HomeMy WebLinkAboutAudit Committee-Minutes-11/21/2017 (2)
City of Colleyville Page 1
City of Colleyville
Audit Committee
Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, November 21, 2017
4:30 p.m.
City Manager’s Conference Room
Third Floor – City Hall
Chief Financial Officer Shereen Gendy called the Audit Committee to order on
September 5, 2017, at 4:30 p.m.
ROLL CALL: Committee members Tammy Nakamura, Bobby Lindamood and
Susan Mathisen were present.
Absent: Committee member Nancy Coplen
Also Present: Chief Financial Officer Shereen Gendy, Accounting Manager Karen
Hines, Assistant City Manager Adrienne Lothery arrived at 4:45 p.m., and City
Secretary Christine Loven were also present.
2. APPROVAL OF MINUTES
September 5, 2017
Committee member Mathisen made a motion to approve the September 5,
2017, meeting minutes. Committee member Nakamura seconded. All
approved by acclamation.
3. PRESENTATION AND DISCUSSION
3a Meet with representatives(s) from the City's audit firm, Pattillo, Brown &
Hill, L.L.P. to discuss the progress of the year-end audit for Fiscal Year
ended September 30, 2017
John Manning, Pattillo, Brown and Hill, L.L.P., Manager for the Government Audit
Division, the City’s audit firm, discussed the September 30, 2017 year-end audit
process and progress and answered questions of the committee.
Mr. Manning stated the field work has begun and he has received a lot of
information from the City. He also noted this is the second year of using the
portal, which is a way to exchange information securely electronically. Mr.
Manning noted CFO Shereen and Accounting Manager Karen Hines are working on
a trial balance, and 90-percent of the report has been filled in using the trial
balance numbers. Mr. Manning said the Governmental Accounting Standards
Board (GASB) is always making changes to the process and this year GASB 77 is a
footnote disclosure regarding property, sales, or hotel tax abatements. He stated
they are looking at growing cities which state their sales tax is up, but they are not
Audit Committee Minutes November 21, 2017
City of Colleyville Page 2
showing sales tax abatement. Mr. Manning noted the worksheet was given to CFO
Gendy and she has reached out to economic development staff and GCISD, and
has found there has been no property tax abatements on record, but there is one
sales tax rebate agreement, which he is not sure if it will need to be foot noted as
it is not for materials. CFO Gendy clarified last quarter’s abatement was about
$9,000, which would average under the $40,000, when an entire year is paid, and
is not material, but she believes it could be overlooked in the future if not reported
now. Committee member Mathisen agreed stating she felt excluding it even
though not material, may give the appearance of a lack of transparency.
Committee members Lindamood and Nakamura agreed and Committee member
Mathisen added it would be good to state the term of the commitment as well.
Assistant City Manager Lothery gave a condensed recap of the rebate.
Mr. Manning reviewed the fund balance, debt, and assets.
Mr. Manning noted this year, the test of controls is over water and sewer billing
and stated all internal controls are working very well.
Committee member Mathisen asked Mr. Manning if any other department
procedures will be reviewed, or just the water and sewer billing. Mr. Manning
stated they had performed walk-throughs on several departments, to include
permits and municipal court.
Mr. Manning stated it has been CFO Gendy’s priority to account for grants by
tracking them in the accounting system, rather than off the books by the
departments. CFO Gendy stated that a grant fund has been created for that
purpose and began tracking October 1, 2017, at the start of the fiscal year. Mr.
Manning stated he is supportive of this goal and suggested the City may wish to
begin thinking about having a centralized procurement/purchasing department;
explaining the rules are becoming more astringent and narrow.
Manager Lothery stated the City has never had a centralized purchasing
department, but noted everyone can imagine how difficult it is for departments to
be familiar with all purchasing regulations.
Mr. Manning noted to date, there has not been a lack of compliance, but being
compliant is going to become more difficult and having someone to oversee
purchasing who is familiar with the regulations and new mandates could be of
value to the City.
3b Quarterly Investment Report for the quarter ended September 30, 2017
Chief Financial Officer Shereen Gendy presented this item and provided an
overview to the committee.
Audit Committee Minutes November 21, 2017
City of Colleyville Page 3
Mr. Manning thanked everyone for their time.
4. ADJOURNMENT
The Audit Committee adjourned at 5:00 p.m.
APPROVED BY A VOTE OF 4 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE
20TH DAY OF FEBRUARY 2018.
Minutes taken and prepared by:
Christine Loven, TRMC
City Secretary