1. Katherine Yuen, CPA Partner
Independent Auditor’s Presentation Audit Results For Fiscal Year Ended June 30, 2017
Katherine Yuen, CPA
Partner

2. Background Code of Ordinances
Oversight, annual audit and public report.
“Annually the town council retains an independent auditor to conduct an audit of and provide audited financial statements for all of the town's financial activities.”

3. Background (Continued)
Who We Are?
In businesses since 1979
In municipal auditing since 1987
Current auditees:
Municipal entities > 150
Cities/towns > 50
Auditees that produce CAFRs > 40
Independent of the Town

4. Annual Audit What we performed: In progress:
Audit of Town’s financial statements
Appropriation Limit calculation AUP
Audit of TDA grants
In progress:
Single Audit

5. Annual Audit (Continued)
Conducted according to auditing standards general accepted in the USA and Government Auditing Standards issued by the Comptroller General of the United States of America.
Results:
Audits – Unmodified (i.e.. Clean) Opinions
Appropriation Limit calculation AUP – No exception noted

6. Comprehensive Annual Financial Statements
Background:
Basic Financial Statements follow the standard set forth by the Governmental Accounting Standards Board (GASB)
Government Financial Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting Program
New major fund – Construction in Progress Fund

7. Financial Highlights – Entity-wide
Net Position $47.6m
Composition:
86% in net investments in capital assets ($41m)
9% in restricted ($4m)
5% in unrestricted ($2m)

8. Financial Highlights – Entity-wide (Continued)
Net Position at 6/30
2017
2016
Change
Net Investment in capital assets
$41.1m
$37.3m
$3.8m
Restricted
$4.2m
$5.4m
($1.2m)
Unrestricted
$2.3m
$1.5m
$0.8m
Total
$47.6m
$44.1m
$3.5m
“…GFOA recommends, at a minimum, that general-purpose governments, regardless of size, maintain unrestricted budgetary fund balance in their general fund of no less than two months of regular general fund operating revenues or regular general fund operating expenditures……” – Appropriate Level of Unrestricted Fund Balance in the General Fund, approved by GFOA September 2015

9. Financial Highlights – Entity-wide (Continued)
Net position to liability ratio: 3 to 1
Major liabilities:
Long-term debt $7.9m ($350k decrease from 6/30/16)
Net pension liability $5.2m ($1.4m increase from 6/30/16)
No OPEB liability

10. Financial Highlights – General Fund
Fund Balance $7.0m
$310k decrease from 6/30/16
Composition:
Committed $2.6m
Assigned $2.0m
Unassigned $2.4m

11. Memorandum on Internal Control and Required Communication
Definitions:
Control Deficiencies -- Material Weakness vs. Significant Deficiencies
Other Matters

12. Memorandum on Internal Control and Required Communication (Continued)
SD Service Organizations Monitoring
SD Investment Policy Compliance

13. Memorandum on Internal Control and Required Communication (Continued)
OM General Fund Budgets and Available Fund Balances
OM Policy on Uncollectible Receivables
OM Cross Training of Cash Receipts Function
OM Recommendation on Best Practice
Documentation of the Budget Policy
Rotation of Check Signers

14. QUESTIONS?
“We are in the business to help our clients succeed”