HomeMy Public PortalAbout20070319AuditorEntrance.pdfCity of TYBEE ISLAND
Audit Committee Entrance Meeting with Independent Auditors
Monday, March 19, 2007
2:00 PM
Tybee Old School – Room 7
MINUTES
ATTENDANCE:
Auditor: Craig Moye, Mauldin & Jenkins
Audit Committee: John Major, Freda Rutherford, Sue Off, David Birdwell, Jim Anderson, Sam
Adams
Staff: Jan Fox, Claire Price
John Major called the meeting to order at 2:05 PM and handed out an agenda. .
Discussion of Audit Scope and Objectives:
Craig said that David Irwin will be working with him on the audit. They will evaluate risks and
internal controls. They will examine account balances and transactions and pull a trial balance.
They will examine accounts receivables, capital assets, accounts payable, disbursements and
evaluate revenues and expenses. They will not be doing a lot of tests for internal controls because
the new SAS112 puts more responsibility on management.
John asked about interviews and inquiries of staff. Craig said yes, we must have contact with
staff, the audit committee and staff in the field. He will develop an independent expectation,
interview and see if responses match the policies and procedures.
John asked what will be documented? Craig said not all interviews will be documented but fraud
discussion with AC will be.
Craig said their next step will be to go over findings with staff. He has already gone over last
year’s findings and thinks segregation of duties has been resolved as well as completion of the
Policies and Procedures Manual. There is still one issue with the person reviewing deposits has
access to cash. This will be a manage point but probably not a finding. Tybee does not have
enough people to totally segregate duties. With the new audit procedures, it’s up to the M & J
Management Team to decide about findings.
John asked bout the Prepared by Client letter. Craig said it looks complete.
Audit Items Brought up in the 11-01-06 Conference Call:
John informed Craig that he has removed the request to review the contract with the Trade and
Convention Center because the city has renewed the contract. He asked about the campground
and the gym. Jan responded that the campground has a separate account and the gym is now
under lease. Discussion followed about the state of the city leases. Craig said the internal controls
look good in that they now have policies and procedures. Jan said DPW inventories are in place.
Distribution of grants has a new procedure for organization that are not 501.C 3 corporations or
have not complied with reporting requirements – they are paid on a reimbursement basis. The
personnel issue of stand-by time is no longer relevant since the DPW director left in September.
Daily Wrap-up
Jan said the auditors will be working in her office and she will vacate at 5:00 so that he
AC can meet there with the auditors. Craig said he expects to finish by Thursday. They
will not date the report because it must be reviewed by the M & J team. It’s usually about
a week for a draft and it should be complete in three weeks.
Fraud:
Craig said he wanted to ask the AC about any instances of fraud. John cited the parking
services situation. Jan reported on the process that was used for the investigation. The
outcome was that parking collections has been brought into city hall. The people
collecting has been separated from the people maintaining the meters. Craig asked if this
has satisfied everyone. Jan said yes and that the review was well worthwhile in terms of
process.
The meeting concluded at 2:27 PM.
Respectfully submitted,
Freda Rutherford, Secretary