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HomeMy WebLinkAboutCouncil Presentation - P1 Town of Marana PP Presentation - 2023CO bakertitty MARANA AZ Reporting and insights from 2023 audit: Town of Marana, Arizona June 30, 2023 Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2023 Baker Tilly US, LLP. xecutive summary We have completed our audit of the financial statements of the Town of Marana for the year ended June 30, 2023 and have issued our report thereon dated December 13, 2023. • Financial Statement Audit Report • Unmodified opinion • Government Auditing Standards Compliance Report • No instances of noncompliance or other matters • No identified material weaknesses • Federal Grants Single Audit Report • Major Program — Homeland Security Grant Program • No Findings This presentation supplements our letter to governance dated December 13, 2023 as required by our professional standards. Our responsibilities MARANA As your independent auditor, our responsibilities include: • Planning and performing the audit to obtain reasonable assurance about whether the basic financial statements are free from material misstatement. Reasonable assurance is a high level of assurance, but not an absolute level of assurance. • Assessing the risks of material misstatement of the basic financial statements whether due to fraud or error. Included in that assessment is a consideration of the Town's internal control over financial reporting • Performing appropriate procedures based upon our risk assessment • Evaluating the appropriateness of the accounting policies used and the reasonableness of significant accounting estimates made by management • Forming and expressing an opinion based on our audit about whether the basic financial statements prepared by management, with the oversight of those charged with governance: • Are free from material misstatement • Present fairly in all material respects and in accordance with accounting principles generally accepted in the United States of America • Performing tests related to compliance with certain provisions of laws, regulations, contracts and grants, as required by Government Auditing Standards • Our audit of the basic financial statements does not relieve management or those charged with governance of their responsibilities. Our responsibilities We are also required to communicate significant matters related to our audit that are relevant to the responsibilities of those charged with governance including: • Internal control matters — Various controls have been tested with no reportable findings. • Qualitative aspects of the Town's accounting practice including policies, accounting estimates and financial statement disclosures — This can be found on Note 1 of the financial statements • Significant unusual transactions — All significant and unusual transactions have been audited with no reportable issues. • Significant difficulties encountered — No difficulties to report • Disagreements with management — No disagreements to report • Circumstances that affect the form and content of the auditors' report and key audit matters — None noted • Audit consultations outside the engagement team — None noted • Corrected and uncorrected misstatements — No misstatements identified • Other audit findings or issues — No audit findings or issues identified Required communications Management's consultations with other accountants • In some cases, management may decide to consult with other accountants about auditing and accounting matters. • Management informed us that and to our knowledge, there were no consultations with other accountants regarding auditing or accounting matters. Compliance with laws and regulations We did not identify any non-compliance with laws and regulations during our audit. Fraud We did not identify any instances of known or suspected fraud during our audit. Going concern Pursuant to professional standards, we are required to communicate to you, when applicable, certain matters relating to our evaluation of the Town's ability to continue as a going concern for a reasonable period of time but no less than 12 months from the date of the basic financial statements including the effects on the basic financial statements and the adequacy of the related disclosures and the effects on the auditor's report. No such matters or conditions have come to our attention during our engagement. Related parties We did not have any significant findings or issues arise during the audit in connection with the Town's related parties. Nonattest services The following nonattest services were provided by Baker Tilly: • Proposing adjusting journal entries affecting the financial statements • Preparation of the Data Collection Form on the Federal Clearinghouse website None of these nonattest services constitute an audit under generally accepted auditing standards, including Government Auditing Standards. Z� b Communications with Town Council and Management • Expenditure Limitation Report • Town was $116.45 million dollars under the Home Rule Expenditure Limitation • Issued to the Arizona State Auditor General timely Voter -Approved Expenditure Limitation $233,4935137 Town Expenditures Subject to Limitation 117,040,826 Amount under the expenditure Limitation $11654527311 • Single Audit • Town expended $763,403 of federal funds in Fiscal Year 2023 • Major program was: • Homeland Security Grant Program • Town received an unmodified opinion on the federal single audit. Z� )6 Communications with Town Council and Management MARANA • General Fund • Fund balance increased by $665K mainly as a result of an increase in sales tax revenue, investment income and required transfers out • Actual revenues were $5.3 million more than budget • Actual expenditures were $12.3 million less than budget • Highway User Revenue Fund • Fund balance increased by $1.7 million mainly due to an increase in intergovernmental revenues and investment income • Actual revenues were $189K more than budget • Actual expenditures were $2 million less than budget Z� )6 Communications with Town Council and Management MARANA • Enterprise Funds • Water fund —Development fees of $6.9 million and Transfers In of $5.1 million led to an increase in net position of $9.31VI • Wastewater fund -Development fees of $3.1 million and Transfers in of $12.5 million led to an increase in net position of $12.81VI • Airport fund —Capital contributions of $1.1 million and Transfers In of $156K led to an increase in net aosition of $86K Quest'ions? I Brian Hemmerle, CPA, CFE Partner E: Brian. Hem merle@bakertilly.com Baker Tilly US, LLP, trading as Baker Tilly, is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. © 2022 Baker Tilly US, LLP 10