Finance Advisory and Audit Committee

City of Columbia, Missouri Meeting Minutes Finance Advisory and Audit Committee Friday, March 3, 2017 Conference Room 1C Regular Columbia City Hall 10:00 AM 701 E. Broadway I. CALL TO ORDER Kevin Smith of RSM and Finance staff Lynn Cannon, Janet Frazier, Janice Finley, and Jessica Sapp were also present. Present: 6- Kristian Bloom, John Clark, Maria Oropallo, Michele Nix, Lisa Evans and Diane Suhler II. INTRODUCTIONS III. APPROVAL OF AGENDA Ms. Oropallo moved to approve the agenda as presented for the March 3, 2017 meeting. Mr. Clark seconded the motion and the agenda was approved unanimously. IV. APPROVAL OF MINUTES Mr. Clark moved to approve the minutes from the October 21, 2016 meeting. Ms. Oropallo seconded the motion and the minutes were approved unanimously. V. SPECIAL ITEMS Ms. Nix shared that Mr. Smith will present audit deliverables to the group. She also stated that someone from the committee will need to attend City Council Monday, March 6, 2017 and present the results of the audit. Mr. Smith presented the results of the FY2016 audit of the City. The purpose of the audit is to review the financial statements to ensure that they are materially correct and in conformity with the Generally Accepted Accounting Principles (GAAP). Mr. Smith gave an overview of RSM’s audit opinion over the financial statements. He stated with the unmodified opinion section, there were no modifications or significant departures from GAAP, and no scope limitations to their audit. In a nutshell, the audit is clean opinion. The audit also gives an overview of city activities as a whole. There were no issues of non-compliance that RSM found in their analysis in each element of the audit. As Mr. Smith highlighted, summarized key points in the audit, he answered all questions directed to him by the committee. City of Columbia, Missouri Page 1 Printed on 7/18/2017 Finance Advisory and Audit Meeting Minutes March 3, 2017 Committee VI. NEW BUSINESS A new chairperson needed to be elected to the committee. Both Mr. Clark and Ms. Oropallo expressed interest in the role. Each had the opportunity to share why they felt they would be a good choice. After this, roll call was taken to determine who would lead the committee. Ms. Oropallo won the vote four to one. Ms. Oropallo revisited Ms. Nix’s request that someone from the committee needed to present the results of the audit for FY16 to City Council. She commented she’d be out of town and would be unable to take on the task herself. Mr. Clark stated he would be happy to do this and agreed to represent the committee at the following City Council meeting to present the audit. Ms. Oropallo shared that a resident has caught the attention of a City Council member about the Police and Fire Retirement deferred retirement option plan (DROP program). Council Member Thomas has asked the committee to look into the DROP program and how it’s managed. This may be something the group may see in the future if Ms. Oropallo gets the recommendation from Council to compile information. Ms. Oropallo addressed Ms. Nix asking about the budget calendar. She responded that budget staff is currently in the process of meeting with each department and their staff on how to estimate the revenues and plan for expense items in their respective budgets. Once all meetings have taken place, analysis and review is done of the budget to be sure it’s balanced. The completed draft budget is presented to the City Manager by budget staff and representatives of each city department. After Mr. Matthes gives approval, the budget is presented to Council first and then the public. There will be a work session scheduled to review the budget process and discuss at the beginning of the process and before it’s presented to the public in three separate Council hearings prior to voting and adopting the proposed budget during a fourth Council meeting. This final approval happens in September. Ms. Nix believes Council will see the proposed budget for the first time in July. Ms. Oropallo would like the committee to meet after Council sets their priorities, sometime after May. June would be a good time to meet. It was decided the next meeting would be Friday, June 30th and reserve June 23rd as a back-up date. City of Columbia, Missouri Page 2 Printed on 7/18/2017 Finance Advisory and Audit Meeting Minutes March 3, 2017 Committee VII. REPORTS Mr. Slinkard introduced himself and gave an overview of what his duties are as the City’s Internal Auditor. He gets direction from the City Manager, yet also has discretion on things he feels need to be done. Mr. Slinkard went on to give the committee updates on the projects he’s been working on. Ms. Nix shared that the Finance Department is working on cleaning up data for the new financial system. It’s been a slow process as staff isn’t at full capacity. Interviews are coming up for four positions. Budget staff has begun their meetings with city departments to get their estimates and source calculations. These meetings have been occurring frequently. Budget staff has also taken on the task of rewriting the 10 year trend manual. Ms. Nix suggested that the group take a look at the document upon its release to see if it’s too much information; and to ensure that it is in a format the general public can understand. Ms. Oropallo said this was on her radar and she agrees with the information being presented in a different format. Ms. Cannon shared that this year Transit and the Airport will be have their Federal Compliance Audits. The Transit Authority has not provided a date when they’d be here, but the FAA will visit sometime this month. VIII. NEXT MEETING DATE The next meeting date is tentatively set for Friday, June 30, 2017. IX. ADJOURNMENT Mr. Bloom moved to adjourn the meeting. Ms. Evans seconded the motion as there was no further business; the meeting was adjourned at 11:45 am. City of Columbia, Missouri Page 3 Printed on 7/18/2017