Town of Taos Presentation of the FYE 2019 Financial Statement Audit - - PowerPoint PPT Presentation

Town of Taos

Presentation of the FYE 2019 Financial Statement Audit

CORDOVA CPAs LLC

ROBERT GONZALES, CPA PRINCIPAL FEBRUARY 11, 2020

Agenda

• Opening and Timeline
• Communication with those Charged

with Governance

• Auditors' Opinion and Reporting
• Other Discussion Items

Timeline

• Preliminary Communications
• May and June 2019
• Entrance Conference on September 11, 2019 (Mayor Barrone

and Councilor Evans were present)

• Planning, Compliance, and Substantive Work
• September 2019
• Reporting, Conclusions, and Issuance
• November and December 2019
• Exit Conference on December 11, 2019 (Mayor Barrone and

Councilor Evans were present)

• Received “OK to Print” on January 15, 2020
• Release Letter from NMOSA dated January 28, 2020 and issued

February 4, 2020

Communication with Governing Body

• Audit was conducted in accordance with GAAS and GAGAS
• Reasonable Assurance
• Planned Scope and Timing
• Accounting Policies conform to GAAP
• GASB Statement Nos. 83, 84, 88, and 90
• Significant Estimates (Utilities AR Allowance, Capital, Pension, and

OPEB)

• No significant difficulties and no disagreements
• No material misstatements detected
• 2 immaterial passed adjustments noted in current year
• Significant Exposures (FDIC and other legal proceedings)

Auditors' Report on the Financial Statements

Unmodified Opinion

• Financial Statements are presented fairly in

accordance with accounting principles generally accepted in the United States of America.

• In other words, the numbers and

disclosures are materially accurate.

Other Auditors' Reports

GAGAS Report on Internal Control Over Financial Reporting and on Compliance and Other Matters

• No findings noted in current year.

Communication with Governing Body

U.S. GAAS Requirements

Deficiencies in Internal Control

Any material weaknesses and significant deficiencies in the design or operation of internal control that came to the Auditors' attention during the audit must be reported to the Town Council.

CCPAs Communication

Material weakness None noted Significant Deficiencies None noted Other Matters (NM required) None noted

Communication with Governing Body

U.S. GAAS Requirements

Deficiencies in Internal Control

Any material weaknesses and significant deficiencies in the design or operation of internal control that came to the Auditors' attention during the audit must be reported to the Town Council.

CCPAs Communication

FY 2018 Findings Update 2018-001 Cafeteria Plan Deductions (Other Noncompliance)- Resolved

Other Discussion Items

• We Made several informal recommendations during our audit that

were not necessarily ‘findings’ to enhance the efficiency of processes and also to strengthen the current internal control structure in place. A few notable ones are:

• Cybersecurity and System Penetration Testing – 3rd Party
• Full risk assessment of IT threats
• Review and update all necessary policies
• There are unreconciled differences in cash that should be adjusted for

and investigated. Also, there are several very old transactions that need to be investigate and accounted for so there is not a bank to bank difference in the reconciliations

• Gave recommendations on how to record the debt and cash balances

from NMFA

• Review procurement method policies and procedures to ensure the

Town follows the procurement code

• Communicate to vendors for a new invoice once all proper support is

received by the Town

Thank You for the opportunity to serve the Town of Taos!

• Risk-based approach so we will adjust our audit plan to

respond to any risks that may arise during FY 2020.

• The entire Finance department was fantastic to work

with and we appreciate their hard work during the last six months.

• We are available year-round as a resources to help your

team.

• We value our relationship and look to continue to build
• n it.

Robert Gonzales, CPA

Principal

Cordova CPAs LLC Albuquerque, New Mexico 505.610.2168 Rg@cordovacpas.com

Building strong and genuine, long‐term relationships with our clients and team members.