Town of Taos Presentation of the FYE 2019 Financial Statement Audit CORDOVA CPAs LLC ROBERT GONZALES, CPA PRINCIPAL FEBRUARY 11, 2020
Agenda Opening and Timeline Communication with those Charged with Governance Auditors' Opinion and Reporting Other Discussion Items
Timeline Preliminary Communications May and June 2019 Entrance Conference on September 11, 2019 (Mayor Barrone and Councilor Evans were present) Planning, Compliance, and Substantive Work September 2019 Reporting, Conclusions, and Issuance November and December 2019 Exit Conference on December 11, 2019 (Mayor Barrone and Councilor Evans were present) Received “OK to Print” on January 15, 2020 Release Letter from NMOSA dated January 28, 2020 and issued February 4, 2020
Communication with Governing Body Audit was conducted in accordance with GAAS and GAGAS Reasonable Assurance Planned Scope and Timing Accounting Policies conform to GAAP GASB Statement Nos. 83, 84, 88, and 90 Significant Estimates (Utilities AR Allowance, Capital, Pension, and OPEB) No significant difficulties and no disagreements No material misstatements detected 2 immaterial passed adjustments noted in current year Significant Exposures (FDIC and other legal proceedings)
Auditors' Report on the Financial Statements Unmodified Opinion Financial Statements are presented fairly in accordance with accounting principles generally accepted in the United States of America. In other words, the numbers and disclosures are materially accurate.
Other Auditors' Reports GAGAS Report on Internal Control • No findings noted in current year. Over Financial Reporting and on Compliance and Other Matters
Communication with Governing Body U.S. GAAS Requirements CCPAs Communication Material weakness Deficiencies in Internal Control None noted Any material weaknesses and significant deficiencies in the design or operation of internal control that came to the Auditors' attention during the audit must be reported Significant Deficiencies to the Town Council. None noted Other Matters (NM required) None noted
Communication with Governing Body U.S. GAAS Requirements CCPAs Communication FY 2018 Findings Update Deficiencies in Internal Control Any material weaknesses and significant deficiencies in the design or operation of internal control that came to the Auditors' 2018-001 Cafeteria Plan Deductions (Other attention during the audit must be reported Noncompliance)- Resolved to the Town Council.
Other Discussion Items We Made several informal recommendations during our audit that • were not necessarily ‘findings’ to enhance the efficiency of processes and also to strengthen the current internal control structure in place. A few notable ones are : Cybersecurity and System Penetration Testing – 3 rd Party • Full risk assessment of IT threats • Review and update all necessary policies • There are unreconciled differences in cash that should be adjusted for • and investigated. Also, there are several very old transactions that need to be investigate and accounted for so there is not a bank to bank difference in the reconciliations Gave recommendations on how to record the debt and cash balances • from NMFA Review procurement method policies and procedures to ensure the • Town follows the procurement code Communicate to vendors for a new invoice once all proper support is • received by the Town
Thank You for the opportunity to serve the Town of Taos! • Risk-based approach so we will adjust our audit plan to respond to any risks that may arise during FY 2020. • The entire Finance department was fantastic to work with and we appreciate their hard work during the last six months. • We are available year-round as a resources to help your team. • We value our relationship and look to continue to build on it.
Robert Gonzales, CPA Building strong and genuine, Principal long ‐ term relationships Cordova CPAs LLC with our clients Albuquerque, New Mexico and team 505.610.2168 members. Rg@cordovacpas.com
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