Minutes: ORDA Audit Committee Meeting March 26, :06am. Attendance:

Transcription

1 Minutes: ORDA Audit Committee Meeting March 26, :06am Attendance: Cliff Donaldson Audit Chair Ted Blazer President/CEO Padraig Power Finance Director Alan Walther Bonadio and Company The meeting was called so that Bonadio could review the basics of the audit. Alan stated that they were chosen through competitive bid last year and that this would be their second audit. What follows is the outline for the audit: Meeting was adjourned at 10:35

2 Olympic Regional Development Authority Audit Committee Meeting March 26, 2013

3 Letter to the Audit Committee March 26, 2013 To the Audit Committee of Olympic Regional Development Authority: Dear Audit Committee Members, We are pleased to meet with you today for the purpose of discussing the services we will provide in connection with our audit of the financial statements of Olympic Regional Development Authority (ORDA) as of and for the year ending March 31, The enclosed presentation also includes a planning discussion for the upcoming audit of ORDA. Our audit approach for ORDA will be a risk-based model, and will be developed after careful consideration and review of ORDA s control environment, discussions held and to be held with management and review of the results of previous audits of ORDA s financial statements and the consideration of the effectiveness of internal control. Assessment and identification of risk is performed continuously throughout the audit process. We focus on risks that have a potential impact on financial reporting and financial accounting systems and controls that mitigate those risks. Our audit is directed towards assisting the Audit Committee in meeting its governance and compliance responsibilities. Our service plan lays out our strategy for carrying out the committee s directives. We value and encourage your observations and your input. We are committed to providing you with the highest level of professional service. Yours truly, Bonadio & Co., LLP 1

4 Agenda Ø Scope of our services Ø Auditor s responsibility Ø Materiality Ø Audit Committee considerations Ø Professional fees Ø Timetable Ø Client service team 2

5 Scope of Our Services Ø Financial Statement Audit Ø Internal control report (Yellow Book) Ø Investment audit Ø Management letter 3

6 Auditor s Responsibility Ø Form an opinion as to whether the financial statements have been presented fairly in accordance with GAAP. Ø Consider internal control over financial reporting as a basis for designing audit procedures, but not for the purpose of expressing an opinion on internal control. Ø Communicate internal control matters. Ø Communicate significant matters related to the financial statement audit to the Audit Committee. Ø An audit does not relieve you of your responsibilities with regard to governance and oversight. 4

7 Materiality Ø Tolerable misstatement n The maximum dollar error the auditor is willing to accept. Ø Test scope n The amount which the auditor will use to select individual items for testing. $$ for substantive tests, number of transactions for control tests Ø Adjustment scope n Cumulative adjustments exceeding tolerable misstatement must be recorded. The aggregate effect of audit adjustments will be disclosed to the Audit Committee. 5

8 Audit Committee Considerations Ø Key role in oversight of audit process Ø Observations regarding internal control Ø Observations regarding management Ø High risk audit areas identification Ø Other areas of concern Ø Other matters for discussion 6

9 Planned Timetable Preliminary Audit Work Completed March 2013 Final Fieldwork April/May 2013 Review Draft Audit reports and any findings with Audit Committee TBD May Present Final Audit Reports to Board TBD June 8

10 Development Authority Client service team Alan Walther, CPA Heather Mowat, CPA Partner (518) Manager (315) Kristen Clark, CPA Quality Assurance Partner (585)