providence 2010
DESCRIPTION
Audit results - City of Providence, FYE June 30, 2010TRANSCRIPT
City of Providence 2010 Audit Results
155 South Main Street Providence, RI 02903
Introduction
Presentation will review the City’s 2010 Audit Results Discussion of observations and recommendations Feel free to ask questions at any time
Topics of Discussion
Financial Statements
Observations and recommendations
Required Communication to Audit Committee
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)
Fund Balance: last 10 years
Fund Balance: all governmental funds
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
Tax Collections:% of current levy
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
Governmental expenditures
last 10 years
Net Bonded Debt per capita
Debt Service expenditures
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
Providence ERS: funding statistics last 10 years
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
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
Questions?
The End
Thank you!