►
From YouTube: Finance and Human Resources – Special Joint Audit
Description
No description was provided for this meeting.
If this is YOUR meeting, an easy way to fix this is to add a description to your video, wherever mtngs.io found it (probably YouTube).
A
Well
good
afternoon,
I'm
Gwen
Whistler
I'm,
the
chair
of
the
finance
and
Human
Resources
committee
and
I'm.
Also
a
member
of
the
audit
committee
and
I'd
like
to
welcome
you
to
the
November
15th
special
joint
meeting
of
the
finance
and
human
relations
Human
Resources.
It's
committee
and
audit
committee,
All
County,
Council
committee,
members
and
other,
and
the
audit
committee
members
and
staff
are
participating
virtually
to
help
our
audience
follow
along
I'll
State.
Each
section
of
the
agenda
aloud.
A
We're
streaming
live
on
our
virtual
engagement
Hub,
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
use
for
those
of
you
out
there
with
us
today
and
I'm
sure
there
are
thousands
welcome
for
today's
meeting.
We
have
the
option
for
people
to
call
in
and
comment
live
during
the
meeting
to
call
in
and
comment.
Live
use
the
same
number.
A
Speakers
will
push
star
three
to
enter
the
speaker
queue
so
now
I'm
going
to
go
through
a
roll
call
and
to
introduce
all
the
committee
members
and
staff
who
are
participating
virtually
please
make
sure
to
mute
your
microphone
if
you're,
not
speaking
when
you
would
like
to
speak,
unmute
your
microphone
and
then
please
remember
to
mute
it
back
again.
After
speaking,
so
the
council
and
staff
as
I
call
your
name,
please
say
a
quick
hello,
councilwoman
Xander
Kilgore
good
afternoon
councilwoman
Sage
Turner
good
afternoon
city
manager,
Deborah
Campbell,
hello,
Finance,
director,
Tony,
McDowell.
A
Assistant
Finance
director
Becky
ogles
good
afternoon,
and
they
audit
committee
members.
Please
say
a
quick
hello,
Scott
Powell
the
chair.
A
C
A
So
the
first
thing
on
our
agenda
is
the
so
if
you
have
a
question
or
want
to
talk,
if
you'd
raise
your
hands
and
I'll
try
to
keep
a
keep
an
eye
on
that
or
or
just
jump
in,
but
so
the
first
thing
we've
got
is
the
fiscal
2022
audit
presentation
and
I'm
going
to
go
ahead
and
turn
that
over
to
Robbie
Bittner
with
PB,
Mayors
or
Mars,
Mayors
can't
remember.
D
Yeah,
yes,
it's
mayors,
so
hopefully
everyone
can
hear
me
all
right.
I
appreciate
the
introduction.
D
Just
so
you
know,
my
camera
is
not
on
because
I'm
in
route
to
Asheville
to
present
at
the
board
meeting
this
evening
coming
from
Chapel
Hill,
so
appreciate
the
opportunity
to
be
here
with
me
today.
Well,
first,
let
me
introduce
myself.
My
name
is
Robbie
Bittner
I'm,
the
audit
engagement
partner
for
the
city
of
Asheville's
audit
and
with
me
today
is
Mr
Dustin
Roderick.
D
He
is
the
audit
engagement
manager
and
Dustin,
as
you
can
see,
is
now
presenting
and
we
we'll
be
driving
and
driving
somewhat
the
start
of
our
conversation
and
presentation
here
so,
but
before
we
get
started,
I
would
like
to
thank
Tony
Becky
and
their
team
for
getting
us
all
the
information
that
we
needed
this
year
as
with
every
year,
it
always
seems
like
there's
something
new
and
again
this
year
there
was
a
significant
amount
of
new
items
that
we
had
to
look
at.
So
we.
D
Appreciate
the
timeliness
and
and
getting
the
information
to
us
and
doing
it
with
a
smile
versus
oh
it's
summer,
back
up
so.
D
F
F
So,
to
start
with,
you
know
the
big
annual
report,
the
annual
comprehensive
financial
report.
I
came
out.
It's
a
little
over
200
pages
long.
It's
comprised
of
many
different
pieces
which
you
can
see
listed
here.
D
I
am
particularly
just
noting
that
there's
you
know
the
major
sections
really
go
for
the
reader
sort
of
sort
of
at
the
most
broad
level
of
that
Management's
discussion
and
Analysis,
which
is
comparison
from
year
to
year.
And
you
know
this
is
a
section
that
we
do
not
opine
on,
but
that
we
do
Compare
the
numbers
to
the
financial
statements.
F
D
Then
we
go
into
the
stats,
which
is
comparative
of
a
lot
of
different
items,
including
mostly
10-year
10-year
comparative
items
for
net
position.
General
general
fund
fun,
fund,
balance
to
look
at
tax
rates,
looks
at
population
and
the
last
piece
you
know
is
the
compliance
section,
which
is
describes
the
10
percent.
The
results
are
compliance
testing
for
both
a
government
auditing
standards
perspective,
as
well
as
a
uniform
guidance,
a
federal
sink
of
all
of
it.
G
F
D
F
Slide
talking
about
the
different
types
of
opinions
that
can
be
given
out
during
an
audit
there's
an
adverse
disclaimer
of
opinion,
qualified
opinion
or
a
modified
unmodified
as
a
type
of
opinion
of
opinion
that
you
want
on
your
audit.
It
basically
means
that
we
had
no
issues
with
the
audit.
It's
a
clean
audit,
that's
the
highest
level
of
assurance
that
you
can
get
from
the
audit
opinion.
F
B
F
Is
what
the
city
received
this
year
wasn't
unmodified
or
clean
audit
opinion.
F
All
right
so
next
talking
about
the
breakdown
of
the
general
fund
revenues,
this
says
for
2021
I
believe
it
should
be
for
2022..
F
D
F
You
can
see
comparing
2022
to
Prior
years
of
composition
of
revenues
is
very
similar
to
Prior
years.
You
can
see,
there's
strong
growth
in
the
ad
valorem
taxes
due
to
property
values,
increasing,
there's,
also
strong
growth
in
sales
taxes.
Just
due
to
General
commercial
activity
turned
over
to
you,
Robbie.
D
D
I
think
that
kind
of
goes
to
a
testament
of
not
only
just
what's
what
the
council
is
doing
to
monitor,
monitor
those
revenues,
but
also
just
the
general
line,
the
general
area,
the
property
values
of
what's
happening
there.
So,
as
you
can
see
Dustin
if
you
want
to
flip
to
the
next
slide,
I
believe
this
is
what
it
is.
D
So
you
can
see
that
the
actual
tax
rate
went
down,
but
those
revenues
are
up,
and
that
really
is
just
a
testament
to
the
really
strong
real
estate
real
estate
values
that
the
city
is
showing
these
days
and
just
a
quick
note,
you'll
see
here
that
we're
kind
of
doing
a
comparison
of
similar
size
cities
just
for
the
record.
D
These
are
cities
that
are
in
the
state
of
North
Carolina,
with
a
population
of
greater
than
50
000
people
that
do
not
have
an
electric
system
and
and
that's
important,
because
the
Electric
System
is
usually
so
valuable
that
they're
the
taxes
received
from
the
elect
from
an
electric
provider
are
fairly
significant,
and
so,
in
those
situations
where
the
town
or
city
owns
the
Electric
System,
they
receive
what's
called
a
payment
in
lieu
of
taxes
which
what
you
would
notice
is
that
there's
a
difference
in
the
tax
rates
between
those
cities
that
that
would
most
likely
to
be
tax
rate
is
likely
to
be
a
little
bit
higher
in
cities
with
a
system,
since
they
are
not
collecting
for
those
items.
D
So,
but,
as
you
can
see
here,
you've
got
a
strong
rate
as
compared
to
your
peers
and
in
this
area.
So
that's
if
you
want
to
move
on
and
we've
got
a
question
from
Tony.
It
looks
like.
B
Yeah
I
just
want
to
chime
in
and
on
these
two
slides,
and
if
you
can
go
back
to
the
previous
one
Dustin
that
showed
the
increase
in
property
tax
revenue.
Some
of
that
was
related.
So
we
we
had
a.
It
was
a
revaluation
year
in
fiscal
year
22..
So,
even
though
the
next
slide
shows
the
tax
rate
going
down.
If
you
all
on
city
council
remember,
we
did
not
go
all
the
way
down
to
revenue
neutral.
B
We
actually
went
two
cents
above
Revenue
neutral
to
help
fund
some
of
the
compensation
adjustments,
and
so
that
was
partly
driving
the
the
property
tax
Revenue
increase
as
well.
So
even
though
they're
even
it
looks
like
on
the
next
slide
that
there
wasn't
a
property
tax
rate
increase,
like
I
said
it
was
set
to
two
cents
above
Revenue
neutral,
so
that
increased
the
revenue.
B
F
F
Next
slide
shows
the
percent
of
current
years
property
tax
levy
collected.
You
can
see
that
it
decreased
a
bit
from
during
the
pandemic
the
current
year.
It
has
increased,
but
it's
not
quite
back
up
to
prepandemic
levels,
but
it's
showing
Improvement.
D
Yeah
and
from
here,
if
you
look
at
the
next
slide,
I
think
you'll
see
that,
even
though
the
city
is
not
quite
back
to
where
they
were,
you
still
compared
to
your
peers.
They
are
doing
very
well
on
your
tax
collection
rate,
so
not
only
from
a
similar
size
cities,
but
also
just
an
overall
Statewide
perspective.
So,
okay.
C
F
Slide
just
break
down
a
general
fund
expenditures
based
on
function.
You
can
see
Public
Safety
is
the
largest
piece
of
this
Broadway.
Is
there
anything
particular
you
want
to
talk
about
on
this
slide.
D
What
that
is
done
and
you'll
see
that
really
not
much
has
changed
over
the
past
few
years
over
over
from
a
percentage
perspective
of
where
the
general
fund
dollars
are
going
to.
You
do
see
some
increase
in
that
General
government
I
will
say
that
there
is
a
slight
increase
in
that
General
government
this
year,
as
it
related
to
the
implementation
of
gas.
You
statement
number
87,
but
for
the
most
part
everything
seems
to
be
flowing
in
there
about
saying
year
over
year.
So.
C
F
C
F
Shows
the
the
trend
of
the
general
fund
balance
and,
as
you
can
see,
it's
increasing
each
year
and
increase
about
12
million
compared
to
the
prior
year.
D
So
this
is
important
to
just
knowing,
as
your
general
fund
expenditures
increase
each
year
having
the
a
fund,
balance,
nerve
and
I
know
you
should
have
the
fund
balance
policy
in
place
to,
while
it's
not
technically
under
gastry
statement,
number
54,
committed
or
assigned
you
still
have
enough
within
your
fund
balance.
Your
unassigned
fund
balance,
if
you
move
to
the
next
slide
to
cover.
What's
your
fund
balance
policy
is
to
make
sure
that
you
have
a
drop
below
that
point
and
I'll
just
kind
of
keep
going
from
here.
D
So
you
first-
and
this
is
the
breakdown
of
your
fund
balance
and
the
general
funds.
You
know
that
first
section
is
really
non-spendable.
These
are
inventory
or
prepaid
items,
the
notes,
receivable
item.
There
are
your
Community
Development
block,
grant
and
economic
economic
loans
that
are
outstanding
that
are
shown
as
a
receivable,
but
because
you
don't
have
that
cash
available.
D
Stabilization
by
State
Statute
is
a
Formula
driven
by
the
state
of
North
Carolina
to.
E
D
That
and
to
ensure
that
governments
are
not
over
appropriating
fund
balance
to
really
hurt
them
in
the
next
year,
and
this
is
a
special
statutorily.
A
calculated
item
committed
and
committed
fund
balance.
This
is
items
that
have
been
set
aside
by
the
highest
level
of
40
in
the
city,
which
would
be
city
council,
saying
that
we
are
going
to
spend
this
money
on
these
specific
items
and
nothing
else
assigned,
while
not
quite
as
high
as
committed.
D
These
are
items
that
are
assigned
by
the
highest
levels
of
management
through
and
through
the
budgeting
process,
and
then
of
course,
you're
unassigned
is
the
fund
balance
that
is
really
available
to
be
spent
and
there's
a
good
chunk
of
that
unassigned,
which
cover
it
will
cover
100
of
the
fund
balanced
policy
that
the
city
has,
and
that
is
that
is
disclosed.
That
fund
balance
policy
is
disclosed
of
footnotes
of
the
financial
statements.
F
All
right,
you
can
actually
have
compliance
results,
so
a
few
different
reporting
requirements.
As
we
conduct
the
audit.
We
have
to
abide
by
government
auditing
standards.
We
have
to
abide
by
the
federal
single
audit
act,
the
uniform
guidance
as
well
as
the
same
single
audit
audit
implementation
Act.
F
Just
to
give
you
some
definitions,
material.
That
weakness
is
a
significant
deficiency
or
combination
of
significant
deficiencies
and
a
term
of
control
such
that
there's
a
reasonable
possibility
that
a
material
in
this
statement
of
the
statements
will
not
be
prevented
or
detected
and
corrected
in
retirement
basis.
F
Significant
deficiency,
it's
a
deficiency
or
combination
of
deficiencies
and
internal
control
that
is
less
severe
than
a
material
weakness,
yet
important
enough
to
Merit
the
attention
by
those
charged
with
governance
and
a
control
deficiency
is
less
than
scope
than
that.
It's
a
exists
when
the
designer
operation
of
control
does
not
allow
management
or
employees
in
the
normal
course
of
performing
their
assigned
functions
to
prevent
or
detect
or
correct
misstatements
on
time
paces.
D
Here
to
the
just,
so
you
know
the
importance
of
government
auditing
standards,
the
internal
control
and
compliance
report.
That's
at
the
front
of
the
compliance
section.
We
are
required
to
identify
and
report
in
that
internal
control
and
compliance
report,
any
significant
deficiencies
for
material
weaknesses
that
we
identify
in
internal
control,
and
we
are
also
required
to
identify
any
material
non-compliance
that
we
identified
during
the
course
of
our
audit.
D
Now
this
is
non-compliance
with
laws,
regulations
and
statutes,
not
necessarily
a
uniform
guidance
which
we'll
we'll
touch
on
that
here
in
just
a
couple
more
minutes,
so
take
it
from
there
Dustin.
F
All
right,
so,
in
the
current
year
we
did
have
one
significant
deficiency
that
we
had
to
report
related
to
Capital
assets,
as
you
can
see,
there's
a
bunch
of
different
pieces
to
it,
but
basically,
this
related
to
a
construction
and
progress
project
being
countered
twice,
which
resulted
in
an
overstatement
of
assets
and
an
understatement
of
expenses.
H
D
Not
particularly
I
mean
this
I
I
just
want
to
add
here.
This
is
the
one
item
that
we
had
that's
a
reportable
in
the
current
year.
D
This
was
I
would
say
one
of
only
three
journal
entries
that
we
made
in
the
current
year,
I'd
like
to
point
out
I,
believe
that
several
of
you
have
been
on
this
committee
for
quite
some
time,
and
if
you
will
remember
the
first
year
that
we
did
the
audit
there
were
over
80.
audit
adjustments
in
that
first
audit.
D
So
I
just
want
to
point
out
the
a
testament
to
the
in
the
the
significant
improvements
that
have
been
made,
not
only
in
the
the
policies
and
procedures
that
are
being
followed,
but
just
the
overall
execution
of
those
over
the
over
the
course
of
the
last
several
years.
So
I
do
want
to
commend
the
the
finance
staff
for
that.
Any
questions
on
this
on
this
deficiency
or
anything
of
that
nature.
D
Okay,
hearing
none,
you
know
I
mentioned
previously
that
we
did
not-
or
we
only
had
this
one
significant
deficiency
in
Eternal
control
related
to
the
other
two
journal
entries
I
mentioned.
We
had
three
aje's.
The
other
two
were
did
not
rise
to
the
level
of
significant
deficiency,
so
they
were
reported
to
management
in
the
management
letter.
D
These
are
minor
items
just
simply
because
we
found
something
in
accordance
with
yellow
book
standards.
We
do
have
to
still
communicate
those,
so
those
were
communicated
in
that
management
letter,
which
is
an
attachment
to
the
SAS
114
or
AUC
260
Auditors
communication
to
those
charts
with
governance.
C
D
F
So
next
slide
is
an
update
on
prior
year
controlled
efficiency.
So,
last
year
of
2021
audit
we
did
have
a
material
weakness
and
internal
control
just
generally
related
to
the
year
end
closeout
and,
as
Robbie
pointed
out,
we
only
have
the
one
significant
deficiency
this
year.
So
we're
happy
to
report
that
this
was
not
a
repeated
comment
and
it
was
resolved
in
the
current
year.
F
F
Next
slide,
this
is
talking
about
major
programs
tested
for
single
audit
and
state
single
audit
testing.
Robbie.
Did
you
want
to
talk
about
anything
particular
here?
I.
E
D
Triennial
basis,
so,
every
three
years,
if
they
are
considered
a
type,
a
program,
we
have
to
look
at
them.
But
then,
additionally,
if
they
are
a
new
program
that
crosses
the
type
a
threshold
from
a
single
audit
perspective
or
the
federal
government
has
identified
them
as
a
program
of
higher
risk
which,
in
the
current
year,
the
federal
Transit
grants,
as
well
as
the
covid-19
grants,
were
separately
identified
as
a
higher
risk
grants
that
we
did
test
in
the
previous
year.
D
D
So
we
feel
we
did
a
lot
here
and
then
on
the
state
side,
the
two
State
programs,
the
Powell
bill,
which
is
the
standard
annual
program
that
we
have
to
look
at
simply
for
the
sheer
magnitude
to
reach
our
coverage
levels
that
are
required,
but
also
there
was
the
Sulfur
Springs
Grant
this
year
that
we
needed
to
take
a
look
at.
So
all
in
all,
we
ended
up
with
nine
major
programs
across
the
federal
and
state
state
level,
so
Justin
Premiere
I'll.
Let
you
take
it.
A
D
H
D
Risk
this
past
year
for
fiscal
year
22
they
reduced
that
significantly,
so
where
it
was
down
to
about
14
or
15
grants
that
had
coveted
19
or
arfa
funding
in
them
now.
D
So
it
really
will
just
be
dependent
upon
how
the
federal
government,
in
their
the
compliance,
supplement,
that's
released
in
June
of
each
year,
how
they
identify
these
programs
if
they
fall
as
a
type
a
program
next
year,
but
are
not
listed
as
automatically
high
risk,
they
can
be
considered
a
low
risk
type
A
and
may
not
have
to
be
tested
next
year,
but
just
keep
in
mind
that
you
will
be
required
to
test.
D
Since
you
had
a
a
material
weakness
last
year
in
in
the
internal
control,
you
still
would
be
considered
will
not
be
considered
a
low
risk
modesty
from
a
Federal
single
audit
perspective,
so
you
still
have
to
have
a
40
of
the
fund's
coverage.
Now.
What
does
that
mean?
Just
means
you
have
to
test
40
of
the
grant,
but
I
would
imagine
that
the
number
of
grants
that
we
would
have
to
look
at
for
whomever
the
auditor
is
next
year
would
have
to
look
at
would
be
less
than
this
current
year.
F
Okay,
that's
the
next.
We
have
some
required
Communications
by
generally
accepted
audience,
standards
that
we
need
to
cover
so
the
auditor's
responsibilities.
There
was
a
responsibility
to
conduct
the
audit
and
the
coordinates
with
standard
auditing
standards
generally
accepted
in
the
United
States
of
America,
as
well
as
Government
auditing
standards
issued
by
the
Comptroller
for
the
United
States,
which
we
described
in
our
Arrangement
letter
dated
April
18th.
F
That's
why
our
obligations
as
the
Auditors,
the
financial
statements,
are
still
Management's
responsibility,
overview
of
the
plan,
scope
and
timing
of
the
financial
statement
on
it.
We
did
Issue
a
separate
Arrangement
letters
and
also
separate
communication
letter
dated
April
18th
that.
E
D
D
So
these
items
are
are
believed
that
if
these
items
are
communicated
each
year
to
those
charts
governance,
maybe
significant
audit
failures
can
be
prevented
in
the
future.
So
I
don't
know
that
we
necessarily
need
to
go
through
a
ton
of
these
in
depth.
As
I
stated
earlier,
these
were
provided
to
you
in
in
our
communication
letter.
D
But
that's
if
you
want
to
flip
over
to
the
next
slide,
I
think
I
can
go
ahead
and
cover
one
of
the
major
items
and
one
of
the
major
items
this
year
that
we
need
to
just
disclose
is
the
the
implementation
of
Galaxy
statement.
Number
87.,
I.
Think
if
you
talked
to
Becky,
she
probably
would
tell
you
this
is
on
the
highest
level
of
biggest
pain
in
the
rear
she's
ever
had
to
deal
with
when
it
comes
to
implementing
a
standard.
D
However,
this
standard
required
the
recognition
of
not
only
an
asset
but
a
related
liability
for
any
least
any
asset
that
has
a
term
greater
than
a
year.
So
in
previous
years,
you
could
have
what
were
called
operating
leases
and
if
operating
lease
didn't
meet
certain
requirements,
then
it
was
just
an
operating
lease
and
you
didn't
have
to
record
any
assets,
show
any
depreciation
or
amortization
of
that
lease
and
you
didn't
have
to
show
any
type
of
liability
related
to
them.
So
with
the
implementation
87.
D
Anything
that
was
over
a
year
had
to
be
recognized
that
way,
and
then,
in
addition
to
that,
so
not
only
from
a
less
sore
perspective,
a
less
or
perspective,
but
a
lessee
where
you're,
actually
leasing
items
out
to
other
folks.
D
To
offset
to
show
what
the
balance
of
that
is
outstanding
and
all
this
really
did
from
a
reporting
perspective
has
changed
the
line
items
that
certain
things
went
in,
but
from
a
high
level
perspective,
one
specific
part
of
Gatsby
87
required
that
you're
under
modified
or
pool
basis
that
you
show
and
other
financing
source
for
use,
as
well
as
capital
outlay
for
any
new
leases
and
in
the
current
year,
since
it
was
the
year
of
implementation,
everything
was
considered
new.
D
If
you
heard
me
mention
earlier
that
there
was
a
little
bit
of
uptick
in
that
General
government
as
it
related
to
the
the
expenditures
there.
Part
of
that
is
related
to
this
outlays
because
of
the
leases
that
were
there
so
I
just
wanted
to
point.
E
C
C
D
The
there
was
not
immaterial
at
all
fun
levels.
C
Okay,
what
about
at
the
at
the
Enterprise
level,
because
business
type
activities
you
know
you
had
roughly
what
another
three
million
dollars
there
I
I.
The
only
reason
why
I'm
asking
is
that
you
know
that
that
pronouncement
is
extremely
burdensome
to
all
governmental
entities
and
to
to
that
end,
if
it's
not
material
and
it's
not
going
to
impact
the
the
financial
statements
you
know,
why
should
it
be
recorded
period.
D
I
totally
agree
with
you
and
we
have
taken
that
approach
with
a
lot
of
our
clients.
However,
there
were
two
things:
I
believe
that
sort
of
played
into
this
one.
On
the
the
lessor
side,
where
you
are
leasing
out
a
building.
There
is
a
at
in
the
Harris
Cherokee
centered
fund.
D
There
is
a
a
definitely
a
material
asset
and
deferred
outflow,
or
excuse
me
deferred
info
that
had
to
be
brought
onto
the
books,
but
there
and
the
other
item
is
related
to
Jasmine
96,
which
will
be
effective
this
year,
so
this
year
with
96.
If
you
couple
96
and
87
together
with
the
subscription-based
services,
the
likelihood
is
that
you
would
have
material
items
that
were
being
ignored
or
excuse
me
not
being
reported
upon
in
there
and
I
will
say
from
an
audit
risk
perspective
as
well
anytime.
D
You
have
those
items
that
you
agreed
to
not
spring
on
and
put
in
place.
We
still
have
to
have
balances
and
know
kind
of
how
to
identify
those
so
that
we
can
identify
them
as
a
past
adjustment
or
a
non-material
adjustment
item,
so
it
was
considered
and
Becky.
You
can
jump
in
here
too,
if
you
want
to,
it,
was
considered
not
to
bring
it
bring
it
on
the
books.
However,
given
several
of
the
funds,
it
was
material
to
those
that's
the
reason
that
it
was
brought
on
that
way.
D
I
can
just
you
can
just
hit
the
high
the
high
notes
on
there.
We
didn't
have
any
significant
or
unusual
transactions.
D
We
agree
with
the
management
treatment
of
accounting
estimates
and
in
your
114
letter
that
you
received,
there
is
a
listing
of
all
of
those
estimates,
the
estimation
method
and
then
the
procedures
that
we
performed
as
Auditors
and
in
our
opinion
as
to
whether
or
not
they
are
reasonable,
which
we
did
believe.
All
of
the
estimates
that
are
significant
to
the
financial
statements
were
reasonable.
Based
on
the
procedures
we
perform.
D
F
Next
slide:
audit
adjustments.
We
communicated
a
lot
of
adjustments
in
our
separate
report
to
council.
There
were
no
uncorrected
misstatements
I
had
no
disagreements
with
management
regarding
the
application
of
principles
or
judgments
or
things
of
that
nature.
We're
not
aware
of
any
consultations
with
other
accountants
and
the
word
no
significant
issues
that
discuss
with
management.
D
F
F
Next
slide,
most
significant
difficulties
were
encountered
during
the
audit
other
controlled
efficiencies.
We
did
communicate
in
our
management
letter
which
is
attached
to
that
communication
to
council.
F
The
representation
letter
for
management
is
also
attached
to
that
anything
else.
You
want
to
mention
here
robbing.
F
Ed
all
right,
so
next
are
the
financial
performance
indicators,
as
defined
by
the
local
government.
Commission
city
council
is
responsible
for
responding
directly
to
the
LGC
within
60
days
of
the
formal
presentation
by
the
auditor
to
the
city
council
for
any
items
that
are
marked
red
on
the
next
slides,
so
I'm
stepping
into
those.
D
I
just
want
to
point
out
on
these
slides
everything
that
you
see
here
is
a
direct
input,
or
this
is
the
direct
output
that
we
receive
in
the
data
input
form
that's
required
to
be
completed
and
uploaded
with
the
audit
report
and
financial
statements
to
the
LGC.
So
these
graphs
that
you're,
seeing
in
here
and
the
graphs,
the
numbers
different
things-
are
literally
it's
100
regurgitation
of
the
required
communication
coming
from
the
local
government
commission.
So
when
it
comes
to
a
calculation
of
how
exactly
did
this
number
get
calculated?
D
I'd
have
to
go
back
if
there's
any
questions
on
those
I'm
happy
to
answer,
but
I'd
have
to
go
back
into
the
the
formulas
to
figure
out
exactly
what
it
is
that
the
LGC
is
looking
at
to
derive
their
calculation.
So
these
were
not
calculated
by
us.
F
First
up,
it's
the
general
funds
fund
balance
available,
minimum
threshold
is
25
percent
and
the
results
are
a
little
over
60
percent.
You
can
see
it's
a.
We
have
strong
general
fund
balance,
foreign.
F
Next
is
the
click
ratio
for
water
and
sewer
minimum
threshold
is
greater
than
one
and
the
the
ratio
this
year
is
6.76
that
increase
significantly
this
year.
My
understanding,
due
to
the
change
in
the
current
portion
of
long-term
debt,
particularly
significantly
in
the
current
year.
A
Can
can
I
just
this
is
a
minor
thing,
but
given
the
fact
that
you
three
three
slides
back,
you
said:
if
it's
a
red
indicator,
it's
a
problem.
Can
we
rethink
the
colors
for
2021.
D
Unfortunately,
no
because
that's
what
comes
directly
in
the
Excel
that
the
about
the
LGC
provides
literally
again,
these
are
just
straight
regurgitations
from
them.
I
will
bring
it
up
to
the
LGC,
though,
to
change
that
color
for.
D
Well,
the
good
news
is
that
they
were
not,
but
I
will
bring,
that
that
is
a
good
point
and
I
will,
in
our
next
committee,
being
with
the
of
the
GAA
I,
will
bring
it
up
to
the
LGC.
F
So
next
we
have
some
cash
flow
indicators
and
you
see,
cash
flows
are
greater
than
zero
they're
strong,
unrestricted
cash,
the
ratio
of
underserved
cash,
the
total
expenses,
was
much
greater
than
16
required
is
over
200
percent
and
there
were
no
significant
transfers
into
the
Water
Resources
fund
to
cover
operating
expenses.
F
Okay,
thank
you.
Robbie.
D
Not
particularly
other
than
this
list,
or
just
to
clarify
the
unit
results
column
is
the
one
that
would
highlight
red
if
there
is
a
performance
indicator
that
requires
a
response.
F
All
right,
General
performance
indicators.
The
2022
audit
report
has
been
reported
on
time.
The
there
are
strong
collections
of
taxes.
Receivable,
you
see,
the
uncollected
is
less
than
three
percent
and
there
would
you
do
not
expect
a
decrease
in
property
value.
F
Continuing
with
General
performance
indicators,
we
did
not
find
any
or
report
any
budget
violations.
There
were
no
performance
indicators
of
concern
and
I
guess.
The
the
one
point
that
did
is
highlighted
red
is
that
there
is
that
there
was
a
significant
efficiency
reported
in
our
compliance
section.
D
Yeah,
so
this
this
is
just
an
item
anytime,
there's
any
significant
deficiency
or
material
weakness
and
eternal
control,
or
these
type
of
material
compliance
findings.
It
does
result
in
this
performance
indicator
indicating
rent
the
only
the
only
time
that
this
was
not
require
response
unless
there
was
a
segregation,
a
consistent
segregation
of
Duties,
significant
deficiency
or
material
weakness.
D
However,
we
did
not
have
that
situation
at
the
city,
so
the
logistics
of
this
are
similar
to
last
year,
whereby
I'm
sure
the
finance
department
will
help
draft
a
response
based
on
their
response
to
the
finding
that
was
included
in
the
audit
report,
and
then
it
can
be
sent
directly
from
city
council
to
the
LGC
on
that.
So,
if
there's
any
questions
on
that
I'm.
A
D
So
from
here,
Dustin
I
think
we
can
move
on.
F
So
yeah
it
was
on
the
last
slide.
There
were
no
problems
with
late
debt
payments
during
the
year
and
we
were
not
aware
of
any
additional
issues
that
needed
to
be
addressed.
D
So,
okay,
that's
pretty
much,
that's
pretty
much!
It
isn't
it!
That's
that's!
The
last
slide,
I
believe
yeah
I
did
want
to
cover
a
couple
little
things
that
I
think
the
the
committee
should
be
aware
of
the
first
one
being
we
kind
of
mentioned
it
earlier
talking
about.
You
know
why
why
implementing
you
know
and
showing
Gatsby
87
one
item
that
will
be
effective
next
year
is
Gatsby
statement
96,
which
is
for
subscription-based
services,
for
primarily
for
the
I.T
area.
D
So
these
will
be
very
similarly
brought
on
to
the
financial
statements
next
year,
similar
to
how
gasby
87
was-
and
these
are
likely
to
be.
Several
of
them
are
likely
to
be
significant
as
it
relates
to
you
know,
considering
your
financial
software
and
other
softwares,
where
there.
C
D
Longer
than
here
contracts
in
place,
the
other,
the
other
major
Gatsby
pronouncement
that
has
been
released,
it
was
released
this
past
June,
his
statement
number
101.
This
one
is
related
to
compensated
absences
and
what
it
does
is
not
only
require
your
regular
vacation
items
to
be
considered
for
accrual,
which
they
are
at
the
city
but
sick
leave.
E
D
Lot
of
times,
people
can
accumulate
utilize
that
towards
their
retirement,
even
though
it's
not
payable
upon
upon
retirement
or
payable
upon
termination.
There
still
has
to
be
an
assessment
of
the
likelihood
of
what
portion
of
that's
going
to
be
taken,
and
that
has
to
be
brought
on
the
books
where
we're
hoping
and
waiting
to
see
what
the
gas
the
implementation
guide
says
about
this,
and
we're
also
been
in
conversation
with
the
local
government
Commission.
D
What
will
be
the
best
course
and
how
to
bring
on
some
of
those
liabilities
that
may
need
to
be
brought
on
as
it
relates
to
that
sick
days.
So,
with
that
I'm
happy
to
answer
any
other
questions
that
you
have
again
I'd
like
to
thank
the
finance
finance
department
and
the
city
for
allowing
us
to
continue
to
serve
and
the
finance
department
can
really
put
forth
the
effort
in
getting
everything
that
we
needed
this
year.
You
know
nine
major
programs.
D
E
Sandra
I
just
want
to
ask
a
question:
it's
probably
it's
just
I
was
just
concerned
when
you
talked
about
testing
the
grants.
What
does
that
entail
sure.
D
Thing
so
when
we,
when
we
test
the
grants,
we
look
at
the
internal
controls
around
the
grant
the
grants
themselves
from
an
expenditure
perspective,
but
also
just
from
a
a
compliance
perspective.
So
there
are
13
different
types
of
potential
major
compliance
requirements.
Each
Grant
has
six
as
identified
by
the
grant
for
agency
that
can
be
considered
material
compliance
requirements.
These
are
items
such
as
allowable
costs,
allowable
activities,
cash
management,
eligibility,
Real,
Property,
Management
of
reporting
requirements.
Any
sub-recipient
monitoring
like
as
in
the.
D
Program
income,
so
once
those
are
identified
by
the
federal
either,
the
federal
government
strictly
expressly
identifies
them
or
they're
identified
by
us.
Through
reading
of
the
grant
agreements
that
are
in
place,
then
we
will
test
each
one
of
those
significant
compliance
requirements
in
accordance
with
the
uniform
guidance
standards.
So
there
are
based
on
the
level
of
risk.
E
D
To
controls,
as
well
as
the
inherent
risk
of
the
program,
we
will
select
items
to
examine
those.
So
for
expenses,
we
look
to
verify
that
things
were
allowable,
the
activity
was
allowable,
the
cost
was
allowable
and
it
fell
within
the
proper
period
and
that
it
had
been
appropriately
reviewed
by
somebody
with
the
skills,
knowledge
and
experience
to
determine
whether
or
not
it
was
an
allowable
cost
in
that
program.
D
And
then
we
examine
the
reports
that
were
provided.
Do
they
tie
to
the
underlying
underlying
financial
information
or
any
underlying
performance
information?
What
is
the
review
process
review
that
review
process
verify
that
they
were
filed,
timely
and
that
sort
of
thing?
So
it's
it's
kind
of
a.
We
say
we
test
the
grant.
We
look
at
we're,
still
sampling
the
expenditures
in
the
grant,
but
we're
sampling
based
on
the
parameters
established
by
the
uniform
guidance.
A
And
Becky
I
assume
that
we
are
all
over
these
new
requirements
for
next
year
and
you're
going
to
be
all
set
to
implement
the
new
gatsbys.
A
H
A
Over
okay,
very
good,
okay
does
anyone
else?
Have
any
questions?
I
just
want
to
really
acknowledge
the
fine?
Thank
you,
the
Auditors,
of
course,
but
the
finance
department
I
mean
I,
know
that
we've
had
some
problems
over
the
years
and
you've
had
a
lot
of
Staff
turnover,
but
this
year's
results
are
really
great.
I'm,
I'm
delighted
to
see
no
material
weaknesses,
and
hopefully
next
year,
I'll
be
you
know,
listening
in
in
the
public,
and
there
will
be
no
significant
deficiencies
next
year.
A
So
I
I
appreciate
all
your
effort
and
I
know
you
spend
a
lot
of
time.
You
know
trying
to
make
this
go
smoothly
and
I.
Think
we
really.
We
really
appreciate
your
efforts.
A
So
with
that,
I'm
gonna
turn
it
over
to
Tony
to
go
over
the
response
to
the
audit.
B
All
right,
thank
you,
councilmember,
Whistler
and
good
afternoon.
Everybody
and
we
don't
have
any
slides,
prepared
and
I'll
just
be
very
brief.
First
of
all,
I
did
want
to
say
thank
you
again
to
Robbie
and
Dustin
their
team
from
PB
Mayors
for
working
with
us
this
year
and
working
with
us
over
the
last
several
years
on
our
audits
in
particular
this
year.
B
We
we
were
really
operating
on
a
compressed
time
table
this
year,
because
we,
as
we've
talked
to
the
finance
committee
about
we
have
some
debt
that
we
have
to
issue
in
early
2023
and
we
have
to
get
to
the
local
local
government
commission
and
get
permission
to
issue
the
debt
and
everything
and
they
require
us
to
complete
the
audit
and
present
it
to
city
council
prior
to
us
being
able
to
move
ahead
with
the
debt
issue,
and
so
that
really,
as
I
said
compressed
the
schedule
this
year
and
I,
don't
think
as
far
back
as
I
can
remember,
I
don't
think.
B
We've
ever
done
a
presentation
to
you
all
in
the
city
council
of
the
audit
in
November
last
year
it
was
January.
Usually
it's
the
December
January
time
frame,
so
we
were
definitely
six
to
eight
weeks
ahead
of
schedule
this
year
and
again,
I
know
that
put
some
pressure
on
Becky
and
her
team,
and
also
Robbie
and
and
his
team
as
well.
So
I
really
appreciate
the
work,
everybody's
done
and
also
the
other
departments
as
well,
because
this
really
is
a
city-wide
effort.
It's
not
just
the
finance
department.
B
It's
us
working
with
other
departments
to
gather
all
the
information
that
we
need.
You've
all
sold
the
list
of
grants
that
got
looked
at
this
year
and
there
were
a
lot,
and
that
touched
a
lot
of
departments
in
the
City
community
and
economic
development,
Public
Works
capital
projects,
and
so
there's
a
lot
of
folks
on
our
end
other
than
just
Becky
and
our
team
in
finance
that
work
on
the
audit
each
year.
B
So,
first
of
all,
I
just
wanted
to
say
that
and
acknowledge
that
and
in
terms
of
the
response
to
the
to
the
finding
as
council
member
Whistler
pointed
out,
we're
really
pleased
this
year
that
we
did
not
have
any
material
weaknesses.
B
The
one
significant
deficiency
that
robbing
his
team
identified
did
trigger
one
of
the
financial
performance
indicators
of
concern
that
the
that
the
LGC
has
in
place.
This
is
the
second
year
they've
had
that
program
in
place
and
what
happens
when
one
of
those
performance
indicators
is
triggered.
We
get
a
red
like
we
saw
in
the
slide.
Is
it
does
require
a
letter
from
city
council
signed
by
the
majority
of
council
and,
like
Robbie,
said
we
have
to
get
it
to
them
within
60
days
of
the
report.
B
We
actually
have
to
get
it
to
him
a
little
bit
earlier,
because
we
are
doing
the
debt
deal
and
we're
going
to
them
in
January,
so
we
have
to
get
them
the
letter
by
the
first
of
December,
and
so
that's
why
you
all
are
seeing
that
and
getting
it
signed
tonight,
hopefully
happy
to
talk
about
the
letter.
B
We
agree
with
the
recommendations
that
PB
Mayors
made
regarding
this
one
deficiency,
we're
already
in
in
progress
in
terms
of
addressing
it
and
making
sure
that
the
staff
in
accounting,
particularly
the
folks
in
the
annual
Capital
assets,
get
the
training
and
we
have
the
proper
review
and
sign
off
on
those
materials
moving
forward.
So
we
feel
like
we're
in
a
good
place,
I've.
Actually
the
letter
that
you
are
going
to
be
signing
tonight.
B
We
already
sent
it
to
the
LGC
and
they
looked
at
it
to
kind
of
give
us
their
comments
and
thought
they
thought
it
looked
fine
and
so
we'll
be
moving
ahead.
Like
I
said
for
that
tonight,
so
Becky,
unless
you
have
anything
to
add
or
or
Miss
Campbell.
If
there's
anything
you
wanted
to
add
I,
think
that's
all
that
I
have.
G
Could
sir
I
would
just
like
to
Echo
your
comments
as
well
as
Tony's
and
and
to
our
Auditors,
a
big
Round
of
Applause
and
thank
you
I
know
it's
as
Tony
said
it
was
a
lot
of
of
work
for
you
all,
but,
as
you
also
heard,
the
Auditors
say
that
in
the
past
year
or
two
under
you
know
the
leadership
of
Tony
and
Becky.
G
We've
made
significant
strides
and
so
we're
just
so
grateful
to
Finance
staff,
the
rest
of
the
organization
for
Yemen's
effort,
I
mean
you
all
are
up
in
our
engaged
in
auditing,
and
you
know
the
love
of
effort.
So
just
please
that
there
wasn't
anything
more
significant
that
was
found
and
I
hope
that
this
will
be
the
trend.
This
is
our
Baseline
Becky,
no
pressure,
but
so
we
can
only
go
up
from
here.
G
So
so
thank
you
all
for
for
all
the
hard
work
and
we
will
be
making
the
presentation
staff
will
be
making
the
presentation
well.
I
guess
the
Auditors
will
be
making
a
presentation
and
we
gave
you
all
the
Deep
dive.
We
will
not
be
doing
this
at
the
council
meeting.
It
will
not
be
at
this
length,
we,
we
will
have
a
high
level
and
we
will
get
to
I
think
the
findings
much
much
quicker.
G
G
A
Appreciate
it
yeah
I,
think
the
rest
of
council
has
some
confidence
in
the
finance
me
and
knows
that
we
we've
seen
this
in
in
detail
so
and
they're
pretty
good
about
reading
things
before
we
give
it
to
them.
So
I
appreciate
any
streamlining,
especially
tonight,
so
with
that
I
will
open
it
up
to
public
comments.
A
Alicia
is
anyone
out
there
who
wants
to
chat
with
us?
No
excuse
me:
there
are
no
callers
in
the
queue.
Okay,
thank
you
and
there
were
no
written
or
email
comments
either
beforehand.
So
any
other
comments
from
the
committee
or
either
committee,
the
finance
committee
or
the
audit
committee.
C
I
would
just
like
to
say
that
I
Echo
what
Deborah
said
about
the
staff
over
the
city
of
Asheville
they've,
made
a
lot
of
great
strides
and
being
on
that
same
level.
It's
it's!
It's
difficult
when
you're,
when
you're
clawing
yourself
up
the
hill
and
then
you
have
to
implement
you
know
Gasper,
pronouncements
and
and
hiring
new
staff
right
now
we're
going
through
hiring
new
staff
as
well,
and
you
know.
C
A
Thank
thanks.
A
lot
Scott
and
I
just
want
to
shout
out
to
you
that
you've
been
extremely
helpful
to
the
finance
department
in
some
interviewing
and
that
kind
of
thing
and
you've
you've
really
done
a
yeoman's
job
in
your
role
as
chair
of
the
audit
committee.
So
we
really
appreciate
the
service
you've
given
to
the
city
of
Asheville.