obied Posted April 4, 2008 Report Share Posted April 4, 2008 Proceedings of the Audit Committee School Dist. No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, Montana March 28, 2008 Call to Order Chair Jane McCracken called the Audit Committee to order at 12:08 P.M. on Friday, March 28th, 2008 in Room 219 of the Lincoln Center. Those present included: Jane McCracken, Joel Guthals, Jack Eagle, Business Manager Thomas Harper, Tim Trafford, Marcy Mutch, District Clerk Leo Hudetz, Senior Associate Auditor Edie Hanson and John Jacobsen of EideBaily, LLP. Peter Gesuale was absent. Final Review of Draft Comprehensive Annual Financial Report for Year Ended 2007 Committee members reviewed the final draft of the Comprehensive Annual Financial Report for year ended 2007. Thomas explained the booking of service credit and how the TRS Option 1 and GASB 27 requirements affect the prior period adjustment. Previously we hadn’t acknowledged sick and vacation in Option 1, which technically is a pension benefit. Jane inquired as to whether or not we would need to adjust anything for next year. John stated that when the financial report goes to CAFR for review they will more than likely comment and if anything needs to be adjusted it will probably be in the report. On Page 12, Financial Highlights, “Total assets increased $2.2 million in 2007 compared to $4 million in 2006”, delete “compared to 2006”. In reviewing page 35 discussion was held regarding the explanation of the Prior Period Adjustment . The following is a culmination of the various suggestions: In previous years the district had included obligations for certain termination pay benefits as compensated absences. During the current year, the district staff has re-evaluated the accounting treatment of these commitments and has concluded they should be recorded as a service credit and termination pay benefit in accordance with GASB 27. Accordingly, a net adjustment of $6,405,297 was made during 2007 to record these obligations as of the beginning of the year. A corresponding entry was made to increase previously reported net assets by the same amount. This adjustment only affected the governmental activities on the Statement of Net Assets and the Statement of Activities. Beginning net assets were restated as follows: Net assets – beginning, as previously reported $57,453,619 Adjustment to remove incorrect accounting for the service credit and termination pay benefit 9,673,652 Adjustment to properly reflect the service credit and termination pay benefit under GASB Statement 27 (3,268,355 6,405,297 Net assets – beginning, as restated $63,858,916 Thomas pointed out that pages 40 – 43 were all new pages of footnotes related to adjustments that were made on previous drafts. Approval of Minutes A motion was made by Jack Eagle and seconded by Tim Trafford to approve the minutes for the January 29, 2008 and February 5, 2008 meetings. All voted in favor. Adjournment The meeting adjourned at 1:35 p.m. _____________________________ ____________________________ Donna Obie, Recorder Audit_Comm_3_08.doc Link to comment Share on other sites More sharing options...
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