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HomeMy WebLinkAboutAudit Comm. 12/06/2017Audit Committee Meeting December 6, 2017 Present: Frank DelVecchio, Chairman; Kiera O'Neil, Vice -Chairman, George Sommer, Clerk; Christie Martin and Michael DeSantis Michael Nelligan, Kyle Warne and John Stanbrook were also present The meeting was called to order by 7:OOPM Chairman DelVecchio -» 1. Approval of minutes from October 11, 2017 rl%r # Fri Ms, Martin asked that non -committee members also be listed as present. ;zf N3 ,�,m C Motion: To approve the minutes from October 11, 2017. (O'Neil/Martin)r E ern Passes 4:0:1 Sommer Abstained �o CD CD _n --t n 2. Discussion of FY17 Draft Town Audit cn N Mr. Nelligan stated there are no issues with the Town Audit and this was a great success considers g Mr. Stanbrook has had two jobs this past year as Acting Town Manager and Finance Director. He stated that fixed assets were completed this past weekend, there are some typos and it will go under review back at his office as well. Mr. Sommer asked if they read the actual actuary report. Mr. Nelligan answered that they verify numbers through a template and that they can't do much with service cost and that they audit census data and recalculate anything that can be and compare it to other years. 3. Potential vote to allow the Town's auditing firm to send the completed CAFR to the GFOA by the December 31'` deadline Mr. Nelligan stated that he knows everyone wants to read through the audit, but the CAFR needs to be sent to GFOA by the end of the month, he added that the Town could get an extension, but it was not necessary because there was nothing pending. Mr. Nelligan explained that when you look at the Town of Mansfield you are providing services to residents and there is no overspending. He stated that any variance to the budget is either more or less and they are explainable. Mr. Nelligan also stated that if OPEB was not there the Town would have a $1,000,000 surplus versus a $5,000,000 liability; however this is being seen in lots of communities as a result of pension liabilities. Mr. Nelligan then stated that Mr. Stanbrook completes the CAFR and Powers and Sullivan adds a two page audit letter. Mr. DeSantis asked what the OPEB liability was. Mr. Stanbrook answered it was on page sixty- eight and was $81,433,386. Mr. DeSantis asked if this amount was amortized. Mr. Nelligan answered that the liability was being amortized over a thirty year period and now it is required to come on all at once. Mr. DeSantis asked how this numbers compares to another community like Foxboro for example. Mr. Nelligan answered a few communities have been funding it like Wellesley. Mr. Nelligan added that Electric, Police and Fire employees retire at fifty-five and have thirty years if not more and they will continue to be on the Town's health insurance. Mr. Stanbrook stated that in another year or two the enterprise funds will be covering their own liability, and the Electric Department is already doing so. Mr. DeSantis stated that the Town should be concerned and keep looking at the OPER liability. Mr. Nelligan then went through the draft of the CAFR with the Audit Committee. Mr. Nelligan stated that it is impossible for a town or city to go bankrupt and that is why the State approves free cash and the tax rate. Mr. Nelligan stated that their office would like this back by December 20`h so that they can process because the office will be closed the week after Christmas. Mr. Stanbrook suggested having each individual email himself with any comments or questions, so that open meeting laws are not violated. Mr. Nelligan Audit Committee Meeting December 6, 2017 Page 1 will have it placed for technical review for math and proofreading. Mr. Stanbrook anticipates only spelling or minor changes not any huge changes. Motion: The Audit Committee approves the CAFR pending any minor adjustments. (O'Neil/Martin) Passes 5:0 4. Discussion of FY17 Management Letter Mr. Nelligan continued that there were no new comments this year. He stated that the firm had a few conversations, but given everything that has gone on, he is pleased that everything went so smoothly and that everyone is working to get them resolved. He added that when he first started working with the Town there were fifteen comments and seven comments were removed this year leaving eight that are ongoing matters, but he does not consider them to be substantial. Mr. DelVecchio asked if a consultant to assist in Accounting would be better long term than a full time employee. Mr. Stanbrook answered that a consultant would be better because the Town does not have space. However, there are projects that need to be finished and if the consultant is used beyond the threshold the Town would have to go out to bid. Ms. O'Neil asked about the fraud risk assessment. Mr. Stanbrook answered that would be something a consultant could do and could get that in next year's budget. Mr. DeSantis stated that fraud is a big concern and the Town needs to get that accomplished, and if there is an issue than it could cost more than what a consultant would cost. Mr. Nelligan added that a consultant could meet with each department head and monitor and then they would report back. 5. Discussion of FY17 Town Single Audit findings and recommendations There are two clean opinions special education cluster was audited and there were no issues. 6. Discussion of Powers and Sullivan LLC proposal for FY18-FY20 Auditing Services contract for the Town and Mansfield Municipal Electric Department Mr. Stanbrook stated that they have a proposal for three years they are going up to $62,000 per year and the engagement is exactly the same, He added that it does not have to go to bid and the Town Manager signs the contract. Mr. Nelligan added that the firm does not charge for mileage, copies, phone calls etc. and that it was a fixed priced that can be budgeted each year, Mr. Stanbrook asked the Committee for any feedback adding that they have done a great job and there have been no problems and he was comfortable signing this contract for another three years. The Committee had no concerns. 7. Any other items not known 48 hours prior to the meeting There were no items. 8. Set a date for the next meeting and adjourn The Committee did not schedule another meeting. Motion: To adjourn the Audit Committee meeting on December 6, 2017 at 8:25PM. (O'Neil/DeSantis) Passes 5:0 Signature Minutes prepared by Carrie Champagne Audit Committee Meeting Date December 6, 2017 Page 2