[CALL TO ORDER]
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WE'RE GOING TO GO AHEAD AND CALL THIS MEETING TO ORDER. IT'S 2:0. AND THE FIRST ORDER OF BUSINESS IS TO RECEIVE PUBLIC COMMENTS. THE SECRETARY COMMENTS. OKAY. ALSO, AS A SIDE NOTE, THAT AMERICAN TOURISTS CANNOT BE HERE TODAY BECAUSE THERE WAS A DEATH IN THE FAMILY. THEY HAD TO LEAVE TOWN. SO PRAYERS FOR THEM. SO. THE NEXT ITEM OF BUSINESS IS ITEM B REVIEW AUDIT COMMITTEE PROCEDURES OR POLICIES. PROCEDURES AND OR ACTIVITIES REQUIRED ANNUALLY BY THE CITY OF DUNCANVILLE. AUDIT COMMITTEE RESOLUTION 2015 DASH 111714 AND EVERYBODY'S OH, SORRY, I SKIPPED OVER THE MINUTES. THANK YOU. SORRY. GO BACK. ITEM A CONSIDER THE MINUTES FOR THE DECEMBER
[A. Consider the minutes of December 17, 2024, Audit Committee Meeting]
17TH, 2024 AUDIT COMMITTEE MEETING. AND. DOES ANYBODY WANT. TO SEE ANYBODY MAKE A MOTION REGARDING THE MINUTES OF THE AUDIT MEETING MOVED? IS THAT YOU, JERRY? OKAY. SECOND SECONDED BY MR. TALLY. ALL IN FAVOR SAY AYE. AYE. OKAY. AND ALL OPPOSED. SAME SIGN YOU[B. Review Audit Committee policies, procedures, and/or activities as required annually by the City of Duncanville Audit Committee resolution 2015-111714.]
APPROVED. NOW, NOW WE'LL DO THE REVIEW AUDIT COMMITTEE POLICIES, PROCEDURES AND ACTIVITIES REQUIRED ANNUALLY BY THE CITY OF DUNCANVILLE. AUDIT COMMITTEE RESOLUTION 2015 DASH 111714. AND THE. NOTE THAT I GUESS I'LL MAKE ABOUT THIS IS LOOK AT IT ONE. IT'S BEEN TEN YEARS. SO SINCE IT'S SINCE IT'S BEEN TEN YEARS, IT'S TIME TO LOOK AT IT AGAIN FOR THINGS. AND IT MIGHT BE SOMETHING WE WORKSHOP OR SOMETHING LIKE THAT AS WELL. I LOOKED AT THE CITY'S WEBSITE.RIGHT. WE DON'T HAVE THAT INFORMATION. ALL RIGHT. NO, I DON'T KNOW. OKAY. ALL RIGHT. AND THERE'S VERY SIMILAR THINGS BUT BUT THERE'S MORE DETAIL AND THERE'S THAT. AND IT'S KIND OF LIKE THAT'S KIND OF LIKE THE WEBSITE AND THE AND THE RESOLUTION TO SOMEWHAT BE IN ONE AND ONE ORDER THAT. YOU KNOW, THE, THE RESPONSIBILITIES AND DUTIES. ONE OF THE THINGS I WAS THINKING ABOUT IS DUE TO KIND OF WHAT WE HAVE WITH PAST ISSUES. AND AGAIN, THIS IS IT'S A BACKHANDED COMPLIMENT TO MR. JACKSON AND YOUR GROUP THAT YOU ALL HAVE DONE A LOT OF YEOMAN'S WORK. AND SO FOR THAT, BUT I WOULD LIKE TO SEE FOR MAYBE IN THE FUTURE THAT WE SAY THAT, THAT HERE'S THE DEADLINE AND WE MAKE THAT AS PART OF THE PART OF THE RESOLUTION THAT WE WOULD LIKE TO SEE IT AND HAVE. MARCH 31ST IS THE IS THE DATE OF. AND THEY'RE ALSO THINKING, YOU KNOW, YOU KNOW, WHEN WE HAVE SET TIME FOR TO HAVE THE AUDIT COMMITTEE MEETING LIKE IN LIKE OCTOBER, NOVEMBER SOMEWHERE THAT WE HAVE THAT LISTED IN HERE AS WELL, SAYING THAT WE'LL HAVE EVERYTHING TOGETHER, WE'LL HAVE SET TIME WITH THE AUDITORS, WE'LL GET OUR MEETING AND THEN THAT WAY WE'LL JUST WE HAVE THE SCHEDULE. OKAY. SO YOU RECOMMENDED THEN THAT WE ACTUALLY PUT THE ACTUAL MONTHS IN THE RESOLUTION. THAT'S, THAT'S THAT'S WHAT I'M THINKING.
I MEAN, WE CAN WORKSHOP THIS THING A LITTLE MORE. THAT'S WHEN IT'S DUE. SO YEAH. YEAH. SO. MR. YES, SIR. MR. CHAIR, THERE, THERE WAS A COMMENT THAT YOU HAD THAT I WANTED TO BRING UP FOR DISCUSSION WITH THE WITH THE COMMITTEE, AND THAT WAS IN RELATION TO THE. AUDIT PRESENTATION TO CITY COUNCIL DURING THE, THE MONTH OF MARCH. SO I KNOW, GIVEN WHAT WE'VE BEEN ABLE TO ACCOMPLISH FOR THIS YEAR, WE WERE ABLE TO DO THAT. HOWEVER, JUST WITHIN THE NORMAL TIME FRAME OF THE CITY'S WORKING IN THE AUDIT PROCESS TO BE CONSIDERED ON TIME IS UP THROUGH MARCH 30TH. SO I DIDN'T WANT TO NECESSARILY HAVE IT MEMORIALIZED WHERE, YOU KNOW, FOR DEPARTMENTS IN THE FUTURE THAT IT WAS A REQUIREMENT TO HAVE THE CITY COUNCIL MEETING BEFORE EVEN THE DEADLINE, POTENTIALLY. SO, YOU KNOW, WHETHER IT'S DIFFERENT THINGS THAT THE AUDITORS ARE
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WORKING THROUGH, DIFFERENT THINGS THAT THE FINANCE DEPARTMENT IS WORKING THROUGH IN PREPARATION. SO I WANTED TO AT LEAST ADDRESS THAT, TO SAY THAT THE RECOMMENDATION TO NOT HAVE THAT THAT PARTICULAR LANGUAGE REFER SPECIFICALLY TO THE PERIOD OF MARCH TO ALLOW THE FINANCE DEPARTMENT AND THE AUDITORS, RESPECTIVELY, TO FULL OPPORTUNITY TO BE ONE TIME WITH THE AUDIT SUBMISSION? WELL, AND I KNOW THAT'S PART OF THE GAME PLAN, BUT BUT I I'LL ALSO SAY FOR AT LEAST 15 SOLID YEARS, I KNOW THAT WE HAD NO ISSUES AND WE'RE BACK TO HOPEFULLY WHERE WE HAVE NO ISSUES AND YOU KNOW, AGAIN, THANK YOU FOR YOU. BUT WHEN THE NEXT RICHARD COMES IN, THE NEXT TIER COMES IN NEXT, THE NEXT CITY MANAGER COMES IN. IT'D BE NICE THAT IT'S THERE. SO THAT CITY MANAGER AND THAT STAFF KNOWS WHAT WHAT WHAT THEIR JOB NEEDS TO BE. YES. MISS PITTS, MAY I JUST JUST TO KIND OF PIGGYBACK ON WHAT RICHARD JUST BROUGHT UP, I THINK FOR CLARIFICATION, IN TERMS OF FINISHING AUDIT AND RECEIVING THE AUDIT DATE, OPINION DATE AS OF MARCH 30TH IS DEFINITELY I THINK THAT'S THAT'S OUR DEADLINE AND THAT'S THE GOAL ALWAYS. SO SPECIFYING THAT AS OPPOSED TO BECAUSE IT HAS HAPPENED IN THE PAST WHERE WE HAVE COMPLETED THE AUDIT. BUT JUST DUE TO TIMING, IT DID NOT GET ON THE COUNCIL AGENDA FOR THEIR TO RECEIVE IT.SO JUST I THINK FROM THAT, THAT IS WHAT YOU'RE TRYING TO ACCOMPLISH THERE. THAT'S WHAT I THINK IS WHAT WE'RE GETTING AT. DEFINITELY. I THINK IT'S A GREAT IDEA. I HOLD THE CASTLE ACCOUNTABLE THEN. NO, NO. IN TERMS OF THE MEETING WITH THE AUDIT COMMITTEE AND THE DATE AGAIN TO MISS PETTY'S POINT TO HAVE THAT IN AS MARCH 30TH, THAT ABSOLUTELY MAKES SENSE, BECAUSE THAT'S IN AGAIN WITH THE. SO THE WORDING WOULD BE AS OF BEFORE MARCH 30TH. IS THAT WHAT KIND OF WORDING ARE YOU LOOKING AT. SO THAT THAT IT'S IN WHERE THE AUDIT WOULD BE CERTIFIED OR COMPLETED DATED. SO THERE'S DIFFERENT LANGUAGE THAT COULD BE USED. SO I WOULD SAY THE FINAL AUDIT IS DATED ON OR BEFORE MARCH 30TH OF, YOU KNOW THAT. YES. YES, YES. SO WHAT DO YOU THINK THOUGH? NO, I WOULD AGREE WITH THAT. SO. AND I YOU KNOW, AGAIN, I WISH THE MAYOR WAS ABLE TO BE HERE, BUT I'M ALMOST THINKING THIS MIGHT BE SOMETHING WE WANT TO WORKSHOP AGAIN FOR THIS BECAUSE THE MAIN THING IS, IS I WANT TO GET TO ITEM C, BUT BUT WE DO NEED TO REVIEW THIS AND THIS MIGHT END UP. YOU KNOW, WE HAVE THIS. AND LIKE I SAID THERE'S A DIFFERENCE ON WHAT SAYS HERE. AND THERE'S A DIFFERENCE ON THE WEBSITE. AND I'D LIKE TO SEE THOSE KIND OF IN SYNC WITH ONE ANOTHER. OKAY. THAT SHOULD BE IN A WAY THAT'S JUST KIND OF GIVEN THAT THE WEBSITE AND I MEAN, OUR RESOLUTION SHOULD AGREE, RIGHT? WHAT DO YOU THINK? SO 100%.
THAT'S WHAT I READ BECAUSE I WAS LOOKING AT THE WEBSITE AND THAT'S WHAT IT WAS LIKE. THAT'S A LITTLE BIT DIFFERENT. AND SO BUT THERE'S BEEN ENOUGH TRANSITION. AND I DON'T KNOW IF THE WEBSITE'S BEEN UPDATED OR SO. IT'S THE ISSUE OF HAVING A WEBSITE UPDATED THAT'S THAT'S THE ISSUE. YEAH. BUT THAT STILL DOESN'T QUITE MATCH UP. YEAH. IT STILL DOESN'T QUITE MATCH UP.
[C. Review and discuss the audit of financial statements for the year ending September 30, 2024, with Patillo, Brown & Hill LLC audit firm.]
ALL RIGHT. ITEM C REVIEW AND DISCUSS THE AUDIT OF FINANCIAL STATEMENTS FOR THE YEAR ENDING SEPTEMBER 30TH 2024 WITH PATTILLO, BROWN AND HILL LLC AUDIT FIRM. AND WE HAVE MR. TODD PRUITT WITH US TODAY. EXCUSE ME. YES, SIR. SO ARE WE. WHAT'S YOUR COMMENT REGARDING THE REVIEW OF THE POLICIES AND PROCEDURES? I THINK WE'LL FOLLOW THE WORKSHOP, THAT ONE. SO THAT'S GOING TO BE THE REBECCA AND GEORGE GLENN. I'M SORRY. I'LL GO AHEAD. SORRY. THAT'S ALL RIGHT. SOUND GOOD TO ME? YEAH. JERRY. SO THE CONCLUSION IS WE'LL HAVE A WORKSHOP ON THIS, I THINK. I THINK WE SHOULD. AND THAT WILL BE REFLECTED IN THE MINUTES. IS THAT RIGHT? YES. OKAY. THANK YOU FOR ASKING. OKAY. MR. PRUITT, THANK YOU. I GUESS I'LL START OFF BY THANKING ALL OF THAT.[00:10:01]
RICHARD AND TIA AND ALL THE STAFF AT THE CITY FOR ALL THEIR ASSISTANCE DURING THE COURSE OF THE AUDIT. I KNOW IT'S BEEN A TOUGH LAST YEAR. YOU KNOW, THE CITY HAD GOTTEN KIND OF BEHIND IN ISSUING FINANCIAL STATEMENTS AND IN SOME OF THE DIFFERENT RECONCILIATION PROCESSES, AND THEY DID A REALLY GOOD JOB OF ACTUALLY GETTING THIS THING OUT BY THE END OF MARCH. AND WE CERTAINLY APPRECIATE ALL OF THEIR EFFORTS TO DO THAT. IT KIND OF HELPED US, TOO. I THINK FINISHING, I GUESS WE FINISHED IN THE FALL OF 23, AND SO WE ALMOST SLID RIGHT INTO 24. IT WAS FRESH ON EVERYBODY'S MIND. I THINK THAT HELPED US A LITTLE BIT. EVERYONE SHOULD HAVE A COPY OF THREE DOCUMENTS. IF YOU DON'T. I'VE GOT ONE MORE HERE. YOU'VE GOT A BIG, THICK BOUND ONE, WHICH IS THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT CONTAINS THE AUDITED FINANCIAL STATEMENTS. THEN YOU HAVE A SMALLER BOUND ONE CALLED SINGLE AUDIT REPORT. YOU MIGHT RECALL THAT ANY LOCAL GOVERNMENT THAT SPENDS OVER $750,000 OF FEDERAL GRANTS IN A FISCAL YEAR TRIGGERS THE SINGLE AUDIT PROCESS. AND WHAT THAT IS, IS JUST A COMPLIANCE AUDIT OF THE CITY'S FEDERAL GRANT AWARDS. YOU HAVE TO UNDERGO THAT IN CONJUNCTION WITH YOUR FINANCIAL STATEMENT AUDIT. ANY YEAR, YOU SPEND OVER $750,000 IN FEDERAL GRANTS. MOST OF THE CITIES AND COUNTIES AND LOCAL GOVERNMENTS THAT I'M WORKING WITH ARE HITTING THAT THRESHOLD. EVER SINCE ALL THAT COVID MONEY STARTED FLOWING OUT, IT SEEMS LIKE EVERYBODY'S SINGLE AUDIT NOW I CAN REMEMBER, SEEMS LIKE YEARS AGO WE WERE ALMOST NEVER SINGLE AUDIT OUT HERE. RIGHT NOW IT'S JUST ALL MY CLIENTS THAT USED TO NOT BE SINGLE AUDIT, LEAD SINGLE ON IT EVERY YEAR.AND THEN WE HAVE A SMALLER DOCUMENT THAT'S STAPLED, AND THIS JUST CONTAINS ALL OF THE DIFFERENT COMMUNICATIONS THAT ARE REQUIRED TO BE MADE FROM AN AUDITOR TO AN AUDIT COMMITTEE.
ANYTIME YOU UNDERGO ANY AUDIT, ALL OF THESE ARE MARKED DRAFT, BUT I THINK THEY ARE IN. THE SAME CONDITION. I THINK WE COULD FINALIZE THEM NOW ONCE THE AUDIT COMMITTEE APPROVES IT AND WE GET OUR MANAGEMENT REP LETTER SIGNED AND BACK THERE, I THINK WE SHOULD BE GOOD TO GO. CAMERA READY. UNLESS SOMEBODY FINDS SOMETHING BEFORE WE DO IT THAT THAT NEEDS TO BE CHANGED. SO THESE ARE PRETTY MUCH FINAL. THEY'RE JUST NOT HAVEN'T BEEN SIGNED YET. SO THE REP LETTER YOU MENTIONED WHAT'S THE STATUS OF THAT. WE JUST HAVE TO SEND IT TO YOUR STAFF AND THEY HAVE TO REVIEW IT AND SIGN IT. WE HAVE TO DO THAT. THAT HAS TO BE DONE ON EVERY AUDIT. I DON'T KNOW THAT MR. TRAVIS HAS EVEN SENT THAT YET. PROBABLY NOT. NOT YET. I HAVEN'T SEEN IT COME ACROSS MINE. I'LL SEND THAT TO YOU IN THE MORNING. AND THEN WE GET YOUR LETTER ALSO, MR. COOPER? YEAH. WE DIDN'T HAVE ANY OUTSTANDING OTHER HOLD ITEMS. WE GOT OTHER LEGAL REP LETTERS. WE GOT OUR BID CONFIRMATIONS. I THINK THE ONLY ITEM THAT I SAW ON OUR HOLD ITEM LIST WAS THE MANAGEMENT REP LETTER. SO THAT SHOULD BE. IT SHOULD BE THE LAST DAY. AND THEN I DID HAVE I'M HAVING THE STAFF GO BACK AND PUT THE REPORT AGAIN ONCE MORE. THEY HAD ALREADY BEEN THROUGH FOOTING, BUT I FOUND A FOOTING ERROR IN IT. SO I WAS LIKE, OKAY, I'M GOING TO SEND THIS BACK THROUGH BECAUSE I DON'T KNOW HOW THAT MADE IT THROUGH. BUT SO THEY'RE SUPPOSED TO BE DOING THAT. TODAY WE HAVE SOME NEW SOFTWARE THAT ACTUALLY PUTS THESE REPORTS FOR US. AND I THINK IT'S I'VE NOTICED A COUPLE OF TIMES WHERE WE WERE I'VE SEEN FOOTING ERRORS THAT DIDN'T GET CAUGHT. SO I THINK IT'S YEAH, IT'S A LEARNING CURVE. I THINK FOR OUR STAFF THAT YOU, YOU ACTUALLY WENT THROUGH YOURSELF AND PUT IT IN. WE USED TO IN THE. YEAH, YEAH. BACK IN THE DAY. THAT'S ALL I DID WHEN I FIRST STARTED. I GAVE YOU REPORTS AND YOU PUT IT ALL WEEK.
YEAH. PRETTY PRETTY MUCH. NOW THEY HAVE SOFTWARE THAT IT PUTS IT FOR YOU. BUT THERE'S A LOT OF PLACES IN THESE REPORTS THAT, YOU KNOW, SOME OF THEM ARE TOTALS WHERE IT'S JUST A COLUMN AND YOU AND IT ADDS DOWN. THOSE ARE EASY. THE SOFTWARE DOES PERFECT AT THAT. BUT SOMETIMES IF THEY GO ACROSS AND THINGS LIKE THAT, THEN THOSE ARE THE PLACES WHERE I'VE NOTICED SOME FOOTING ERRORS. SO WE'RE GOING TO THEY'RE GOING TO GO BACK THROUGH AND RUN IT THROUGH ONE MORE TIME. BUT I THINK WE CAUGHT MANY OF THOSE YESTERDAY, HOPEFULLY THE LAST ONE. IF YOU LOOK AT YOUR ANNUAL COMPREHENSIVE FINANCIAL REPORT, JUST KIND OF LET ME REMIND YOU WHAT'S IN THAT REPORT. IF YOU LOOK AT THE TABLE OF CONTENTS, YOU'VE GOT THREE SECTIONS, REALLY. THE INTRODUCTORY SECTION IS A NUMBERED WITH ROMAN NUMERALS. IT REALLY IS JUST A LETTER OF TRANSMITTAL AND AN ORG CHART. AND THE CITY OFFICIALS. THAT SECTION IS UNAUDITED. AND THEN THE LAST SECTION, WHICH IS THE STATISTICAL SECTION WHICH STARTS ON PAGE 84, IS ALSO AN UNAUDITED SECTION. I DO ENCOURAGE YOU TO LOOK AT THE STATS SECTION AT YOUR CONVENIENCE, BECAUSE I THINK THERE'S SOME GOOD INFORMATION IN THERE. FOR EXAMPLE, IF YOU TURN TO SAY, PAGE 92, THERE'S A LOT OF TEN YEAR TREND INFORMATION IN THE STATISTICAL SECTION. I THINK
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IT'S INTERESTING. SO YOU CAN SEE THE SCHEDULE ON PAGE 92. IT HAS TEN YEARS OF GOVERNMENTAL REVENUES AND EXPENDITURES. SO IT KIND OF GIVES YOU A GOOD PICTURE OF HOW THINGS HAVE GONE UP OR DOWN OVER THE YEARS. YOU CAN SEE YOUR TOTAL REVENUES IN THE LAST TEN YEARS HAVE INCREASED FROM 29 MILLION. AND THIS IS JUST GOVERNMENTAL FUNDS ON THIS SCHEDULE ALL THE WAY UP TO 50 MILLION. SO THERE'S LOTS OF GOOD INFORMATION. A LOT OF IT'S TEN YEAR TREND DATA. BUT THAT SECTION IS ALSO UNAUDITED. SO I WON'T REALLY SPEND ANY TIME ON IT TODAY EVEN THOUGH IT'S UNAUDITED. WE DO MAKE SURE THAT IT ALL AGREES TO THE OTHER PLACES IN THE REPORT AS OPPOSED TO. AND WE MAKE SURE THAT YOU HAVE ALL OF THE REQUIRED SCHEDULES THAT ARE IN THERE IN ORDER TO RECEIVE THE GFOA AWARD WHEN YOU SUBMIT YOUR. CFR TO THE GFOA TO RECEIVE THE AWARD. IF YOU'RE MISSING SOME OF THOSE STATISTICAL SCHEDULES, YOU KNOW, THAT'S ONE THING THAT COULD CAUSE YOU TO NOT GET THE AWARD. SO ALWAYS MAKE SURE YOU'VE GOT ALL OF THEM IN THERE AND THAT THEY'RE PRESENTED PROPERLY AND THEY TIE BACK. BUT IT'S IT IS TECHNICALLY AN UNAUDITED SECTION. AND THEN THE REAL MEAT AND POTATOES OF YOUR REPORT IS THE FINANCIAL SECTION. THAT'S THE SECTION THAT'S AUDITED THAT STARTS THERE ON PAGE ONE. THE FIRST ONE IS NOT NUMBERED WITH ROMAN NUMERALS AND GOES ALL THE WAY THROUGH PAGE 83. IF YOU TURN TO PAGE ONE OF THE FINANCIAL SECTION, YOU WILL FIND THE INDEPENDENT AUDITOR'S REPORT OVER THE FINANCIAL STATEMENT AUDIT. AND WHAT THIS REPORT BASICALLY SAYS IS THAT PREPARING THESE FINANCIAL STATEMENTS IS THE RESPONSIBILITY OF THE CITY. WE CAN ASSIST WITH THE PREPARATION OF THE FINANCIAL STATEMENTS, AND WE DO REALLY FOR ALL OF OUR CLIENTS. WE PERFORM VARYING LEVELS OF ASSISTANCE EVERYWHERE, FROM JUST DRAFTING THE ENTIRE THING TO JUST DRAFTING MAYBE CERTAIN PARTS OF IT, OR JUST GIVING SOME OF OUR FEEDBACK ON IT. THAT'S OKAY, AS LONG AS YOU PUT CERTAIN SAFEGUARDS IN PLACE AT YOUR FIRM, WHICH WE HAVE DONE, THERE'S A HANDFUL OF SAFEGUARDS THAT YOU HAVE TO PUT IN PLACE UNDER GOVERNMENT AUDITING STANDARDS OR THINGS LIKE WE HAVE ANOTHER PARTNER ASSIGNED TO THE ENGAGEMENT THAT DOES A CONCURRING REVIEW OF IT THAT DOESN'T WORK ON THE ENGAGEMENT. THEY JUST REVIEW THE REPORT AND THAT WORK PAPERS, AND WE DO CONCURRENT REVIEWS FOR ALL OF OUR GOVERNMENT AUDITS. NOW, EVEN IF THEY'RE NOT REQUIRED. IT'S JUST HELPFUL. THESE REPORTS ARE SO BIG. AND I MEAN, THERE'S, YOU KNOW, OFTEN 100, 200 PAGES OF INFORMATION. IT JUST THE MORE EYES YOU GET LOOKING AT IT THAT KNOW WHAT THEY'RE DOING, YOU'LL CATCH LITTLE. THAT CAUGHT A LOT OF MINOR THINGS YESTERDAY. AS A MATTER OF FACT, WHEN I WENT IN AND CHANGED. AND I JUST THINK IT'S A GOOD PRACTICE TO HAVE ANOTHER PARTNER GO THROUGH THERE AND LOOK AT IT. BUT THAT WAS DONE. WE OUR OPINION THERE IS ON PAGE ONE, WE'VE ISSUED AN UNMODIFIED OPINION AND IT'S OFTEN REFERRED TO AS A CLEAN OPINION. THAT'S THE BEST OPINION THAT YOU CAN RECEIVE. WHAT IT REALLY MEANS TO THE TO YOU AS A USER OF THE OF THIS REPORT, IS THAT THE FINANCIAL STATEMENTS HERE IN THE FINANCIAL SECTION, THEY HAVE BEEN AUDITED BY OUR FIRM. IN OUR OPINION, THEY'RE FREE OF ANY MATERIAL MISSTATEMENTS. THAT MEANS THAT WE'RE NOT GIVING ABSOLUTE ASSURANCE THAT THERE ARE IF THERE ARE NO MISSTATEMENTS, BUT WE'RE GIVING REASONABLE ASSURANCE. AND ALL THAT REALLY MEANS IS THAT WE'RE NOT TESTING EVERY TRANSACTION. I MEAN, THAT WOULD BE COST PROHIBITIVE. SO WE'RE DOING SAMPLING AND THINGS OF THAT NATURE THAT CAUSE US TO GIVE REASONABLE ASSURANCE, AND THAT THEY'RE ALSO PRESENTED FAIRLY IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. YOU'LL ALSO NOTE THAT THE LAST PARAGRAPH THERE ON PAGE THREE, THAT OUR AUDIT WAS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS. THOSE STANDARDS REQUIRE YOUR AUDITORS TO DO A NUMBER OF THINGS THAT GO BEYOND JUST REGULAR, GENERALLY ACCEPTED AUDITING STANDARDS, ONE OF WHICH IS TO REPORT ON YOUR INTERNAL CONTROLS AND COMPLIANCE WITH CONTRACTS, LAWS, REGULATIONS AND GRANTS, AND THAT GOVERNMENT AUDITING STANDARDS REPORT IS ON PAGE ONE OF YOUR SINGLE AUDIT.ANYTIME YOU UNDERGO A SINGLE AUDIT, YOU HAVE TO DO THE AUDIT IN ACCORDANCE WITH THE GOVERNMENT AUDITING STANDARDS. AND THEN MOST LOCAL GOVERNMENTS REQUIRE THAT EVEN IF YOU DON'T HAVE A SINGLE AUDIT, THE GOVERNMENT AUDITING STANDARDS REPORT IS SPLIT UP INTO TWO SECTIONS. THE FIRST SECTION ON PAGE ONE DEALS WITH INTERNAL CONTROLS OVER FINANCIAL
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REPORTING. AND WHAT WE'RE REALLY TALKING ABOUT HERE IS THAT YOUR INTERNAL CONTROLS OVER FINANCIAL REPORTING WOULD BE IT'S ALL THE POLICIES AND PROCEDURES THAT YOU PUT IN PLACE THAT ULTIMATELY LEAD TO PREPARING THESE FINANCIAL STATEMENTS. WE'RE DOING THAT NOT NECESSARILY IN AN EFFORT TO FIND DEFICIENCIES IN THOSE CONTROLS, BUT WE'RE DOING IT SO THAT WE CAN PLAN AND PERFORM OUR AUDIT PROPERLY. SO WE FIRST GAIN AN UNDERSTANDING OF ALL OF YOUR SIGNIFICANT INTERNAL CONTROLS. IF DURING THAT PROCESS, WE FIND ANY DEFICIENCIES THAT WE THINK ARE SIGNIFICANT, EITHER IN THEIR OPERATION, THE WAY THEY'RE FUNCTIONING, OR JUST EVEN IN THE DESIGN OF THE CONTROLS, WE ARE REQUIRED TO REPORT THEM. AND YOU CAN SEE THE LAST PARAGRAPH ON PAGE ONE THAT THERE WERE NO SIGNIFICANT DEFICIENCIES IDENTIFIED DURING THE COURSE OF THE AUDIT. THE SECOND PART OF THE REPORT IS AT THE TOP OF PAGE TWO, AND IT DEALS WITH COMPLIANCE. AND HERE WE'RE TALKING ABOUT COMPLIANCE. LAWS, REGULATIONS, CONTRACTS AND GRANTS. THERE ARE ITEMS THAT WE BELIEVE IF WE WERE TO FIND NONCOMPLIANCE, IT COULD HAVE AN IMPACT ON YOUR FINANCIAL STATEMENTS. USUALLY THOSE ARE THINGS THAT THOSE ARE TYPES OF NON COMPLIANCE WHERE YOU WOULD END UP HAVING A LIABILITY IN YOUR FINANCIAL STATEMENTS. SO FOR EXAMPLE, IF WE WERE TO FIND A IF YOU HAD A FEDERAL GRANT AND WE FOUND SOME EXPENDITURES THAT WERE CHARGED TO IT THAT WERE UNALLOWABLE, YOU MIGHT HAVE TO EVENTUALLY PAY THAT MONEY BACK.SO THAT WOULD CAUSE A LIABILITY TO BE RECORDED IN YOUR FINANCIAL STATEMENTS. THAT'S THE TYPE OF NONCOMPLIANCE THAT WOULD BE REQUIRED TO BE INCLUDED IN THIS REPORT. AND I'M POINTING THAT OUT BECAUSE IT'S DIFFERENT THAN THE NEXT LETTER I'LL GO OVER, WHICH ALSO DEALS WITH COMPLIANCE. BUT I'M HAPPY TO REPORT THERE. YOU CAN SEE IN THE LAST SENTENCE THAT THE RESULTS OF OUR TESTS DISCLOSED NO INSTANCES OF NONCOMPLIANCE UNDER GOVERNMENT AUDITING STANDARDS, SO WE HAD NO INSTANCES OF NONCOMPLIANCE THAT WERE IDENTIFIED. THE THIRD AND FINAL AUDITOR'S REPORT IMMEDIATELY FOLLOWS THAT ON PAGE THREE. AND THIS REPORT DEALS WITH. YOUR SINGLE AUDIT, YOUR FEDERAL SINGLE AUDIT THAT YOU UNDERWENT. IF YOU TURN TO PAGE SIX. YOU'LL SEE A SCHEDULE CALLED THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS. AND THIS SCHEDULE LISTS ALL OF THE DIFFERENT GRANT AWARDS, FEDERAL GRANT AWARDS THAT THE CITIES HAD EXPENDITURES FOR DURING THE FISCAL YEAR, YOU CAN SEE, ENDED UP THE YEAR WITH JUST OVER $3.5 MILLION OF TOTAL FEDERAL EXPENDITURES. YOU SEE, THE LARGEST PROGRAM WAS THE COVID 19 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUND. IF WE REMOVED THAT ONE, YOU KNOW, THAT WOULD BE A SIGNIFICANT CHUNK. IT LOOKS LIKE YOU STILL WOULD HAVE HAD THE SINGLE AUDIT PROCESS, BUT YOU WOULDN'T HAVE ANY TYPE A PROGRAMS CUT OFF. SEVEN 5750 FOR FISCAL YEAR 24, IT ACTUALLY GOES UP TO A MILLION STARTING NEXT YEAR AND FINALLY RAISED IT. SO THERE'S A CHANCE THAT THAT WOULD IMPACT SOME OF THE CITIES THE SIZE. BUT THE WAY THIS PROCESS WORKS, YOUR AUDITORS WON'T TEST EVERY ONE OF YOUR FEDERAL PROGRAMS. IF YOU SELECT CERTAIN PROGRAMS FOR TESTING. AFTER DOING A RISK ASSESSMENT, AND THOSE PROGRAMS THAT YOU TEST ARE CALLED MAJOR PROGRAMS. SO IF YOU LOOK ON PAGE EIGHT, PAGE EIGHT IS YOUR SCHEDULE OF FINDINGS AND QUESTIONED COSTS. ABOUT HALFWAY THROUGH THERE YOU'LL SEE IDENTIFICATION OF MAJOR PROGRAMS. AND UNDER THE SINGLE AUDIT PROCESS, ALL THE MAJOR PROGRAM IS ONE THAT WAS SELECTED FOR TESTING. SO WE TESTED THAT LARGEST PROGRAM. THAT WAS THE ONLY PROGRAM THAT WE WERE REQUIRED TO TEST. THIS YEAR.
YOUR AUDITOR IS REQUIRED TO GET A CERTAIN PERCENTAGE OF COVERAGE OVER YOUR TOTAL FEDERAL EXPENDITURES. IF YOU QUALIFY AS A LOW RISK AUDIT, YOUR AUDITOR HAS TO GET 20% COVERAGE. AND IF YOU DON'T, YOU HAVE TO GET 40% COVERAGE. AND YOU CAN SEE THERE ON PAGE EIGHT THAT YOU DID NOT QUALIFY AS A LOW RISK AUDIT. JUST OFF THE TOP OF MY HEAD, YOU WOULDN'T HAVE QUALIFIED BECAUSE YOU DIDN'T GET YOUR SINGLE AUDIT DONE LAST YEAR WITHIN NINE MONTHS. SO THAT'S AN AUTOMATIC THAT AUTOMATICALLY THROWS YOU OUT OF BEING A LOW RISK AUDIT. SO THAT WILL PUT US IN WHAT PERCENT THEN WE WERE REQUIRED TO GET 40%. BUT I THINK WE GOT WELL ABOVE THAT BECAUSE THAT PROGRAM
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WAS SO LARGE. THE $2.1 MILLION PROGRAM IS A LOT LARGER THAN THE OTHERS. SO WE HAD PLENTY OF COVERAGE TO WORK WITH. SO WE TESTED THAT PROGRAM FOR UP TO 6 OR 7 DIFFERENT COMPLIANCE REQUIREMENTS THAT COULD APPLY. THERE ARE THINGS USUALLY ALLOWABILITY IS ONE OF THE COMPLIANCE REQUIREMENTS YOU ALMOST ALWAYS HAVE TO TEST. WE'RE MAKING SURE THAT YOU THE EXPENDITURES THAT YOU'RE CHARGING TO THE PROGRAM ARE ALLOWABLE UNDER THE PROGRAM.THERE'S USUALLY ALSO REPORTING REQUIREMENTS TO MAKE SURE THAT IF YOU HAD REPORTS TO FILE THAT THEY WERE FILED ON TIME AND ACCURATELY, AND THERE'S A HANDFUL OF OTHERS THAT COME INTO PLAY, BUT THOSE ARE THE BIG ONES. SO THAT'S THE PROGRAM THAT WE TESTED, THE OPINION LETTER THAT WE STARTED TALKING ABOUT A SECOND AGO ON PAGE THREE. BUT THIS REALLY SAYS IS THE FIRST PART OF IT IS WE'RE ACTUALLY EXPRESSING AN OPINION AS TO WHETHER OR NOT WE BELIEVE THE CITY COMPLIED WITH ITS MAJOR PROGRAM REQUIREMENTS OF THAT PROGRAM, AND YOU SEE THERE IN THE SECOND PARAGRAPH OF THE FIRST SECTION THAT WE'VE ISSUED AN UNMODIFIED OPINION OR A CLEAN OPINION. AND AGAIN, THAT BASICALLY MEANS THAT IN OUR OPINION, YOU DID COMPLY IN ALL MATERIAL RESPECTS WITH THE REQUIREMENTS. AND THEN THE SECOND PART OF THIS OPINION LETTER DEALS WITH INTERNAL CONTROLS. YOU'LL SEE AT THE BOTTOM PART OF PAGE FOUR. AND HERE WE'RE TALKING ABOUT INTERNAL CONTROLS NOT OVER THE FINANCIAL REPORTING PROCESS LIKE THE GOVERNMENT AUDITING STANDARDS REPORT. THIS IS INTERNAL CONTROLS OVER COMPLIANCE WITH YOUR MAJOR PROGRAM. SO THEY'RE ALL THE POLICIES AND PROCEDURES THAT YOU HAVE IN PLACE TO MAKE SURE THAT YOU COMPLY WITH THE COMPLIANCE REQUIREMENTS OF THE MAJOR PROGRAM THAT WE TESTED. IF WE FIND ANYTHING THAT WE THINK IS A SIGNIFICANT DEFICIENCY IN THOSE INTERNAL CONTROLS, WE'RE REQUIRED TO INCLUDE THEM IN THIS REPORT. BUT THERE WERE NO SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROLS OVER COMPLIANCE THAT WERE. SO THE RESULTS OF THE AUDIT ARE VERY CLEAN. IT'S WHAT EXACTLY WHAT YOU WANT. IF YOU'RE AN AUDIT COMMITTEE OR YOU'RE LOOKING FOR YOU'VE GOT CLEAN OPINION ON YOUR FINANCIAL STATEMENTS AND YOUR GOVERNMENT AUDITING STANDARDS REPORT, YOU HAVE NO SIGNIFICANT DEFICIENCIES IN THE INTERNAL CONTROLS OVER THE FINANCIAL REPORTING PROCESS. AND THERE WERE NO INSTANCES OF NONCOMPLIANCE IDENTIFIED THAT COULD HAVE A SIGNIFICANT IMPACT ON YOUR FINANCIAL STATEMENTS.
AND THEN THE FEDERAL SINGLE AUDIT COMPLIANCE PART OF YOUR AUDIT, YOU GOT A CLEAN OPINION ON COMPLYING WITH YOUR MAJOR PROGRAM. THE COVID PROGRAM. AND THEN THERE WERE NO SIGNIFICANT DEFICIENCIES IN CONTROLS THAT WERE IDENTIFIED OVER COMPLYING WITH YOUR. WITH THAT PARTICULAR MAJOR PROGRAM. SO VERY CLEAN RESULTS OF THE AUDIT. YOU WILL SEE ON PAGE NINE, YOU'LL SEE A SCHEDULE CALLED THE SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS. AND THIS SCHEDULE LISTS ANY FINDINGS THAT YOU HAD FROM THE PREVIOUS YEAR. AND LIST THE CURRENT STATUS OF THOSE FINDINGS. AND YOU CAN SEE THERE WAS ONE MATERIAL WEAKNESS IN LAST YEAR'S REPORT. YOU PROBABLY REMEMBER IT WAS BASICALLY JUST FOR NOT GETTING THE FINANCIAL STATEMENTS AND THE SINGLE AUDIT COMPLETED WITHIN NINE MONTHS OF FISCAL YEAR END. SO OBVIOUSLY THAT MATTER HAS BEEN RESOLVED AND THE SCHEDULE WON'T HAVE ANYTHING ON IT IN THE FUTURE YEARS. MY TURN TO. I GUESS WE CAN TAKE A FEW MINUTES NEXT AND GO OVER THE. REQUIRED COMMUNICATIONS, AND I WON'T GO OVER EVERY SINGLE ITEM IN HERE. WE'LL HIT THE REPORT, BUT I THINK SOME OF WHICH WE'VE ALREADY COVERED. AGAIN, THESE ARE JUST ITEMS THAT ARE REQUIRED TO BE REPORTED COMMUNICATED TO THE AUDIT COMMITTEE. ANYTIME YOU UNDERGO AN AUDIT, THE FIRST ONE YOU KIND OF ALREADY TALKED ABOUT, IT DEALS WITH OUR RESPONSIBILITY DURING THE AUDIT, COMPARED TO THE CITY'S RESPONSIBILITY, WE DID COMPLETE OUR AUDIT WITHIN THE PLANNED SCOPE AND TIMING THAT WE ORIGINALLY WERE SHOOTING FOR. THE THIRD ONE, COMPLIANCE WITH ALL ETHICS REQUIREMENTS REGARDING INDEPENDENCE THAT REALLY DEALS WITH ANY ANY IMPAIRMENTS TO YOUR INDEPENDENCE, ANY. WE HAVE TO IDENTIFY ANY THREATS TO OUR INDEPENDENCE AND MAKE SURE THOSE ARE ADDRESSED. ONE THREAT IDENTIFIED AS ANYTIME YOU ASSIST WITH THE PREPARATION OF THE
[00:30:05]
FINANCIAL STATEMENTS, AND THAT'S AN INDEPENDENT THREAT. AND LIKE I SAID, WE PUT THE PROPER SAFEGUARDS IN PLACE TO MAKE SURE WE WERE IN COMPLIANCE. THERE SIGNIFICANT RISKS THERE. THAT'S NEAR THE TOP OF PAGE TWO. THIS IS YOU MIGHT REMEMBER, THIS IS A RELATIVELY NEW MATTER THAT MADE IT INTO THIS REPORT. SIGNIFICANT RISKS HAVE ALWAYS BEEN AROUND IN THE AUDIT PROCESS. ALL THEY ARE ARE RISKS THAT WE IDENTIFY KIND OF AT THE BEGINNING OF THE AUDIT THAT MIGHT LEAD TO A MATERIAL MISSTATEMENT. WE'VE ALWAYS HAD SIGNIFICANT RISKS, BUT BEGINNING MAYBE 2 OR 3 YEARS AGO, WE HAD TO START PUTTING THEM IN THIS COMMUNICATION LETTER. SO THAT KIND OF CAUSED SOME PEOPLE SOME CONCERNS SEEING IN THEIR IN THE YEAR OF IMPLEMENTATION, BECAUSE THE VERY FIRST RISK THERE LISTED MANAGEMENT OVERRIDE OF CONTROLS. THAT'S ACTUALLY A SIGNIFICANT RISK. THAT'S IN THE STANDARDS FOR EVERY AUDIT TEAM. SO YOU'RE ALWAYS GOING TO HAVE THAT MANAGEMENT OVERRIDE OF CONTROLS.THAT'S THE RISK THAT EVEN THOUGH YOU HAVE PROPER CONTROLS SET UP, THEY COULD BE CIRCUMVENTED BY MANAGEMENT. AND I THINK THE REASON THAT CAUSED SOME CONCERN IS BECAUSE PEOPLE SAW THAT AND THEY THOUGHT, WHO DO WE HAVE A PROBLEM WITH MANAGEMENT OVERRIDE OF CONTROLS HERE. AND I ALWAYS LIKE TO POINT OUT THAT, NO, YOU DON'T. THAT'S JUST YOU'RE GOING TO SEE THAT EVERY YEAR AND EVERY AUDIT REALLY IT'S IN THE STANDARDS. THEN THE SECOND ONE THERE. P CARDS. WE LISTED A RISK THERE. I THINK WE DID ADDITIONAL WORK ON ON YOUR CARD TESTING THIS YEAR. AND, AND IN THE PEER REVIEW PROCESS THEY REALLY STARTED TO CRACK DOWN. AND THAT YOU LIST MORE OF THESE RISKS THAN JUST THE ONE THAT'S REQUIRED TO BE IN THERE MANAGEMENT CONTROLS. SO WE'VE STARTED ADDITIONALLY ADDING SOME OF OUR OTHER RISKS P CARDS SINCE WE DID SOME ADDITIONAL WORK IN THAT AREA DURING THIS AUDIT AS LISTED HERE. AND YOU CAN SEE THERE THAT NONE OF THE RISKS THAT WE'VE LISTED RESULTED IN ANY TYPE OF CONTROL, DEFICIENCY OR FINDINGS. WHAT TYPE OF YOU SAID YOU WHAT KIND OF GIVE ME AN EXAMPLE OF THE TEST YOU WOULD DO REGARDING THAT? WE WOULD WE WOULD GAIN A THOROUGH UNDERSTANDING OF YOUR CONTROLS OVER CARDS, AND THEN WE WOULD SELECT A SAMPLE OF ACTUALLY CHARGES THAT WERE MADE ON THERE AND, AND THEN TEST THOSE FOR COMPLIANCE WITH ALL OF YOUR PROCEDURES. I THINK THE ONLY ITEMS THAT WE NOTED AT ALL HAD ALREADY BEEN NOTED BY THE CITY BEFORE WE LOOKED AT IT. SO YOU WOULD IDENTIFY WHO WHO WOULD HAVE A CRITICAL. YES. AND THEN WE DETERMINE OUR POPULATION, AND THEN WE'LL SELECT A RANDOM SAMPLE AND TEST SOME OF THOSE EXPENDITURES. AND THAT'S THAT IS AN AREA THAT OVER THE YEARS THAT I'VE SEEN, YOU KNOW, SOME SOME FRAUD AND ABUSE IN THAT THOSE P CARDS FOR SURE HAD A, HAD AN ISSUE HERE IN THE DFW AREA ONE YEAR WHERE THERE WERE SOME. REALLY FRAUDULENT. I MEAN, YOU COULD SAY ABUSE, BUT TO ME IT WAS FRAUDULENT REALLY JUST PERSONAL ITEMS BEING CHARGED OR BEING CARDS AND PROBABLY SAW, I THINK IT WAS ALL IN THE PAPER FOR A WHILE OUT THERE. SO IT'S GOOD TO TAKE A LOOK AT THOSE THINGS PERIODICALLY AND DO A LITTLE BIT OF EXTRA TESTING. BUT WE DIDN'T IDENTIFY ANYTHING. I THINK THE ONE MINOR ITEM THAT I NOTED WAS, AGAIN, IT HAD ALREADY BEEN NOTED BY CITY EMPLOYEES AND CORRECTED BEFORE WE LOOKED AT IT, TRYING TO THINK, I LIKE TO REMEMBER IT WAS, DO YOU DO THAT ON A REGULAR BASIS? TEST THAT. TEST THE P CARDS? WELL, WE GO THROUGH A PROCESS, AN APPROVAL PROCESS THROUGH OUR SYSTEM. THE CARD HOLDERS WILL ENTER IN THEIR INFORMATION, GIVE A DESCRIPTION, ATTACH THE RECEIPTS AND THEN IT GOES THROUGH OUR WORKFLOW. SO IT WILL FIRST GO TO THEIR DEPARTMENT DIRECTOR TO REVIEW AND TO AND TO APPROVE. AND THEN ULTIMATELY COMES TO RICHARD FOR FINAL APPROVAL. AND THEN WE ALSO GO THROUGH ONE MORE FINAL KIND OF AUDIT APPROVAL FROM OUR FINANCE TECHNICIAN BEFORE POSTING. SO WE GO THROUGH SEVERAL LEVELS OF APPROVAL BEFORE ACTUALLY POSTING THOSE ITEMS. OKAY. BUT YOU WILL LOOK AT IT ON A MONTHLY BASIS. YOU LOOK AT HOW MANY ROUGHLY. WELL BELIEVE WE HAVE ROUGHLY LIKE 55 CARD HOLDERS. SO LOOKING AT THEIR STATEMENTS EVERY, EVERY MONTH. SO AS A MATTER OF FACT, WE HAD THE NOTICE GO OUT BECAUSE OF COURSE WE HAD FEBRUARY COME TO A CLOSE. AND SO WE GIVE THEM A TIMELINE THAT WE WANT TO GET THOSE BACK FOR REVIEW APPROVAL AND SO THEY CAN GET POSTED. SO WE SO WE LOOK AT ALL OF THEM AND WHO LOOKS AT YOURS. SO MINE GOES INITIALLY TO THE ASSISTANT CITY
[00:35:06]
MANAGER. AND THEN INSTEAD OF COMING TO ME, I FORWARDED IT OVER TO TIA TO LOOK AT IT. SO I'M NOT APPROVING. YES, SIR. OKAY. AND THAT ITEM THAT YOU HAD SPOKE OF, TODD, WE HAD ONE SCENARIO, ONE INSTANCE WHERE SOMEONE HAD ACCESS TO THE LIMIT IS 3000 BASICALLY PER DAY. THERE WAS SOMEONE THAT HAD GONE OVER THE LIMIT AT ONE POINT. AND WE REALIZED VERY QUICKLY, AND THEN THERE WAS JUST AN ISSUE WITH THE SETUP, THE INITIAL SETUP OF THE PERSON. AND SO WE WENT BACK AND TOOK CARE OF THAT AND NOTED TO THE FILE PRIOR, PRIOR TO THE AUDIT. SO. SO IT HAD ACTUALLY ALREADY BEEN IT WASN'T ANYTHING THAT WE CAUGHT AND POINTED OUT TO THE CITY, AND THE CITY HAD ALREADY CAUGHT IT AND IT WAS DOCUMENTED. SO THE CONTROLS ARE WORKING THERE, SO TO SPEAK. YES, YES, I HAVE A QUESTION TOO, ALONG THE SAME LINES. IT'S THERE IS EVERYBODY GETS A P CARD WITH THE SAME LIMITS OR, OR IS IT. SO. YES. SO THE, THE LIMIT IS THE SAME ACROSS THE BOARD. SO THERE'S A TRANSACTIONAL LIMIT THAT MRS. PEREZ JUST ALLUDED TO. MR. MACK BURNETT OF $3,000. AND THEN THERE IS A PER MONTH LIMIT OF $10,000. RIGHT. AND THEN IS THERE EMERGENCY IF SOMETHING COMES UP, AS AN EMERGENCY LIMITS AS WELL THAT THEY CAN BE ADJUSTED OR. YES, IF SOMETHING COMES UP, IT CAN THROUGH THE P CARD ADMINISTRATOR, WHICH IS OUR OUR PURCHASING, OUR PROCUREMENT OFFICER AND RICHARD AS WELL. SO IN EMERGENCY SITUATIONS, THAT'S ACTUALLY PART OF OUR CONTINUITY OF OPERATIONS PLAN FOR EOC FOR ANY EMERGENCY IS TO BE ABLE TO OPEN THOSE UP IF NEED BE IN AN EMERGENCY SITUATION OR APPROVAL BY FINANCE DIRECTOR OR THE CITY MANAGER, WHERE IT IS CITY COUNCIL. PEOPLE HAVE A PEACOCK. EMPLOYEES, IS THAT RIGHT? THAT'S CORRECT. CORRECT. THANK YOU. THE NEXT SECTION TALKS ABOUT THE CITY SIGNIFICANT ACCOUNTING PRACTICES. WE HAVE TO NOTE IF THERE ARE ANY NEW SIGNIFICANT EITHER CHANGES IN YOUR ACCOUNTING CONTROLS OR ACCOUNTING STANDARDS THAT CAME OUT. THERE WERE SOME NEW STANDARDS THAT WERE IMPLEMENTED THIS YEAR, BUT THERE WAS THEY DIDN'T HAVE A SIGNIFICANT IMPACT ON ON THE CITY FINALLY GOT A REPRIEVE. HE HAS BEEN CHURNING OUT. DIFFICULT STATEMENTS TO IMPLEMENT FOR A WHILE, AND THIS WAS A YEAR WHERE WE REALLY GOT A LITTLE BREAK ON THAT. WE'VE HAD LEASES AND SUBSIDIES AND PENSIONS AND OPEB OVER THE LAST SEVERAL YEARS THAT HAVE REALLY BEEN TIME CONSUMING TO IMPLEMENT. SO THIS WAS A NICE BREAK HERE AND NOT HAVING TO DEAL WITH ANY HUGE NEW STANDARDS TO IMPLEMENT. TALKS ABOUT ACCOUNTING ESTIMATES. MOST OF THE TIME WHEN YOU HAVE FINANCIAL STATEMENTS, YOU'RE PREPARING FINANCIAL STATEMENTS. YOU'LL HAVE SOME AREAS WHERE YOU HAVE ESTIMATES, THE BIGGEST ESTIMATES, MOST SIGNIFICANT ESTIMATES YOU HAVE IN YOUR FINANCIAL STATEMENTS TO DEAL WITH YOUR CAPITAL ASSETS, YOU HAVE TO DEPRECIATE THOSE. SO YOU'RE ESTIMATING THE USEFUL LIFE AND HOW MUCH OF IT'S BEEN USED UP. YOUR ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES, YOU'VE GOT A LOT OF RECEIVABLES INCLUDED IN YOUR FINANCIAL STATEMENTS. AND THEN THE BIG ONE, A BIG, HUGE ESTIMATES WITH RESPECT TO YOUR NET PENSION LIABILITY AND YOUR OPEB LIABILITIES THAT ARE REPORTED. THOSE LIABILITIES ARE DETERMINED BY ACTUARIES. WHAT WE DO WITH ESTIMATES IS THAT WE MAKE SURE, IN GENERAL, THAT WE BELIEVE THAT YOUR ESTIMATES ARE REASONABLE. AND THEN ANYTIME YOU'VE GOT A SITUATION WHERE THE ACTUARY IS COMING UP WITH THE ESTIMATES, WE JUST TEST THE CENSUS DATA THAT YOU SUBMIT TO THE ACTUARIES AND MAKE SURE THAT'S ACCURATE, BECAUSE WE'RE NOT ACTUARIES AND WE CAN'T REALLY RE PERFORM WHAT THEY'RE DOING, BUT WE CAN TEST TO MAKE SURE WHAT YOU'RE GIVING THEM IS, IS CORRECT. YOU DO CONFIRM THAT WITH THEM. IS THAT CORRECT. YES. AND. IF THEY COME BACK WITH BIG HUGE LIABILITIES, I GUESS THEIR BEST GUESS AT HOW MUCH YOU OWE ON SOME OF THESE OPEB PLANS IN PARTICULAR CAN BE CAN BE VERY LARGE. THEY'RE NOT BAD OUT HERE, BUT I'VE GOT SOME LOCAL GOVERNMENTS THAT ARE[00:40:04]
REALLY BIG LIABILITIES. OBVIOUSLY WE LOOK AT ALL OF YOUR DISCLOSURES OR THEY'RE NEUTRAL AND CONSISTENT AND CLEAR SIGNIFICANT DIFFICULTIES DURING THE AUDIT. WE DIDN'T HAVE ANY OUT HERE, WHICH WAS NICE. WE DIDN'T HAVE NO ISSUES IN GETTING INFORMATION OR ANYTHING OF THAT NATURE. MISSTATEMENTS THAT WERE IDENTIFIED DURING THE COURSE OF THE AUDIT. IF WE HAD IDENTIFIED THE WAY THE AUDIT PROCESS REALLY WORKS, EVEN IF WE IDENTIFY A MATERIAL MISSTATEMENT, WHAT WE USUALLY DO WOULD BE WE WOULD JUST PROPOSE AN ADJUSTMENT TO CORRECT THAT MISTAKE, AND THEN YOU'D STILL GET A CLEAN OPINION AS LONG AS YOU MADE THAT ADJUSTMENT. HOWEVER, ON THIS AUDIT, WE DIDN'T HAVE ANY MATERIAL ADJUSTMENT ON AN ADJUSTMENT. SO. BUT YOU WOULD REPORT THAT WOULD YOU NOT. YEAH. THAT'S WHAT THIS LITTLE SECTION WOULD BE, IS THAT IF WE OKAY YOU GOT A CLEAN OPINION. BUT WE HAD TO MAKE THESE TEN AUDIT ADJUSTMENTS. BUT OUT HERE WE DIDN'T HAVE ANY AUDIT ADJUSTMENTS PROPOSED THAT WERE THAT WERE MATERIAL. SO I ALWAYS LIKE TO POINT THAT OUT BECAUSE REALLY MORE OFTEN THAN NOT WE PROBABLY ARE PROPOSING EVEN A MATERIAL ENTRY IN MOST OF OUR CLIENTS PROBABLY. SO I LIKE TO POINT OUT WHEN WE'RE NOT HAVING TO DO THAT BECAUSE THAT'S. THAT'S INDICATIVE THAT YOU'RE, YOU KNOW, YOU'RE DOING A PRETTY GOOD JOB IF WE'RE NOT MAKING ANY, ANY AUDIT ADJUSTMENTS THAT ARE MATERIAL DISAGREEMENTS WITH MANAGEMENT. WE DIDN'T HAVE ANY DISAGREEMENTS. WE GENERALLY DON'T HAVE A LOT OF DISAGREEMENTS. SO THAT'S GOOD TO GO. RICHARD, I HAVE HAD SOME INTERESTING DISAGREEMENTS WITH MANAGEMENT OVER THE YEARS, BUT NOT OUT HERE. I HAD A DISAGREEMENT ONCE WITH A COLLEAGUE THAT I PICKED UP, AND THEY WERE THEY HAD BEEN ISSUING NOT FOR PROFIT FINANCIAL STATEMENTS. THEY WEREN'T USING THE RIGHT MODEL. THEY'RE SUPPOSED TO BE USING GOVERNMENT FINANCIAL STATEMENTS. AND WE HAD A BIG DISAGREEMENT OVER OVER THAT OF ALL THINGS. SO THAT WOULD BE SOMETHING THAT YOU WOULD SEE POP UP IN THIS REPORT. BUT WE HAVEN'T HAD THOSE TYPES OF THINGS OUT HERE. IF YOU IF MANAGEMENT HAD CONSULTED OTHER ACCOUNTANTS AND WE KNEW ABOUT IT, WE'RE REQUIRED TO. INCLUDE THAT IN THIS REPORT. AND REALLY THAT'S A MATTER OF IF YOU ARE CONSULTING WITH ANOTHER ACCOUNTANT, WE'RE SUPPOSED TO MAKE SURE THAT THAT OTHER ACCOUNTANT HAS ALL OF THE INFORMATION IN ORDER TO MAKE THEIR DECISION, BUT WE DON'T GET A LOT OF THAT EITHER. USUALLY THERE WERE NO SIGNIFICANT FINDINGS OR ISSUES. WE TALKED ABOUT THE OTHER INFORMATION IN YOUR ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT'S REALLY REFERRING TO THE STATISTICAL SECTION. AND THE INTRODUCTORY SECTION IS NOT AUDITED. WE'RE STILL PERFORMING CERTAIN PROCEDURES OVER THAT, EVEN THOUGH WE'RE NOT ISSUING AN OPINION ON IT. WE TALKED ABOUT STANDARDS EARLIER. YOU CAN SEE THEY'VE GOT WE'VE ALREADY HAVE ISSUED FOUR THAT HAVE BEEN ADOPTED THAT ARE HAVE NOT BEEN REQUIRED TO BE IMPLEMENTED YET.SO YOU'VE GOT THOSE LISTED. COMPENSATED ABSENCES IS NEXT YEAR. I DON'T THINK THAT WILL BE A VERY DIFFICULT ONE TO IMPLEMENT. AND EVEN THE 103, THE FINANCIAL REPORTING MODEL IMPROVEMENTS AT ONE POINT THAT WAS LOOKING LIKE IT WAS GOING TO BE A REALLY SIGNIFICANT STANDARD, BUT BY THE TIME THEY ISSUED THE FINAL VERSION, I DON'T THINK IT'S GOING TO BE THAT EASY. SO WE REALLY DON'T HAVE I DON'T THINK THE HUGE STANDARDS, EVEN ON THE HORIZON THAT WE'VE HAD IN THE LAST 5 TO 10 YEARS, BUT I'M SURE THEY'RE WORKING ON ONE RIGHT NOW, BUT THEY'RE GOING TO GIVE US THEY'RE GOING TO HAVE TO DO THAT'S GOING TO TAKE FOREVER. HOPEFULLY I'LL BE RETIRED BEFORE THEY DO ONE OF THOSE. A WHOLE NEW REPORTING MODEL, THAT 103 WHEN IT FIRST STARTED WAS GOING TO BE A COMPLETELY NEW REPORTING MODEL. AND I REMEMBER THE LAST TIME WE HAD THAT WAS BACK IN THE EARLY 2000, AND THAT WAS A HUGE UNDERTAKING. I MEAN, JUST A COMPLETELY NEW ACCOUNTING RULES, AND I COULD DO WITHOUT HAVING TO DO THAT AGAIN. DO YOU NORMALLY COMMENT ON WHEN THEY WHEN THEY ASKED YOU TO COMMENT? I USUALLY DON'T I DO HAVE SOME COLLEAGUES THAT I KNOW THAT DO, AND I'LL TALK ABOUT THEM IF I HAVE ANY CONCERNS OR IDEAS. I'LL PASS THEM ALONG TO PEOPLE THAT I KNOW THAT HAVE INFLUENCE ON THERE, BUT I GENERALLY DON'T. NOT MY OWN FIRM, JUST GENERALLY RESPONSES TO THOSE COMMENT LETTERS. I PROBABLY DON'T WANT MY COMMENTS ON SOME OF THESE STANDARDS, BECAUSE SOMETIMES I THINK THAT THEY'RE JUST THESE NEW STANDARDS ARE LIKE THE LEAST STANDARD TO ME. I MEAN, IT'S NOT ANY BETTER. IT'S JUST DIFFERENT.
I MEAN, IT'S NOT REALLY EVEN WORSE EITHER, BUT IT'S KIND OF JUST A CHANGE. SO IT'S NOT I
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DON'T THINK IT MADE THE REPORT ANY MORE USEFUL TO THE READERS. SO WHAT'S THE POINT OF MAKING THE WHOLE COUNTRY JUMP THROUGH A BUNCH OF HOOPS TO IMPLEMENT A NEW STANDARD WHEN YOU'RE REALLY NOT GETTING THAT MUCH MORE INFORMATION OUT OF IT, OR BETTER INFORMATION THAN YOU HAD BEFORE? AND I THINK A LOT OF TIMES, IF YOU DO HAVE PEOPLE THAT HAVE LEARNED THE RULES KIND OF ALONG THE WAY AND YOU UNDERSTAND IT NOW, THEN THEY CHANGE IT UP AND NOW YOU DON'T UNDERSTAND IT. SO SOMETIMES I THINK THEY'RE JUST DOING MORE HARM THAN GOOD. AND I LIKE THE STANDARDS THAT I THINK THAT THERE'S A REASON FOR THEM, YOU KNOW, LIKE, OKAY, THIS IS AN IMPROVEMENT IN THERE. THIS IS BETTER THAN WHAT WE'VE HAD BEFORE. BUT I THINK SOMETIMES THEY'RE JUST CHURNING OUT STANDARDS TO JUSTIFY THEIR EXISTENCE. AND HEY, WE'RE GOING TO DO IT THIS WAY NOW. SO THOSE ARE THE ONES THAT I DON'T REALLY CARE FOR. I GUESS. ONE MORE ITEM I WOULD POINT OUT. I KNOW YOU ALL HAVE A GENERAL FUND FUND BALANCE POLICY. TO KEEP IT AT. IS IT 60 DAYS OR I CAN'T REMEMBER OFF THE TOP OF MY HEAD IS A PERCENTAGE. NINE MONTHS. I THINK THE GENERAL FUND UNASSIGNED FUND BALANCE ENDED UP, I WANT TO SAY 50. YEAH, 55% OF EXPENDITURES. SO YOU'RE YOU CAN SEE THAT THAT EXPLAIN THAT TO ME. IF YOU LOOK AT PAGE 1616 YOU'LL FIND THE BALANCE SHEET FOR YOUR GOVERNMENTAL FUNDS. AND THE CITY HAS A POLICY TO KEEP YOUR UNASSIGNED FUND BALANCE.YOUR FUND BALANCE IS SPLIT UP INTO INTO FIVE DIFFERENT CATEGORIES OR POTENTIALLY FIVE DIFFERENT CATEGORIES. THE UNASSIGNED FUND BALANCE IS REALLY THE ONE THAT HAS THAT SECTION OF YOUR FUND BALANCE HAS NO RESTRICTIONS WHATSOEVER. YOU CAN HAVE RESTRICTED FUND BALANCE, WHICH IS RESTRICTED BY EITHER A LAW OR AN OUTSIDE PARTY. YOU COULD HAVE COMMITTED OR ASSIGNED A FUND BALANCE, WHICH THOSE RESTRICTIONS ARE, ARE CREATED BY THE CITY, BUT HAVE DIFFERING LEVELS OF, I GUESS, OF TEETH TO THEM. BUT YOU'RE UNASSIGNED REALLY IS A PORTION OF YOUR FUND BALANCE THAT HAS NO RESTRICTIONS, THE LEAST RESTRICTED PORTION OF YOUR FUND BALANCE. YOU CAN SEE YOU ENDED UP THE YEAR WITH JUST OVER 22.5 MILLION OF UNASSIGNED FUND BALANCE IN THE GENERAL FUND, WHICH IS 55% IS THE PERCENTAGE OF YOUR UNASSIGNED FUND BALANCE DIVIDED BY YOUR TOTAL EXPENDITURES FOR THE YEAR, WHICH YOU WOULD FIND THAT ON PAGE 19, YOUR EXPENDITURES IS JUST OVER 40.6 MILLION OF EXPENDITURES. AND YOU HAD 22.5 MILLION. OF UNASSIGNED FUND BALANCE. SO YOU'VE GOT OVER HALF A YEAR OF UNASSIGNED FUND BALANCE, WHICH IS WELL ABOVE YOUR TARGET GOAL. ARE THERE OTHER LIQUIDITY? THAT'S JUST TO MAKE SURE THAT YOU HAVE ADEQUATE RESERVES IN PLACE FOR ANY TYPE OF THINGS THAT POP UP. AND I'LL SEE SOMETIMES IF YOU GET IF IT DROPS BELOW, YOU KNOW, IF YOU GOT ONLY ONE MONTH OF UNASSIGNED FUND BALANCE COULD BE AN INDICATION OF YOU NEED TO BEEF THAT BACK UP IN CASE SOMETHING HAPPENS IN THE FUTURE WHERE YOU NEED TO BE TO HAVE THAT THERE. SO MR. TYLER COMMENT TO THAT IS I DON'T THINK THERE WAS ANYTHING WRITTEN IN PLACE. SO NOW THERE'S SOMETHING WRITTEN IN PLACE. WE CALL ARE THERE ANY OTHER TO RICHARD? ARE THERE ANY OTHER? EQUITY GOALS DO YOU HAVE FOR ANY OF THE OTHER FUNDS OR JUST THE GENERAL FUND? I KNOW SOME OF OUR CITIES HAVE THEM AND SAY THE UTILITY SIGNS OR. YEAH, WE YES, WE JUST RECENTLY TO MR. MCBURNEY'S POINT, WE JUST RECENTLY HAD A COUNCIL PASSED RESOLUTION IN REGARD TO UPDATING OUR FUND BALANCE POLICY. SO WHILE THE MAJORITY OF THE DISCUSSION, OF COURSE, CENTERS AROUND THE GENERAL FUND, OR IS THAT IN PLACE FOR THE ENTERPRISE FUNDS AND SPECIFICALLY HAVE THAT IN FOR THE UTILITY FUND AS. AND THAT LOOKS VERY HEALTHY TOO. THAT'S ON PAGE 22. THAT 16.3 MILLION OF UNRESTRICTED EQUITY AND TOTAL EXPENSES FOR THE YEAR ARE 16 MILLION. SO IT'S A HEALTHY EQUITY IN THAT FUND AS WELL. AND MR. PRUITT, DID YOU DO ANY WORK, SPECIFIC WORK ON FILMS? YES WE DID. WE WENT OUT
[00:50:02]
THERE AND WE DID A LITTLE BIT MORE DETAILED, GAIN A MORE DETAILED UNDERSTANDING OF THE ALL OF THE INTERNAL CONTROLS OUT THERE. AND THEY DID SOME WALKTHROUGHS AND THINGS LIKE THAT TO MAKE SURE THAT THOSE CONTROLS HAD BEEN PLACED IN OPERATION. I THINK THAT WAS THE MAJORITY OF WHAT WE DID, AND THEY DIDN'T REALLY HAVE ANY ISSUES THAT WERE THEY IDENTIFIED WHILE THEY WERE OUT THERE. SO WE DIDN'T HAVE ANYTHING TO COME BACK AND REPORT EITHER AS A MATTER OF BEING A WHAT WE WOULD THINK OF AS A SIGNIFICANT DEFICIENCY, OR EVEN AS A MATTER OF JUST A WAY TO INCREASE YOUR EFFICIENCY EITHER. SO WE REALLY DIDN'T HAVE ANY ISSUES OUT THERE. OKAY. I APPRECIATE YOU BRINGING THAT UP, MR. TYLER, JUST SO WE CAN HAVE FOR THE RECORD, BECAUSE WE KNOW THAT THAT WAS A REQUEST FROM THE COMMITTEE AT OUR LAST COMMITTEE MEETING AS PART OF THE FY 23. SO THAT WAY WE COULD AT LEAST HAVE THAT STATED THAT THAT PROCESS WAS COMPLETED. ONE OF THE. THE FIELDHOUSE DID LOSE MONEY. YEAH. THAT'S EXACTLY THREE ON PAGE 24.PAGE 24. AND THEN AN OPERATING LOSS OF $407,000. THEN YOU HAVE BELOW THE LINE THERE IN THE NON-OPERATING REVENUES, YOU'VE GOT SOME INTERGOVERNMENTAL REVENUE COMING IN 538,000. OKAY.
AND THEN SOME INTEREST. YOU'VE ACTUALLY GOT SOME NEGATIVE INTEREST EXPENSE. I THINK THAT'S PROBABLY A AMORTIZATION OF A PREMIUM PLUS 149. YEAH. SO IT ENDED UP WITH AN INCOME OF 149,000. INCREASE OF YOUR EQUITY OF 149,000. THOSE INTERGOVERNMENTAL GRANTS USUALLY SHOW UP BELOW THE LINE THERE UNLESS THEY'RE CAPITAL GRANTS. AND THE CAPITAL GRANT WOULD BE SOMETHING THAT YOU'RE REQUIRED TO SPEND ON A CAPITAL ASSET. AND THEY WOULD SHOW UP ACTUALLY AT THE CAPITAL CONTRIBUTIONS EVEN FURTHER DOWN. BUT YEAH, OVERALL, IT WAS $149,000 IN INCOME. AND THE ACTUAL EXPENSES ALSO REFLECTED THE REFLECTED IN THE SPORTS FACILITY LINE ITEM. IS THAT CORRECT? YES. THE OPERATING EXPENSES? YES. TO INCLUDE ALL PAYROLL AND EVERYTHING. YES, SIR. SO. MR. JACKSON OR MISS, DO YOU WANT TO YOU WANT TO MAKE THE COMMENT ABOUT THE 538,000? ABSOLUTELY. THE INTERGOVERNMENTAL LINE FOR THE 538,000 UNDER THE NON-OPERATING AREA, THE 538, 538,000, THAT IS ACTUALLY THE TRANSFER IN OR THE CONTRIBUTION THAT THE EDC IS MAKING TO THE FIELDHOUSE TO COVER THEIR DEBT. AND SO, BASED ON HOW WE HAVE TO PRESENT HERE IN THE ACT, IT DOESN'T COME OVER AS A TRANSFER IN, BUT AS A CONTRIBUTION FROM THE COMPONENT UNIT, A SEPARATE UNIT, WHICH WOULD BE THE EDC IN THIS CASE. SO JUST WANT TO MAKE THE POINT OF WHERE WHERE THAT IS ACTUALLY COMING FROM. SO THE FUNDING FROM THE EDC TO COVER THE DEBT PAYMENT FOR THE FIELDHOUSE. AND JUST TO NOTE, OH, THANK YOU. UNLESS YOU WANT TO GO AHEAD.
YEAH. PLEASE, PLEASE DO PLEASE DO IT. AS OF FEBRUARY 2025, THE DEBT HAS BEEN PAID OFF BEAUTIFULLY. SO THE FIELDHOUSE IS DEBT FREE. AND NO LONGER WILL WE HAVE THAT CONTRIBUTION FROM EDC COMING IN TO COVER THE DEBT PORTION. SO IT'S JUST SOMETHING THAT'S, I THINK NOTABLE FOR THE GROUP. WELL OKAY. AND IF YOU LOOK AT PAGE 75 AND 76 THERE IS A SCHEDULE. IT GIVES YOU A LITTLE BIT MORE DETAIL. I KNOW YOU MENTIONED SALARIES. YOU CAN SEE THE. FIELDHOUSE THERE AND THIS IS AT THE BOTTOM. AND YOU CAN SEE I'M SORRY SPLITS UP YOUR EXPENSES BETWEEN SALARIES AND SUPPLIES AND EQUIPMENT. SO. JUST. AND THAT'S REALLY I THINK EVERYTHING I WANTED TO TOUCH ON UNLESS Y'ALL HAVE SPECIFIC QUESTIONS OR. ANYTHING ELSE THAT ANYONE WANTS TO GO OVER IN MORE DETAIL, CERTAINLY ENOUGH INFORMATION. YOU CAN TALK ABOUT
[00:55:05]
THIS REPORT ALL DAY LONG, BUT IT APPEARS PRETTY QUICK. WHAT KIND OF ADJUSTMENT DID YOU HAVE TO MAKE WHEN YOU WERE GOING TO STOP GETTING YOUR GRANTS FROM THE GOVERNMENT? DO YOU DO SOME KIND OF ESTIMATE ON THAT? IT'S A HARD QUESTION TO ANSWER. YEAH, IT'S GOING TO BE A LOT OF PEOPLE HAVE TO ADJUST, THAT'S FOR SURE. I KNOW EVER SINCE THAT ALL THAT ARPA MONEY CAME OUT, I HAD A LOT OF CLIENTS THAT THEY WERE NEVER SINGLE AUDIT. THEY NEVER A LOT OF THEM NEVER HAD ANY GRANTS.AND THEN ALL OF A SUDDEN THEY'RE GETTING BIG GRANTS EVERY YEAR. AND THAT MONEY DRIES UP. IT WILL BE A IT'LL BE A CHANGE FOR THEM. LET'S SEE, HOW MUCH DO Y'ALL HAVE? A LOT LEFT. THEY ALL HAVE.
IT'S BEEN I'LL START TO RUN TOGETHER ON 800,000. MAYBE SO. OH YEAH. 889. YES. DO YOU HAVE IT? DO YOU HAVE IT? THE 800,000 FOR THE ARPA FUNDS? YES. WE'RE WE ARE SPENDING DOWN FAIRLY QUICKLY. RIGHT NOW. YES. THAT WAS ALL A GIVEN. GIVEN THAT WE'VE ALREADY RECEIVED ALL OF THE FUNDING. AND SO OUR REPORTING THE EXPENSES. SO AND MR. FRAZIER, MISS OTEY IS IN THE ROOM, BUT SHE'S THE ONE THAT PRETTY MUCH HAS KIND OF CHAMPIONED THIS AND MADE SURE THAT WE'RE ON ACT, THAT WE'RE GOING TO NOT HAVE TO GIVE ANY BACK. YES, YES, YES, VERY MUCH.
AND MR. JACKSON, SINCE I MENTIONED HER. YES. BUT YOU DO HAVE YOUR STAFF HERE AS WELL BECAUSE THIS, THIS IS PART OF THEIR RESULTS AS WELL TOO. ABSOLUTELY. IF, IF, IF YOU WOULDN'T MIND INTRODUCING YOUR, YOUR STAFF. THANK YOU. I WOULD BE PRIVILEGED AND HONORED. SO I GUESS BEFORE BEFORE I DO THAT, I JUST WANT TO SAY THANK YOU TO THE COMMITTEE. THANK YOU TO PATILLO BROWNHILL FOR AGAIN THE PARTNERSHIP AND WORKING WITH THE CITY AND THE FINANCE DEPARTMENT, SPECIFICALLY ON THIS AUDIT. MR. BURNETT, THANK YOU AGAIN FOR THE OPPORTUNITY BECAUSE WE WOULD NOT BE WHERE WE ARE WITH RESPECT TO OUR REPORTING. THE AUDIT, EVERYTHING IN BETWEEN AND EVERYTHING AROUND, IF NOT FOR THE STAFF THAT IS HERE, THAT IS PRESENT WITH US TODAY AND THE LEADERSHIP OF MR. PEREZ. SO DEFINITELY WANTED TO TAKE THE OPPORTUNITY TO PUT BOTH FACES AND NAMES WITH THIS SUCCESSFUL PROCESS, PARTICULARLY FOR FISCAL YEAR 24. SO THE FIVE START FROM, I GUESS, MY IMMEDIATE LEFT ALL THE WAY ACROSS. WE HAVE MISS CYNTHIA MCGEE THOMPSON. WE HAVE MISS TOYA LAND, ESTELLE, WE HAVE MISS GEORGIA CARD, WE HAVE MISS JENNIFER OTEY, OUR BUDGET ADMINISTRATOR, AND WE HAVE MISS YVONNE CULBERSON. SO AGAIN, CYNTHIA AND YVONNE ARE OUR FINANCE TECHS. AND TOYA AND GEORGIA ARE OUR ACCOUNTANTS ARE SERVING UNDER MISS PEREZ'S LEADERSHIP. SO AGAIN, JUST WANT TO HAVE A SINCERE AND INDIVIDUAL THANK YOU TO ALL OF THOSE INDIVIDUALS. OF COURSE, IN TERMS OF THE DISCUSSIONS, BOTH IN COUNCIL MEETINGS AND TYPICALLY AT AT THESE COMMITTEE MEETINGS, AT THE TABLE AND ALSO IN THE REPORT, YOU'LL SEE THE NAMES OF MYSELF AND MISS MISS PETTIS, BUT IT TRULY IS A COMPLETE TEAM EFFORT, ORGANIZATION WIDE. BUT SPECIFICALLY WITH THESE THESE LADIES HERE AS WELL AS THIS LADY RIGHT TO MY IMMEDIATE RIGHT. SO AGAIN, JUST WANT TO HAVE A PERSONAL THANK YOU TO EACH OF THEM FOR HELPING AND ALL OF THEIR HARD WORK TO GETTING US TO WHERE WE ARE RIGHT NOW. SO AGAIN, THANK YOU FOR THE FLOOR AND THE OPPORTUNITY TO HAVE THESE THESE WONDERFUL SERVANT LEADERS BE RECOGNIZED. THANK YOU AND THANK YOU ALL FOR. I HATE A GUY THAT MAKES IT MEANINGFUL. FIVE MORE MINUTES. IT'S WASTED QUESTION, BUT I GOT A QUESTION. WHO SET UP THIS BOOK THAT YOU THIS. CITY ANNUAL COMPREHENSIVE REPORT WHO SAID THERE WOULD BE THREE SECTIONS? IS THAT A TRADITION OR IS THAT A LAW OR IS
[01:00:03]
IT? YES. IT'S THE IF YOU ARE GOING TO PUBLISH A ANNUAL COMPREHENSIVE FINANCIAL REPORT, THEN YOU HAVE TO HAVE THOSE THREE SECTIONS WITH THESE EXACT SAME FINANCIAL STATEMENTS AND SCHEDULES THAT YOU HAVE INCLUDED. NOW YOU DON'T. A GOVERNMENT DOESN'T HAVE TO ISSUE ANNUAL COMPREHENSIVE FINANCIAL REPORT. YOU COULD AND SOME DO JUST ISSUE WHAT ARE CALLED BASIC FINANCIAL STATEMENTS, WHERE YOU WOULD ESSENTIALLY HAVE JUST THE FINANCIAL SECTION AND MAYBE EVEN JUST UP THROUGH REQUIRED SUPPLEMENTARY INFORMATION AND NOT HAVE ANY ADDITIONAL INFORMATION. HOWEVER, IF YOU DO THAT, THEN YOU WOULDN'T BE ELIGIBLE TO SUBMIT YOUR REPORT TO THE GFOA. SO YOU'RE GOING TO GET THE GFOA REPORT. YOU HAVE TO HAVE ALL OF THAT INTRODUCTORY SECTION AND THE STAFF SECTION, AS WELL AS A HOST OF OTHER REQUIREMENTS THAT THEY MAKE YOU DO WELL. THAT'S A GOOD EXPLANATION, BECAUSE BUNCH OF HOOPS TO JUMP THROUGH A LOT OF FLUFF. AND IF WE DON'T NEED FLUFF BECAUSE A GOOD DAY'S WORK CAN SAVE A BUCK, YOU BETTER SAY THAT. AND THERE'S A LOT OF ADDITIONAL WORK TO PUT TOGETHER AN OFFER INSTEAD OF JUST BASIC FINANCIAL STATEMENTS, FOR SURE. AND THE STATS SECTION ALONE, YOU KNOW, TAKES IT FROM 83 PAGES TO 114. SO AND ESPECIALLY IN THE FIRST YEAR THAT YOU'RE DOING IT, THERE'S SO MUCH TEN YEAR TREND THAT IN THERE, YOU'VE GOT TO DO SOME WORK TO DIG SOME OF THAT STUFF OUT. BUT FORTUNATELY, EVEN THOUGH YOU HAVEN'T FINISHED IN TIME TO SUBMIT TO THE AWARD IN RECENT YEARS, YOU ALREADY HAD YOUR REPORT SET UP THAT WAY. SO I THINK IT'S JUST BEEN CARRIED FORWARD. IT WASN'T MUCH OF A CHANGE TO, I THINK, GET IT READY TO BE SUBMITTED AGAIN, MORE JUST A MATTER OF GETTING IT DONE WITHIN SIX MONTHS. THAT'S THE OTHER THING YOU HAVE TO SUPPOSED TO SUBMIT IT WITHIN SIX MONTHS OF FISCAL YEAR END, OR YOU GENERALLY WON'T LET YOU DO IT. SOMETIMES YOU CAN APPLY FOR AN EXTENSION IF YOU HAVE CERTAIN THINGS HAPPENING, BUT IN GENERAL THEY WANT YOU TO SUBMIT IT WITHIN SIX MONTHS. THANK YOU. MR. TALLEY. YOU HAVE ANY. I'M JUST GOING TO MAKE A COMMENT THAT'S GOOD FOR BOND RATING BECAUSE WE HAVE TO GO OUT, BUT HOPEFULLY WE WON'T HAVE TO GO OUT FOR ANYBODY. AND SO MR. TYLER, WAS THE BOND COMMITTEE MEETING LAST NIGHT. WAS THAT RIGHT? AS A MATTER OF FACT, IT WAS. IT WAS INDEED. FOR WHAT WAS THAT? WE'LL HOPEFULLY GET A BETTER RATE. WHAT DO YOU THINK? MR. HARVEY'S ACTUALLY SITTING IN THE AUDIENCE AND HE'S ON THAT COMMITTEE. OKAY. SO. OH, WE'LL GO ON THE BOND AS RECORDED. SO ANY, ANY MR. CHAIR ANY. NO THANK YOU ALL. THANK YOU FOR GETTING US TOGETHER AND LOVE IT. SHORT AND SIMPLE. THERE'S NOT A NEED FOR AN EXECUTIVE SESSION SO WE NEED TO APPROVE THIS. WELL, YEAH. THANK YOU. I'M SORRY.EXCUSE ME. NO NO, NO. GO AHEAD. NO THANK YOU. OKAY. BECAUSE THAT THAT IS THAT'S PART OF THE REASON WHY WE'RE HERE IS TO DISCUSS AND ASK FOR THAT. SO ARE YOU MAKING A RECOMMENDATION? OH OKAY. SO WE NEED A SECOND COUNCIL MEMBER, JERRY BROWN. SECOND. ALL IN FAVOR. AYE. OKAY.
IT'S UNANIMOUS DECISION. SO WE'LL DO THAT. AND WITH THAT WE WILL GO AHEAD AND CONCLUDE THIS THIS MEETING AT 305.
* This transcript was compiled from uncorrected Closed Captioning.