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HomeMy WebLinkAboutAudit Committee-Minutes-8/10/2016City of Colleyville Page 1 City of Colleyville Audit Committee Agenda City Hall 100 Main Street Colleyville,Texas 76034 817.503.1000 www.colleyville.com Wednesday,August 10,2016 4:30 p.m. City Manager’s Conference Room Third Floor City Hall 1.CALL TO ORDER 2.APPROVAL OF MINUTES May 3,2016 3.REGULAR AGENDA ITEMS 3a Meet with representatives(s)from the City's audit firm,Pattillo, Brown Hill,L.L.P.to discuss the Fiscal Year September 30,2016 audit 3b Discussion of update to City's Investment Policy 4.PRESENTATIONS Presentation of the quarterly investment report for the quarter ended June 30,2016 5.ADJOURNMENT I hereby certify this agenda was posted on City Hall bulletin boards August 5, 2016,by 5:00 p.m. Amy Shelley,TRMC City Secretary A quorum of the Colleyville City Council and/or any other Colleyville Board, Commission,or Committee may be in attendance at this meeting. Any matter on this agenda may,at the discretion of the governing body,be opened for public comment and discussion. City of Colleyville Page 1 City of Colleyville Audit Committee MINUTES City Hall 100 Main Street Colleyville, Texas 76034 817.503.1000 www.colleyville.com Wednesday, August 10, 2016 4:30 p.m. City Manager’s Conference Room Third Floor – City Hall Chief Financial Officer Brian Hogan called the Audit Committee meeting to order on August 10, 2016, at 4:34 p.m. ROLL CALL: Committee members Nancy Coplen, Tammy Nakamura, and Chris Putnam were present. City Manager Jennifer Fadden, Deputy City Manager Chris Fuller, Chief Financial Officer Brian Hogan, Accounting Manager Karen Hines, Fire Chief Brian Riley, and City Secretary Amy Shelley were also present. 2. APPROVAL OF MINUTES May 3, 2016 Committee member Coplen made a motion to approve the May 3, 2016, meeting minutes. Committee member Putnam seconded. All approved by acclamation. 3. REGULAR AGENDA ITEMS 3a Meet with representatives(s) from the City's audit firm, Pattillo, Brown & Hill, L.L.P. to discuss the Fiscal Year September 30, 2016 audit Nicole Bradshaw, Pattillo, Brown and Hill, L.L.P., Manager for the Government Audit Division, the City’s audit firm, discussed the upcoming September 30, 2016 audit and answered questions of the committee. Committee member Putnam asked Ms. Bradshaw if there were any new GASB pronouncements for 2016. Ms. Bradshaw replied there would be nothing major, only small disclosure changes. Committee member Coplen asked about the Utility Fund transfer to the General Fund; why we did not charge the expenses, everything from the General Fund to the Utility Fund; and, would it help with audit testing. Chief Financial Officer Brian Hogan explained that the transfer is discretionary for every city. For Colleyville, the Franchise Fee and General and Administrative Charge was set by ordinance at four percent. It is not a requirement. Money spent from any fund must be for a legitimate expense and pertain to that fund. The auditors will test and verify that. For the CEDC, the 10 percent limit for advertising expenditures, relative to total fund expenditures, would also be tested so we did not violate the rules. Audit Committee Minutes August 10, 2016 City of Colleyville Page 2 Committee member Coplen asked the Committee members if they are okay with the General Fund absorbing the Utility Fund’s share of the overhead costs. Committee member Putnam replied he believed it would be a little cleaner since all the money remained in the fund and we would not be tracking the transfer. Chief Financial Officer Brian Hogan explained it is not a requirement that you do the transfer, but rather how you look at expenditures that are contained within each fund. Committee member Coplen asked staff if they will be using ad valorem to cover the cost rather than the cost coming from water revenues, etc. Chief Financial Officer Brian Hogan replied yes. The transfer is used to cover the overhead allocation. By eliminating it, there would be a much cleaner cut off between fund expenditures. He explained there would be no crossing over of funds. Ms. Bradshaw concurred. 3b Discussion of update to City's Investment Policy Chief Financial Officer Brian Hogan reviewed the City’s Investment Policy and answered questions of the committee. Committee member Putnam asked staff if the two changes included in the investment policy were to report training and a title change. Chief Financial Officer Brian Hogan replied yes. HB 870 changed the training requirement from 10 hours to 8 hours. All investment officers must complete 10 hours of training within the first 12 months of assuming duties. The 10 hour course was more an introduction whereas the eight hour course assumed you knew the basics of the Public Funds Investment Act. Committee member Putnam asked staff if this includes some strikeouts or changes in policy. Chief Financial Officer Brian Hogan replied a change in policy, with a change in title for Karen Hines. She was the Finance Manager now she is the Accounting Manager. 4. PRESENTATIONS Presentation of the quarterly investment report for the quarter ended June 30, 2016 Chief Financial Officer Brian Hogan presented the quarterly investment report for the quarter ended June 30, 2016. Committee member Nakamura asked staff if anytime the money is needed, it can be converted. Chief Financial Officer Brian Hogan replied that we have money invested long term and in an overnight pool – Logic. With low rates, there is very little opportunity, with a very small gap in rates between the overnight investment Audit Committee Minutes August 10, 2016 City of Colleyville Page 3 pool rates and government securities, to earn a higher return. We review all opportunities as we work through the projects and determine our cash needs. Committee member Coplen asked staff if it looks like we will not have enough cash. Chief Financial Officer Brian Hogan replied there is enough liquid cash to make all payments. In the event we needed cash, we can sell investments between our funds. Committee member Coplen stated she has never seen this with the City. Committee member Putnam stated it is a timing thing with the investment maturities. Chief Financial Officer Brian Hogan stated the next meeting will be Tuesday, November 15, 2016, at 6:00 p.m. 5. ADJOURNMENT The Audit Committee meeting adjourned at 5:00 p.m. APPROVED BY A VOTE OF 4 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE 15TH DAY OF NOVEMBER 2016. Minutes taken and prepared by: Amy Shelley, TRMC City Secretary