TOWN OF JUPITER
AUDIT COMMITTEE MEETING
FINAL MINUTES
TOWN COUNCIL CHAMBERS
THURSDAY, APRIL 10, 2014
The meeting was called to order by Vice-Mayor Wendy Harrison at 4:20 P.M.
Roll Call: Members present - Vice Mayor Wendy Harrison, Member Mr. Richard Roberts.
Members absent - Member Ms. Susan Present.
Also in attendance: Finance Director - Mike Villella, Budget Manager - Scott Reynolds and
External Auditor - Scott Porter.
Agenda Items:
1. Approval of Minutes and Agenda – The members reviewed the minutes from the July
22, 2013 committee meeting. Mr. Roberts asked that the minutes from the July 2013
meeting be amended to reflect that the committee had appointed Counselor Harrison as
the chair of the committee. Counselor Harrison agreed and Mr. Roberts made a motion to
approve the minutes as amended, the motion was seconded by Counselor Harrison.
Harrison
Yes
Present
N/A
Roberts
Yes
Agenda – Finance Director Mike Villella asked the members of the committee to amend
the agenda to add a discussion item about the upcoming State of Florida Auditor General
audit. Counselor Harrison and member Roberts agreed to add the item as item four to the
agenda.
2. Fiscal Year 2013 Audit Presentation and Discussion, Findings – External Auditor
Scott Porter gave all members present a copy of the draft fiscal year 2013 Town audit.
Mr. Porter began his presentation of the 2013 audit by reviewing the transmittal letter and
independent audit report which he indicated included an unmodified opinion. Mr. Porter
also discussed the MD&A which pointed out a change from previous year’s audit in
relation to the government wide “statement of net position” for the Town. Mr. Porter
indicated accounting requirements provided a new format for the net position statement
that presents information on Town’s assets, liabilities, and deferred inflows / outflows of
resources with the difference of those items being presented as the net position. Mr.
Porter then reviewed with the committee the fund financial statements which includes the
Fund Balance for the Town. A discussion of fund balance determined that the Town had
a sufficient fund balance to cover day to day operations and the potential to cover costs
associated with a natural disaster.
Mr. Porter reported to the committee that the police pension audit was provided to them
earlier this year as requested by the Audit Committee at the last meeting.
As Mr. Porter continued to present the draft audit to the committee, members asked the
following questions in regards to items within the audit:

Police Pension Investments - Member Roberts asked about the level of return on
the pensions investments, Mr. Villella indicated that the target return is 7.5% and
that the return last year was 11.9% and the 30 year average as presented in the
actuarial report is7.6% which indicate the assumed rates is reasonable.

Notes to the Financial Statement, Economic Development Loan – Member
Roberts asked about the loan default indicated in the statement, Mr. Villella
discussed that the economic development loan guarantee’s do not come without
risk but the Town has been very successful in the past with this incentive
program. The default discussed in the notes has been successfully negotiated and
is expected to be paid back over ten fiscal quarters.

Management Letter, Purchasing Approvals – Chair Harrison asked Mr. Villella
about the purchasing approval comment on page 111. Mr. Villella explained the
internal approval process and that he and staff reviewed the issue and will have a
change in procedure along with a revised purchasing policy for the Town as
recommended by the auditors.
Mr. Porter completed his presentation on the draft audit by highlighting the
“Communications with Those Charged with Governance” letter that will accompany the
audit document.
3. GASB Update (future) – External Auditor Scott Porter discussed changes in accounting
and audit standards that will be used during the FY 2014 audit work. Mr. Porter pointed
out GASB statement 70 that is expected to be effective for next year could apply to the
Town’s Economic Development Fund but since the Town’s funds are pledged as
collateral rather than as a guarantee instrument the statement may not apply. Mr. Porter
also pointed out that pension liabilities will be reflected on the government wide
statement of net position under new GASB requirements. Mr. Porter also indicated that
GASB will likely treat liabilities for other post-employment benefits (OPEB)similarly in
the future.
4. State of Florida AG Audit – Mr. Villella shared with the members that he had received
a letter from the State of Florida AG office indicating they will be preforming a
performance audit for the State Legislator. This audit is a common occurrence and not an
indication of an issue and the Town has been randomly selected for audit. Mr. Villella
indicated he will share with the committee the audit report once published.
5. Member Comments – Chair Harrison asked the attending members what items within
the audit should be presented to the Town Council? Mr. Porter presented a financial
highlights pamphlet which his firm has produced for the Council presentation. Mr. Porter
indicated that he traditionally reviews the MD&A, financial highlights pamphlet, then
notes to the financial statement then the budget to actual comparison found on page 61.
Chair Harrison indicated she would like Mr. Porter to highlight the pension and budget to
actual for the Council as well as the statement of activities.
The members discussed the date the audit should be presented to the Council and decided
that the May 6th Council meeting would be appropriate. Mr. Roberts made a motion to
approve the presentation and the date of May 6th, Chair Harrison seconded the motion.
Harrison
Yes
Present
N/A
Roberts
Yes
Mr. Reynolds pointed out to the Committee that the resolution that created the committee
indicates that once a year the committee must recommend to the Town Council members
to serve on the Audit Committee. Chair Harrison asked Mr. Roberts if he wished to
continue to serve on the committee in which he agreed. The members also wished Mrs.
Present to continue to serve and since she was not present for the committee liaison to
contact Mrs. Present and see if she wished to continue serve. If she agreed to serve the
committee would like to recommend her reappointment to the Committee by the Council.
Mr. Roberts made a motion to approve the recommended appointments to the Town
Council, Chair Harrison seconded the motion.
Harrison
Yes
Adjournment – 6:15 P.M.
Present
N/A
Roberts
Yes