1 00:04:57,120 --> 00:04:58,880 Okay, I'm going to call the meeting to 2 00:04:58,880 --> 00:05:02,560 order of the U audit committee for the 3 00:05:02,560 --> 00:05:05,840 city of Moab on March 5th, 2026. 4 00:05:05,840 --> 00:05:08,320 And um 5 00:05:08,320 --> 00:05:10,800 do I need to do anything else? 6 00:05:10,800 --> 00:05:11,919 >> Okay. 7 00:05:11,919 --> 00:05:15,680 we're done. 8 00:05:15,680 --> 00:05:17,680 >> So, 9 00:05:17,680 --> 00:05:19,280 all right. So, we've got a few things to 10 00:05:19,280 --> 00:05:21,360 go over that we can do before Ron gets 11 00:05:21,360 --> 00:05:24,400 on. Uh Ron is our auditor. He's one who 12 00:05:24,400 --> 00:05:26,080 put together the report that was sent 13 00:05:26,080 --> 00:05:28,720 out. We have the report. I can go over 14 00:05:28,720 --> 00:05:31,440 the findings of the report whether Ron's 15 00:05:31,440 --> 00:05:35,120 here or not. We did want him here, but I 16 00:05:35,120 --> 00:05:37,759 don't want to not do this meeting 17 00:05:37,759 --> 00:05:40,400 because he's not here. Uh we do want him 18 00:05:40,400 --> 00:05:42,479 here for the city council meeting for 19 00:05:42,479 --> 00:05:45,840 sure. Council wants to hear from him. Um 20 00:05:45,840 --> 00:05:48,080 and we may even get him 21 00:05:48,080 --> 00:05:50,960 before we end this meeting. So, okay. 22 00:05:50,960 --> 00:05:52,639 So, the first thing is the approval of 23 00:05:52,639 --> 00:05:55,199 the minutes. We have the January 22nd 24 00:05:55,199 --> 00:05:56,880 minutes, 25 00:05:56,880 --> 00:06:01,680 uh, 2025. Just anybody who read those or 26 00:06:01,680 --> 00:06:03,120 wants to make a motion. 27 00:06:03,120 --> 00:06:04,400 >> I'll make a motion to approve the 28 00:06:04,400 --> 00:06:06,000 minutes as written. 29 00:06:06,000 --> 00:06:07,280 >> Okay, Tonyie. 30 00:06:07,280 --> 00:06:08,479 >> I second. 31 00:06:08,479 --> 00:06:11,680 >> Need our seconds. All in favor? Think I 32 00:06:11,680 --> 00:06:13,039 get to vote? Do I get to vote? 33 00:06:13,039 --> 00:06:16,720 >> You're non voting member. 34 00:06:16,720 --> 00:06:18,639 All right. 35 00:06:18,639 --> 00:06:20,080 Fine. 36 00:06:20,080 --> 00:06:20,880 >> Three. 37 00:06:20,880 --> 00:06:22,960 out of three. Then passes 38 00:06:22,960 --> 00:06:24,639 unanimously. 39 00:06:24,639 --> 00:06:28,240 Um, we do have 40 00:06:28,240 --> 00:06:31,440 What is this? Oh, so that's the minutes 41 00:06:31,440 --> 00:06:34,240 item three. 42 00:06:34,240 --> 00:06:36,080 So, we have the annual audit. I'm just 43 00:06:36,080 --> 00:06:37,520 going to give you an overview really 44 00:06:37,520 --> 00:06:41,600 quick. Um, Marcy's here. she can she can 45 00:06:41,600 --> 00:06:44,560 um shed any light as well. But overall 46 00:06:44,560 --> 00:06:47,199 the the audit was a clean audit. It was 47 00:06:47,199 --> 00:06:49,759 unconditional. So they they were able to 48 00:06:49,759 --> 00:06:51,840 give us a clean bill of health, so to 49 00:06:51,840 --> 00:06:53,360 speak. That doesn't mean we didn't have 50 00:06:53,360 --> 00:06:56,160 things that we needed to correct. And 51 00:06:56,160 --> 00:06:57,840 I'll go over some of those things right 52 00:06:57,840 --> 00:06:59,199 now and then talk about some of the 53 00:06:59,199 --> 00:07:01,520 things that we've done to put in 54 00:07:01,520 --> 00:07:04,800 controls to to uh resolve these going 55 00:07:04,800 --> 00:07:07,840 forward. So 56 00:07:07,840 --> 00:07:13,199 they uh on page uh 49 of the audit 57 00:07:13,199 --> 00:07:16,800 uh he talks about cash dispersements and 58 00:07:16,800 --> 00:07:19,199 uh one of the things he notes is that 59 00:07:19,199 --> 00:07:20,800 certain dispersements were originally 60 00:07:20,800 --> 00:07:22,479 coded to general ledger through the 61 00:07:22,479 --> 00:07:24,160 system but later the coding of the 62 00:07:24,160 --> 00:07:26,639 general ledger accounts was um were 63 00:07:26,639 --> 00:07:29,919 manually adjusted with no audit trail. 64 00:07:29,919 --> 00:07:32,080 And as I understand this, what this 65 00:07:32,080 --> 00:07:37,759 means is that um that we can't tell why 66 00:07:37,759 --> 00:07:39,919 things were changed or or anything like 67 00:07:39,919 --> 00:07:42,639 that or what the what the reason was for 68 00:07:42,639 --> 00:07:46,319 change or or anything like that. So what 69 00:07:46,319 --> 00:07:50,000 the control is is um we require we're 70 00:07:50,000 --> 00:07:51,840 supposed to require proper authorization 71 00:07:51,840 --> 00:07:53,599 approval for the recording of cash 72 00:07:53,599 --> 00:07:56,560 dispersements. So um rather than me 73 00:07:56,560 --> 00:07:58,560 explain what we're doing now, who wants 74 00:07:58,560 --> 00:08:02,720 to explain what we're doing now? Do you want to explain it? 75 00:08:02,720 --> 00:08:05,440 >> Yeah. So basically the issue was is if 76 00:08:05,440 --> 00:08:07,360 we found an invoice that was coded to a 77 00:08:07,360 --> 00:08:10,080 wrong GL, we were going in and just 78 00:08:10,080 --> 00:08:12,639 changing the invoice so to the correct 79 00:08:12,639 --> 00:08:14,879 GL. But there after it had been approved 80 00:08:14,879 --> 00:08:16,479 or after it had been sent, it hadn't 81 00:08:16,479 --> 00:08:18,479 gone through the proper approvals. So 82 00:08:18,479 --> 00:08:20,240 now if we find something that has a 83 00:08:20,240 --> 00:08:21,840 coding error, we're doing a journal 84 00:08:21,840 --> 00:08:24,720 entry and Michael approves those so that 85 00:08:24,720 --> 00:08:27,360 he can see what so that there's a trail 86 00:08:27,360 --> 00:08:30,319 of why we've taken it from this GL and 87 00:08:30,319 --> 00:08:31,680 put it in this GL. 88 00:08:31,680 --> 00:08:33,839 >> Yeah. So there's a short explanation 89 00:08:33,839 --> 00:08:36,000 says these were coded incorrectly. We 90 00:08:36,000 --> 00:08:38,719 don't just have a 91 00:08:38,719 --> 00:08:41,039 an amount that went from one GL to 92 00:08:41,039 --> 00:08:43,120 another without any explanation. And 93 00:08:43,120 --> 00:08:45,120 those are those are happening. I signed 94 00:08:45,120 --> 00:08:47,279 one Yes. this week I think couple of 95 00:08:47,279 --> 00:08:49,279 them. Two of them this week. Yeah. 96 00:08:49,279 --> 00:08:51,519 >> Okay. So those are happening that that 97 00:08:51,519 --> 00:08:54,720 uh addresses the issue that the the 98 00:08:54,720 --> 00:08:56,320 auditor noticed. 99 00:08:56,320 --> 00:08:58,160 >> Um 100 00:08:58,160 --> 00:09:01,680 let's see. So that is in place. Let's go 101 00:09:01,680 --> 00:09:04,480 to 102 00:09:04,480 --> 00:09:08,480 what do we have next? Uh we have 103 00:09:08,480 --> 00:09:12,080 we had an issue with and I'm I'm trying 104 00:09:12,080 --> 00:09:14,480 to find the page that this is on. The 105 00:09:14,480 --> 00:09:17,200 issue was with uh and Marcy you can help 106 00:09:17,200 --> 00:09:21,600 me explain this one. Um 107 00:09:21,600 --> 00:09:25,279 this one was oh depreciation. 108 00:09:25,279 --> 00:09:30,470 >> Oh yeah. 109 00:09:30,480 --> 00:09:33,600 » So the the depreciation is first of all 110 00:09:33,600 --> 00:09:36,560 it's not a actual transactional monetary 111 00:09:36,560 --> 00:09:38,000 moving of funds. It's called a contract 112 00:09:38,000 --> 00:09:40,560 account. It's an asset account and we 113 00:09:40,560 --> 00:09:42,800 just inadvertently overlooked budgeting 114 00:09:42,800 --> 00:09:44,399 the depreciation. And so there was no 115 00:09:44,399 --> 00:09:47,279 monetary issues, but because we have to 116 00:09:47,279 --> 00:09:49,040 track what our depreciation is on all of 117 00:09:49,040 --> 00:09:52,399 our assets, we had not actually budgeted 118 00:09:52,399 --> 00:09:55,920 the depreciation. So we are now we it's 119 00:09:55,920 --> 00:09:58,160 on our radar. Every single one will be 120 00:09:58,160 --> 00:09:59,920 budgeted and we did get it corrected. So 121 00:09:59,920 --> 00:10:01,680 the depreciation still happened. It just 122 00:10:01,680 --> 00:10:04,160 wasn't done through the budget process. 123 00:10:04,160 --> 00:10:04,880 So 124 00:10:04,880 --> 00:10:05,200 >> yeah, 125 00:10:05,200 --> 00:10:07,200 >> very straightforward. And we had a new 126 00:10:07,200 --> 00:10:09,440 uh PTIF account, the storm drain one 127 00:10:09,440 --> 00:10:12,399 that um we just hadn't even put in the 128 00:10:12,399 --> 00:10:14,320 system. So it was brand new. But 129 00:10:14,320 --> 00:10:16,160 >> so Tonnie, you may remember that the 130 00:10:16,160 --> 00:10:17,839 amendment that we did where we added the 131 00:10:17,839 --> 00:10:20,160 depreciation because it wasn't in there 132 00:10:20,160 --> 00:10:22,079 before. And we're putting together the 133 00:10:22,079 --> 00:10:24,079 new budget for this year. Depreciation 134 00:10:24,079 --> 00:10:25,360 is in there. 135 00:10:25,360 --> 00:10:27,680 >> Um we've added those the places that 136 00:10:27,680 --> 00:10:32,480 they need to be. And um I'll just go 137 00:10:32,480 --> 00:10:34,959 through the rest of the letter. So if 138 00:10:34,959 --> 00:10:38,000 you look at page I don't know what page 139 00:10:38,000 --> 00:10:41,440 this is. Page 63 of 65. 140 00:10:41,440 --> 00:10:43,680 Um this is a letter to the city that 141 00:10:43,680 --> 00:10:46,160 states that the auditors have audited 142 00:10:46,160 --> 00:10:49,360 us. Um they explain what their 143 00:10:49,360 --> 00:10:53,519 responsibility is um and how they how 144 00:10:53,519 --> 00:10:55,920 they go about 145 00:10:55,920 --> 00:10:58,640 um what they do. Most of this is just 146 00:10:58,640 --> 00:11:02,560 explaining what they're doing. Um they 147 00:11:02,560 --> 00:11:05,680 do say that we met we do meet budgetary 148 00:11:05,680 --> 00:11:07,519 compliance. There were some changes that 149 00:11:07,519 --> 00:11:09,279 we need to make. we needed to make. Uh 150 00:11:09,279 --> 00:11:16,150 we did make those changes. They um 151 00:11:16,160 --> 00:11:19,680 the first one was um state law requires 152 00:11:19,680 --> 00:11:21,680 the city's actual expenditure on any 153 00:11:21,680 --> 00:11:23,680 given fund not exceed the expected 154 00:11:23,680 --> 00:11:26,959 budget um budgeted expendure expenditure 155 00:11:26,959 --> 00:11:28,640 for that fund. And what happened here 156 00:11:28,640 --> 00:11:32,399 was the depreciation bumped these funds 157 00:11:32,399 --> 00:11:35,839 over and I think it was only was it just 158 00:11:35,839 --> 00:11:38,079 one or two? He had three, but one of 159 00:11:38,079 --> 00:11:39,760 them wasn't an issue actually. 160 00:11:39,760 --> 00:11:41,440 >> Storm water or I mean sewer wasn't an 161 00:11:41,440 --> 00:11:43,200 issue. Water and 162 00:11:43,200 --> 00:11:46,640 >> and water. So water and storm water 163 00:11:46,640 --> 00:11:48,880 because the budget didn't include 164 00:11:48,880 --> 00:11:51,360 depreciation when he put those in there 165 00:11:51,360 --> 00:11:53,839 or water and sewer whatever it was 166 00:11:53,839 --> 00:11:55,760 because when when he put those in there 167 00:11:55,760 --> 00:11:57,600 it caused the those budgets to go over. 168 00:11:57,600 --> 00:11:59,279 So he's saying we can't do that. We know 169 00:11:59,279 --> 00:12:02,800 that um we will make sure that we put in 170 00:12:02,800 --> 00:12:04,320 um 171 00:12:04,320 --> 00:12:08,800 these uh depreciation numbers before 172 00:12:08,800 --> 00:12:11,519 um he next thing he states is that the 173 00:12:11,519 --> 00:12:13,519 city's actual expendit that's the same 174 00:12:13,519 --> 00:12:16,800 thing. Um 175 00:12:16,800 --> 00:12:19,360 state law requires that a city includes 176 00:12:19,360 --> 00:12:21,120 general fund overhead allocation as 177 00:12:21,120 --> 00:12:24,480 budgeted expenditure and the funds that 178 00:12:24,480 --> 00:12:26,800 it is that is allocated for the 179 00:12:26,800 --> 00:12:28,320 overhead. 180 00:12:28,320 --> 00:12:30,639 Um, 181 00:12:30,639 --> 00:12:34,560 and is this the is this the 182 00:12:34,560 --> 00:12:37,590 um 183 00:12:37,600 --> 00:12:42,150 future liabilities? 184 00:12:42,160 --> 00:12:45,590 Trying to see 185 00:12:45,600 --> 00:12:47,040 » future liabilities are in here 186 00:12:47,040 --> 00:12:47,760 somewhere. 187 00:12:47,760 --> 00:12:49,279 >> Yeah. 188 00:12:49,279 --> 00:12:50,959 During the audit, we noticed that the 189 00:12:50,959 --> 00:12:52,720 city did not include the general fund 190 00:12:52,720 --> 00:12:56,800 overhead allocation as budgeted as a 191 00:12:56,800 --> 00:12:59,120 budgeted expenditure in the parking and 192 00:12:59,120 --> 00:13:00,480 transit fund. 193 00:13:00,480 --> 00:13:04,160 >> Oh yeah, who's jumping on right now? He 194 00:13:04,160 --> 00:13:05,440 was having trouble. 195 00:13:05,440 --> 00:13:07,279 >> Well, good. 196 00:13:07,279 --> 00:13:08,079 That's nice of him. 197 00:13:08,079 --> 00:13:10,079 >> That was just in one account though, not 198 00:13:10,079 --> 00:13:11,360 all of our accounts. 199 00:13:11,360 --> 00:13:13,519 >> Okay. And the note is that we resolved 200 00:13:13,519 --> 00:13:15,120 this in the current year, so it's not an 201 00:13:15,120 --> 00:13:18,800 issue. Overall, this is a clean budget. 202 00:13:18,800 --> 00:13:20,399 We did have to make some changes. We'll 203 00:13:20,399 --> 00:13:23,839 let Ron explain what his his uh 204 00:13:23,839 --> 00:13:27,360 perception is of this and we can vote on 205 00:13:27,360 --> 00:13:33,269 it or ask questions. 206 00:13:33,279 --> 00:13:38,629 » There are some we can map doesn't m 207 00:13:38,639 --> 00:13:41,519 » Yeah, I mentioned those to Ron. You see 208 00:13:41,519 --> 00:13:42,639 here 209 00:13:42,639 --> 00:13:48,470 >> he's he's going to be on in a minute. 210 00:13:48,480 --> 00:13:53,590 We stalled just enough to 211 00:13:53,600 --> 00:13:55,839 » So, page two on the 212 00:13:55,839 --> 00:13:56,720 >> You should be 213 00:13:56,720 --> 00:13:58,959 >> Hello. Can everybody hear me? 214 00:13:58,959 --> 00:14:00,160 >> Yes. 215 00:14:00,160 --> 00:14:00,959 >> Hey, Ron. 216 00:14:00,959 --> 00:14:02,240 >> Hello. 217 00:14:02,240 --> 00:14:06,160 >> Hi, Ron. Can you hear me? This is 218 00:14:06,160 --> 00:14:09,040 >> I can. I am so sorry, man. My I turned 219 00:14:09,040 --> 00:14:10,560 on my computer and it was all ready to 220 00:14:10,560 --> 00:14:12,240 go and then it just died. 221 00:14:12,240 --> 00:14:13,040 >> Oh, no problem. 222 00:14:13,040 --> 00:14:15,279 >> The whole thing went I stalled for you 223 00:14:15,279 --> 00:14:17,360 for a little while. So, 224 00:14:17,360 --> 00:14:23,440 >> um, we want you if you can go over the audit for us, explain what you did, 225 00:14:23,440 --> 00:14:25,120 what the findings were, what we've done 226 00:14:25,120 --> 00:14:28,320 to correct them, and how what the 227 00:14:28,320 --> 00:14:31,760 outcome was of the uh of the of the 228 00:14:31,760 --> 00:14:33,199 audit. We'd appreciate it. I kind of 229 00:14:33,199 --> 00:14:34,800 went over it really quickly, but we'd 230 00:14:34,800 --> 00:14:37,120 appreciate uh getting an explanation 231 00:14:37,120 --> 00:14:38,720 from you. And then I think we have some 232 00:14:38,720 --> 00:14:41,839 questions once you're done with that. 233 00:14:41,839 --> 00:14:44,399 >> Okay. Um, so really quickly, let me just 234 00:14:44,399 --> 00:14:45,920 grab the door really fast. Hold on just 235 00:14:45,920 --> 00:14:53,110 for a second. 236 00:14:53,120 --> 00:14:55,600 » Okay, so really quickly, what we do as 237 00:14:55,600 --> 00:14:57,760 auditors is there's really three areas 238 00:14:57,760 --> 00:15:00,720 we look at. Um, one is that the 239 00:15:00,720 --> 00:15:02,160 financial statements are materially 240 00:15:02,160 --> 00:15:03,519 correct and they meet accounting 241 00:15:03,519 --> 00:15:05,839 standards and they can be relied upon. 242 00:15:05,839 --> 00:15:08,639 Um, the second one is that, uh, internal 243 00:15:08,639 --> 00:15:10,639 controls. We want to evaluate those 244 00:15:10,639 --> 00:15:12,000 controls to make sure that they're 245 00:15:12,000 --> 00:15:13,680 designed, that they're implemented, and 246 00:15:13,680 --> 00:15:15,839 they're working effectively. 247 00:15:15,839 --> 00:15:17,440 And then the third thing is that we're 248 00:15:17,440 --> 00:15:19,120 in compliance with state law based on 249 00:15:19,120 --> 00:15:20,720 the areas that we looked at during the 250 00:15:20,720 --> 00:15:23,279 fiscal year. Um, so what I'll do is I'll 251 00:15:23,279 --> 00:15:24,880 just quickly go through kind of each of 252 00:15:24,880 --> 00:15:27,040 those three areas and tell you what we 253 00:15:27,040 --> 00:15:28,800 did and our conclusions and how we came 254 00:15:28,800 --> 00:15:31,279 to those. So, as far as the financial 255 00:15:31,279 --> 00:15:33,120 statements go, um, we take the trial 256 00:15:33,120 --> 00:15:35,440 balance or the the numbers of the city 257 00:15:35,440 --> 00:15:37,199 and we perform a number of tests on 258 00:15:37,199 --> 00:15:39,839 those balances. Um, we perform tests 259 00:15:39,839 --> 00:15:41,920 like we send out confirmations. We'll 260 00:15:41,920 --> 00:15:44,399 send out confirmations for cash, for 261 00:15:44,399 --> 00:15:49,360 debt, um, for property taxes, sales tax, 262 00:15:49,360 --> 00:15:52,000 um, other revenues that we can send out 263 00:15:52,000 --> 00:15:55,600 confirmations for. Um, also for 264 00:15:55,600 --> 00:15:58,639 URS allocations, and and anything that 265 00:15:58,639 --> 00:16:00,800 we can think of to send a confirmation 266 00:16:00,800 --> 00:16:03,440 to make sure that the third party is 267 00:16:03,440 --> 00:16:05,040 their numbers match ours, and that we're 268 00:16:05,040 --> 00:16:07,600 showing the right balances. 269 00:16:07,600 --> 00:16:09,199 Um during the audit, we pull in a number 270 00:16:09,199 --> 00:16:10,800 of invoices. 271 00:16:10,800 --> 00:16:12,000 We'll pull a significant number of 272 00:16:12,000 --> 00:16:14,399 invoices at the beginning of the audit. 273 00:16:14,399 --> 00:16:16,320 Um we want to make sure that the invoice 274 00:16:16,320 --> 00:16:18,480 matches the check. The check is posted 275 00:16:18,480 --> 00:16:21,120 to the right period um and it's posted 276 00:16:21,120 --> 00:16:25,759 in the right GL account. Um we also will 277 00:16:25,759 --> 00:16:29,360 pull invoices for things like uh fixed 278 00:16:29,360 --> 00:16:31,199 assets and and other things as we're 279 00:16:31,199 --> 00:16:33,440 going through the individual audit 280 00:16:33,440 --> 00:16:35,120 procedures. 281 00:16:35,120 --> 00:16:37,040 We also pull a number of invoices after 282 00:16:37,040 --> 00:16:39,120 the end of the year um to make sure that 283 00:16:39,120 --> 00:16:41,360 the the expense is posted in the right 284 00:16:41,360 --> 00:16:44,560 period. So if an expense happened in 285 00:16:44,560 --> 00:16:46,000 June but we didn't pay for it until 286 00:16:46,000 --> 00:16:47,680 July, we want to make sure that expense 287 00:16:47,680 --> 00:16:50,079 is posted in the right year. Um so we'll 288 00:16:50,079 --> 00:16:51,440 pull those invoices to make sure 289 00:16:51,440 --> 00:16:54,240 accounts payable is correct. 290 00:16:54,240 --> 00:16:56,480 Um there's a number of calculations on a 291 00:16:56,480 --> 00:16:58,399 financial statement. um things like 292 00:16:58,399 --> 00:17:00,959 depreciation expense, um compensated 293 00:17:00,959 --> 00:17:02,720 absences, 294 00:17:02,720 --> 00:17:05,919 uh URS allocations, crude payroll, and 295 00:17:05,919 --> 00:17:07,120 so we'll go through and we'll 296 00:17:07,120 --> 00:17:08,880 recalculate those balances to make sure 297 00:17:08,880 --> 00:17:12,079 they meet accounting standards in 298 00:17:12,079 --> 00:17:14,640 um there's also analytical reviews that 299 00:17:14,640 --> 00:17:17,039 we do. We'll compare this year to last 300 00:17:17,039 --> 00:17:19,360 year. Um we'll do that at the beginning 301 00:17:19,360 --> 00:17:21,600 of the audit. We'll review those to make 302 00:17:21,600 --> 00:17:23,120 sure that we can understand what the 303 00:17:23,120 --> 00:17:25,439 differences are and what happened. Um, 304 00:17:25,439 --> 00:17:27,199 as we're testing individual balances, 305 00:17:27,199 --> 00:17:29,360 we'll do that a second time. Uh, we'll 306 00:17:29,360 --> 00:17:31,440 compare that. For instance, if we're 307 00:17:31,440 --> 00:17:33,120 testing cash, we'll look at last year, 308 00:17:33,120 --> 00:17:34,640 this year, see if we can understand what 309 00:17:34,640 --> 00:17:36,880 happened and why the differences are. 310 00:17:36,880 --> 00:17:38,960 Um, if if we can't, then we obviously 311 00:17:38,960 --> 00:17:40,400 perform more tests and ask more 312 00:17:40,400 --> 00:17:41,760 questions to understand what happened 313 00:17:41,760 --> 00:17:45,039 and evaluate those. And then as the 314 00:17:45,039 --> 00:17:46,400 financial statements are being written 315 00:17:46,400 --> 00:17:48,880 or written, um we'll do that at a final 316 00:17:48,880 --> 00:17:50,880 time just kind of a high level to make 317 00:17:50,880 --> 00:17:52,640 sure we can understand um where those 318 00:17:52,640 --> 00:17:54,640 differences are and if we've captured 319 00:17:54,640 --> 00:17:57,280 everything that we needed to. 320 00:17:57,280 --> 00:17:59,760 Um and then there's a number of other 321 00:17:59,760 --> 00:18:02,000 tests and procedures that we perform on 322 00:18:02,000 --> 00:18:03,440 the financial statements to make sure 323 00:18:03,440 --> 00:18:05,280 that they're materially correct, that 324 00:18:05,280 --> 00:18:06,720 they meet accounting standards, and they 325 00:18:06,720 --> 00:18:09,440 can be relied upon. So through those 326 00:18:09,440 --> 00:18:12,720 evaluation, testing and um other 327 00:18:12,720 --> 00:18:15,840 procedures, our opinion is that the 328 00:18:15,840 --> 00:18:17,679 financial statements referred to above 329 00:18:17,679 --> 00:18:19,440 present fairly in all material respects 330 00:18:19,440 --> 00:18:21,200 the respective financial position of the 331 00:18:21,200 --> 00:18:22,960 governmental activities, the business 332 00:18:22,960 --> 00:18:24,960 type activities, each major fund and the 333 00:18:24,960 --> 00:18:26,720 aggra remaining fund information of the 334 00:18:26,720 --> 00:18:30,240 city as of June 30th, 2024 335 00:18:30,240 --> 00:18:32,080 and the respective changes in financial 336 00:18:32,080 --> 00:18:34,160 position were applicable. um and then 337 00:18:34,160 --> 00:18:36,000 cash flows thereof for the year and in 338 00:18:36,000 --> 00:18:37,440 accordance with accounting principles 339 00:18:37,440 --> 00:18:38,720 generally accepted in the United States 340 00:18:38,720 --> 00:18:41,280 of America. So that that is a clean 341 00:18:41,280 --> 00:18:44,240 opinion that is a an unmodified opinion 342 00:18:44,240 --> 00:18:47,440 or the best opinion that you can. 343 00:18:47,440 --> 00:18:50,240 So in short what that means is that we 344 00:18:50,240 --> 00:18:51,840 through our evaluations and testing we 345 00:18:51,840 --> 00:18:53,440 do feel that those financial statements 346 00:18:53,440 --> 00:18:55,919 are truly correct. 347 00:18:55,919 --> 00:18:57,440 The second thing that we do is we look 348 00:18:57,440 --> 00:18:59,600 at internal controls. 349 00:18:59,600 --> 00:19:01,280 We don't give an opinion on controls, 350 00:19:01,280 --> 00:19:03,840 but we do evaluate those C controls to 351 00:19:03,840 --> 00:19:06,160 make sure that they're designed, that 352 00:19:06,160 --> 00:19:07,360 they're implemented, and they're 353 00:19:07,360 --> 00:19:08,880 working. 354 00:19:08,880 --> 00:19:13,600 Um, we do that through, um, evaluations, 355 00:19:13,600 --> 00:19:16,320 uh, interviews, questionnaires, 356 00:19:16,320 --> 00:19:19,039 walkthroughs. Um, so we'll as we're 357 00:19:19,039 --> 00:19:21,679 pulling invoices for some of those other 358 00:19:21,679 --> 00:19:23,520 areas, we'll also be looking to make 359 00:19:23,520 --> 00:19:27,039 sure that controls are being followed um 360 00:19:27,039 --> 00:19:29,280 and that uh the the assets of the city 361 00:19:29,280 --> 00:19:31,200 are being protected. 362 00:19:31,200 --> 00:19:32,720 So if there's a portion of your city 363 00:19:32,720 --> 00:19:34,880 that didn't have controls or those 364 00:19:34,880 --> 00:19:36,320 controls were just not working as 365 00:19:36,320 --> 00:19:37,760 effectively as they had been at one 366 00:19:37,760 --> 00:19:39,520 time, um then we would bring that to 367 00:19:39,520 --> 00:19:40,880 your attention as a significant 368 00:19:40,880 --> 00:19:43,200 deficiency. 369 00:19:43,200 --> 00:19:45,440 Um through our evaluations and testing 370 00:19:45,440 --> 00:19:47,039 this year, we did notice that there is 371 00:19:47,039 --> 00:19:48,400 one thing that we wanted to bring to 372 00:19:48,400 --> 00:19:50,240 your attention and that was uh related 373 00:19:50,240 --> 00:19:52,720 to cash dispersements. 374 00:19:52,720 --> 00:19:55,360 Um and and then mostly it's related to 375 00:19:55,360 --> 00:19:58,400 the fact that if you know once an 376 00:19:58,400 --> 00:20:01,039 invoice has been processed and paid, if 377 00:20:01,039 --> 00:20:02,960 there's issues on the GO account, 378 00:20:02,960 --> 00:20:05,679 instead of going back and and fixing the 379 00:20:05,679 --> 00:20:07,760 original coding 380 00:20:07,760 --> 00:20:09,520 um that we prepare a journal entry that 381 00:20:09,520 --> 00:20:12,400 has an audit trail um of how that 382 00:20:12,400 --> 00:20:14,960 procedure, how that account was switched 383 00:20:14,960 --> 00:20:18,080 or moved the proper account. 384 00:20:18,080 --> 00:20:20,400 Um so our recommendation is that we just 385 00:20:20,400 --> 00:20:22,080 put in procedures to require journal 386 00:20:22,080 --> 00:20:23,919 entry to coordinate changes to the 387 00:20:23,919 --> 00:20:27,200 general general ledger accounts and 388 00:20:27,200 --> 00:20:29,440 those uh journal entries should be 389 00:20:29,440 --> 00:20:30,720 reviewed and approved by somebody 390 00:20:30,720 --> 00:20:32,880 outside of the functions of the general 391 00:20:32,880 --> 00:20:35,280 man or the city manager or somebody that 392 00:20:35,280 --> 00:20:37,360 can look at those entries and make sure 393 00:20:37,360 --> 00:20:39,440 that they're appropriate. 394 00:20:39,440 --> 00:20:41,200 Um that was the only finding. The rest 395 00:20:41,200 --> 00:20:43,200 of of the internal controls we felt like 396 00:20:43,200 --> 00:20:44,799 were designed and implemented and they 397 00:20:44,799 --> 00:20:47,360 were protecting your your city. Um so 398 00:20:47,360 --> 00:20:48,880 there's no other issues in that small 399 00:20:48,880 --> 00:20:52,960 one. Um the third thing that we do is we 400 00:20:52,960 --> 00:20:55,280 look at state compliance. So the state 401 00:20:55,280 --> 00:20:57,440 auditor gives us certain areas to look 402 00:20:57,440 --> 00:20:59,679 at every year 403 00:20:59,679 --> 00:21:01,760 and those are usually on a some of them 404 00:21:01,760 --> 00:21:03,679 are annually that we look at every year 405 00:21:03,679 --> 00:21:05,520 and then some of them kind of rotate on 406 00:21:05,520 --> 00:21:08,960 a two year threeear basis. Um this year 407 00:21:08,960 --> 00:21:11,039 we looked at budgetary compliance, fund 408 00:21:11,039 --> 00:21:13,600 balance, restricted taxes, fraud risk 409 00:21:13,600 --> 00:21:15,600 assessment, government fees, cash 410 00:21:15,600 --> 00:21:17,760 management, and the tax levy 411 00:21:17,760 --> 00:21:19,520 recognition. 412 00:21:19,520 --> 00:21:21,600 Um so the state gives us certain 413 00:21:21,600 --> 00:21:23,520 procedures to perform. We go through 414 00:21:23,520 --> 00:21:26,159 those procedures and evaluate whether um 415 00:21:26,159 --> 00:21:29,120 you're in compliance with those areas. 416 00:21:29,120 --> 00:21:33,039 So in this year um there was one issue 417 00:21:33,039 --> 00:21:34,880 where there was a couple of enterprise 418 00:21:34,880 --> 00:21:38,159 funds that we expended more than we had 419 00:21:38,159 --> 00:21:41,039 budgeted for. And that one gets a little 420 00:21:41,039 --> 00:21:43,120 bit that's a little bit hard sometimes 421 00:21:43,120 --> 00:21:45,760 um with depreciation and other things 422 00:21:45,760 --> 00:21:48,000 that aren't really cash related but are 423 00:21:48,000 --> 00:21:50,799 still required to be budgeted. Um, we're 424 00:21:50,799 --> 00:21:52,559 just recommending that the city look at 425 00:21:52,559 --> 00:21:54,720 those and make sure that as things as 426 00:21:54,720 --> 00:21:56,720 we're going throughout the year, if 427 00:21:56,720 --> 00:21:58,240 funds are looking like they're going to 428 00:21:58,240 --> 00:22:00,480 exceed the expenditures that we evaluate 429 00:22:00,480 --> 00:22:02,000 those and make necessary budget 430 00:22:02,000 --> 00:22:03,360 adjustments to make sure that we're in 431 00:22:03,360 --> 00:22:04,880 compliance 432 00:22:04,880 --> 00:22:06,480 and that they're not exceeding budgeted 433 00:22:06,480 --> 00:22:06,960 amounts. 434 00:22:06,960 --> 00:22:09,200 >> Ron, can I can I jump in there really 435 00:22:09,200 --> 00:22:10,159 quick? So, 436 00:22:10,159 --> 00:22:12,240 >> sure. with the with the one you're 437 00:22:12,240 --> 00:22:13,919 talking about right now, which is a 438 00:22:13,919 --> 00:22:17,360 state state requirement. And um we had 439 00:22:17,360 --> 00:22:18,960 those two enterprise funds where we had 440 00:22:18,960 --> 00:22:21,600 the issue and and you just mentioned 441 00:22:21,600 --> 00:22:25,280 that these are non you say non-cash 442 00:22:25,280 --> 00:22:29,200 um dispersements or or whatever the um 443 00:22:29,200 --> 00:22:31,760 the depreciation. Can you can you 444 00:22:31,760 --> 00:22:35,200 explain like what that means? Because in 445 00:22:35,200 --> 00:22:37,120 the way I would explain it is I'd say 446 00:22:37,120 --> 00:22:38,960 well we have to put down that there's 447 00:22:38,960 --> 00:22:40,960 this expenditure but it actually never 448 00:22:40,960 --> 00:22:44,080 leaves the it the revenue never comes in 449 00:22:44,080 --> 00:22:47,280 for it. It never goes out. Um it just is 450 00:22:47,280 --> 00:22:50,080 shown there but it never it never 451 00:22:50,080 --> 00:22:52,960 actually depletes the fund by that same 452 00:22:52,960 --> 00:22:54,640 amount. Can can you explain that in 453 00:22:54,640 --> 00:22:56,080 better terms? 454 00:22:56,080 --> 00:22:59,440 >> Well yeah it's a it's a non-cash. So, if 455 00:22:59,440 --> 00:23:02,080 you're looking strictly on a cash basis, 456 00:23:02,080 --> 00:23:03,600 there's no cash that's going to be paid 457 00:23:03,600 --> 00:23:05,840 for it. What it's doing is that if you 458 00:23:05,840 --> 00:23:09,200 buy a piece of equipment, um it's we say 459 00:23:09,200 --> 00:23:11,360 the life of that equipment is 5 years or 460 00:23:11,360 --> 00:23:14,159 20 years or whatever the life is and 461 00:23:14,159 --> 00:23:16,080 then we take a parade a share of that 462 00:23:16,080 --> 00:23:18,400 every year to depreciate that balance 463 00:23:18,400 --> 00:23:20,640 until um basically at the end of the 464 00:23:20,640 --> 00:23:22,080 life we're saying that that asset has 465 00:23:22,080 --> 00:23:26,320 used up its its useful life. Um so while 466 00:23:26,320 --> 00:23:28,559 yes it doesn't affect uh your cash 467 00:23:28,559 --> 00:23:31,200 balance um it is an expense that is 468 00:23:31,200 --> 00:23:34,000 related um on the financial statements 469 00:23:34,000 --> 00:23:35,840 and what it's doing it's allocating that 470 00:23:35,840 --> 00:23:40,159 cost um over the life of the asset. 471 00:23:40,159 --> 00:23:42,960 So instead of picking up buying a 472 00:23:42,960 --> 00:23:45,120 $50,000 piece of equipment and expensing 473 00:23:45,120 --> 00:23:47,120 it in the year you do it, you put it on 474 00:23:47,120 --> 00:23:48,880 the balance sheet as an asset and then 475 00:23:48,880 --> 00:23:50,960 you depreciate it over those 20 years. 476 00:23:50,960 --> 00:23:53,120 And so you're picking up 12th every year 477 00:23:53,120 --> 00:23:56,159 as an expense. Right. 478 00:23:56,159 --> 00:23:59,520 >> So, yeah, not a cash related item, but it 479 00:23:59,520 --> 00:24:01,520 is it is on the financial statement. 480 00:24:01,520 --> 00:24:04,799 >> Gotcha. So, on these two on these two 481 00:24:04,799 --> 00:24:07,840 items or these two enterprise funds, 482 00:24:07,840 --> 00:24:10,080 were it not for the depreciation, we we 483 00:24:10,080 --> 00:24:13,520 would not have been over on our expenses 484 00:24:13,520 --> 00:24:18,400 um for these two enterprise funds. And 485 00:24:18,400 --> 00:24:20,799 so I just wanted to say that because 486 00:24:20,799 --> 00:24:22,799 >> yeah because technically I mean it does 487 00:24:22,799 --> 00:24:25,200 show uh the expenses are more than the 488 00:24:25,200 --> 00:24:27,520 revenues but this expense doesn't go 489 00:24:27,520 --> 00:24:29,919 out. It doesn't matter but I wanted to 490 00:24:29,919 --> 00:24:31,679 bring that up just to say that it wasn't 491 00:24:31,679 --> 00:24:34,880 like salaries or purchasing new vehicles 492 00:24:34,880 --> 00:24:36,559 or anything like that where cash 493 00:24:36,559 --> 00:24:40,159 actually left. Um and in future years we 494 00:24:40,159 --> 00:24:42,480 definitely will have this depreciation 495 00:24:42,480 --> 00:24:48,159 in there. It was actually an issue for the last two years I think and 496 00:24:48,159 --> 00:24:49,679 that's why it didn't make it into the 497 00:24:49,679 --> 00:24:51,760 last the budget that we're in right now 498 00:24:51,760 --> 00:24:54,080 is because the year before I think that 499 00:24:54,080 --> 00:24:55,919 line was blank and we were we were 500 00:24:55,919 --> 00:24:59,440 pulling everything forward you know so 501 00:24:59,440 --> 00:25:01,520 >> um so thanks for that explanation and 502 00:25:01,520 --> 00:25:03,440 yes we have already fixed it for this 503 00:25:03,440 --> 00:25:05,919 year um we've we've made a budget 504 00:25:05,919 --> 00:25:09,039 amendment and so it won't be an issue in 505 00:25:09,039 --> 00:25:11,520 the audit that uh is done for this 506 00:25:11,520 --> 00:25:13,600 fiscal there. 507 00:25:13,600 --> 00:25:16,960 >> Perfect. Okay. Yeah. So, that's that's 508 00:25:16,960 --> 00:25:19,520 really kind of my review. Um that's what 509 00:25:19,520 --> 00:25:22,640 we did and and our conclusions. Um so, 510 00:25:22,640 --> 00:25:24,000 happy to answer any other questions 511 00:25:24,000 --> 00:25:25,200 anybody. 512 00:25:25,200 --> 00:25:26,960 >> Yeah. And then the the last thing I was 513 00:25:26,960 --> 00:25:29,440 going to say is just to reiterate that 514 00:25:29,440 --> 00:25:32,240 it is a clean opinion or an unmodified 515 00:25:32,240 --> 00:25:34,960 opinion which is the the best standard, 516 00:25:34,960 --> 00:25:36,720 right, for an audit, 517 00:25:36,720 --> 00:25:41,669 >> right? Yep. Okay. For sure. 518 00:25:41,679 --> 00:25:44,480 Okay, Dar, did you have some questions? 519 00:25:44,480 --> 00:25:47,919 >> Uh, not really questions, but um, so 520 00:25:47,919 --> 00:25:51,200 there are on the statements. Um, I add 521 00:25:51,200 --> 00:25:53,360 up some numbers. It didn't match. So, 522 00:25:53,360 --> 00:25:56,000 I'm just going to mention those are uh, 523 00:25:56,000 --> 00:25:58,960 page three on the document, but the page 524 00:25:58,960 --> 00:26:01,919 eight on the PDF is talk about the 525 00:26:01,919 --> 00:26:05,909 9,4,887. 526 00:26:05,919 --> 00:26:09,760 So when I add the numbers, this to talk 527 00:26:09,760 --> 00:26:12,240 about the of this amount, this amount 528 00:26:12,240 --> 00:26:15,120 must be spent blah blah and then this 529 00:26:15,120 --> 00:26:17,120 one assigned for the blah blah. So when 530 00:26:17,120 --> 00:26:19,919 I add those blah blas 531 00:26:19,919 --> 00:26:22,559 um there's a $1,000 different so it 532 00:26:22,559 --> 00:26:23,440 doesn't add up to 533 00:26:23,440 --> 00:26:24,960 >> how many how many thousands? 534 00:26:24,960 --> 00:26:28,640 >> 1,000 Okay, I think we can fix that. 535 00:26:28,640 --> 00:26:29,919 That's 536 00:26:29,919 --> 00:26:32,240 >> that's it could be a rounding thing if 537 00:26:32,240 --> 00:26:34,880 it's if it's just $1,000. That's a big 538 00:26:34,880 --> 00:26:35,919 rounding thousand. 539 00:26:35,919 --> 00:26:37,840 >> Are you talking about $100,000? 540 00:26:37,840 --> 00:26:38,559 >> 1,000. 541 00:26:38,559 --> 00:26:40,880 >> Just $1,000. 542 00:26:40,880 --> 00:26:43,600 >> Um, so, okay, we'll we'll take a look at 543 00:26:43,600 --> 00:26:43,760 that. 544 00:26:43,760 --> 00:26:45,200 >> I'm sorry. Where where are we looking on 545 00:26:45,200 --> 00:26:46,240 that? Can you 546 00:26:46,240 --> 00:26:48,960 >> That's page page. 547 00:26:48,960 --> 00:26:50,880 >> Page three, 548 00:26:50,880 --> 00:26:54,080 >> PDF number 9 million. 549 00:26:54,080 --> 00:26:56,799 >> Yeah, it's the third uh second bullet 550 00:26:56,799 --> 00:27:00,000 point under financial highlights. 551 00:27:00,000 --> 00:27:02,400 >> Uhhuh. 552 00:27:02,400 --> 00:27:04,320 reports combined fund balances of 9 553 00:27:04,320 --> 00:27:05,279 million. 554 00:27:05,279 --> 00:27:05,760 >> Yes. Are 555 00:27:05,760 --> 00:27:07,360 >> you saying those three added together 556 00:27:07,360 --> 00:27:10,480 don't add up to that 9 million? 557 00:27:10,480 --> 00:27:14,799 >> Yeah. If you subtract 1,953970 558 00:27:14,799 --> 00:27:17,279 and 3,303942, 559 00:27:17,279 --> 00:27:20,159 the result isn't the same as what it 560 00:27:20,159 --> 00:27:21,840 says the remaining 561 00:27:21,840 --> 00:27:23,600 >> $5,000. 562 00:27:23,600 --> 00:27:27,360 Okay. Another one is like a similar on 563 00:27:27,360 --> 00:27:32,080 the page seven the PDF 12 564 00:27:32,080 --> 00:27:34,480 and that one is on the top of the page 565 00:27:34,480 --> 00:27:37,360 is talking about the 9 million again and 566 00:27:37,360 --> 00:27:40,640 42% of um 567 00:27:40,640 --> 00:27:42,799 should be assigned and assign 568 00:27:42,799 --> 00:27:46,640 unassigned. So that one when you add the 569 00:27:46,640 --> 00:27:50,640 numbers this time is $100 is off and 570 00:27:50,640 --> 00:27:53,360 then that also doesn't make 42% it's 571 00:27:53,360 --> 00:27:56,789 make 36.7%. 572 00:27:56,799 --> 00:27:59,360 » Okay. All right. Well, we'll take a 573 00:27:59,360 --> 00:28:01,200 let's take a look at that too, Ron, if 574 00:28:01,200 --> 00:28:04,240 that's okay. That's page seven on the 575 00:28:04,240 --> 00:28:07,360 report, page 12 on the PDF. It's the 576 00:28:07,360 --> 00:28:08,240 first paragraph. 577 00:28:08,240 --> 00:28:10,640 >> Sure. 578 00:28:10,640 --> 00:28:12,399 >> And I'm getting minor again. And I think 579 00:28:12,399 --> 00:28:14,480 I point that out last year that our 580 00:28:14,480 --> 00:28:16,159 insuranceances talk about the city 581 00:28:16,159 --> 00:28:18,880 insurance being s signal which been 582 00:28:18,880 --> 00:28:21,919 changed for several years. Let's update 583 00:28:21,919 --> 00:28:24,720 this time to correct it. 584 00:28:24,720 --> 00:28:25,919 What it is 585 00:28:25,919 --> 00:28:27,520 >> what page is or is that it just 586 00:28:27,520 --> 00:28:29,039 throughout 587 00:28:29,039 --> 00:28:29,600 is that on 588 00:28:29,600 --> 00:28:34,559 >> it's on the page 30 let's see PDF 38 uh 589 00:28:34,559 --> 00:28:36,240 report 32. 590 00:28:36,240 --> 00:28:37,760 >> Okay. 591 00:28:37,760 --> 00:28:40,799 Page 38 has the wrong 592 00:28:40,799 --> 00:28:44,559 >> insurance provider for the city 593 00:28:44,559 --> 00:28:47,919 >> report. Who is the provider now? 594 00:28:47,919 --> 00:28:50,159 >> Page 32 on the report. 595 00:28:50,159 --> 00:28:51,760 >> Oh, 596 00:28:51,760 --> 00:28:54,480 >> PDF 597 00:28:54,480 --> 00:28:56,960 >> PHP 598 00:28:56,960 --> 00:29:03,029 is what we have now. It says Sigma. 599 00:29:03,039 --> 00:29:05,039 Okay. 600 00:29:05,039 --> 00:29:06,320 >> I'll definitely change that for next 601 00:29:06,320 --> 00:29:10,070 year for sure. 602 00:29:10,080 --> 00:29:12,080 Is that it? Wasn't 603 00:29:12,080 --> 00:29:12,640 >> too bad. 604 00:29:12,640 --> 00:29:14,399 >> It was too hard to do the rest of the 605 00:29:14,399 --> 00:29:16,559 table. I couldn't plug in. So, I'm 606 00:29:16,559 --> 00:29:19,760 hoping the the tables are correct. 607 00:29:19,760 --> 00:29:23,039 >> I I think tables are most likely 608 00:29:23,039 --> 00:29:25,919 correct. I think um thanks for pointing 609 00:29:25,919 --> 00:29:29,120 those out. Sounds like there are some 610 00:29:29,120 --> 00:29:30,880 discrepancies, but they're not in the 611 00:29:30,880 --> 00:29:32,720 millions or hundreds of thousands of 612 00:29:32,720 --> 00:29:35,279 dollars. So, we can we can figure that 613 00:29:35,279 --> 00:29:38,000 out. So, whatever the result is isn't 614 00:29:38,000 --> 00:29:40,240 going to affect uh the bottom line too 615 00:29:40,240 --> 00:29:42,640 much, I don't think. So, any other 616 00:29:42,640 --> 00:29:47,669 questions or comments or anything? 617 00:29:47,679 --> 00:29:52,320 » Okay, Ron, any last words for us? 618 00:29:52,320 --> 00:29:54,080 >> No, just uh thank you. Thanks for 619 00:29:54,080 --> 00:29:55,360 letting me be involved with your city 620 00:29:55,360 --> 00:29:57,600 and uh thanks for your staff. I know 621 00:29:57,600 --> 00:29:59,679 it's it's a big process with a lot of 622 00:29:59,679 --> 00:30:02,480 information that gets thrown around. Um, 623 00:30:02,480 --> 00:30:04,640 we're grateful for the hard work of you 624 00:30:04,640 --> 00:30:06,880 guys and grateful to be a part of it. 625 00:30:06,880 --> 00:30:08,000 So, thank you. 626 00:30:08,000 --> 00:30:10,320 >> Yeah, I'll just say really quick, Ron's 627 00:30:10,320 --> 00:30:12,159 Maron's been very helpful, especially 628 00:30:12,159 --> 00:30:14,000 this year because we've had a lot of 629 00:30:14,000 --> 00:30:17,520 questions. Um, we've we've uh called him 630 00:30:17,520 --> 00:30:20,799 a lot, asked him several questions about 631 00:30:20,799 --> 00:30:23,200 um history of budgets and things like 632 00:30:23,200 --> 00:30:25,840 that and how how what best practices are 633 00:30:25,840 --> 00:30:28,000 going forward and everything. So, and 634 00:30:28,000 --> 00:30:29,840 you've been great. We really appreciate 635 00:30:29,840 --> 00:30:32,080 your help on these things. And um you'll 636 00:30:32,080 --> 00:30:33,440 be able to make it to the city council 637 00:30:33,440 --> 00:30:36,240 meeting, right? 638 00:30:36,240 --> 00:30:40,070 >> Um when is that? 639 00:30:40,080 --> 00:30:43,600 » 24th of March. 640 00:30:43,600 --> 00:30:46,480 >> March 24th. And I promise I'll have a 641 00:30:46,480 --> 00:30:47,760 computer that works. So is 642 00:30:47,760 --> 00:30:50,240 electronically okay if I get to the 643 00:30:50,240 --> 00:30:51,919 right. 644 00:30:51,919 --> 00:30:55,520 >> All right. And what time on the 24th? 645 00:30:55,520 --> 00:30:56,880 >> Well, 646 00:30:56,880 --> 00:30:59,440 >> not sure. 647 00:30:59,440 --> 00:31:01,520 Yeah, I think logging on at six will be 648 00:31:01,520 --> 00:31:03,360 fine. 649 00:31:03,360 --> 00:31:04,000 >> Yeah. 650 00:31:04,000 --> 00:31:04,799 >> Okay. 651 00:31:04,799 --> 00:31:06,799 >> And we'll try to get it to the front of 652 00:31:06,799 --> 00:31:09,840 the meeting. So, 653 00:31:09,840 --> 00:31:10,960 >> okay. 654 00:31:10,960 --> 00:31:14,559 Um, any other discussion about the 655 00:31:14,559 --> 00:31:18,960 reported or the budget report? 656 00:31:18,960 --> 00:31:20,480 >> Okay. 657 00:31:20,480 --> 00:31:24,399 Then um if we have a motion, 658 00:31:24,399 --> 00:31:27,840 I think what we do is recommend approval 659 00:31:27,840 --> 00:31:31,279 of this motion or this uh report to the 660 00:31:31,279 --> 00:31:34,080 city council. 661 00:31:34,080 --> 00:31:36,880 >> I'll let one of you guys do it with the 662 00:31:36,880 --> 00:31:39,200 correction of those numbers. 663 00:31:39,200 --> 00:31:42,480 >> Yes. Um well, 664 00:31:42,480 --> 00:31:44,000 I yeah, I don't know that they'll be 665 00:31:44,000 --> 00:31:47,279 corrected for the um for the report for 666 00:31:47,279 --> 00:31:51,440 March 24th. Um, I don't I Ron, correct 667 00:31:51,440 --> 00:31:54,159 me if I'm wrong, but I I think that we 668 00:31:54,159 --> 00:31:56,880 can make note of the Sigma, the other 669 00:31:56,880 --> 00:31:59,679 two numerical changes. I don't think 670 00:31:59,679 --> 00:32:02,880 we're um 671 00:32:02,880 --> 00:32:04,399 will affect, like I said, the bottom 672 00:32:04,399 --> 00:32:06,880 line. Do we need to have them change for 673 00:32:06,880 --> 00:32:10,399 the for the budget meeting or um how do 674 00:32:10,399 --> 00:32:10,799 you 675 00:32:10,799 --> 00:32:12,640 >> I mean, I can if you'd like me to. 676 00:32:12,640 --> 00:32:15,760 >> Not the budget meeting. I'm sorry. The 677 00:32:15,760 --> 00:32:18,480 >> Sorry, I I said the wrong thing. So go 678 00:32:18,480 --> 00:32:20,880 ahead. 679 00:32:20,880 --> 00:32:22,799 >> Um I can definitely make the changes on 680 00:32:22,799 --> 00:32:25,840 those pages. Um they're not these are on 681 00:32:25,840 --> 00:32:28,480 these pages. These are just highlights 682 00:32:28,480 --> 00:32:30,640 and discussion items. They're not 683 00:32:30,640 --> 00:32:33,440 actually the opinions 684 00:32:33,440 --> 00:32:34,480 part where we're actually giving 685 00:32:34,480 --> 00:32:37,200 opinions on. Um this is just some 686 00:32:37,200 --> 00:32:38,960 additional information. But yes, I can 687 00:32:38,960 --> 00:32:40,640 make those changes and I can send you a 688 00:32:40,640 --> 00:32:43,279 new those new pages and you can add them 689 00:32:43,279 --> 00:32:44,559 to the PDF. 690 00:32:44,559 --> 00:32:46,799 >> Let's make those changes. um just so 691 00:32:46,799 --> 00:32:49,679 that we we know that um there isn't 692 00:32:49,679 --> 00:32:52,399 something that is incorrect in the in 693 00:32:52,399 --> 00:32:54,320 the document when we present it to the 694 00:32:54,320 --> 00:32:56,240 city council. It sounds like it won't be 695 00:32:56,240 --> 00:32:59,279 too difficult to do that hopefully. And 696 00:32:59,279 --> 00:33:00,080 then um 697 00:33:00,080 --> 00:33:01,600 >> you have a PDF, so I'm just going to 698 00:33:01,600 --> 00:33:04,159 send you the pages and you can just um 699 00:33:04,159 --> 00:33:06,000 insert those pages into that PDF and 700 00:33:06,000 --> 00:33:08,000 then resend it out. 701 00:33:08,000 --> 00:33:10,320 >> Sounds good. Sounds good. 702 00:33:10,320 --> 00:33:13,440 >> Um so yeah, the motion Sorry, Ron, did 703 00:33:13,440 --> 00:33:15,440 you have something else? 704 00:33:15,440 --> 00:33:17,360 Nope. Okay. 705 00:33:17,360 --> 00:33:19,519 >> So, if we're if we're going to make a 706 00:33:19,519 --> 00:33:21,279 recommendation on this motion for the 707 00:33:21,279 --> 00:33:22,640 city council to approve, the motion 708 00:33:22,640 --> 00:33:26,480 would be to um to forward a 709 00:33:26,480 --> 00:33:29,440 recommendation of approval for the 710 00:33:29,440 --> 00:33:32,559 uh present to the audit 711 00:33:32,559 --> 00:33:35,039 um as presented with the changes that 712 00:33:35,039 --> 00:33:36,799 were discussed. 713 00:33:36,799 --> 00:33:41,350 And uh that's pretty much it. 714 00:33:41,360 --> 00:33:44,159 » I'm going to give a try. Okay. I make 715 00:33:44,159 --> 00:33:49,120 the motion uh to recommend the draft 716 00:33:49,120 --> 00:33:51,519 annual audit to the city council with 717 00:33:51,519 --> 00:33:54,640 the change that we discuss. 718 00:33:54,640 --> 00:33:56,080 >> Recommend approval. 719 00:33:56,080 --> 00:33:57,440 >> Recommended approval. 720 00:33:57,440 --> 00:33:59,039 >> Okay. 721 00:33:59,039 --> 00:34:00,399 Good. We have a second. 722 00:34:00,399 --> 00:34:00,960 >> I'll second. 723 00:34:00,960 --> 00:34:03,200 >> Okay. Thank you. 724 00:34:03,200 --> 00:34:05,120 So, we have a motion and a second. All 725 00:34:05,120 --> 00:34:06,720 in favor? 726 00:34:06,720 --> 00:34:07,840 >> I 727 00:34:07,840 --> 00:34:09,040 >> We don't have to do roll call or 728 00:34:09,040 --> 00:34:11,359 anything like that. Okay. That was three 729 00:34:11,359 --> 00:34:14,960 for three. That's unanimous. Um, so it 730 00:34:14,960 --> 00:34:18,159 is recommended to the city council 731 00:34:18,159 --> 00:34:20,960 uh for approval. So I believe that is 732 00:34:20,960 --> 00:34:24,079 it. Um, anything else from anybody? 733 00:34:24,079 --> 00:34:26,879 There's nothing else on the agenda. So 734 00:34:26,879 --> 00:34:29,679 do I need a motion? And I adjourn this 735 00:34:29,679 --> 00:34:30,800 meeting. 736 00:34:30,800 --> 00:34:31,679 >> Thank you. 737 00:34:31,679 --> 00:34:34,560 >> You're welcome.