Ad Hoc Audit Committee

CITY OF NORWALK ADHOC AUDIT COMMITTEE WEDNESDAY, FEBRUARY 16, 2011 ATTENDANCE: Nicholas Kydes, Chairman Finance Committee, Friedrich Wilms, Chairman Board of Estimate & Taxation, Nate Yordon, ADHOC Audit Committee Chairman CITY STAFF: Thomas Hamilton, Finance Director; Frederic Gilden, Comptroller, Rita Galbo, School System, Donna Vaccarella, School System OTHERS: Scott Bassett, City’s Independent Auditor McGladrey & Pullen LLC The meeting started at 5:35 PM STATUS OF CURRENT AUDIT FOR THE YEAR ENDING JUNE 30, 2010 Scott Bassett began the meeting by addressing the audit. He stated that there were no unusual transactions. The firm had no audit adjustments or disagreements with management. There were two management comments. One had to do with inactivating unused vendors and the other had to do with the oversight of the Food Service vendor. These were recommendations and both were being addressed by the City. Then Mr. Bassett started to go through the CAFR. The Committee asked Mr. Bassett to explain certain items as he went through the report. The Independent Auditor Report per Mr. Bassett was an unqualified clean report. Losses in business funds were discussed. Mr. Hamilton explained that the Insurance Fund loss was planned to reduce a previous surplus. He also stated the WPCA high Retained Earnings is going to be used for planned capital improvement debt service. The Committee asked to have an explanation of what Private Purpose Funds are and why there is no Benefits Paid. Staff and/or the Independent Auditor will get back to the Committee. Mr. Bassett went over new GASB pronouncements and said that the biggest one had to do with how fund balance will be formatted. Scott Bassett stated that there were no compliance issues for State and Federal grants. By email vote on February 17, 2011, the Committee voted 3-0 to accept the Audit Report for June 30, 2010. This was a procedural matter that was overlooked during the meeting The meeting was adjourned at 6:20PM Respectfully Submitted, Frederic J. Gilden Comptroller