Carefree Truth
Issue #527, November 11, 2016
Gary Neiss presented the 2015/16 Fiscal Year (FY) Audits, performed by Crimson Singleton of Hinton Burdic, PLLC, who attended the Council meeting telephonically to answer any questions. Mr. Neiss said the purpose of the annual audit is 3 fold: to confirm compliance with governmental accounting standards, to guard against misuse of funds, and to provide transparency. He commended Town Accountant Jim Keen and Consolidated Court Clerk Adrian Larson for the excellent job they did on this significant undertaking.
The Town is continuing to build the financial reserves and Carefree has a very strong standing. While the reserves have fluctuated over the years as strategic investments were made in the community without the use of a property tax, the reserves are now at a 10 year pinnacle. These include investments in the Town Center, the public streets, building a fire station, the purchase of the Town Hall building and a fire truck, as well as the acquisition of over 100 acres of open space preserve to the north. All are key to the quality of life for our citizens, and all were done while building the reserves to $6,973,596. $1,978,524 has been added to the reserves over the last 10 years.
Crimson Singleton stated that Jim Keen does a good job on the overview and analysis. The Auditor's Report showed no issues. The Financial Statements were presented and all materials were accurate. The Town was given a "Clean Opinion". One recurring item was noted, the segregation of duties. This is a common finding in small entities with a limited staff. State legal compliance showed no items. Carefree was under the limit on annual expenditures. The Court meets the Minimum Accounting Standards and Compliance Procedures, so again no issues were found. She thanked Mr. Keen, Town Clerk Kandace French, and Mrs. Larson, and thanked the Town for choosing Hinton Burdick.
Councilman Mike Farrar asked for a clarification on the segregation of duties. Mr. Keen explained, "I don't sign on any accounts. I can't cash anything." Mr. Keen does 3 jobs that are done by 3 different people in larger towns that creates a segregation of duties, but necessitates paying 2 more salaries. The person who creates the checks in Carefree can't sign them, which is a segregation of duties. It is common in the small communities of 5,000 residents or less across the state of Arizona to get the same segregation of duties note each year in their audit.
Councilman Glenn Miller added that the Council gets the financial statements and ledgers in their packets for review each month, adding an additional layer of segregation. "Not many towns do that." Mr. Keen agreed that Carefree is very transparent. Mayor Les Peterson gave an example of the process for a Marketing Department expenditure. Marketing Director Gina Kaegi authorizes and approves an expense from her budget. It goes to Mr. Neiss and Mrs. French to review, on to Mr. Keen to create a check, then back to Mr. Neiss. The check finally goes to Mrs. French and the Mayor for signing. Mr. Farrar agreed, "It sounds like all the steps are in place."
The Council unanimously approved acceptance of the 2015/16 Fiscal Year Audits for the Town and the Consolidated Court.
https://vimeo.com/190349376
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list. Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.
Issue #527, November 11, 2016
Gary Neiss presented the 2015/16 Fiscal Year (FY) Audits, performed by Crimson Singleton of Hinton Burdic, PLLC, who attended the Council meeting telephonically to answer any questions. Mr. Neiss said the purpose of the annual audit is 3 fold: to confirm compliance with governmental accounting standards, to guard against misuse of funds, and to provide transparency. He commended Town Accountant Jim Keen and Consolidated Court Clerk Adrian Larson for the excellent job they did on this significant undertaking.
The Town is continuing to build the financial reserves and Carefree has a very strong standing. While the reserves have fluctuated over the years as strategic investments were made in the community without the use of a property tax, the reserves are now at a 10 year pinnacle. These include investments in the Town Center, the public streets, building a fire station, the purchase of the Town Hall building and a fire truck, as well as the acquisition of over 100 acres of open space preserve to the north. All are key to the quality of life for our citizens, and all were done while building the reserves to $6,973,596. $1,978,524 has been added to the reserves over the last 10 years.
Crimson Singleton stated that Jim Keen does a good job on the overview and analysis. The Auditor's Report showed no issues. The Financial Statements were presented and all materials were accurate. The Town was given a "Clean Opinion". One recurring item was noted, the segregation of duties. This is a common finding in small entities with a limited staff. State legal compliance showed no items. Carefree was under the limit on annual expenditures. The Court meets the Minimum Accounting Standards and Compliance Procedures, so again no issues were found. She thanked Mr. Keen, Town Clerk Kandace French, and Mrs. Larson, and thanked the Town for choosing Hinton Burdick.
Councilman Mike Farrar asked for a clarification on the segregation of duties. Mr. Keen explained, "I don't sign on any accounts. I can't cash anything." Mr. Keen does 3 jobs that are done by 3 different people in larger towns that creates a segregation of duties, but necessitates paying 2 more salaries. The person who creates the checks in Carefree can't sign them, which is a segregation of duties. It is common in the small communities of 5,000 residents or less across the state of Arizona to get the same segregation of duties note each year in their audit.
Councilman Glenn Miller added that the Council gets the financial statements and ledgers in their packets for review each month, adding an additional layer of segregation. "Not many towns do that." Mr. Keen agreed that Carefree is very transparent. Mayor Les Peterson gave an example of the process for a Marketing Department expenditure. Marketing Director Gina Kaegi authorizes and approves an expense from her budget. It goes to Mr. Neiss and Mrs. French to review, on to Mr. Keen to create a check, then back to Mr. Neiss. The check finally goes to Mrs. French and the Mayor for signing. Mr. Farrar agreed, "It sounds like all the steps are in place."
The Council unanimously approved acceptance of the 2015/16 Fiscal Year Audits for the Town and the Consolidated Court.
https://vimeo.com/190349376
Lyn Hitchon
Prepared by Carefree Truth
Visit our website at www.carefreetruth2.com If you know anyone who would like to be added to the Carefree Truth email list, please have them contact me. Feel free to share Carefree Truth with others on your list. Visit www.carefreeazbusinesses.com to see more info about businesses in Carefree. Please support our merchants.