Guest sullinss Posted December 5, 2005 Report Share Posted December 5, 2005 Proceedings of the Audit Committee District No. 2, Yellowstone County and High School District No. 2, Yellowstone County Billings, Montana Call to Order September 9, 2005 Chair Jane McCracken called the Audit Committee to order at 12:03 p.m. on Friday, September 9, 2005, in Room 212 of the Lincoln Center. Committee members in attendance were Jane McCracken, Dale Getz, and Conrad Stroebe. Members Joel Guthals, Stan Moser, and Marcy Mutch were excused. Also in attendance were Business Manager Thomas Harper, and auditors John Jacobsen and Sarah Collins of EideBailly LLP. Introduction of New Committee Members New Audit Committee community members are Stan Moser, CFO for Deaconness Billings Clinic, and Marcy Mutch, CPA. Both new members were out of town on previously scheduled business, but the Chair welcomes them to the Audit Committee. Audit Scope Auditors Eide Bailly LLC will start compliance testing September 19, 2005. They will be using a digital audit Engagement software administration package this year. Reports can be generated as needed. Ernie Olness is entering the Trial Balance into the software system. The 2004-2005 year will be a low-risk audit for the District. Auditors have more discretion in picking what they test as compared to mandated testing requirements for a high-risk auditee. SAS 99 is part of a statement on auditing standards and deals with the risk of fraud. Auditors are not required to execute their audit to look for fraud; but, they do plan in a way where they realize that fraud can exist and have to address the risk of fraud in every entity they audit. The auditors interview persons in management and staff and get a feel where fraud could be perpetrated on a material level that would affect the financial statements of the School District in total. If the Audit Committee is aware of any areas of fraud risk, they need to communicate it to the auditors. The Audit Committee will issue a memo to Leo Hudetz, Internal Auditor, requesting him to reply with knowledge of any fraud risk. Conrad Stroebe asked John Jacobsen to review the Copenhaver Report from two years ago. John has the report and will review it. Conrad Stroebe believes State funding and No Child Left Behind issues should be addressed somehow in the audit as to the financial impact on the District. John Jacobsen understands the concern but advised the Management Discussion and Analysis are very restrictive in what can be discussed. The Legislature has not yet developed a funding formula, so from an audit standpoint nothing would affect an auditor’s opinion or what is mandated to be disclosed in the financial statements other than the Supreme Court opinion where the funding formula has been tossed out. Conrad Stroebe stated State funding affects our legal ability to issue bonds. Jane McCracken established this was mentioned in the MD&A in last year’s audit. Dale Getz cautioned against putting anything in the MD&A suggesting we have any potential problem to issue bonds. Fieldwork starts September 19, 2005, and a draft audit report should be available for the Audit Committee by the end of October. The Committee’s goal will be to deliver the audit report to the Business Committee and Board of Trustees in December. The Audit Committee will meet again around the first week in November. There being no further business, the meeting was adjourned at 12:30 p.m. Jane McCracken, Chair Sherrill Sullins, Recorder Link to comment Share on other sites More sharing options...
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