Audit Committee Meeting Notes
Date:
January 20, 2016
Time:
4:00-5:30pm
Attendees:
Steven Peterson, Committee Member (GB Member)
J. Carl Blake, Committee Member (Volunteer)
Jennifer Shields, Auditor Heinfield & Meech
Eugene Park, Auditor Heinfield & Meech
Ken Alexander, Director, Audit Services
George Zeigler, Chief Financial Officer
Jami Hovet, Director, Financial Services
Bobette Sylvester-McCarroll, Assistant Superintendent Business & Support Services
Dr. Michael Cowan, Superintendent
Katie Thomas, Committee Member (Volunteer) - Via Conference Call
Recording:
Jamie Wilson, Audit Specialist, Audit Services
Agenda Items:
1. External Auditor Review – Jennifer Shield, Heinfeld, Meech, and Co (H&M)
a. The 2015 Comprehensive Annual Financial Report for the year ended June 30, 2015, was
delivered to MPS on 1/19/16.
b. CAFR - H&M - Summary of Report
i. Unqualified opinion for the report; presented fairly in all material respects
1. Largest Change from Prior Year Reports - Deficit in Net Position –
Primarily due to GASB 68
a. GASB 68 – reporting a large liability due to MPS’ portion of the
AZ State Retirement System.
i. MPS share over $500 million.
ii. Affects all government entities, nationwide.
iii. State of Arizona repositioning to become more
compliant for national impact
b. Deficit can also arise due to:
i. Payment of debt
ii. Acquisition, disposal, depreciation of capital assets
c. Single Audit Report (SAR) – No material weaknesses or significant deficiencies
i. Compliance Finding - Time and Effort for Federal and State Grants
1. Exempt employees did not attest to the percentage of their time
worked under their federal programs.
a. Need at least a Semi Annual Certification of Time
b. Resolution - new time card system
d. USFR Compliance Questionnaire (USFRCQ)
1. Seven (7) findings
a. Extremely good in comparison to 15 – 20 average in other AZ
School Districts
i. Student Attendance (Common throughout AZ Districts)
– Mostly clerical in nature; Ken Alexander explained the
complexity of partial day attendance/absences
calculations.
ii. Classroom Site Funding – not recording expenditures,
by fund, throughout the year; per H&M, probably most
likely to be a finding in a performance audit; George
Zeigler, CFO, stated this finding should be corrected
when Visions is implemented.
iii. Procurement finding – Qualified Select Bidding – clerical
error/compliance; overall, only one minor finding in
Procurement is excellent.
e. Additional Information – Additional Federal Requirements starting this year.
1. No guidance from ADE yet on how these requirements will be
implemented/documented (Feds silent so far also)
a. No financial sanctions, but may result in additional
requirements in future.
f.
SAR/USFRCQ Findings - MPS Financial Team will review SAR and USFR findings. District
response will be added to SAR.
i. Dr. Cowan – 2015 CAFR to be put on the Consent Agenda for the January 26,
2016 meeting. Mr. Peterson can provide an update on the CAFR and Audit
Committee Meeting in the Study Session.
ii. SAR/USFRCQ – will also be presented at a GB Study Session (Ken/Steven) and
approved by GB once the reports are finalized.
g. 2015-2016 External Audit - scheduling will begin as soon as possible
2. Internal Auditor Update – Ken Alexander
a. Administrative tasks transitioning, per recommendation of the Audit Committee at the
September 2015 meeting.
b. Mr. Alexander noted that as the tasks have been transitioned, he has noted a significant
difference in the type of tasks they are working on – more time for Visions and no more
“special projects”.
i. Handout – Task Transition List:
1. Completed
a. Cell Towers
b. ASC Building Tenants
c. ASC Parking
d. Principal Debit Cards
e. Compensated Absences
f. PTO / Booster
2. In Process
a. Impact Aid
b. Tax Credit Report
c. CEC Reporting
d. International F-1 Student Enrollment
e. Limited Value Purchase Orders
f. Conflict of Interest Forms
3. Not Started
a. Tuition Waivers
i. Dr. Cowan would like to be advised when this task has
been transferred – Mr. Alexander indicated it would be
transitioned by June 30, 2016.
b. OBARS / Visions Security
ii. Some support still being provided for most tasks during the transition period.
iii. Anticipates all tasks (except OBARS/Visions Security) to be transitioned to their
new departments by June 30, 2016
iv. Performance Audit - Auditor General
1. Ken - Likely pushed back from December 2016
2. Will keep abreast of scheduling news
3. Visions Implementation Update - Jami Hovet
a. First Phase (Complete)
1. Investigation and Discovery
b. Second Phase (Complete)
1. Change of processes; Set up structure; Configuration
c. Third Phase (Currently)
1. Training and Testing
d. Fourth Phase
1. Go Live
e. District User Training
i. Developing a survey to assess needs
ii. Initially will be held at ASC beginning March 28, 2016
iii. Secondary training after return from Summer Break
iv. Start entering 2017 requisitions into Visions around May 1st.
v. WIG - Onsite (Schools and Departments) training for follow up questions and
concerns after gain some experience with Visions.
f. Concurrent application of both systems
i. Dual entry currently implemented for changes / additions
ii. Continue running parallel for Power Users
g. Time Card Plus – new Time Clock System (currently with KRONOS)
i. Kickoff meeting next week
ii. Another huge implementation
iii. Providing paperless environment…again
4. Audit Committee Comments/Questions:
a. Sufficient resources provided for implementation?
i. Additional resources, if needed, to be made available
ii. Implementation team is working well
b. Action Item - May 2016 Meeting
i. Draft of Audit Plan for 2017 – to cover the 2nd, 3rd, and 4th quarters of FY 16-17.
5. Recommend approval of minutes of meeting held 9/16/15
a. Motion - Steven Peterson; Second - J Carl Blake
b. Final Resolution - Motion Carried
6. Calendar Review
a. Next Meeting = Wednesday May 11, 2016 at 4pm
7. Adjourn @ 5:35 pm