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Home My WebLink About2012-4-24MINUTES Tuesday April 24, 2012 16 Broad Street, Conference Room — 9:00 a.m. All or a portion of this meeting is being recorded. If you plan to record this meeting yourself, please check with the chairman of the board before you begin. Staff: Libby Gibson, Town Manager; Irene Larivee, Finance Director; Terry Norton, Town Minutes Taker; Debbie Weiner, Treasurer; Bob Dickenson; Finance Department; Debbie Dilworth, Assessor; Elizabeth Brown, Tax Collector Attending Members: Patty Roggeveen (Board of Selectmen), Matt Mulcahy, Vice Chair (Finance Committee), Rick Atherton (Board of Selectmen) Absent Members: None Powers & Sullivan: Renee Davis and James Powers via Conference call, Public: John Tiffany; Arthur Gasbarro, Airport Commission; L CALL TO ORDER • 1 11. PUBLIC COMMENTS III. APPROVAL OF MINUTES IV. DEPARTMENT OF REVENUE (DOR) LETTER Gibson — Review recent letter from Gerard D. Perry Director of Accounts at the Massachusetts DOR. Requires completion of FY2012 financial audit by Nov. 1. Larivee — Pushes finance dept timeline up a month; very aggressive schedule. Last minute requests and enterprise questions might not be addressed during this time period. Also, looking at holding a special town meeting during this time frame. Roggeveen — Sees need for financial person at the Airport to help work out issues. Perhaps increased training requirements in regards to financial accounting and reporting. Gibson — Mr. Perry also mentioned during a phone call prior to the letter that we need to avoid any kind of deficit situation for FY2012 for the Airport. ((Tape on at 9:12 a.m.)) Larivee — There are only two deficits allowed by law, which this town does not have at this time; and if things remain as forecast with noting "new" arising, there should not be a deficit in FY2012 for the Airport. The Airport budget is being monitored closely. Page 1 of 3 c c. Minutes for April 24, 2012, adopted July 31 rn rn n rn � o -D < Town of Nantucket o Audit Committee r- co www.nantucket- ma.gov M M MINUTES Tuesday April 24, 2012 16 Broad Street, Conference Room — 9:00 a.m. All or a portion of this meeting is being recorded. If you plan to record this meeting yourself, please check with the chairman of the board before you begin. Staff: Libby Gibson, Town Manager; Irene Larivee, Finance Director; Terry Norton, Town Minutes Taker; Debbie Weiner, Treasurer; Bob Dickenson; Finance Department; Debbie Dilworth, Assessor; Elizabeth Brown, Tax Collector Attending Members: Patty Roggeveen (Board of Selectmen), Matt Mulcahy, Vice Chair (Finance Committee), Rick Atherton (Board of Selectmen) Absent Members: None Powers & Sullivan: Renee Davis and James Powers via Conference call, Public: John Tiffany; Arthur Gasbarro, Airport Commission; L CALL TO ORDER • 1 11. PUBLIC COMMENTS III. APPROVAL OF MINUTES IV. DEPARTMENT OF REVENUE (DOR) LETTER Gibson — Review recent letter from Gerard D. Perry Director of Accounts at the Massachusetts DOR. Requires completion of FY2012 financial audit by Nov. 1. Larivee — Pushes finance dept timeline up a month; very aggressive schedule. Last minute requests and enterprise questions might not be addressed during this time period. Also, looking at holding a special town meeting during this time frame. Roggeveen — Sees need for financial person at the Airport to help work out issues. Perhaps increased training requirements in regards to financial accounting and reporting. Gibson — Mr. Perry also mentioned during a phone call prior to the letter that we need to avoid any kind of deficit situation for FY2012 for the Airport. ((Tape on at 9:12 a.m.)) Larivee — There are only two deficits allowed by law, which this town does not have at this time; and if things remain as forecast with noting "new" arising, there should not be a deficit in FY2012 for the Airport. The Airport budget is being monitored closely. Page 1 of 3 Minutes for April 24, 2012, adopted July 31 V. REVIEW OF NEW AUDIT CONTRACT Gibson — Current contract expired in 2011. So a new contract should cover at least 2012. Larivee — Does not believe now is the time to change auditors, so suggest a 2 -year contract to allow time to send out an RFP. Some discussion among the audit Committee members about a 1 -year contract and perhaps issuing an RFP in the fall of 2012 for the FY2013 audit. (Telephone call to Powers & Sullivan) Powers — Asked if the Town wants multi -year contracts. Roggeveen — We are discussing a one -year contract with an RFP this fall. Powers — Will need to increase price a bit; spent $13,000 each on Airport and Wannacomet previously, and those will go up to $15,000. $99,000 for 2011 included the town and county, airport and Wannacomet and school activity audit, which hasn't been done yet. Expenses are going up $9,000. Davis — Audit fee includes travel expenses. Powers — Suggests an all inclusive $108,000 fee for FY2012. Roggeveen — Committee consensus is to make this a recommendation to BOS. Will let Powers & Sullivan know about that. V1. 2012 AUINT PREPARATION Powers — Ms. Davis has set up a time line to make the DOR deadline. Davis — Ms. Larivee has put a schedule together that gets everything to us by September 1; so based on that our proposal gives us time to go through it in our office prior to two -weeks field work scheduled to begin October 9. Can then meet the November 1 date requested by Gerry Perry at DOR. Larivee — Nantucket Islands Land Bank submitted information in the past around September 30 and the airport as well; need to discuss with both groups the new deadline of September 1 for financial information to the Finance Department. Wannacomet is should not be an issue. Davis — There are a few things not on the schedule that will be added, and the schedule will be fine tuned. Larivee — Schedule checklist will become a part of these meetings. Powers — Suggested scheduling an August or September meeting to meet with the Audit Committee. Gibson — Will schedule Powers & Sullivan for August meeting to update. (call ended) Larivee — Changes to checklist reviewed. Checklist to be posted on line. SCORECARD VII. AUDIT COMMITTEE Larivee — Review of Scorecard which provides Audit Committee a way to track details. AIRPORT VIII. UPI)ATE ON Roggeveen — Review of airport items needed for Wednesday April 25 Board of Selectmen (BOS) meeting. Gibson — Ms Roggeveen reports to BOS on Apr 25; and on May 2 BOS will possible actions /options regarding Airport capital project. On May 9 the Board would take specific action on the projects. Mulcahy — Discussion needs to cover how FY2012 is being resolved. Larivee — Should be able to get through FY2012 without any transfers; and be ready for FY2013. FY2013 is an issue regarding the budget. Mulcahy — Runway 624 and lighting, are they included in discussion? Gasbarro — Met with Jacobs Engineering; since October, they have put Ramp Electrification project on hold. Have approval from the Federal Aviation Administration (FAA) for this project. Most recent bill is $3,600. Made it clear that spending cease on this project until the budget implications are worked out. South ramp electrification was taken off the current FAA funding list. Electrification is for the North ramp which is covered by VALE Funding. Runway light replacement project is separate from ramp electrification. Airport passed its annual FAA inspection last year on condition that the runway lights are done this year. Page 2 of 3 Minutes for April 24, 2012, adopted July 31 Larivee — If we can put off funding this project until the Fall, would like to do that instead of pushing the work forward in June, because of FY2012 budget. Mulcahy — Short-term borrowing for the General Administration (GA) Building is being looked at now. Looking for final numbers, that contract is signed and all communication has come into Finance Department. Gasbarro — Want to be clear on the $3M for GA Building. The revised budget schedule included $50,000 for bond issuance costs and does that mean the Airport's projects are covered in FY2012 without going to reserve fund? Larivee — Yes, if short-term borrowing is allowed by bond counsel for the GA Building. Mulcahy — Asked about the status of the Airport forensic audit. Gibson — Should schedule a steering group meeting for later this week, with the forensic auditor. IX. DATE OF NEXT MEETING Next meeting: Tuesday, May 29. Rest of year: Tuesday, June 26 Tuesday, July 31 Tuesday, Aug 28 Tuesday, Sept 25 Tuesday, Oct 30 Tuesday, Nov 27 Tuesday, Dec 18 Adjourned at 9:55 a.m. Submitted by: Terry L. Norton Page 3 of 3