Audit Committee Meeting

MINUTES Audit Committee Meeting Monday, March 28, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 1. Call To Order Present: Committee Member Tony Goettsch, Committee Member Rose Grant, Committee Chair Rick Kiley, Committee Member Greg Neitzert Absent: Committee Member Dean Buckneberg, Committee Member Alex Jensen, Committee Member Curt Soehl Committee Chair Rick Kiley called the meeting to order at 4 p.m. and noted a quorum was present. 2. Approval of Minutes A. Monday, December 6, 2021 A motion was made by Committee Member Neitzert and seconded by Committee Member Grant to approve the minutes. Voice vote to approve. 4 Yes: Goettsch, Grant, Kiley, Neitzert; 0 No: (None). Motion Passed. 3. Reports and Updates A. External Audit Results: City of Sioux Falls 2021 Financial Statements, Eide Bailly Brian Stavenger, Eide Bailly (participating remotely), provided the presentation. He began 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 and January; Year-end testing took place from January through March; and finished with reporting in March. For the Financial Statements, the audit resulted in an unmodified opinion with no findings. The Federal Audit resulted in an unmodified opinion with no material weaknesses, one significant deficiency internal control finding, and no material weakness or significant  deficiency compliance findings. In terms of the deficiency, a revenue number was misrepresented on the Uniform Data System (UDS) report, as well as other portions of data being omitted, including the amount of COVID funds received for the year. There was no evidence of additional levels of review being performed The Governance Letter included passed adjustments. The adjustments were for the: 1) Sales and Use Tax Fund – $378,920 for revenue recognized in 2017 that should have been recorded as deferred revenue, as the cash has not been received yet; 2) also in the Sales and Use Tax Fund - $370,120 understatement of expenditures due to vehicles received in 2021; and, 3) Storm Drainage Fund – $66,795 understatement of expenditures due to construction work performed in 2021. 4. Committee Member Remarks There were none. 5. Public Comment There was none. 6. Adjournment Committee Chair Rick Kiley adjourned the meeting at 4:41 p.m. Thomas M. Greco, City Clerk