HomeMy WebLinkAbout1986-01-05 Audit Committee Minutes AUDIT COMMITTEE MEETING
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Present were Jim O' Leary Chairman Fin Com, Don Allen Vice Chairman
FinCom, Russell Graham Board of Selectmen, John Silvaggi ,Beth Klepeis,
Dewey Smith, Richard Foley , Ron Winslow, Pete Hechenbleikner , and
two representatives of Arthur Anderson & Co. The single audit
report , management . letter , and audit report were reviewed.. By motion
of Russell Graham, and seconded by John Silvaggi , it was unanimously
recommended to the Board of Selectmen that an actuarial study by
prepared to determine the unfunded pension liability.
The consensus was that a formalized audit committee should exist .
This will be reviewed by the Finance Committee for recommendation
to the Board of Selectmen.
Arthur B. Anderson requested that the Town consider increasing
their audit fee for 1987to a figure not to exceed $45,000. ,
billed at a rate of 50% of actual costs . The fee for 1985 and
1986 is $35,000 each year . The cost in 1986 exceeded $98 ,000. ,
which normally would have resulted in a bill of $49 ,000. Some
of the costs related to this audit were one time costs . due to .
setting up the single audit process . Anderson normally bills
municipal clients at a rate of 50% of what their fee for other
clients :would be. They indicated that 10 to 15 percent of the
costs of the audit is a single audit . They will provide us with
a breakdown of what the auditing costs related to the enterprise
systems are, so that they can be charged directly to the enter-
prise system.