Providence 2010

City of Providence 2010 Audit Results

155 South Main Street Providence, RI 02903

Introduction

Presentation will review the City’s 2010 Audit Results Discussion of observations and recommendations Feel free to ask questions at any time

Topics of Discussion

Financial Statements

Observations and recommendations

Required Communication to Audit Committee

The General Fund

Total Fund Balance decreased by $13,903,000 Budgeted change was a decrease of $1,400,000 (use

of designated fund balance) Undesignated Fund Balance = $2,080,000 (net of

$1,378,000 designated for use in current year) Undesignated Fund Balance represents less than 1%

of Operating Budget Current level is well below analyst benchmarks (5% -

8% of expenditures, one year debt svc, etc)

Fund Balance: last 10 years

Fund Balance: all governmental funds

Results of Operations

Revenues exceeded budget by $23,315,000 Property taxes $1,702,000 above what was

anticipated Tax collection percentages:

93.98% of current year assessment 96.71% when counting collection of current and

prior assessments

Tax Collections:% of current levy

Results of Operations (cont.)

Expenditures were $35,818,000 above appropriated amounts

Several functional areas exceeded budgeted appropriation

Significant unfavorable results in these areas: Municipal court Debt service Public safety ($6MM funded by reserve fund) Transfer to School Department

Governmental expenditures

last 10 years

Net Bonded Debt per capita

Debt Service expenditures

School Department

Revenues were $6,887,000 above anticipated amounts (including increase in transfer from general fund of $13,589,000)

Expenditures were $6,887,000 above appropriations

School Lunch Fund recognized net income for the year and ended with net assets of $310,000

School grants recognized $124,000,000 in activity

Providence ERS: funding statistics last 10 years

Observations & Recommendations

Responsibilities and duties of accounting staff Timely account analysis and bank reconciliations Timely reconciliation of inter-fund balances Improve coordination of year-end closing schedule Improve accounting for retainage and commitments Improve cut-off procedures for year-end accruals Improve monitoring of decentralized accounting

functions and integration of year-end reporting

Audit Committee Correspondence

Required communication of audit matters directly to parties responsible for audit oversight and follow-up Timing of engagement, readiness Significant adjustments Change in OPEB Plan Valuation - rate of return Significant transactions – leases No disagreements with management No restrictions on scope imposed by management

Questions?

The End

Thank you!