Title
Receive report from independent auditor, RSM US LLP, and consider final audit report for the 12-month period of January 1, 2016, through December 31, 2016.
Body
RECOMMENDED MOTION:
Move the board accept the audit as presented by independent auditor, RSM US LLP, for the 12-month fiscal period of January 1, 2016, through December 31, 2016.
SUMMARY:
The purpose of this agenda item is for the board to receive a report from independent auditor, RSM US LLP, and to consider a motion to accept the 2016 fiscal year audit. This audit was not presented to the Finance/Administrative Committee at the March 28 meeting as RSM and EAA staff were still finalizing the internal review of the 2016 audit report. Therefore, this item is being presented directly to the board.
Representatives from RSM US LLP, will present the Conduct of the Audit and the Management Points Letter to the board. RSM US LLP issued an opinion that the financial statements present fairly, in all material aspects, the financial position of the EAA. In addition, RSM US LLP is issuing a “clean opinion” with a material deficiency pertaining to a restatement of expenditures in fiscal years 2016, 2015, and 2014.
Attached to this summary is a draft annual financial report for 2016. Also attached are draft Statements on Auditing Standards. Final copies of these documents will be distributed at the board meeting.
According to the Texas Water Code, the EAA is required to submit the final 2016 audit to the Texas Commission on Environmental Quality by April 30, 2017.
STRATEGIC PLAN REFERENCE:
This agenda item does not relate to a specific goal within the Strategic Plan, but supports the general EAA mission.
FISCAL IMPACT:
None.