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Date |
February
11, 2008 |
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Agenda Item No. 32 Roll Call No. 08- Communication
No. 08-057 Submitted
by: Craig S. Smith, Aviation Director |
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AGENDA HEADING:
Receive and File the Financial Statements of the
SYNOPSIS:
Recommend that Council receive and file the Financial Statements of the
Des Moines International Airport for Fiscal Year 2007, including Independent
Auditor’s Reports as prepared by McGladrey & Pullen, LLP.
FISCAL IMPACT:
Amount: $13,425
(paid to McGladrey & Pullen LLP,
Funding Source:
Fiscal Year 2008 Operating Budget, Airport Operations Fund, Administration,
EN002, AIR010100, pg. 66.
ADDITIONAL INFORMATION:
Ordinance 12,040 established the Airport
Board and assigned the responsibility to “ensure that all Airport revenues
collected by or under Board authority are credited to the Airport Enterprise
Fund, and that all expenditures from said fund are done in accordance with
applicable state and federal laws and regulations.” Because the Aviation Department functions as
an Enterprise Fund of the City, the City Finance Department has historically
managed all audit requirements related to Airport receipts and disbursements.
Based on recommendations from the Airport
Board, the Aviation Department automatically engages the same independent
accounting firm as used by the City.
Currently, the City issues a Request for Proposals (RFP) for auditing
services every three years as part of its normal procedures. The City’s most recent RFP covers fiscal
years ending June 30, 2004, 2005, and 2006, with the option of extending an
additional two years by mutual agreement.
This RFP included the completion of the Airport’s required audit reports
in its listing of audit requirements.
The successful bidder on this RFP was McGladrey and Pullen, LLP
(McGladrey) and the option year on the contract was utilized to cover the
fiscal year ended June 30, 2007.
McGladrey recently completed the City and
Airport audits for the fiscal year ended June 30, 2007, and issued an unqualified
audit report on the Airport’s financial statements, its compliance and control
over financial reporting procedures, and its compliance with requirements
applicable to the Passenger Facility Charge program. Copies of each audit report and financial statements
have previously been presented to the Airport Board for review and a complete
copy is now submitted for Council review.
The financial statements as presented also include comparative
information from the fiscal year ended June 30, 2006. It should also be noted that the Airport’s
financial information and Federal grant information is reported as part of the
City’s Comprehensive Annual Financial Report (CAFR).
The financial statements have been presented
to the general public via the Airport’s website using the following address:
http://www.dsmairport.com/AboutUs/Annual_Report.htm.
As noted within the Auditor's Report, there
were no findings or questioned costs related to the audit.
PREVIOUS COUNCIL ACTION(S):
Date: May 7, 2007
Roll Call Number: 07-881
Action: One-year
renewal of contract for independent auditing services with McGladrey &
Pullen, LLP. (Council Communication No. 07-281) Moved by Vlassis to adopt. Motion Carried 7-0.
Date: April 9, 2007
Roll Call Number: 07-677
Action: Receive and file the
Financial Statements of the
Date: May 17, 2004
Roll Call Number: 04-1033
Action: Selection of McGladrey & Pullen, LLP as the City’s independent
financial auditor and directing negotiation and execution of a contract for
fiscal years ending June 30, 2004, 2005 and 2006, with the option of two
one-year renewals. (Council Communication No.
04-228) Moved by
Brooks to adopt. Motion Carried 7-0.
BOARD/COMMISSION ACTION(S):
Date: December 4, 2007
Resolution Number: A07-216
Action: Acceptance of the Airport’s Audited Financial Statements for
the Year Ended June 30, 2007, Including the Independent Auditors’ Reports as
Prepared by McGladrey & Pullen, LLP (Board Communication No. 07-122). Moved by Mr. Ashman to adopt. Motion Carried: 5-0-0-2.
ANTICIPATED ACTIONS
AND FUTURE COMMITMENTS: NONE