03/16/1983 Meeting - Laserfiche WebLink

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,e e e IV. COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR FY82 (memo, resolution, additional information distributed) Mr. Gleason introduced Finance Director Warren Wong. Mr. Wong introduced Dave Lilley, Accounting Supervisor, who prepared the financial statements. Mr. Wong referred to the FY82 Annual Report and the Management Letter from Peat, Marwick, Mitchell and Company (PMM&Co). He said that PMM&Co had recommended further examination of the internal control systems and financial records for the Hu1t Center. He said that his staff had been working with Hult staff to improve these systems and that he believed the internal and management control proced- ures at the center were now operating at an acceptable level. He said PMM&Co had noted that the Risk Management Fund reserves were higher than they need to be, since they were based on premium levels prior to initiation of the current risk program. He said staff would therefore be recommending a transfer of surplus risk funds to the General Fund for use in non-recurring expenditures. Mr. Wong stated that PMM&Co had also raised questions as to the timeliness of the City's financial reporting. He said that staff had been reorganized to address this concern and that the City was in the process of developing an Integrated Financial Information System that would bring reporting capabilities up to the state of the art. Mr. Wong said that PMM&Co had recommended estab- lishment of an audit committee, but he noted that staff felt the existing functions of the Budget Committee and the City Council fill that role. Mr. Wong concluded by stating that staff would report back to the council at a future time regarding the effect on the City of recent pronouncements regarding audits and the Federal government's single audit concept. Councilor Wooten asked what the responsiblities of the Performing Arts Commission were regarding audits. Mr. Wong responded that the commission is responsible for budget review but not for performance review. Councilor Wooten suggested that the commission could act as a mini-budget committee for the Performing Arts Center and make recommendations to the Budget Committee and the council. Councilor Lindberg asked if all those involved were satisfied with having the council and Budget Committee serve as the audit committee. Mr. Wong responded that staff believed this was the best approach. Councilor Holmer asked whether staff proposed to have the council, functioning as an audit committee, act on all aspects of the external audit. Mr. Gleason responded that in most cities the budget committee meets only once per year, to form the budget. He noted that in Eugene the committee meets quarterly to review expenditures and thus would be in a position to serve as budget implementation review committee. Councilor Holmer commended staff on the unqualified audit. He expressed concern regarding the use of source program libraries and the security of electronic data. Mr. Wong said that while he could not speak for the Information Services Division he believed that there were internal control systems as well as control by a systems librarian. MINUTES--Eugene City Council March 16, 1983 Page 7