providence 2010
DESCRIPTION
Audit results - City of Providence, FYE June 30, 2010TRANSCRIPT
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City of Providence 2010 Audit Results
155 South Main Street Providence, RI 02903
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Introduction
Presentation will review the City’s 2010 Audit Results Discussion of observations and recommendations Feel free to ask questions at any time
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Topics of Discussion
Financial Statements
Observations and recommendations
Required Communication to Audit Committee
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The General Fund
Total Fund Balance decreased by $13,903,000 Budgeted change was a decrease of $1,400,000 (use
of designated fund balance) Undesignated Fund Balance = $2,080,000 (net of
$1,378,000 designated for use in current year) Undesignated Fund Balance represents less than 1%
of Operating Budget Current level is well below analyst benchmarks (5% -
8% of expenditures, one year debt svc, etc)
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Fund Balance: last 10 years
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Fund Balance: all governmental funds
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Results of Operations
Revenues exceeded budget by $23,315,000 Property taxes $1,702,000 above what was
anticipated Tax collection percentages:
93.98% of current year assessment 96.71% when counting collection of current and
prior assessments
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Tax Collections:% of current levy
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Results of Operations (cont.)
Expenditures were $35,818,000 above appropriated amounts
Several functional areas exceeded budgeted appropriation
Significant unfavorable results in these areas: Municipal court Debt service Public safety ($6MM funded by reserve fund) Transfer to School Department
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Governmental expenditures
last 10 years
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Net Bonded Debt per capita
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Debt Service expenditures
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School Department
Revenues were $6,887,000 above anticipated amounts (including increase in transfer from general fund of $13,589,000)
Expenditures were $6,887,000 above appropriations
School Lunch Fund recognized net income for the year and ended with net assets of $310,000
School grants recognized $124,000,000 in activity
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Providence ERS: funding statistics last 10 years
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Observations & Recommendations
Responsibilities and duties of accounting staff Timely account analysis and bank reconciliations Timely reconciliation of inter-fund balances Improve coordination of year-end closing schedule Improve accounting for retainage and commitments Improve cut-off procedures for year-end accruals Improve monitoring of decentralized accounting
functions and integration of year-end reporting
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Audit Committee Correspondence
Required communication of audit matters directly to parties responsible for audit oversight and follow-up Timing of engagement, readiness Significant adjustments Change in OPEB Plan Valuation - rate of return Significant transactions – leases No disagreements with management No restrictions on scope imposed by management
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Questions?
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The End
Thank you!