HomeMy WebLinkAbout02/02/1998 Work Session
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MINUTES OF THE WORK SESSION
MEETING OF THE SPRINGFIELD
CITY COUNCIL HELD
MONDAY, FEBRUARY 2, 1998
The city of Springfield council met in work session in the Jesse Maine Room, 225 Fifth
Street, Springfield, Oregon, on Monday, February 2, 1998, at 6:35 p.m., with Mayor
Morrisette presiding.
ATTENDANCE
Present were Mayor Morrisette, Councilors Ballew, Beyer, Burge, Dahlquist, Maine and
Shaver. Also present were City Manager Michael Kelly, City Attorney Tim Harold,
Senior Management Analyst Rosie Pryor, City Recorder Julie Wilson and members of
the staff.
1. 1997 Annual Financial Report and Management Letter.
Finance Director Bob Duey introduced Acting In Capacity Accounting and Audit
Manager Mary Jean Payne. In accordance with Oregon statutes and the city's
Charter, the city is required to complete an annual audit and financial statement.
Grant Thornton, the city's independent auditors, have completed their audit of the
city's 1996/97 Comprehensive Annual Financial Report (CAFR) and have issued their
opinion and Management Letter thereon. Mr. Barlow from Grant Thornton reviewed
the audit process and discussed the highlights of the CAFR and the Management
Letter.
As a preliminary summary, the auditors found no material weaknesses in the city's
internal financial controls and they issued a clean opinion the city's annual financial
report. This means the city is properly accounting for the city's financial resources
and are using adequate financial controls to help prevent any improper use of those
resources.
Grant Thornton's Management Letter identifies, for the city's benefit, three areas
where changes are occurring in either financial reporting requirements or
expectations of internal audit capabilities. The noted change by Governmental
Accounting Standards Board Statement #31, requiring the city to account for the
value of its investments atfair market value, has been adopted by staff and will be
reported as such for the 1998/99 fiscal year. The change noted by Office of
Management and Budget Circular A-133, currently pertaining to the city's CDBG
program and eligible expenses for federal grants, is also understood by staff and will
be addressed in conjunction with Lane County in the overall administration of the
area's CDBG programs. Grant Thornton's commented on possible benefits of the
city expanding further into interna.1 auditing activities in an area that staff will review
and work towards over the next year. Enhancing the ability to provide management
with better information to be used in the decision making process, in this way, fits
very well with the efforts to introduce a best practices program into the city.
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February 2, 1998
Work Session Meeting Minutes
Page 2
Mr. Barlow provided additional information regarding the Hospital Authority being
identified as a separate component. See page seven of the report for additional
information.
Mr. Barlow reviewed the Performance Review Report for the Year Ended June 30,
1997 and the Comprehensive Annual Financial Report for the Fiscal Year Ended
June 30, 1997.
Mr. Duey also answered questions from council regarding cash management issues.
Mr. Barlow discussed internal audit issues and suggested the city consider this idea.
He said financial saving measures can result from internal auditors. Often an internal
auditor can report directly to the City Manger or possibly to the Finance Director. The
position could be funded through savings resulting from the internal audit work.
Mr. Barlow also discussed grants and auditing costs.
ADJOURNMENT
The meeting was adjourned at 7:10 p.m.
Minutes Recorder - Julie Wilson
Attest:
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