02/27/1985 Meeting - Laserfiche WebLink

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- e e III. FY84 FINANCIAL AUDIT, CORRECTING RESOLUTION, AND MANAGEMENT LETTER (memo, resolution, background information distributed) City Manager Micheal Gleason introduced the agenda item. Dee Ann Raile of the accounting section presented the staff report. She said the councilors had received copies of the Component Unit Financial Statements for the Urban Renewal Agency. The statements were audited by Peat, Marwick, Mitchell & Co. The City received an unqualified opinion which means the statements are presented fairly, consistently, and in accordance with generally accepted accounting principles. There were no deficiencies in the audit report. Discussing the Comprehensive Annual Financial Report for the City, Ms. Raile said it was audited by Peat, Marwick, Mitchell & Co. which expressed an unqualified opinion. Two deficiencies were noted. One concerned overdraft cash balances in the airport fund and in the Job Training Partnership fund as of June 30, 1984. The overdrafts were caused by timing differences in grant reimbursements. The staff is monitoring the timing closely now. The other deficiency concerned expenditures of $2,000 over the approved budget limits in the airport fund and of $16,000 in the library trust fund. The expenditures were for fire services and a computer up-grade. The council had approved the activities. The deficiencies were small compared to a budget of $130 mi 11 ion. Discussing the Letter to Management from Peat, Marwick, Mitchell & Co, Ms. Raile said the auditors did not determine the City had any major weaknesses in its system of internal auditing controls, but the letter indicated where management information or operation efficiencies can be improved. The staff has responded and is implementing the suggestions. Councilor Wooten arrived during the staff report. Councilor Holmer said the audit deserves attention from councilors. He suggested the Mayor consider the appointment of an audit committee of three councilors prior to receipt of the next audit. The committee could assist the staff informally. Ms. Schue agreed with the suggestion. Mayor Obie asked that consideration of an audit committee be put on a work session agenda of the council. He said the audit reinforced the council action which sought a resolution with EWEB to the "in-lieu-of-tax payments" problem. The auditors brought it up this year clearer and bolder than they have in the past. Councilors might incur personal liability by ignoring the management letter. He asked for a written report from the City Manager's Office or the Finance Division responding to the deficiencies noted in the management letter. Res. No. 3902--A resolution accepting measures taken to correct deficiencies disclosed in the Comprehensive Annual Financial Report for the fiscal year ending June 30, 1984. Ms. Wooten moved, seconded by Ms. Schue, to adopt the resolution. Role call vote; the motion carried unanimously, 6:0. MINUTES--Eugene City Council February 27, 1985 Page 3