AATA Receives Unqualified Audit
Ann Arbor Transportation Authority board meeting (March 15, 2012): After waiting out a tornado warning in the basement of the downtown Ann Arbor District Library building, the AATA board made relatively quick work of its monthly meeting.
Auditors David Helisek and Pam Hill of Plante Moran. (Photos by the writer.)
Still, the board transacted two pieces of business. The first was to approve the report of its auditor, Plante Moran. The overall opinion was “unqualified,” which is the highest rating that can be given. Still, the audit revealed some issues that need to be addressed, one of which was dealt with as part of the audit – the recording of revenue from the tax levy in the year it’s received. That actually increased the amount of AATA net assets by $7 million, but is an accounting change, not an actual change. The auditors found one case of a contract that should have been subjected to Davis-Bacon compliance requirements but was not.
Another issue identified by the auditor involves the AATA’s practice of investing in fuel futures as a hedge against the volatility of diesel prices – the advice was to review the practice with legal counsel. Plante Moran also flagged an issue involving the shelf-life of federal grants – but the AATA and auditors see that issue differently.
The second business item was approval of revisions to the AATA management personnel handbook – it was part of a periodic review and revision. Among myriad other changes, the amended document adds “sexual orientation” to the list of protected classes. [Full Story]