April 22, 2022

Michigan Committee on Governmental Auditing and Accounting

April 21, 2022

Meeting Minutes

1. Call to order
   1. Cary Vaughn called the meeting to order at 10:02 a.m.
2. Roll call
   1. Members Present – 9
      1. Rodney Taylor – Department of Treasury
      2. Cary Vaughn – Department of Treasury
      3. Bill Tucker – Maner Costerisan
      4. Stephen Blann – Rehmann
      5. Michelle Watterworth – Plante Moran
      6. Eric Van Dop – Brickley DeLong
      7. Michael Slater – Livonia, MI, Wayne County
      8. Pauline Bennett – Addison, MI, Oakland County
      9. Rana Emmons - PSLZ
3. Review of prior meeting minutes
   1. The minutes were sent out after the meeting for approval.
4. Old business
   1. None
5. New business
   1. Auditing Procedures Report
      1. The committee reviewed the various existing questions and answers and gave input to Treasury on what to change, delete, or add. The suggestions in summary include:
         1. Make questions on opinions dynamic with an explanation box if modified.
         2. Remove GAAP question since it would impact an opinion for which a question is already asked. Line 14
         3. Listing missing agencies is unnecessary. Line 18
         4. Move compliance with Treasury guidance (line 20) after compliance with various policies (line 45) along with internal control questions (“anything else”).
         5. Pension question should include “ADC” then the definition. Line 25
         6. Would like to keep the option of not reporting illegal acts if previously reported to Treasury. Line 30
         7. Modify the request for a forensic audit to go to the local unit. Line 31
         8. Include whether the local unit has notified law enforcement. Line 32
         9. A timely budget was discussed. If no timely budget, the ask dynamic question(s). line 39
         10. Is the budget total over a set percent? Add to line 41. The percent will be up to Treasury.
         11. Do we include “other financing uses”? line 42
         12. Do we include segregation of duties and preparation of financial statements in the totals?
   2. Transit audit manual
      1. The committee discussed MDOT’s letter of from November 12, 2021, regarding “FY 2021 Audit Information for September 30th Year End” and determined that the department was inappropriately encroaching on audit requirements by mandating an opinion on internal control when no opinion is required in accordance with auditing standards. MDOT should not direct transits to include additional items in an audit.
6. Upcoming meetings
   1. July 21, 2022
   2. October 20, 2022
7. Adjournment
   1. The Michigan Committee on Governmental Auditing and Accounting meeting adjourned at 11:24 a.m.