20210323 Audit PresentationPRESENTED TO
TOWN OF PROSPER, TEXAS
Annual Financial Statement Audit
TOWN COUNCIL MEETING
March 23, 2021
John Manning, CPA
Partner, Government Audit
Kent Willis, CPA
Manager, Government Audit
•Audit process
•Audit results
•Financial highlights
•Discussion/questions
INTRODUCTION & AGENDA
AUDIT PROCESS
AUDIT PROCESS
Planning Fieldwork
AUDIT PROCESS
Planning
Who and when?
•October 2020
•4 auditors
•1 week
What?
•Internal controls
•Risk assessment
•Preliminary testing
AUDIT PROCESS
Fieldwork
Who and when?
•December 2020
•4 auditors
•4 weeks
What?
•Material balances &
transactions
•Compliance
•Single Audit
•Draft financial statements
AUDIT RESULTS
Independent Auditor’s Report
•Management responsible for
financial statements
•Audit performed in accordance
with GAS and GAAS
•Unmodified opinion
AUDIT RESULTS
Government Auditing Standards Report
•No internal control deficiencies
•No noncompliance with
•Laws
•Regulations
•Contracts
•Grant agreements
AUDIT RESULTS
Uniform Guidance Standards Report
(Single Audit)
•No internal control deficiencies
•No noncompliance with
compliance requirements
•Coronavirus Relief Fund (21.019)
•Unmodified opinion
AUDIT RESULTS
FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS
169.8
5.5 18.5
150.8
1.9 14.7
0
20
40
60
80
100
120
140
160
180
Net Investment in
Capital Assets
Restricted UnrestrictedMILLIONS 2020
2019
COMPARISON OF GOVERNMENTAL ACTIVITIES
Net Position (in millions)
FINANCIAL HIGHLIGHTS
COMPARISON OF BUSINESS-TYPE ACTIVITIES
Net Position (in millions)
127.8
14.8
112.2
12.2
0
20
40
60
80
100
120
140
Net Investment in Capital Assets UnrestrictedMILLIONS
Axis Title
2020
2019
GOVERNMENTAL FUNDS
Fund Balance
$13,923,232
$5,092,452
$2,619,367
$21,346,095
$84,551
General Fund
Impact Fees
Debt Service
Capital Projects
Escrow Fund
FINANCIAL HIGHLIGHTS
COMPARISON OF GENERAL FUND
Revenues
$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000
2019
2020
REVENUE
Taxes
License and Permits
Intergovernmental
Charges for Services
Fines and Forfeitures
Other
FINANCIAL HIGHLIGHTS
COMPARISON OF GENERAL FUND
Expenditures
$0 $10,000,000 $20,000,000 $30,000,000
2019
2020
REVENUE
Administration
Police
Fire
Development Services
Public Works
Community Services
Engineering
Capital Outlay
FINANCIAL HIGHLIGHTS
DISCUSSION