City of Central Falls
City Council Finance Committee Workshop
City Hall Council Chambers
2nd Floor, City Hall
580 Broad Street
Central Falls, Rhode Island
Web Address: www.centralfallsri.us
Wednesday, April 4, 2007
6:00 p.m.
Council President Benson opened the workshop at 6:10 p.m. also present were Councilman Patino and Councilman Aubin.
1. Audit Report
Independent Auditor’s Report presented by the Auditing Firm of Prescott. Catellier, Fontaine,Wilkinson.LLP for the year ended June 30, 2006
Debra Mitchell of Chatellier, Fontain & Wilkinson, the firm hired to audit the books of the City of Central Falls explained the Audit Report in detail.
She began with the comments on how the audit was conducted.
She spoke on management’s discussion and analysis of the audit.
She gave a brief overview of the City’s total fund balance of 1.738 million. She also stated that the 2005/06 budget to actual expenditures gave the City a $345,627 surplus.
Councilor Patino commented on the YMCA contract.
Ms. Mitchell commented on the new standards of auditing. She remarked on GASB 34 and stated how that affects how audits are conducted.
She spoke of the City’s liabilities and long term debt. She also commented on the retirement plans of the City and the necessity of funding the police and fire pensions.
Council members questioned the interest income on the bonds.
Steve Maceroni commented on how the interest on the bond is used.
Comments and questions related to the pension and budget continued in detail.
Ms. Mitchell commented on post employment benefits like health insurance. She stated that it has been discussed in the Management letter about the need to fund the pension. She also spoke of combined benefits vs. defined contributions.
John Kuzmiski spoke on the issue of a definitive funding plan.
Comments were also made about the City of Woonsocket and how they are addressing the pension and how they went out for Pension Obligation Bonds.
He stated that before you do that you have to make new hires join the Municipal Pension with the State. He said that only then can the problem of the pension truly be addressed. He also stated that this is the single most critical area of budgeting that needs to be addressed.
Discussion on various accounts continued.
Mr. Kuzmiski commented on the deadline for the audit Dec. 31st and commented on the changes in the accounting system and the 64 funds that is maintained by the City’s bookkeeper and how the new system will work once all the data is in the System. He explained that by the end of this fiscal year 6/30 the City, for the first time will be able to have trail balances.
He also addressed the issue in the management letter which commented on the separation of duties which is the auditor’s test for internal controls.
Mr. Kuzmiski also commented on the soon to be required disclosure of infrastructure assets and post employment benefits.
Council President Benson thanked Ms. Mitchell and Mr. Kuzmiski for attending this meeting.
2. Adjourn
Meeting adjourned at 7:15 p.m. on motion by Councilor Patino.
Elizabeth A. Crowley, MMC
City Clerk