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HomeMy WebLinkAbout12/19/2016Council Work Session December 19, 2016 Time indicated below Harold E. Getty Council Chambers Roll Call. Approval of Agenda, as proposed or amended. 4:30 p.m. FYE16 Audited Statements Presentation by RSM US, LLP. Submitted By: Michelle Weidner ADJOURNMENT Kelley Felchle City Clerk CITY OF WATERLOO Council Communication FYE16 Audited Statements Presentation by RSM US, LLP. City Council Meeting: 12/19/2016 Prepared: 12/15/2016 REVIEWERS: Department Reviewer Action Finance Higby, Nancy Approved ATTACHMENTS: Description Type a FYE16 Audit Council Work Session Req Cover Memo SUBJECT: Submitted by: Recommended Action: Summary Statement: Expenditure Required: Source of Funds: Policy Issue: Alternative: Background Information: Date 12/16/2016 - 3:56 PM FYE16 Audited Statements Presentation by RSM US, LLP. Submitted By: Michelle Weidner Representatives from our audit firm, RSM US, LLP will be here to present a short work session about the FYE16 comprehensive annual financial report. The statements are still in draft form and likely will not be available until early January. Mayor QUENTIN HART COUNCIL MEMBERS TOM POWERS Ward I BRUCE JACOBS Ward 2 PATRICK MORRISSEY Ward 3 JEROME AMOS, JR. Ward 4 RON WELPER Ward 5 TOM LIND At -Large STEVE SCHMITT At -Large CITY OF WATERLOO, IOWA CITY CLERK AND FINANCE DEPARTMENT 715 Mulberry St. • Waterloo, IA 50703 • (319) 291-4323 Fax (319) 291-4571 SUZY SCHARES • City Clerk MICHELLE WEIDNER, CPA • Chief Financial Officer Council Communication City Council Meeting: December 19, 2016 Prepared: December 15, 2016 Dept. Head Signature: Michelle Weidner, Chief Financial Officer Number of Attachments: SUBJECT: Comprehensive Annual Financial Report for the Year Ended June 30, 2016 Submitted by: Michelle Weidner, Chief Financial Officer Recommended City Council Action: RSM US, LLP will be here to present a short work session on the FYE16 comprehensive annual financial report. The statements are still in draft form and likely will not be available until early January. WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer CITY OF WATERLOO, IOWA Financial Presentation June 30, 2016 Data portrayed in the attached graphic presentations were derived from the City's unaudited financial statements. The data presented should be read in conjunction with the City's draft financial statements. 02016 RSM US LLP. All Rights Reserved. G RSM 1 Agenda • Summary of the Audit Process • Summarize June 30, 2016 Financial Performance • Internal Control and Compliance Reporting • Auditor Communications 2 ©2016 RSM US LLP. All Rights Reserved. MB RSM 1 Summary of the Audit Process • External audit required by state statutes and federal guidelines • Provide reasonable assurance that the financial statements are fairly stated, in all material respects, with GAAP • Consideration of internal controls aver Clnnac Ea reporting and compliance • Tests of compliance with federal grant rquirements • Tests of compliance with certain state requirements 3 ©2016 RSM US LLP. All Rights Reserved. RSM J Revenue —All Governmental Funds 4 $50,000,000 — $45,000,000 $40,000,000 +- $35,000.000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 -- $10,000,000 $5,000,000 $- Total 2016 $105,401,685 Total 2015 $106,773,157 Property Taxes Other Taxes Licenses and Permits Investment Income Rent Intergovernmental Charges for Services Interfund charges Special for Services Assessments Miscellaneous U2016 02015 $46.259,411 $17.309.079 $1,491,131 5187,047 $1.235,525 $26,670.622 $8,142.707 51,935,000 $138,434 52.032,729 $45.440,607 $17,599,304 I $1.413.739 $133,938 $1.293.559 528,647,425 57,371.370 81,935.000 $127,266 52,760,949 2016 RSM US LLP. All Rights Reserved. 11 RSM Expenditures by Function —All Governmental Funds 5 $40,000,000 $35,000,000 $30,000,000 $25,000,000 $20,000,000 $15,000,000 $10,000,000 $5,000,000 Total 2016 $114,734,106 Total 2015 $116,926,743 w Public SafetyPublic Works Health and Social Services Culture and Recreation Community and Economic Development General Government Debt Service Capital Outlay 11120161 $31,380,988 $26,664.570 $375,769 $10,837,983 $13,483,447 $5,671,640 $13,484,500 $12,835,209 02015 $30,588,630 $34,515,685 $407,060 $10,633,238 $11,783,311 $5,459,817 $11,683,256 $11,855,746 ©2016 RSM US LLF. Ail Rights Reserved. ■ i RSM 1 General Fund — June 30, 2016 Fund Balance 6 Unassigned 38% $25,501,012 Nonspendabie 1°/0 ©2016 RSM US LLP. All Rights Reserved. RSM General Fund 5 -Year History $60,000,000 $50,000,000 $40,000,000 $30,000,000 $20,000,000 $10,000,000 7 ©2016 RSM US LLP. All Rights Reserved. Revenue Expenditures Fund Balance ■ 2012 ■ 2013 ❑2014 ❑2015 ■ 2016 1 - RSM General Fund Balance, Unassigned (In Days) 2016 2015 2014 8 113 118 124 20 ©2016 RSM IJS LLP. All Rights Reserved. 40 60 80 100 120 140 1E1 RSM 1 All Enterprise Funds - Operations $20,000,000 - $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- 9 i.16 246 87. ■ Operating Revenues ©2016 RSM US LLP. All Rights Reserved. June 30, 2015 June 30, 2016 ® Operating Expenses 0 Nonoperating Expenses oF Change in Net Position ■ - RSM Internal Control and Compliance Reporting • Internal Control Over Financial Reporting One significant deficiency and no material weaknesses over financial reporting reported • Retainage payable Immaterial instances of noncompliance with state statutes • Deficit fund balances • Airport cash deficit • PFC compliance reporting • Single Audit - Low-risk auditee for Single Audit purposes - 3 major program tested: Community Development Block Grants, Airport Improvement Program, and Highway Planning & Construction - Unmodified ("clean") opinions on major program - No instances of noncompliance reported 10 ©2016 RSM US LLP. All Rights Reserved. ■E RSM Auditor Communications with City Officials • Unmodified "Clean" Opinion Over the Financial Statements • Management Judgments and Significant Accounting Estimates • Audit Adjustments or Passed Adjustments • Disagreements with Management — None • Significant Issues Discussed with Management — None • Difficulties Encountered in Performing the Audit — None 11 ©2016 RSM US LLP. All Rights Reserved. RSM THANK YOU FOR YOUR TIME AND ATTENTION J ■= 12 ©2016 RSM US LLP. All Rights Reserved RSM QUESTIONS AND ANSWERS? 13 (02016 RSM US LLP. All Rights Reserved. RSCA RSM US LLP 201 North Harrison Street, Suite 300 Davenport, Iowa 52801 563 888 4000 www.rsmus.com This document contains general information, may be based on authorities that are subject to change, and is not a substitute for professional advice or services. 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