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HomeMy WebLinkAbout2007-05-10 Audit Committee MinutesRECEIVED OFR TO' CLERK READING, MASS. K 2011 JUL 13 A c~ 50 s39+lNCO4Q0~~ Audit Committee Meeting May 10, 2007 The meeting convened at 7:35 p.m. in the Conference Room, 16 Lowell Street, Reading, Massachusetts. Present were Chairman Andrew Grimes and Audit Committee members David Greenfield, Camille Anthony, Steve Herrick, and Lisa Gibbs. Also present were Town Accountant Gail LaPointe, Assistant Town Manager/Finance Director Bob LeLacheur and Scott McIntire from Melanson Heath. Andrew Grimes called the meeting to order, and asked Scott McIntire to review the annual Audit. McIntire discussed pension and OPEB obligations, and then reviewed these three highlights of the audit: closing of the landfill; the $24 million up-front payment from the SBA on RMHS; and the MWRA full buy-in process. McIntire also reviewed the Town's financial picture, and the Auditor's findings. (INSERT SOME COMMENTS After some discussion, the Committee requested some future information and discussion from: (a) Nancy Heffernan (Treasurer) - credit risk and investment policy; (b) Mary Delai (School Business Manager) - policy on cash handling and student activity funds. The Committee reviewed both the performance of and the proposal for services by Melanson Heath. A one-year and a three-year engagement was debated, including a discussion of when it is appropriate to change auditors due to staleness, as opposed to unsatisfactory performance. McIntire described Melanson Heath's structure, and that clients do request a change in lead partner for this reason, from time-to-time. On motion by Grimes seconded by Anthony, the Audit Committee voted to accent the three-year proposal by Melanson Heath by a vote of 5-0-0 They also voiced unanimous approval of having Scott McIntire continue as the lead partner. McIntire and the committee discussed future audit focus areas for the next Audit. The following were agreed to: Water billing meter reading process; Permitting process (ahead of the new process design under the financial platform); Revolving funds are they being used appropriately; Why are there such large projects in capital being encumbered; Compost stickers at the police station- cash collections for both Police & Fire. Respectfully submitted, Secretary