city of missoula, montana audit exit conference year ended june 30, 2007

CITY OF MISSOULA, MONTANA

Audit Exit ConferenceYear Ended June 30, 2007

Presentation Outline• Acknowledgements• Scope of Audit• Summary of Audit Results• Financial Statement Highlights• Internal Controls and Compliance• Management Comments• 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

Summary of Audit Results

• Clean opinion on financial statements

• No significant internal control or compliance findings at either the financial statement level or over major programs

• One management comment regarding IT security policy

Financial Statement Highlights

• Government-Wide Net Assets• Governmental Funds Fund Balances• Revenues• Expenses• Mill Levies• Taxable Values• Debt Margin

Net Assets

Net Assets

Fund Balances

Revenues

Revenues

Revenues

Expenses

Expenses

Mill Levies

Taxable Values

Debt Margin

Internal Controls & Compliance

• Financial Statement Level– No material weakness– No material noncompliance

• Major Programs– No significant deficiencies or material weaknesses– No material noncompliance

Management Comments

• Prior Year Comments Implemented– Payroll– Pledged securities– Deficit fund balances– Capital assets

Management Comments

• The City does not have a written IT security policy. A written policy would provide guidance to all staff should a network security issue arise. We recommend that the IT department develop and adopt a written security policy.

• Management Response – The City of Missoula Finance Department will work in conjunction with the Information Technologies Department and the City Attorney’s Department to draft and adopt a network security policy in the fiscal year 2008.

Audit Committee Communications

• Auditor Responsibilities• Accounting Policies• Accounting Estimates• Audit Adjustments• Disagreements with Management• Consultations with Other Accountants• Issues Prior to Retention• Difficulties in Performing the Audit

Component Units

• Missoula Redevelopment Agency– Clean opinion on financial statements– Old Sawmill project dominates the financials – Internal control finding relative to MAEDC loan

• Missoula Parking Commission– Clean opinion on financial statements– No internal control or compliance findings

Looking Forward

• New Risk Assessment Auditing Standards

• Revised Government Auditing Standards

• Short-Term Investment Pool

• Impact of Slowing Economy

QUESTIONS?