HomeMy WebLinkAboutAudit Committee - 09/30/2015,'FG��I�YED
Audit Committee Meeting ',
1•' r"KS OFFICE
Town Hall Meeting Room 3a/b
September 30, 2015
In Attendance:
Kiera O'Neil
Ken Thomson
Gary Babin
John Stanbrook
Mr. Delvecchio
Agenda: Audit Committee reorganziation for FYI
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Presentation and discussion of FYI Mansfield Municipal Electric Dept Audit
FYI Mansfield Municipal Electric Dept's Audit -outstanding items and deadlines
FYI Town audit update and completion time line discussion
There was no quorum. Start time is 6:05 pm, this is an informal session to
discuss the Electric Audit. Presentation by Powers and Sullivan, LLC.
A draft. of the audit and audit plan would normally be put together at the
beginning of the year. March we would have a meeting. A summary of the
entire process and key areas they look at as well as some timelines would be
reviewed and further discussed. They will also talk about the areas of emphasis,
standards, and talk about the pension. The Electric pension liability needs to be
broken out. The county hasn't issued the report yet. Once issued, the auditors
can issue the report but this is currently holding things up.
A detailed approach will be taken (page12). They will obtain updates from
management on community details, construction etc., so that this will be tailored
specifically to Mansfield.
Pg1: Opinion (mentions only audit one year) language is similar, restatement of
financial statements, disclaimer was added saying the auditors didn't complete
2014 but did note restatment of the 2014 financial statements. This opinion is
clean other than those issues.
Pg 9: Starts with the financial statement. They were provided with all necessary
information from the MMED staff. Everything is reconciled, records in good
shape, cash reconciled, inventory, physical inventory in July 2015 got through
everything in August. All went smooth books in good shape.
MMED's ledgers put in their auditors accounting software and sorted for
formatting and coding. Reclassified some information (cash and others). The
2014 restatement net meeting billing, it wasn't being billed through MMED's
accounting system. It was being recorded differently. Revenue was
reconfigured with the help of Gary Babin. There can be added notes.
Pg 10: Broke out operating expenses that were originally lumped together.
Payment of taxes should be recorded as a transfer on the next line. Purchase
power costs were down. Broke out cash paid to employees.
Depreciation notes two different ways of MMED's depreciating assets. The
department does it as GAAP and DPU. Gary notes that the ledgers were
reviewed and are the same way. Notes MMED disclosures one from MMWEC.
It's what all utilities use. Gary notes that they are a member of MMWEC. User
charges billed and unbilled. Meters are read on a cycle basis and are one month
behind. Note 8: shows a summary note. Note 9: shows transfers between
Electric and the town. Note 10: to be added as available. Implemented in 2009.
Note 12: related to future costs. Note 14: summary of new pension will be added
to this. Pgs 28-29: operation and maintenance expenses. Pg 29: schedules of
utility plan and service was added. Net book value of assets will spark
discussion as to PILOT payment to the town. This has been an ongoing
conversation, Mr. Delvecchio thinks this is great.
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