city of missoula, montana audit exit conference year ended june 30, 2013 presented february 26, 2014
TRANSCRIPT
CITY OF MISSOULA, MONTANA
Audit Exit ConferenceYear Ended June 30, 2013Presented 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)
2009 2010 2011 2012 2013 -
50,000
100,000
150,000
200,000
250,000
300,000
Governmental Business-type
Net Position by category(000)
2009 2010 2011 2012 2013 -
50,000
100,000
150,000
200,000
250,000
300,000
Net Invest in Capital Assets Restricted Unrestricted
Fund Balances(000)
2009 2010 2011 2012 2013 -
2,000
4,000
6,000
8,000
10,000
12,000
General Fund Other Funds
Fund Balance Classifications under GASB 54
GASB 54 CLASSIFICATIONS
2013 2012 2011
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)
2009 2010 2011 2012 2013 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
General All other
Fund Expenditures(000)
2009 2010 2011 2012 2013 -
10,000
20,000
30,000
40,000
50,000
60,000
70,000
General All other
Mill Levies
2009 2010 2011 2012 2013 -
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
900.00
City County Schools State Urban Trans
Taxable Values(000)
2009 2010 2011 2012 2013 98,000
100,000
102,000
104,000
106,000
108,000
110,000
112,000
114,000
City w/o Increment Tax Increment
Debt Margin(000)
2009 2010 2011 2012 2013 70,000
75,000
80,000
85,000
90,000
95,000
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?