DATE: November 25, 2015
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
Russ Truell, Assistant City Administrator
Mike Lowe, Comptroller
SUBJECT:
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Receipt of Audit Report for City of Franklin.
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the financial condition of the City on June 30, 2015.
Background
Each year, the City is required by State law to provide an annual financial report to the State of Tennessee. Additionally, certain disclosure requirements in bond documents also provide for periodic financial reports to be prepared. The City takes this responsibility seriously and provides regular financial updates throughout the year. However, at the end of the fiscal year, a more elaborate report, called the Comprehensive Annual Financial Report (CAFR), is produced by City staff and audited by an independent firm of Certified Public Accountants. The report for Fiscal Year 2014-2015 will be delivered at the December meeting of the Budget & Finance Committee, which is designated as the Audit Committee by the Board of Mayor & Aldermen. Representatives of our CPA firm, Crosslin & Associates, will be present to make a verbal report and provide copies of the audit document.
A draft of the report, prepared by City staff, is included in the agenda materials. At this time, the only known correction to the draft will be a change in the pension liability presentation. Staff included the result of the new pension accounting regimen (GASB68) to reflect liability as a current period expense; auditors have recommended that liability be restated as a prior period adjustment. That restatement primarily affects the government-wide presentation and statements made on pages 7 and 59 of the report. An attachment to this memo has those pages shown with pertinent areas highlighted.
Financial Impact
The delivery of the CA...
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