Aug 272014

Town of Braintree

Auditors Meeting Minutes

August 25, 2014

Attendees:  Jen Baumann, Tom Cooch, Lin Brown, Jessica Brassard, Holly Jarvis

Mr. Cooch called the meeting to order at 10:15 a.m.

Mr. Cooch relayed the information that with the new open meeting laws the minutes of Auditor meetings must be submitted within 5 days.  Ms. Baumann will make sure minutes are submitted in that timeframe.

Also due to open meeting laws, any changes to the agenda need to be added at the beginning of the meeting.  Mr. Cooch added the item: Review the reply to Sullivan & Powers regarding General Journal Entries.

The minutes of March 17, 2014 were reviewed and approved with one typo correction.

The letter to the Selectboard regarding Fraud Risk Assessment was reviewed and discussed.  It was decided that Mr. Cooch and Mr. Brown would make the agreed upon adjustments in regard to our opinions on three items on the agenda: the need for duplicate checks (not needed), the need for purchase orders (not needed and as explanation, a few examples of the informal policies already in place), the severity of computer data loss in case of fire (really a cost vs reward question for the SB but suggested that electronic copies of the backups would be a better choice than a fire safe).  One additional item would be added in regards to employee vacations and the effect on accounting functions during vacations (the current employees both have informal back-up plans in place and the Auditors see no risk reduction or other benefit in making a change).

Tasks completed for FY2014 were discussed.  Sullivan & Powers are arriving on Wednesday to begin the audit.  Ms. Baumann will attempt to take a look at the final books before they are presented on Wednesday.

The transition to NEMRC has happened and it is the opinion of the NEMRC consultant that the Auditors not get training until September or October on the system to leave time for additional work to be done and for export functions to be working properly.  Mr. Cooch will continue on with the monthly reconciliations as normal.

Tasks for 2015 will be assigned at a later date.  Ms. Baumann will distribute the checklist that she has and it will be used in conjunction with the form Mr. Cooch reproduced from the Auditors Handbook.  This assignment will most likely take place at the Auditors next meeting sometime in early October.

Lastly, the new agenda item added regarding the GJ reply to S&P was discussed.  Mr. Cooch relayed that with NEMRC there is still a need for General Journal entries and that it will be cumbersome and inconvenient to get approval from the Auditors prior to making them.  It was suggested that the General Journal entries be reviewed after the fact on a normal basis along with other reviews by the Auditors.  This is a change from our original response and would need to be amended to Sullivan & Powers. Mr. Cooch made a motion and it was approved to update our response to S&P regarding General Journal entries to reflect this change.

It was decided to meet next in early October on a date to be determined.

Meeting was adjourned at 11:35 a.m.