National Council for Behavioral Health
Audit Committee Meeting Minutes
February 19th, 2015
Via Conference Call
Present
Audit Committee: Rich Leclerc (Chair), Kevin Campbell, Jon Cherry and Lauri Cole
Staff: Bruce Pelleu (CFO/VP Finance & Admin) and John Guillotte (Director of Finance)
Auditors: Kim Robertson Pannell (Raffa Audit Partner) and Bob Bloom (Raffa Senior Audit Manager)
Proceedings
· The meeting was called to order by the Audit Committee Chair, Rich Leclerc.
· A MOTION was passed and the minutes from the October 28th, 2014 meeting were approved without amendment.
· Kim Robertson, Audit Partner, and Bob Bloom, Senior Audit Manager, reviewed the auditors’ engagement objectives, client service team, financial statement highlights, OMB reports and Management Letter, other required auditor communications (SAS No. 114) and audit and tax timeline. Included in this discussion were:
o Ms. Robertson communicated that performed was an independent audit of the consolidated financial statements (National Council and NSS) and also performed was an OMB Circular A-133 audit, this due to National Council’s CIHS grant along with several pass through federal grants, which had federal expenditures in 2014 over the requirement $500,000 threshold.
o Both the consolidated financial statements and A-133 audit reports were issued with an unmodified audit opinion (clean).
o Ms. Robertson presented the National Council financial statements and accompanying notes. Presented were the results of operations, including an overall increase in net assets for the year of $6.7m and assets that totalled $21.6m increasing $6.7m while liabilities increased $94k from the prior year and totalled $5.3m. Reported was total revenue of $27.0m, an increase of $4.9m from the previous year, and an overall net surplus of $5.2m. Graphs presented broad growth over most lines of business and a greater diversification of revenue sources.
o Committee member questions centered around outstanding accounts receivables and deferred revenue. Mr. Bloom discussed the emphasis placed on accounts receivables during the audit process. Outstanding receivables and subsequent collections have been updated through the time of the call and will continue until final report issuance. Mr. Pelleu discussed the key components of deferred revenue and the areas where increases occurred during FY2014.
o Mr. Bloom reported that in the A-133 report, no findings were reported in internal controls over financial reporting and in internal controls over the federal awards. Expenditures on the federal award in 2014 were $3.6m. Work on both the tax form 990 and the incurred cost proposal can also now begin.
o Mr. Bloom noted that no Management Letter was sent to the Committee, as there were not any recommendations for best practice improvements. No material weaknesses or significant deficiencies were identified for 2014.
o Mr. Bloom reviewed the other required auditor communications (SAS No. 114) and reported no findings.
· At the conclusion of the auditor presentation, the Audit Committee voted unanimously to approve and accept the annual audited financial statements. Mr. Leclerc later presented the audit to the Board on February 18th Board conference call and the audit report was accepted by the Board.
· The Committee went into private executive session with the auditors (staff exited the conference call). After that session the meeting was adjourned. Mr. Leclerc commented that there were no additional items from that session for the minutes.
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