Title
Approving a resolution accepting the Fiscal Year 2015 Audit.
Summary
The City of Pflugerville Charter requires that an independent audit be conducted at the end of each fiscal year. The firm of Weaver and Tidwell, L.L.P., Certified Public Accountants, was retained to conduct the audit for fiscal year 2015.
Mr. Adam McCane, CPA, a partner of the firm of Weaver and Tidwell, met with the Finance and Budget Committee on March 10, 2016, to present and review the results of the audit. The unqualified audit opinion states that the City's financial statements "present fairly, in all material respects, the respective financial position...of the City of Pflugerville, Texas as of September 30, 2015." This indicates a clean audit.
In a separate letter to the City Council, the auditor stated there were no disagreements with management on accounting issues and no difficulties in performing the audit. The auditor further reported that there were no significant issues noted and no significant audit adjustments recorded. The auditor did not propose any material audit Adjusting Journal Entries (AJEs) as a result of the audit procedures. He expressed satisfaction in working with the City personnel, mentioning the thorough staff review of the statements.
The auditor's report on internal control and compliance did note one material weakness related to an error in previously reported financial statements. During the year, City staff realized that between fiscal years 2006 and 2014, the City recorded assets in the financial statements which were not owned by the City. These adjustments were primarily to the water and wastewater utility funds infrastructure, but also included a small portion of street infrastructure in the general fund portion of the governmental funds. The FY15 financial statements include a restatement of Beginning Net Position to remove the $6.3 million (1.8%) of affected assets and the associated accumulated depreciation. Processes that are used to provide this information to the financial statements have been analyzed and modified to prevent this error in reporting in the future.
The Finance and Budget Committee unanimously recommended acceptance of the fiscal year 2015 audit as presented at its March 10, 2016, meeting.
Deadline for City Council Action
The audit must be accepted at this meeting in order to comply with Securities and Exchange Commission (SEC) reporting requirements. This approval also allows staff to apply for the Government Finance Officers Association (GFOA) Certificate of Achievement for Excellence in Financial Reporting award for the comprehensive annual financial report (CAFR) in a timely manner. The City of Pflugerville has received the GFOA certificate of achievement for the CAFR the last eleven consecutive years.
Fiscal Impact
There is no fiscal impact as a result of this action.
Staff Recommendation
Approve the resolution.
Drafter
Lauri Gillam
Assistant City Manager