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October 19, 2015 Board of Education Audit Committee Meeting Minutes

 

 

October 19, 2015

 

 

CALL TO ORDER

A meeting of the Parishville-Hopkinton Central School District Audit Committee was called to order at 7:04 P.M. by Board President W. Remington in the conference room on the above date.

 

 

ROLL CALL

 

Present: J. McGill – 7:14 P.M., W. Remington, H. Simmons, D. Taylor,
W. Witherell, J. Young, T. Zellweger, and Mr. Saiff.

 

Absent: B. Remington, R. White.

 

Others: N. Brouillette, S. Furgison, S. Hartson, and M. Robinson.

 

 

QUORUM

Quorum of five established.

 

 

MINUTES

Motion made by T. Zellweger and seconded by D. Taylor to approve the Minutes of the May 18, 2015, Audit Committee meeting as typed and delivered to members. 6 in favor, 0 opposed, Carried.

 

 

REVIEW OF INTERNAL CLAIM AUDITOR’S REPORT

Nickolas Brouillette reviewed his report with the Board indicating the accounts payable claims, warrants, and checks he reviewed monthly from June, 2015, through September 30, 2015. Mr. Brouillette stated there were no errors to report.

 

Motion made by J. Young and seconded by W. Witherell to accept the Claims Auditor’s Report as presented and attached. 6 in favor, 0 opposed, Carried.

 

Mr. Saiff and the Board thanked Mr. Brouillette for his assistance. N. Brouillette left the meeting at 7:06 P.M.

 

 

REVIEW OF EXTERNAL AUDITOR’S REPORT

Sherry Furgison of Furgison & Company, CPA, P.C. was in attendance to review the 2014-2015 Audit Report with the Board’s Audit Committee. S. Furgison noted that the audit covers the period from July 1, 2014, through June 30, 2015. She stated that the Audit had been electronically submitted to state on October 15th.

 

Mrs. Furgison noted changes in the Independent Audit Report. The first change was a new accounting standard regarding the two pension plans of which the District participates. S. Furgison stated a new pronouncement requires the government to recognize the liability that exists in the pension plans. Mrs. Furgison stated the liability has been estimated for the future, as future set payments were promised to individuals via the pensions. S. Furgison noted that the District must now record its proportionate share of retirement liabilities on the statement of net position. This is listed in a new section under assets that speaks of deferred outflows. Mrs. Furgison stated that any time a new change is implemented it has to be incorporated into the auditor’s opinion. S. Furgison directed Board Members to the portion of the report notes indicating how the inflows and outflows affect the District’s financial statements. She reminded the Board that the District was working with two different pension plans, the Employees’ Retirement System and the Teachers’ Retirement System, with two different measurement end dates.

 

S. Furgison noted the highlights of financial statements as compared to last year. She again noted the accounting principal on page 4 of the reports, which every school district now has to present. Mrs. Furgison noted that compared to a figure of zero last year, the deferred outflow of revenues for 2014-2015 was $20,000.00. The deferred inflow is 1.5 million dollars. Therefore, the net position for the District was a negative amount, given the application of the new audit requirements.

 

Mrs. Furgison stated that the rest of the Audit Report looks the same as it had in the past. The fund balance was detailed in different categories: Prepaid Expense, Restricted, Committed, Assigned Appropriated, and Unassigned Appropriated. S. Furgison noted that the sum of these categories was approximately three million dollars. Special Aid Funds, she stated, were often in the form of grant monies and were spent in the same fiscal year in which they were awarded.

 

 

J. McGill arrived at the meeting at 7:14 P.M.

 

 

 

Two items of concern noted by S. Furgison pertained to internal controls. The first regarded monitoring fuel inventory for the one tank that supplies both heating fuel for the Bus Garage and fuel for the buses. Mrs. Furgison stated that at the current time, there is no gauge or video surveillance on the tank to determine with accuracy the amount of fuel being used to heat the Bus Garage.

 

S. Furgison also discussed implementing an internal control over initial annual salary calculations. It was noted that the District had pay paid to employees retroactively once the Non-Teachers’ Employees Association contract had settled. The Payroll Clerk for the District was the only individual monitoring employee’s salaries and adjusting them as necessary. S. Furgison stated she went through the calculations and did not find any errors. However, S. Furgison said having only one individual doing the calculations without any monitoring increased the risk of error. Mrs. Furgison suggested that the Payroll Clerk send a salary notice to every employee on an annual basis, or as needed if there are alterations to the salaries, and that another individual in management checks those notices and calculations to ensure that those figures are accurate. Mr. Robinson and Mr. Saiff will attend to the required changes in procedure.

 

 

 

W. Witherell inquired about Non-Spendable funds for Food Service. Mrs. Furgison replied that that figure included items other than food, such as paper supplies, straws, napkins, some frozen and dry foods, as well as governmental foods. The monetary number is based on the cafeteria’s inventory of food and non-food items.

 

W. Witherell also asked about the unfunded liabilities for the New York State Retirement Systems for Teachers and Employees. S. Furgison noted that TRS was funded at 94% and ERS was funded at 93%. Mrs. Furgison mentioned that New York state has the highest funded pensions, and that these pensions had already been paid for and promised to employees. S. Furgison added that because of the new requirement those benefits are going to be seen all the time now.

 

D. Saiff and the Board of Education thanked S. Furgison for her assistance with the

District’s 2014-2015 Audit.

 

 

ADJOURNMENT

Motion made by J. Young and seconded by W. Witherell to adjourn at 7:35 P.M. 7 in favor, 0 opposed, Carried.

 

 

 

 

 

 

School District Clerk

 

12 County Route 47
Parishville, NY 13672
Phone: 315-265-4642
Fax: 315-268-1309

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The PHCS community strives to instill in all students the knowledge and skills necessary to become caring, conscientious, and creative citizens.

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