CITY OF MISSOULA, MONTANA Audit Exit Conference Year Ended June 30, 2013 Presented February 26, 2014

Presentation Outline Acknowledgements Scope of Audit Summary of Audit Results Financial Statement Highlights Internal Controls and Compliance Audit Committee Communications Component Units Looking Forward

Audit Scope U.S. Generally Accepted Auditing Standards Government Auditing Standards Single Audit Act/OMB Circular A-133 All City Funds Component Units – Missoula Parking Commission – Missoula Redevelopment Agency – Business Improvement District

New Standards GASB 61 – amends the definition of component units GASB 62 – clarifies the applicability of certain FASB and AICPA pronouncements for business-type activities GASB 63 – amends definition of certain assets and liabilities, provides guidance for the reporting of deferred inflows and outflows and redefines the residual measure as net position

Summary of Audit Results Clean (unmodified) opinion on financial statements No internal control findings over financial reporting No findings related to major federal programs

Financial Statement Highlights Government-wide net position Governmental funds fund balances Revenues Expenses Mill Levies Taxable Values Debt Margin

Net Position (000)

Net Position by category (000)

Fund Balances (000)

Fund Balance Classifications under GASB 54 GASB 54 CLASSIFICATIONS Nonspendable $ 1,259,186 $ 1,244,344 $ 1,160,272 Restricted 6,947,461 7,515,122 8,077,142 Committed 2,892,425 2,048,128 1,374,228 Assigned 1,757,237 1,284,045 1,203,481 Unassigned (2,841,994) (2,990,903) (3,178,969) Total $ 10,014,315 $ 9,100,736 $ 8,636,154

Fund Revenues (000)

Fund Expenditures (000)

Mill Levies

Taxable Values (000)

Debt Margin (000)

Governance Communications Auditor Responsibilities Planned Scope and Timing Accounting Policies Significant Audit Findings Difficulties in Performing the Audit Corrected and Uncorrected Misstatements Other Information in the CAFR Disagreements with Management Management Representations Consultations with Other Accountants

Component Units Missoula Redevelopment Agency – Clean opinion on financial statements – No findings related to internal control over financial reporting, no compliance findings Missoula Parking Commission – Clean opinion on financial statements – No findings related to internal control over financial reporting, no compliance findings

Component Units Business Improvement District – Included in CAFR as a discretely-presented component unit – No separate report issued – Two internal control findings

Looking Forward The Missoula economy is slowly recovering ARRA funds were still present on extended grants in 2013 OMB proposal related to Single Audit – May affect scope of testing

Looking Forward Single Audit proposed changes: – Increase in threshold to $750,000 – One “super” circular to merge all current circulars – Reduction in number of compliance requirements

QUESTIONS?