Download - CITY OF MISSOULA, MONTANA Audit Exit Conference Year Ended June 30, 2009 Presented January 20, 2010
Presentation Outline
• Acknowledgements• Scope of Audit• Summary of Audit Results• Financial Statement Highlights• Internal Controls and Compliance• Management Comments• Audit Committee Communications• Component Units• Looking Forward
Audit Scope
• U.S. Generally Accepted Auditing Standards• Government Auditing Standards• Single Audit Act/OMB Circular A-133• All City Funds• Component Units – Missoula Parking Commission– Missoula Redevelopment Agency– Business Improvement District
Summary of Audit Results
• Clean opinion on financial statements
• Two internal control findings considered to be material weaknesses over financial reporting
• No internal control or compliance findings related to major federal programs
Financial Statement Highlights
• Government-Wide Net Assets• Governmental Funds Fund Balances• Revenues• Expenses• Mill Levies• Taxable Values• Debt Margin
Net Assets
-
50,000
100,000
150,000
200,000
250,000
2003 2004 2005 2006 2007 2008 2009
Net Assetsby Fund Type (000)
Governmental Business-type
Net Assets
-
50,000
100,000
150,000
200,000
250,000
2003 2004 2005 2006 2007 2008 2009
Net Assets by Category (000)
Investment in Fixed Assets Restricted Unrestricted
Fund Balances
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
2003 2004 2005 2006 2007 2008 2009
General Fund Other Funds
Revenues
-5,000
10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000
2003 2004 2005 2006 2007 2008 2009
General Revenues by Source (000)
Taxes Intergovernmental Interest Annexation/Devel Contribs All Other
Revenues
-
5,000
10,000
15,000
20,000
2003 2004 2005 2006 2007 2008 2009
Program Revenues (000)
Charges for Services Operating Grants Capital Grants
Expenses
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2003 2004 2005 2006 2007 2008 2009
Expenses (000)
Gen Gov't Safety Works Health Soc/Econ Culture/Rec
Housing/Dev Interest Other Wastewater Aquatics
Expenses
General Government
Public SafetyPublic Works
Public Health
Soc/EconCulture/Rec
Housing/Dev
InterestWastewater
Aquatics
2009 Expenses
Mill Levies
-
100.00
200.00
300.00
400.00
500.00
600.00
700.00
800.00
2003 2004 2005 2006 2007 2008 2009
Tax Levies
City County Schools State Urban Trans
Taxable Values
-
20,000
40,000
60,000
80,000
100,000
120,000
2003 2004 2005 2006 2007 2008 2009
Taxable Values (000)
City w/o Increment Tax Increment
Debt Margin
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
2003 2004 2005 2006 2007 2008 2009
Debt Margin (000)
Other Post-Employment Benefits
• Accounting and disclosure requirements implemented in 2009 (see Note G-3)
• Relates to health benefits provided to retirees and the implied premium subsidy
• Net OPEB obligation was $499,000 for 2009• Actuarial valuation of unfunded OPEB liability
is $5.4 million
Internal Controls & Compliance
• Financial Statement Level– Two material weakness findings related to taxes
receivable and capital assets– No material noncompliance
• Major Programs– No significant deficiencies or material weaknesses– No material noncompliance
Management Comments
• Aquatics point of sale log-in controls
• Review of manual invoices
• Long-term debt schedules
• Classification of grant expenditures
Governance Communications
• Auditor Responsibilities• Planned Scope and Timing• Accounting Policies• Significant Audit Findings• Difficulties in Performing the Audit• Corrected and Uncorrected Misstatements• Other Information in the CAFR• Disagreements with Management• Management Representations• Consultations with Other Accountants
Component Units
• Missoula Redevelopment Agency– Clean opinion on financial statements– No internal control or compliance findings
• Missoula Parking Commission– Clean opinion on financial statements– No internal control or compliance findings
Component Units
• Business Improvement District– Included in CAFR as a discretely-presented
component unit– No separate report issued– No material internal control or compliance
findings – Prior year management letter comments were
implemented
Looking Forward
• The recession has hit Missoula big time
• ARRA funds will be subject to audit in 2010
• Change in permissive levy for health benefits will affect 2011 (SB 491)
• New rules for fund balance reporting will be effective for 2011 (GASB 54)