The Audit Committee meeting was held at Police Headquarters, Community Room, 1125 Locust Street, Kansas City.
Present: Commissioner Cathy Dean
Secretary/Attorney David Kenner
Deputy Chief Karen True
Major Paul Luster
Captain Timothy Gaughan
Supervisor Margaret Harman
Michael Keenan, Cochran, Head, Vick & Co.
The meeting was called to order by Commissioner Dean at 2:05 p.m.
Mr. Michael Keenan was present to discuss the financial and compliance audit for the year ending April 30, 2020. Mr. Keenan provided the Financial Statements, Single Audit Report, and the Required Communication and Management Letter to those in attendance at the meeting. Mr. Keenan also provided a summary of the PowerPoint presentation. He noted that it was a “clean” audit. Mr. Keenan said the audit revealed no illegal acts, difficulties or disagreements with management, and the firm had full access to books and records.
Mr. Keenan advised that during the testing of claim payments, it was noted that a workers’ compensation claim payment of approximately $44,000 was duplicated through a third party administrator. The Department has received a reimbursement of $24,940 for this claim and is working with the third party administrator to resolve this matter. Cochran, Head, Vick & Co. recommends that management evaluates and revises its approval and monitoring procedures over workers’ compensation claim payments. Mr. Kennan also noted that in May 2020, in response to the COVID-19 pandemic, the Governmental Accounting Standards Board (GASB) issued Statement No. 95 – Postponement of the Effective Dates of Certain Authoritative Guidance. The auditors recommend that management reviews the standards to determine the impact, if any, that these standards may have on the Department’s financial reporting.
Mr. Keenan advised that he will present the audit for Board approval at the Board meeting on July 7, 2020. Mr. Keenan expressed the auditing firm’s thanks for the opportunity to work with the Department. He thanked the Fiscal Unit and staff for their assistance and full cooperation in conducting the audit.
A motion was made and approved by Commissioner Dean to approve the audit as presented. There being no further business before the Audit Committee, the meeting was adjourned at 2:14 p.m.