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April 27, 2023

April 27, 2023

Michigan Committee on Governmental Auditing and Accounting

April 27, 2023

Meeting Minutes

  1. Call to Order
    1. Cary Vaughn called the meeting to order at 10:01 a.m.
  2. Roll Call
    1. Members Present – 7
      1. Cary Vaughn – Department of Treasury
      2. Pauline Bennett – Addison Township
      3. Michelle Watterworth – Plante Moran
      4. Eric Van Dop – Brickley DeLong
      5. Michael Slater – City of Livonia
      6. Rana Emmons – PSLZ
      7. Bill Tucker – Maner Costerisan
  3. Review of Prior Meeting Minutes
    1. Cary Vaughn will send the January 12, 2023 meeting minutes to the Committee to review and will approve at the next meeting.
  4. Old Business
    1. None
  5. New Business
    1. Announcement
      1. Pauline Bennett announced that she is leaving the MCGAA Committee after the April 2023 meeting. The committee thanked her for her years of service.
    2. Numbered Letters
      1. MCGAA-09 – Revenue Recognition of Property Taxes
        1. Cary is leaning toward keeping this numbered letter, however, wording should be added that they are adopting the 60-day period of availability.
      2. MGFOA standards committee is almost finished with MCGAA Statement 4 and once that is done, will be working on MCGAA Statement 10.”
      3. 1994-10 – State Education Tax (SET) Local Unit Treasurers Collection & Reporting Procedures
        1. Delete the reference to the STC bulletin.
      4. 1997-01 – Accrual of State Shared Revenues
        1. Cary Vaughn is leaning toward keeping this numbered letter, however, wording should be added that they are adopting the 60-day period of availability.
    3. XBRL Status Update
      1. Cary Vaughn gave the Committee an overview of what the XBRL is and how it works. Treasury has been meeting with a group of people for a feasibility study. If they find it feasible, they will move forward with implementation, however, it’s years away from doing anything permanent.
    4. Auditing Procedures Report Update
      1. Cary Vaughn updated the Committee that Treasury is in the process of getting a revamp of the internal processing system. APR revamp is delayed, however, a lot of resources are coming in June and a lot of other projects will be coming within the next couple of years.
    5. Treasury’s Review Process Update
      1. Cary Vaughn gave an update on the current process to the Committee and that the updates are being worked on. This won’t be done for a while; possibly next year.
    6. Budget Manual Status Update
      1. Cary Vaughn informed the Committee that he has reviewed 2/3rd’s of the budget manual and will send it out to the Committee for review once he is finished.
    7. Uniform Reporting Format
      1. Comparable audited information required in the MD&A if the local unit is not audited every year
        1. The Committee decided this should be deleted from the formatting requirements.
      2. Budget to actual reports must show a variance column.
        1. The new reporting model will mandate multiple variance columns.
      3. Negative variances should be bad.
        1. Not a big deal – should revisit.
      4. There must be a budget to actual detail report for the General fund. Must be reported on the level of control passed by the governing body which should be the activity level at a minimum.
        1. Michelle Watterworth will send a reference to legal level of control for general fund.
      5. All pdf files must be searchable.
        1. No comment.
      6. Locking pdf for copying and pasting.
        1. No comment.
      7. Audit adjustments to be included in reporting package?
        1. This should be material weaknesses reported. Request this through CAP or enhanced reporting.
      8. There must be a row description on each page for exhibits.
        1. Delete this from formatting requirements.
      9. Pension and OPEB must be reported regardless of materiality.
        1. Committee was not in favor of this.
      10. Numbered Letter 2018-3
        1. This could be refreshed.
    8. New Members
      1. Cary Vaughn is still collecting candidates for the open positions within the Committee and is waiting for the new CEFD administrator to begin before moving forward with the selection process.
  6. Adjournment
    1. The Michigan Committee on Governmental Auditing and Accounting meeting adjourned at 11:20a.m.