Audit Committee Meeting

MINUTES Audit Committee Meeting Monday, March 23, 2020 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 1. Call To Order Present: Committee Member Janet Brekke, Committee Member Dean Buckneberg, Committee Member Tony Goettsch, Committee Member Rose Grant, Committee Member Rick Kiley, Committee Chair Greg Neitzert, Committee Member Curt Soehl. All members except Neitzert and Grant attended via telecom. 2. Approval of Minutes A. Monday, December 2, 2019 A motion was made by Committee Member Kiley and seconded by Committee Member Brekke to approve the minutes. Roll call vote to approve. 7 Yes: Brekke, Buckneberg, Goettsch, Grant, Kiley, Neitzert, Soehl; 0 No: (None). Motion Passed. 3. Reports and Updates A. External Audit Results: City of Sioux Falls 2019 Financial Statements, Eide Baily Brian Stavenger presented via telephone. He opened the presentation by providing an overview of the External Audit and introducing the service team that worked on it. Stavenger continued with the audit results. The audit was performed in accordance with generally accepted auditing standards, Government Auditing Standards, and Title 2 U.S. Code of Federal Regulations (CFR) and designed to obtain reasonable, not absolute, assurance about whether the financial statements are free of material misstatement. Planning for the audit began this past year when the service team met with the Audit Committee, interim testing was conducted in December, Year-end testing took place from January through March where the team was again onsite for two full weeks, and finished with reporting in March. For the Financial Statements, the audit resulted in an unmodified opinion with no findings. The Federal Audit looked at two major programs and resulted in an unmodified opinion with no material weakness or significant deficiency internal control findings and no material weakness or significant deficiency compliance findings.  The Management Letter included passed adjustments and suggestions for improvements over inventory controls. The adjustments were for the: 1) Sales and Use Tax Fund – $562,475 of revenue recognized in 2017 that should have been recorded as deferred revenue; and, 2) Electric Light Fund – $23,540 of construction activity that should have been recorded as accounts payable and construction in progress on December 31, 2018. A motion was made by Committee Member Kiley and seconded by Committee Member Buckneberg to accept the report and submit it to the Mayor and City Council. Roll call vote to accept the report and submit it to the Mayor and City Council. 7 Yes: Brekke, Buckneberg, Goettsch, Grant, Kiley, Neitzert, Soehl; 0 No: (None). Motion Passed. 4. Public Comment There was none. 5. Adjournment Neitzert adjourned the meeting at 4:25 p.m. Thomas M. Greco, City Clerk