Title
Approval of Audit and Related Draft Financial Reports Pertaining to the Fiscal Year Ended June 30, 2024
Body
Agenda of: December 11, 2024
Item No.: 2024-398
Amount: Not Applicable
TO: The Honorable
Board of Directors
Great Lakes Water Authority
FROM: Suzanne R. Coffey, P.E.
Chief Executive Officer
Great Lakes Water Authority
DATE: December 11, 2024
RE: Approval of Audit and Related Draft Financial Reports Pertaining to the Fiscal Year Ended June 30, 2024
MOTION
Upon recommendation of Nicolette N. Bateson, Chief Financial Officer/Treasurer, the Board of Directors (Board) of the Great Lakes Water Authority (GLWA), approves the reports pertaining to the Fiscal Year Ended June 30, 2024 Financial Audit (the FY 2024 Annual Comprehensive Financial Report, FY 2024 Single Audit Act Compliance Report, and FY 2024 Independent Auditor’s Communication with those Charged with Governance) and authorizes staff to proceed with filing the annual audit reports prior to the due date with the state of Michigan; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
BACKGROUND
Annually, the Great Lakes Water Authority (GLWA) prepares an Annual Comprehensive Financial Report (ACFR) and Schedule of Expenditures of Federal Awards (SEFA) in accordance with financial accounting standards and federal guidelines. Baker Tilly US LLP (Baker Tilly) has been engaged to perform the GLWA annual financial audit and issue an opinion as to whether the financial statements are fairly stated in accordance with accounting standards for fiscal years ending 2022, 2023 and 2024.
With GLWA’s reports nearly complete, the next step is review by the GLWA Board of Directors and requested approval to proceed with filing the report with the Michigan Department of Treasury. It should also be noted that staff will file those reports and related information with other parties such as the federal clearinghouse for the single audit report, and the Electronic Municipal Market Access system (“EMMA”) for Municipal Securities Rulemaking Board (“MSRB”) requirements.
JUSTIFICATION
The following are attached pertaining to the Fiscal Year Ended June 30, 2024.
Reports Related to Performing the Annual Audit
1. Presentation by Ms. Jodi Dobson, Partner, Baker Tilly US, LLP (external auditor)
2. Final Draft FY 2024 Reporting and Insights from the FY 2024 Audit (which includes the Draft Management Representation Letter)
3. Final Draft Informal Management Comment Letter
Annual Reports
4. Presentation of FY 2024 Annual Financial Results
5. One Pager Series: FY 2024 Audit & Financial Results
6. Final Draft FY 2024 Annual Comprehensive Financial Report (ACFR) (with audit opinion)
7. Final Draft FY 2024 Single Audit Act Compliance Report
The requested Board action aligns with GLWA’s By-laws, ARTICLE XII, Section 2 which states the following.
The Board shall obtain an annual audit of the GLWA’s financial statements by an independent certified public accountant and report on the audit and auditing procedures in accordance with state law and generally accepted government auditing standards, as well as federal grant compliance audit requirements. The Board shall furnish at least two copies of the annual audit to each Incorporating Municipality. The audited financial statements shall be posted on the GLWA’s website. In addition, the audited financial statements shall be filed with the Michigan Department of Treasury upon approval of the GLWA Board.
BUDGET IMPACT
Not applicable for the proposed action.
COMMITTEE REVIEW
The Audit Committee has received updates from staff and auditors on a monthly basis during the course of the year-end audit. On December 6, 2024, the Audit Committee unanimously recommended that the Board of Directors approves the Reports Pertaining to the Fiscal Year Ended June 30, 2024 Financial Audit (the FY 2024 Annual Comprehensive Financial Report, FY 2024 Single Audit Act Compliance Report, and FY 2024 Independent Auditor’s Communication with those Charged with Governance) and authorizes staff to proceed with the completion and filing of the annual audit reports prior to the due date with the state of Michigan; and authorizes the CEO to take such other action as may be necessary to accomplish the intent of this vote.
SHARED SERVICES IMPACT
This item does not impact the shared services agreement between GLWA and DWSD.