08-08-2012 Council Agenda - Laserfiche WebLink

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City of Little Canada Explanations for additional billing request - 2011 Audit Time outside the scope of the audit Audit Area Comments • Hours • . Doi... -s Debt We received updated versions of the debt sub -lead workpaper after beginning our audit procedures. This related primarily to the HIA loans and the payment schedules which changed during 2011. The change to the workpaper resulted in us needing to re- perform procedures which had already been started. 2 256 Special Assessments Special assessment workpapers came piecemeal and were late arriving which required us to pick -up and put -down the section multiple times. Some of the audit workpapers required additional reconciliation after we initially received them. Starting and stopping work inherently increases the amount of time necessary to complete our procedures. 6 768 Capital Assets After we received capital asset workpapers and had begun our testing and tie -out, the City identified an additional capital asset addition (the 8 -2 landscaping project - retaining wall). Shelly requested that we pass on the adjustment if it created too much additional work, but our materiality threshold did not allow for an additional passed adjustment of this size. The late addition required us to re- perform procedures which had already been started. 3 395 Accounts Payable We received an updated version of the accounts payable workpaper after beginning our audit procedures. Changes /updates resulted in us needing to re- perform procedures which had already been started. 1 106 Budget The budget numbers that were provided to us via the City's trial balance /financial software were not consistent with the amounts in the Council approved budget document. Because budget to actual statements are presented in the financials, we performed additional procedures to tie -out budget amounts to the Council approved budget. 5 790 Leases During our initial audit inquiries, we were informed that there were no new water tower leases or changes to existing leases and we began our testing accordingly. The City subsequently identified an amendment to one of the leases, and also posted a journal entry to adjust the related lease revenue and deferred revenue. The change resulted in us needing to re- perform procedures which had already been started. 2 250.5 General Due to the staffing changes at the City, the City was not ready for audit on the planned start date. Audit fieldwork was moved /adjusted multiple times to accommodate staff availability and audit areas that were not yet ready. Planning and preparation for audit fieldwork is specific to audit areas and other factors. When audit sections are not ready as planned, it requires additional planning and preparation time. For example, planning time includes discussion of the implementation of the audit plan with assigned audit staff. When sections are not ready when anticipated, it results in staffing changes and accordingly duplication of planning effort. Additionally, starting and stopping audit work inherently increases the amount of time necessary to complete our audit procedures. The hours to the right include staff time from 4 staff, over the course of 3 weeks. 36 5070 7635.: