2010-0318 Regular City Commission Meeting

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Summary Minutes: Regular City Commission Meeting March 18,2010 City of Sunny Isles Beach, Florida 5. SPECIAL PRESENTATIONS SA. Presentation of the City of Sunny Isles Beach Draft Audit Report for Fiscal Year 2008/2009. Action: City Manager Conner noted that City Auditor Jerry Chioca, of Marcum Rachlin, has been ill but is here via conference call, and Dwayne Mathis, Audit Manager, is here to give us a status on where we are with the audit. Mr. Mathis reported that as of today, they are in the wrap-up stages of the audit, and this is due to some unforeseen circumstances: 1) Jerry Chioca has been ill; 2) Issues that came up towards the end of the Audit regarding property values and recording them on the financial statements; and 3) getting additional information from Finance. They plan on having the financial statements issued prior to March 31, and the City will meet its regulatory obligations. Mayor Edelcup said we will need to reschedule Mr. Chioca and Mr. Mathis for the April 15 , 2010 meeting to present the Audit Report. Mayor Edelcup said that normally Mr. Chioca reviews their findings, status and any recommendations that they may have that Management and/or the Commission would have to follow up on. Normally we have our audit completed by the end of January with the report delivered to the Commission in February. He is surprised that we are at the end of March and we still don't have an audit report, and he would hope whatever we are doing now, would prevent something like this happening in the future. He wants next year's audit and any future audit report by January 31. If we are going to have delays he would like the Commission informed more promptly. Vice Mayor Thaler asked if this would affect any prior years in our audits, and Mr. Mathis said you will see in the Financial Statements the effects of a prior year adjustment for the value of those lands as of September 30, 2008, and they will also have a note disclosure that describes what those property adjustments are. Commissioner Scholl said he is concerned because we are going to get a signed-off copy in 13 days and we don't have time to review that copy. Sometimes another set of eyes maybe financially oriented picks up on issues that might have been overlooked or misstated. He is not happy with the reason why it is late, and he can't deal with this in the future. Jerry Chioca said he had suggested to the City Manager for them to meet with the Commission one-on-one to review the statement, and then issue the final report. The reports in the future will be done prior to January 31 because this situation with the new personnel and then with the new Finance Director, will not happen again. He said he will get the reports to the Commission mid-week, and coordinate meeting dates through the City Manager. He reiterated that other than the land situation, there is nothing wrong or incorrect or misleading from the books that they have seen. Mr. Chioca said there were many items that he knew were going to be changed such as a re- classifications between a general and storm water fund, that the land issue was 100% clean, and he did not feel comfortable giving out a draft when the Commission deserves to have a statement that is complete and accurate. He will get the draft to the Commission mid-week, will meet one-on-one with the Commission the following week, and get an extension for 30 days if we have to, and the Commission asked Mr. Chioca to go ahead and file for that extension. 2