Audit Advisory Committee

51 Bald Eagle Drive City of Marco Island Florida Marco Island, Florida cityofmarcoisland.com Meeting Minutes - Final Audit Advisory Committee Chair: Jim Miller Vice-Chair: William Rogers Committee Members: Dick Adams, Michael Cory, William Hogan, Robert Hughes, Rick Woodworth City Staff: Guillermo Polanco, Lori Rizzo Tuesday, March 10, 2020 9:30 AM Community Room (1) CALL TO ORDER Chair Miller called the meeting to order at 9:30 A.M. (2) ROLL CALL Present: 6- Vice-Chair Rogers, Member Hughes, Member Hogan, Member Cory, Member Woodworth and Chair Miller Absent: 1- Member Adams Also Present Via Teleconference Mr. Daniel Anderson, Audit Manager, Mauldin & Jenkins CPAs & Advisors (3) APPROVAL OF THE AGENDA MOTION by Member Hogan, seconded by Vice-Chair Rogers, that the Agenda be Approved. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 6- Vice-Chair Rogers, Member Hughes, Member Hogan, Member Cory, Member Woodworth and Chair Miller (4) APPROVAL OF THE MINUTES ID 20-768 Audit Advisory Committee Minutes 2/18/20 MOTION by Vice-Chair Rogers, seconded by Member Hughes, that the Minutes of February 18, 2020 be Approved. MOTION CARRIED BY THE FOLLOWING VOTE: Yes: 6- Vice-Chair Rogers, Member Hughes, Member Hogan, Member Cory, Member Woodworth and Chair Miller (5) NEW BUSINESS a. Audit Status At the request of Chair Miller, Mr. Daniel Anderson, Mauldin & Jenkins (M&J) Audit Manager, City of Marco Island Florida Page 1 Audit Advisory Committee Meeting Minutes - Final March 10, 2020 provided an overview of the status of the audit of the City's 2019 fiscal year financial statements and related schedules. Mr. Anderson indicated that, upon receiving the Committee's input and review at this meeting, the audit team's preliminary results would be reviewed by the firm's Partners by early next week, with an anticipated release of the financial reports by next week's end. Mr. Anderson further indicated that there were no new issues or adjustments identified since the last M&J review with the Audit Advisory Committee, and he expected no items or concerns to be reflected in the Management Letter. Chair Miller than requested that City Finance Director Guillermo Polanco similarly provide comment and perspective on the status of the audit effort. Finance Director Polanco communicated that: 1) the City's financial statements appear very healthy, and; 2) that the recovery effort of Federal funds from FEMA as well as from the City's outstanding insurance claims are proceeding well. The Committee then proceeded on a page-by-page review of the documentation provided by Mauldin & Jenkins. Messrs. Polanco and Anderson received Committee input and addressed questions raised by members of the Committee. b. Timetable for Completion and Report Issuance At the conclusion of the document review, Member Woodworth observed that the timing of the audit as it is currently conducted provides results for fiscal year 2019 that are not available until midway into the 2020 fiscal year. Finance Director Polanco recognized and appreciated Member Woodworth's concern, and he noted that much of the delay in conducting the audit is the result of State information, actuarial work and contract negotiation activities that are not fully concluded and available for the auditors to review until the end of the calendar year. Member Woodworth next inquired about a Mission Statement for the Audit Advisory Committee, and Chair Miller provided reference to a 'Statement of Objectives and Responsibilities' document dated May 22, 2014 that outlines the key expectations and responsibilities of the Audit Advisory Committee. Finance Director Polanco indicated that he would provide a copy of the document to all of the Members of the Committee and, as suggested by Member Woodworth, that it will be posted to the City's website. Director Polanco also advised the Committee that a Resolution confirming the creation, existence and objectives of the Audit Advisory Committee is on the agenda for the forthcoming March 16, 2020 City Council meeting. He agreed to provide the Committee with a copy of the Resolution and related materials prior to the Council meeting. Chair Miller followed up on the topic of the Committee's role by asking Mr. Anderson if the Mauldin & Jenkins audit team: 1) identified any signficant adjustments to the City's statements and reports as a result of the audit process; 2) engaged in any disagreements with City Staff on the application of accounting policies or practices, and / or; 3) identified any financial control weaknesses or corrective plans to be documented in the forthcoming Management Letter. Mr. Anderson replied in the negative to all three questions. Chair Miller concluded by inquiring when the Final Audit Report would be going before City Council. Finance Director Polanco indicated that it would be placed on the City Council agenda soon after the issuance of the Opinion Letter from Mauldin & Jenkins, and that he would advise the Committee when that date becomes known. (6) ADJOURNMENT There being no further business, the meeting adjourned at 10:59 A.M. City of Marco Island Florida Page 2 Audit Advisory Committee Meeting Minutes - Final March 10, 2020 ________________________________ Jim Kornas, Recording Specialist City of Marco Island Florida Page 3