Guest sullinss Posted June 8, 2011 Report Share Posted June 8, 2011 Proceedings of the Audit Committee School District No. 2, Yellowstone County High School District No. 2, Yellowstone County Billings, Montana December 1, 2010 Call to Order Chair Marcy Mutch called the Audit Committee to order at 11:00 a.m. on Wednesday, December 1, 2010 in Room 213 of the Lincoln Center. Committee members in attendance were Marcy Mutch, Laura Bailey, Greta Besch Moen, and Jack Eagle (arrived after minutes approval). Also attending were Chief Financial Officer Thomas Harper, and District Clerk Leo Hudetz. Communication From the Public There was no public comment. Approve Minutes of November 12, 2010 Laura Bailey motioned and Greta Besch Moen seconded to approve the minutes of November 12, 2010. All voted in favor. Motion passed unanimously. Teleconference with Susann Hartwig and Kim Higgins of Eide Bailley, Denver, CO Committee members reviewed the Audit Report Draft and were happy with the changes. 2010-05 The finding of material weakness and internal controls regarding the Davis-Bacon Act was explained by Susann and Kim. While the contractors are responsible for proper payment of hourly rates, the district must monitor the payrolls and include the Davis-Bacon Act in the contracts. Marcy asked Susann and Kim what they would share with the Board regarding the audit comments. Kim explained that the matter of a material weakness should not be taken lightly since the American Recovery and Investment Act (AARA funds are watched closely. The Davis-Bacon Act language was not in the AARA contracts. The contractor underpaid two items which were not significant but they owned the responsibility. The district must monitor. There is a clean opinion on the financial statements, but a material weakness. The teleconference ended. Marcy asked Thomas if he was prepared to deal with the questions on this material weakness issue. Thomas will meet with Superintendent Beeman to prepare an explanation of the finding. Whether or not the finding would affect our bond rating was also questioned. Thomas explained that a school district’s rating is generally strong because the revenue is from taxes collected and state payments, unlike that of a normal business. The committee was in agreement that we should keep a watchful eye on the funds allocated by the legislature to assure that we will be receiving the approximate 30% from state funds for the building bond. The money will be received on a regular basis with our other payments from the state. Motion To Accept the CAFR Jack Eagle motioned to present the CAFR to the Board for approval, Laura Bailey seconded the motion and all voted in favor. Adjournment There being no further business, the meeting was adjourned at 12:00 p.m. _________________________ Marcy Mutch, Chair _______________________ Donna Obie, Recorder Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.