
the
slide
right
before
question?
What
what
are
you
seeing
across
the
state?
Did
you
see
a
lot
of
people
draw
down
their
general
fund
balance
as
a
result,
kovid
during
20
and
21,
or
are
you
seeing
kind
of
the
same
behavior
that
we're
we
saw,
which
is
basically
we're
using
arpa
fund.
E
E
E
Oh
holy
kitty:
well
I
mean
it
will
get
reallocated
by
the
state.
However,
some
of
those
smaller
municipalities,
it
just
doesn't
make
sense
for
them
to
take
it,
because
the
administrative
burden
that
comes
with
it
is
probably
more
than
it's
worth
to
them,
but
in
similar
size
cities
we're
seeing
about
most
of
the
time
I
mean,
I
would
say,
it's
50
50,
whether
or
not
general
funds
increasing
or
decreasing,
depending
on
how
that
money
was
used.
So
hopefully
that
answers
your
question.
B
B
So
we
budgeted
conservatively
on
the
on
the
revenue
side
and
then
we're
pleasantly
surprised
by
how
well
we
did
do
in
terms
of
sales
taxes.
And
then
we
also
were
conservative
on
the
expenditure
side
and
held
positions
vacant.
We
a
lot
of
cities,
deferred,
merit
and
salary
increases
for
employees
and
those
kinds
of
things.
So
I
think,
like
robbie,
was
saying:
there's
kind
of
differences
across
the
state,
but
I
think
for
the
most
part,
I
think
a
lot
of
cities
did
perform
better
than
anticipated.
B
C
E
You
know
I
I
haven't
actually
looked
from
the
growth
from
the
overall
unassigned,
but
I
will
point
this
out
as
the
local
government
commission,
which
we'll
see
in
a
later
slide
when
we
go
into
the
performance
indicators
as
the
local
as
local
government
commission
calculates
it.
Your
available
fund
balance
is
actually
increasing
year
over
year.
So
one
of
the
things
about
the
assigned
versus
unassigned
is
it's
really
a
metric
of
how
the
management
and
the
city
manager
and
tony
and
they
all,
get
together
and
say,
hey?
E
How
are
we
going
to
look
at
this
from
an
assignment
perspective,
so
you
can
assign
things
obviously
at
the
management
level,
whereas
you
know
your
committed,
restricted
and
non-spendable
items
are
the
ones
that
are
much
more
restrictive
than
what
you
can
spend
that
money
on
on
a
from
an
operational
perspective.
So
as
you
look
at
this
slide
here,
you
look
down
in
that
hole
down
to
18.1
million,
which
I
believe
I
calculated
to
be
right.
Around
17
of
the
fund
balance
which
meets
your
unassigned
fund
balance.
E
Policy
in
place
for
the
city,
but
if
you
look
there's
an
additional,
you
know
almost
44
million
dollars
in
a
sign.
That's
really
can
be
discretionarily
moved
from
by
by
management
from
one
category
to
the
other,
so
it's
those
committed
restricted
and
non-spendable
items
that
can't
be
moved
and
to
go
ahead
and
go
and
get
into
that
stabilization
by
state
statute.
E
E
E
So
that's
that's
the
simple
way
to
to
look
at
it.
So
if
you
have
your,
if
you
have
a
bunch
of
receivables,
they
don't
count
in
that
situation,
so
they
just
sort
of
get
taken
out.
It's
really
that
that
cash
number
is
what
they're
looking
at
is
what
you
have
available
and
for
any
fund
balance.
That's
really
related
to
a
receivable
or
a
non-cash
item,
they're,
saying
that's
restricted
by
statute,
because
you
can't
spend
that
money.
It's
not
available
to
you
right
now
so
and
this
calculation
is
actually
the
local
government.
E
Commission
provides
a
basically
a
template
to
calculate
this,
based
on
the
numbers
that
show
up
in
the
financial
statements
so,
and
it
is
the
first
thing
that
they
will
do
when
they
look
at
your.
When
they
look
at
your
financial
statements,
they
will
pull
out
the
general
fund
and
they
will
punch
the
numbers
in
their
their
calculator
and
make
sure
that
that
comes
out,
and
they
used
to
not
do
that.
Well.
F
Hi
robbie
yeah,
I
was
we
were
talking
about.
You
were
talking
about
the
stable
position,
but
you
know
the
requirement
there
now.
What
happens?
I
see
you
like
you
said
it
doesn't
include
the
note
receivables,
but
what
happens
when
those
receivables
actually
come
in
and
post?
Does
it?
Can
it
affect
that
stabilization.
E
This
is
not
something
that's
really
monitored
throughout
the
year,
but
it's
a
it's
just
saying
that,
in
your
of
your
fund
balance
that
you
have
out
there,
you
really
can't
appropriate
this
money
out
because
you
haven't
received
it
yet,
but
as
money
comes
in,
if
you
were
looking
at
it
on
a
day-to-day
basis,
if
say
you
got
another
hundred
thousand
dollars
in
your
receivable
came
in
today
tomorrow.
That
calculation
would
be
a
hundred
thousand
dollars
lower.
E
E
So
again,
those
two
sections
are
incomplete
simply
because
the
the
arpa
supplement
was
not
received
until
yesterday,
so
so,
with
that
I'll,
just
kind
of
go
over
the
different
types
of
control
deficiencies.
So
the
first
one
that
we
have
here,
the
material
weakness
is
the
most
severe
or
most
significant
one.
This
is
a
deficiency
or
combination
of
deficiencies
that
have
or
have
the
possibility
to
allow
a
material
misstatement
in
the
financial
statements
to
pass
through
undetected.
E
E
E
So
this
year,
as
I
mentioned
before,
we
did
have
one
material
weakness
in
internal
control
and
it's
related
to
the
year
in
closeout.
This
was
a
repeat
from
last
year,
but
I
don't
want
to
point
out
a
few
things
in
in
during
the
course
of
this
last
year.
Obviously
we
were
performing,
or
we
were
presenting
this
in
late
march
last
year
or
early
april.
I
believe,
and
the
information
was
not
flowing
nearly
as
freely
as
it
is
now
that
we
have
seen
significant
improvements.
E
However,
we
did
still
have
several
adjust.
One
adjustment
that
was
material
by
itself
at
year,
end
related
to
the
shutter
venue
operators
grant
and
then
several
other
year-end
adjustment
items,
while
not
individually
significant,
when
you
put
them
all
together,
coupled
with
the
the
material
one
that
we
we
did
find
you
had
a
material
weakness
related
to
those
urine
closeout
items.
E
So
what
I
mean
by
that
is,
you
know
you
created
the
new
assistant
finance
officer
position.
Becky
entered
that
position
in,
I
believe,
late
july
or
early
august,
so
by
having
someone
in
that
position
throughout
the
course
of
the
year,
as
well
as
having
the
controller
position
filled
for
the
entire
year.
E
A
E
E
Yes,
yes,
ma'am,
because
the
I
mean
the
definition
of
the
material
weakness
is
that
it
is.
It
has
the
potential
to,
or
has
caused
a
material
misstatement
and
during
the
course
of
the
audit.
If
we
found
an
adjustment,
that's
greater
a
materiality
threshold,
then
it's
really
hard
to
say
that
that
would
not
be
a
material
weakness
if
that
passed
through.
E
Yes,
ma'am.
Thank
you
very,
very
rare
exceptions
to
that,
if
say,
for
example,
it's
in
something
that
we
know
that
is
still
being
worked
on
and
and
they're
providing
us
information.
But
if
it's
been
presented
to
us
as
final
and
then
we
locate
an
error
in
it,
then
that's
that's.
When
the
material
weakness
gets
gets
issued.
Okay,.
E
So
the
internal
audit-
I
mean
it
really
at
the
city-
is
one
person
I
would
say
in
the
other
clients
that
we
have
that
are
similar
size.
Some
are
two
or
three.
I
think
the
largest
is
four
four
people.
As
cities
grow
you'll
see.
Sometimes
the
internal
audit
department
grow
proportionately
other
times,
it's
better
to.
E
I
will
say
that
if
you're
thinking-
but
you
know
from
an
internal
audit
perspective,
so
there
are
instances
where
these
types
of
things
would
be
found
by
internal
audit.
But
most
the
time
internal
audit
is
typically
focused
on
performance
audits
or
risk.
You
know
other
other
areas
outside
of
just
the
general
financial
statement
presentation.
D
E
That
one
in
and
of
itself
the
others
were
not
material
to
the
funds
that
they
were
in,
but
when
you
look
at
them
in
aggregate
not
only
from
a
quantitative
but
it's
more
of
a
qualitative
piece
coupled
with
the
one
that
was
already
identified
as
individually
material,
it
it
made
sense.
It
was
the
the
same
control
in
that
year-end
review
and
year
in
closeout
process
is
the
control
that's
cause
was
causing
the
issues
for
all
of
this
all
of
those
items.
So
it's
really
one
control,
that's
failing
versus
multiple
controls
all
across
different
things.
E
All
righty
again
we're
required
to
to
look
at
prior
year
findings
this
we
did
repeat
finding
2020
001
as
we're
finding
2021.001.
Again
still
significant
improvements
have
been
made.
I
cannot
stress
that
enough,
but
because
of
that
one
item
for
sure
that
was
material
in
and
of
itself,
we
are
required
by
standards
to
issue
that
material
weakness.
E
So
moving
on
to
the
uniform
guidance
testing
and
the
state
single
audit
implementation
act
testing.
These
are
just
a
listing
of
the
programs
that
we
identified
as
major
programs
this
year,
which
include
the
chronovirus
release
fund
or
the
cares
act,
funding
the
the
federal,
the
federal
transit
formula,
grants
and
then,
as
well
as
the
coronavirus
state
and
local
fiscal
recovery,
and
that's
the
arpa
program
that
we
just
were
able
to
get
the
information
on
on
what
it
is.
We
were
supposed
to
test
your
compliance
with
yesterday.
E
E
Also
in
that
communication,
you
have
our
any
audit
adjustments.
We
had,
we
had
any
uncorrected
misstatements,
the
uncorrected
misstatements
that
you
have
shown
are
really
residuals
from
the
previous
year.
These
are
if
there
was
an
uncorrectedness
statement
in
the
prior
year
in
the
end
of
this
current
year.
It
would
be
a
reversing
item,
so
it
may
have
an
effect
from
an
activity
perspective,
but
would
not
when
it
comes
to
fund
balance
from
that
position
at
the
end
of
the
year.
E
E
So
so
we
have
this
other
item
here.
That
says
we
will
separately
communicating
deficiencies,
internal
control
over
over
financial
reporting,
in
accordance
with
the
uniform
guidance
which
again,
we
have
not
completed
that
piece.
Yet
and
then
also
in
your
letter,
you'll
get
any
management
letters,
any
letters
that
were
issued
between
us
and
management.
E
But
what
happens
is
when
we
do
when
we
put
the
information
into
the
data
input
form
that's
required
to
be
submitted
with
the
financial
statements.
These
are
the
items
that
kick
up
automatically
and
if
they
are
red,
then
you
have
an
issue,
and
this
is
where
this,
for
this
is
the
first
one
here,
it's
related
to
fund
balance
available.
E
the
next
things
kind
of
talk
about
your
water
sewer
fund,
just
your
net
operating
income.
If
it's
greater
than
zero,
I
mean
these
are
pretty
low
bars.
I
mean,
if
you,
if
you
pass
below
some
of
these,
you
you're
not
doing
that
great,
that's
for
sure
and
then
you're
on
your
availability
and
unrestricted
cash
to
service.
The
debt
audit
reports
submitted
within
five
months
plus
a
day
which
was
submitted
by
just
by
december
1st.
E
We
have
as
much
time
as
possible
to
present
to
city
council,
so
the
next
one
here
is
budget
levy
for
the
general
fund
is
greater
than
three
percent.
This
is
kind
of
a
misnomer
it
it's
bad.
If
it's
negative,
it's
good,
the
plus
three
percent.
This
is,
did
you
collect
more
than
you
budgeted,
and
so,
if
this
number
shows
up
negative,
that's
where
it
kicks
into
place?
It
doesn't,
it
doesn't
present
very
well
here,
but
again,
this
is
not
we're,
not
we're
not
able
to
change.
E
What's
on
these
these
indicators,
but
just
to
explain
it
it's
if
your
collections
are
less
than
your
budgeted
amounts,
not
necessarily
your
levied
amount.
That's
what
they're
concerned
about
did
not
have
a
decrease
in
property
value,
as
you
could
see
property
value.
Staying
the
same
earlier
property
taxes
continue
to
go
up,
had
no
overexpenditures
budget.
This
is
your
pre-audit
process,
they're
verifying
that
was
there
an
issue
related
to
that.
E
E
E
The
one
item
that
you
do
have
a
indicator
and
that's
that
if
there's
any
significant
deficiency
or
material
weakness
in
internal
control
reported
it
automatically
triggers
that
response.
So
there
will,
it
will
require
a
response
within
60
days
of
our
presentation
to
city
council,
which
tony
correct
me.
If
I'm
wrong,
I
believe,
is
january
12th.
E
E
E
We
did
have
this
one
repeat:
material
weakness,
even
though
there's
but
coupled
with
a
significant
improvement
from
the
previous
year,
and
then
we
will
complete
the
uniform
guidance
and
state
single
audit
act,
compliance
reporting
package
here
in
the
next,
I
would
say
the
next
few
weeks,
given
that
we
just
got
that
supplement
yesterday
so
and
with
that.
That
concludes
the
presentation,
so
I'll
be
glad
to
answer
any
additional
questions.
Anyone
may
have.
A
E
I
will
say
your
financial
package
does
have
a
lot
of
controls
built
into
it
and
with
that
we
do
obtain
reports
as
it
relates
stock
reports,
as
it
relates
to
financial
softwares
and
any
other
any
other.
I
would
say
vendors
that
you
would
utilize
for
calculations
and
that
sort
of
thing
we
we
do
obtain
those
to
see
if
we
can
place
reliance
on
the
work
that
has
been
performed
by
others.
At
this
point
we
haven't
done
an
in-depth
I.t
audit.
E
F
F
E
E
So,
therefore,
the
matching
principle
that
typically
follows
revenue
and
expenses
couldn't
follow,
because
the
grant
agreement
was
not
in
place
by
june
30.,
so
that
was
the
that
was
the
big
one.
The
other
items
just
relate
to
the
cdbg
in
section
108
was
making
sure
that
the
the
review
of
those
at
year
end
for
what
needs
to
be
deferred
and
what
what
shouldn't
be
deferred.
E
E
What
that
means
is
that
it
didn't
have
an
effect
on
any
fund
or
or
operations,
but
there
were
two
payments
that
were
made
early
for
debt
and
in
accordance
with
modified
accrual
accounting
standards
that
doesn't
constitute
a
debt
service
payment
current
year,
because
it's
not
it
doesn't
come
due
until
the
next
year.
However,
it
is
a
prepayment
which
is
how
it
was
presented
in
the
fund
statements,
which
is
appropriate.
E
However,
at
the
government-wide
level,
when
you
go
to
a
full
accrual,
you
have
to
mark
those
prepaids
and
take
them
against
the
liabilities
which
resulted
in
an
adjustment.
I
want
to
say
it
was
just
under
two
million
dollars
on
the
statement
of
net
position
in
the
classification
between
prepaid
and
long
term
debt
and
what
was
being
presented
and
then
in
compensated
absences.
I
believe
it
had
to
do
with
an
error
in
the
calculation
around
some
outstanding
holiday
time.
Becky
correct
me.
E
E
It
wouldn't
have
made
it
to
the
point
of
being
presented
as
a
finding
in
the
financial
statements,
but
when
you
couple
them
together
and
then
you
have
the
one
that
was
individually
material,
really
it's
around
that
year-end
review
of
year-end
journal
entries,
that's
the
control
that
needed
to
be
strengthened
and
that
did
not
operate
effectively
to
catch
those
items
at
your
end,
because
nothing
here
affects
operations,
as
everything
goes
on.
It's
financial
reporting
at
your
end.
A
A
A
B
Yeah
well,
thank
you
for
for
saying
that,
and
I
just
can't
over
emphasize
the
the
amount
of
work
that
becky
has
put
in
over
the
last
few
months
to
get
us
to
where
we're
at
today.
I've
been
looking
at
her
time
sheets
for
the
last
few
months
and
believe
me
she's,
put
in
a
lot
of
time
and
effort,
and
so
we.
B
D
D
B
All
know
that
we
are
moving
ahead
with
recruiting
for
that
position.
Becky
and
I
are
actually
meeting
this
week
with
our
human
resources
department
to
talk
about
getting
that
job
announcement
out
on
the
street
and
beginning
that
recruitment,
and
so
as
we
go
through
that
process,
we'll
be
looking
at
our
candidates,
we'll
be
looking
at
the
program
and
potentially
working
to
enhance
the
program
by
contracting
out
contracting
out
part
of
our
audit
program
moving
forward.
I
think
robbie
kind
of
talked
about
some
of
the
approaches.