Special City Council

Agenda City of Ocean Shores Special City Council Meeting Join by Link Click Here Join by Phone Phone Number: 1.253.215.8782 Meeting ID: 881 6583 6593 Passcode: 806855 Live Streaming at Ocean Shores City Council Recordings Only Remote Attendance Permitted Monday January 10, 2022 1:15 PM Page Call to Order 3 1. Notice of Special Meeting Roll Call Other Reports 5-8 2. Office of the Washington State Auditors Entrance Conference • Presented by: Finance Director, Angela Folkers Adjourn _________________________________________________________ Public Notice: • Persons requiring auxiliary aids or special arrangements in order to participate in meetings should call 360.940.7498 at least two business days prior to the scheduled meeting. • The public is invited to view the full City Council packet on our website at https://oceanshores.civicweb.net/filepro/documents/183. • This institution is an equal opportunity provider and employer. Page 1 of 8 Page 2 of 8  CITY OF OCEAN SHORES, WASHINGTON NOTICE OF SPECIAL CITY COUNCIL MEETING Monday, January 10, 2022 1:15 PM NOTICE IS HEREBY GIVEN that the City Council of the City of Ocean Shores will hold a Special Meeting on Monday, January 10, 2022 at 1:15 PM. Remote attendance only via Zoom Webinar. Live stream can be viewed at www.osgov.com The Agenda is attached. ____________________________ Sara D. Logan, City Clerk City of Ocean Shores January 7, 2022 Copies: City Council Mayor Department Heads Public Postings 1. Notice of Special Meeting Page 3 of 8 Page 4 of 8  Entrance Conference: City of Ocean Shores The Office of the Washington State Auditor’s vision is increased trust in government. Our mission is to provide citizens with independent and transparent examinations of how state and local governments use public funds, and develop strategies that make government more efficient and effective. The purpose of this meeting is to share our planned audit scope so that we are focused on the areas of highest risk. We value and appreciate your input. Audit Scope Based on our planning, we will perform the following audits: Accountability audit for January 1, 2020 through December 31, 2020 We will examine the management, use and safeguarding of public resources to ensure there is protection from misuse and misappropriation. In addition, we will evaluate whether there is reasonable assurance for adherence to applicable state laws, regulations and policies and procedures. We plan to evaluate the following areas:  Accounts receivable – utility billing, adjustments and collections  Accounts payable – general disbursements  Compliance with golf course lease agreement terms  Payroll – gross wages, overtime, leave cash outs, and bonus payments  Compliance with public work projects – prevailing wage requirements  Open public meetings – compliance with minutes, meetings and executive session requirements  Financial condition – reviewing for indications of financial distress Financial statement audit for January 1, 2020 through December 31, 2020 We will provide an opinion on whether your financial statements are presented fairly, in all material respects, in accordance with the applicable reporting framework. The audit does not attempt to confirm the accuracy of every amount, but does search for errors large enough to affect the conclusions and decisions of a financial statement user. Engagement Letter We have provided an engagement letter that confirms both management and auditor responsibilities, and other engagement terms and limitations. Additionally the letter identifies the cost of the audit, estimated timeline for completion and expected communications. Levels of Reporting Findings 2. Office of the Washington State Auditors Entrance Conference Presented... Page 5 of 8  Findings formally address issues in an audit report. Findings report significant results of the audit, such as significant deficiencies and material weaknesses in internal controls; misappropriation; and material abuse or non-compliance with laws, regulations or policies. You will be given the opportunity to respond to a finding and this response will be published in the audit report. Management Letters Management letters communicate control deficiencies, non-compliance, misappropriation, or abuse that are less significant than a finding, but still important enough to be formally communicated to the governing body. Management letters are referenced, but not included, in the audit report. Exit Items Exit items address control deficiencies, non-compliance with laws or regulations, or errors that have an insignificant effect on the audit objectives. These issues are informally communicated to management. Important Information Confidential Information Our Office is committed to protecting your confidential or sensitive information. Please notify us when you give us any documents, records, files, or data containing information that is covered by confidentiality or privacy laws. Audit Costs The cost of the audit is estimated to be approximately $37,700, plus travel expenses. Expected Communications During the course of the audit, we will communicate with Angela Folkers, Finance Director, on the audit status, any significant changes in our planned audit scope or schedule and preliminary results or recommendations as they are developed. Please let us know if, during the audit, any events or concerns come to your attention of which we should be aware. We will expect Ms. Folkers to keep us informed of any such matters. Audit Dispute Process Please contact the Audit Manager or Assistant Director to discuss any unresolved disagreements or concerns you have during the performance of our audit. At the conclusion of the audit, we will summarize the results at the exit conference. We will also discuss any significant difficulties or disagreements encountered during the audit and their resolution. Loss Reporting State agencies and local governments are required to immediately notify our Office in the event of a known or suspected loss of public resources or other illegal activity. These notifications can be made on our website at www.sao.wa.gov/report-a-concern/how-to-report-a-concern/fraud-program/. Peer Reviews of the Washington State Auditor’s Office To ensure that our audits satisfy Government Auditing Standards, our Office receives external peer reviews every three years by the National State Auditors Association (NSAA). The most recent peer review results are available online at www.sao.wa.gov/about-sao/who-audits-the-auditor/. Our Office received a “pass” rating, which is the 2. Office of the Washington State Auditors Entrance Conference Presented... Page 6 of 8  highest level of assurance that an external review team can give on a system of audit quality control. Working Together to Improve Government Audit Survey When your report is released, you will receive an audit survey from us. We value your opinions on our audit services and hope you provide us feedback. Local Government Support Team This team provides support services to local governments through the Budget, Accounting, and Reporting System (BARS) and annual online filing technical assistance, provides accounting, reporting and BARS training. Our website and client portal offers many resources, including a client Help Desk that answers auditing and accounting questions, updated BARS manuals, access to resources and recorded trainings, and additional accounting and reporting resources. Additionally this team assists with the online filing of your financial statements. The Center for Government Innovation The Center for Government Innovation of the Office of the Washington State Auditor offers services designed to help you, help the residents you serve at no additional cost to your government. What does this mean? They provide expert advice in areas like building a Lean culture to help local governments find ways to be more efficient, effective and transparent. The Center also provides financial management technical advice and best practices and resources. These can be accessed from the “Improving Government” tab of our SAO website and help you act on accounting standard changes, comply with regulations, protect public resources, minimize your cybersecurity risk and respond to recommendations in your audit. The Center also offers the Financial Intelligence Tool, better known as FIT, to help you assess and monitor your finances and compare your financial operations to other local governments like you. You can email the Center for a personal training session to learn all the benefits using the FIT tool can provide. The Center understands that time is your most precious commodity as a public servant, and wants to help you do more with the limited hours you have. If you are interested in learning how the Center can help you maximize your effect in government, call them at (564) 999-0818 or email them at Center@sao.wa.gov. Audit Team Qualifications Kelly Collins, CPA, Director of Local Audit – Kelly has been with the Washington State Auditor’s Office since 1992. In her role, she oversees the audit teams that perform the audits for over 2,200 local governments. She serves on the Washington Finance Officers Association Board and is a member of the Washington Society of Certified Public Accountants’ Government Auditing and Accounting Committee. Phone: (564) 999-0807 or Kelly.Collins@sao.wa.gov Tina Watkins, CPA, Assistant Director of Local Audit – Tina has been with the Washington State Auditor’s Office since 1994. In her role as Assistant Director, she assists with statewide oversight and management of all the audits for local government. She served as an Audit Manager for six years prior to becoming an Assistant Director of Local Audit. Phone: (360) 260-6411 or Tina.Watkins@sao.wa.gov Lisa Carrell, CPA, Program Manager – Lisa has been with the State Auditor’s Office since 2014. Notable work experiences include serving as a Supervisor from 2016 through 2021. Lisa has prior audit experience with 2. Office of the Washington State Auditors Entrance Conference Presented... Page 7 of 8  counties, cities, towns, public utility districts, hospitals, housing authorities, schools, educational service districts, fire districts and authorities, risk pools, and other governmental entities and associations. Lisa also serves as a statewide Pension and OPEB Specialist and a statewide County Specialist. Lisa graduated from Washington State University. Phone: (564) 999-0882 or Lisa.Carrell@sao.wa.gov Paul Griswold, Assistant Audit Manager – Paul has been with the State Auditor’s Office since 2018. Notable work experiences include serving as Supervisor since 2021 on Team Olympia. Paul previously worked on Team Everett during which he led and performed audits of counties, cities, towns, public utility districts, housing authorities, schools, and fire districts. Prior to joining SAO he worked as a tax accountant. He also has previous government and non-profit experience working in various roles. Phone: (425) 510-0482 or Paul.Griswold@sao.wa.gov Tori Umemoto, Audit Lead – Tori has been with the State Auditor’s Office since 2017. Notable work experiences include leading and participating in various audits including colleges, hospitals, cities, counties, and other governmental agencies. Tori is also a fraud specialist and a statewide County Assessor and Property Tax Specialist. Additionally, Tori serves on the SAO Diversity, Equity, Inclusion, and Belonging Advisory Committee. Tori graduated from Seattle Pacific University, and started her career specializing in tax at a CPA firm in 2016. Phone: (564) 999-0985 or Tori.Umemoto@sao.wa.gov Heather Collard, Assistant State Auditor – Heather has been with the State Auditor’s Office since 2021 Notable work experiences include participating in audits of counties, cities, and Housing Authorities. Heather is a recent graduate of South Puget Sound Community College 5th year accounting certificate with BS in Psychology for Weber State University. Previous work experience in Utah State Department of Health, and group home management. Phone: (564) 999-0987 or Heather.Collard@sao.wa.gov Audrie Shellhart, Assistant State Auditor – Audrie has been with the State Auditor’s Office since 2021. Notable work experiences include participating on a variety of audits including county, city, and fire authority audits in finance and accountability areas. Audrie graduated in 2020 with BS in Accounting. Previous education and work experience was mostly in Computer Science, management, and writing/research. Phone: (564) 201-2964 or Audrie.Shellhart@sao.wa.gov Sarah Read, Assistant State Auditor – Sarah has been with the State Auditor’s Office since 2021. Notable work experiences include serving as an Assistant State Auditor since 2022, Sarah started on Team Olympia as an Audit Intern in November 2021. She graduated summa cum laude from Washington State University in December 2021. She also served as the Vice President of Membership and Mentorship for the WSU Pullman chapter of Beta Alpha Psi. Phone: (564) 201-2965 or Sarah.Read@sao.wa.gov 2. Office of the Washington State Auditors Entrance Conference Presented... Page 8 of 8