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Home My WebLink About2014-10-7Minutes for October 7, 2014, adopted Dec. 16 Town of Nantucket Audit Committee www.nantucket- tna.gov R E C El V E D MINUTES . (, 77 1n1 1 n 17 Tuesday October 7, 2014 4 Fairgrounds Road, Training Room — 9:00 a.m. �� ' d C K E f 1-01v N CLERK Staff: Libby Gibson, Town Manager; Brian Turbitt, Finance Director; Martin Anguelov, Assistant Finance Director; Deb Weiner, Treasurer; Bob Dickinson, Assistant Town Accountant; Terry Norton Town Minutes Taker Department Heads: Tom Rafter, Airport Manager Attending Members: Rick Atherton, Bruce Miller, Matt Mulcahy Absent Members: None Public: None Auditor: Anthony Roselli, Roselh, Clark & Associates (RC&A) by remote call Documents used: Copy June 25, 2013 minutes; I. CALL TO ORDER APPROVAL OF 1. July 29, 2014 — Motion to Approve. (made by: Mulcahy) (seconded by: Miller) Carried unanimously III. UPDATE ON I4 AUDIT WITH AUDITOR Roselh — In June did interim testing before the books were closed to ensure the system is operating as it should. Also went to DPW and looked at the payroll and issued reports, which was vetted at a prior meeting. By the end this week will have field work done to complete the 2014 audit back in the office. Will talk about the 2014 audit once the information is vetted, possibly next meeting, about areas needing improvement. Turbitt — So far everything is progressing. At the next meeting can provide an overview of the various areas. FY2013 MANAGEMENT LETTER PROGRESS D. Turbitt — Waiting to see if some implementations are working as developed. Reviewed the OPEB policy and talked to Public Agency Retirement Systems (PARS) about investments and options. That is an investment /advisory firm and they will come out in November to show what they can do for the Town; money is still at Morgan Stanley account. Have given to Bartholomew and PAR copies of the policy. OPEB Trusts don't have to go out for bid. Thinks the two other firms can do a better job than Morgan Stanley. Bartholomew has a lot of work in Massachusetts. PARS is moving into the region. Much will come down to the fees. Roselli — Bartholomew has a strong understanding of Massachusetts investments and have a great OPEB program. When an actuarial study is done of your OPEB, it includes a target rate of return; Bartholomew the actuarial study and actuaries to match the target percent of return. Atherton — Asked, under that system, who makes the final decision. Roselli — The Town works with the actuary first who tells the firm what needs to be done to meet the end goal. Bartholomew works that well. Turbitt — Will have a better understanding after talking to PARS talks and with whom to go. Are requesting quotes to have the Health Insurance Mandate done by June 30, 2015. The Comprehensive Annual Financial Report (CAFR) also should be done by June 30, 2015. Relative to the Airport, everything Page 1 of 3 Minutes for October 7, 2014, adopted Dec. 16 is listed as in progress until the end of the 2014 audit until we receive word that everything has been corrected or cleared up. Rafter — Explained the reasons for multiple accounts; that is being cleaned up: consolidating or closing. Turbitt — The Capitol Asset Maintenance might be able to be labeled completed. Roselli — That is in great shape. Turbitt — Municipal payroll the one outstanding issue is the IRS garnishment; the IRS has received the 941 C and all the money will come back plus interest. Sewer and water e- billing, he and the collector are looking for opportunities to expand the e- billing. This would be optional. Related to the FY2013 Management Letter the limited internal control process, finance is getting ready to roll out cycle audits of cash and printing out monthly revenue reports to help tie over the turnovers and the number of permits issued in a month. The Health Insurance Trust Bank Account is in a good place and the audit will confirm that. Bank Account Consolidation is an ongoing ever changing process. Purchase order system, internally working on changes with IT to MUNIS to enhance purchasing procurement system. The Health Insurance Trust Bank Account original issue was the transfer of money within the account; have that corrected now. This has its own account separate from all the monies but it isn't a checking account. Discussion about changing the account to a checking account. There is a working capital deposit that covers 21/2 months of claims sitting at Blue Cross /Blue Shield. Weiner — There are a lot of claims a month going into that account which are withholdings from the paychecks going into the account. V. PAYROLL AND DPW OPERATIONAL REVIEW PROGRESS Turbitt — In regards to the Chapter 90 reimbursement, he is working on that with Sylvio Genao and the DOT representative, who would prefer it to be submitted when a project is completed. Putting together tracking to know when those requests are due. Landfill developed strategies on how to address these; reviewed those strategies: a written policy to work with structure relative to collection of anything financial, video surveillance of entire area will be pursued with recommendation to Town Manager by December 31, 2014, periodic audit of Waste Options Management, WON tipping fee calculations, cash collections to be picked up at end of the day rather than the next morning, accounts receivable write -off policy, commercial landfill fees hearing scheduled for 22 Oct. Roselli — Over the weekend, there is a lot of traffic and cash collections can be $2,000 to $3,000; this was being held at the WON facility and not turned over to Monday. Turbitt — Will put a night deposit box on the DPW building to help enhance security of funds over the weekend. Discussion about the write -off policy and creating payment plans with delinquent account holders. Turbitt — Relative to sewer formal written policies: septic system conversions policy, a review is being done on a monthly basis between water and sewer to ensure that sewer applicant have talked to the water company, sewer turnovers are still in progress but timely. Mulcahy — Asked how the sewer policies are implemented Gibson — Most are administrative. Turbitt — Will be getting these out in a letter to be vetted by the Town Manager first. The 3 -year back bill is about $260,000. Miller — Asked about Chapter 90, is the $883,000 the total reimbursements. Turbitt — We get a certain allotment for road miles that can carry forward. Must get MDOT approval prior to a project. Atherton — Asked about the diverters /deduct meters. Rosellh — The lawn sprinklers are not part of the sewer so that is deducted from the bill. Turbitt — Payroll operations review: payroll warrant and timesheet errors. A work group is established to find software to help eliminate errors of transition and possibility of outsourcing payroll. Working on an EXCEL -based time sheet to do calculations that will match back to payroll. The treasurer has reviewed the contracts to the tables in MUNIS to ensure employees are on the correct table. Fair Labor Standards Act is complete and correct. Personnel action forms, have a new standard form. Employee step increases Page 2 of 3 Minutes for October 7, 2014, adopted Dec. 16 m process to finalize list and timely tracking of personnel action forms through departments. Human Resources are in the process of developing an employee benefits form, similar to the personnel action form. Reviewing the hiring process to ensure department heads are following the same process equally applied across the enterprise. For training, exploring finding a trainer for all functions of MUNIS. File security, working on that; payroll is locked away. Weiner — All files are kept in locked cabinets. Turbitt — Implementing a sign -up sheet for when payroll is picked up. Reconciliations goes back to EXCEL sheet; looking at the reports to develop a finalized process. Outsourcing would be part of the workgroup; one challenge that would be unique in that checks can't be hand delivered if planes or ferries aren't running. Not everyone can go to direct deposit especially seasonal employees. Miller — Asked in regards to landfill which is categorized as an enterprise fund. Turbitt — Put for full accrual for audit reasons, but on finance books are not full accrual. Overall everything is moving forward the goal is that by the next mgt letter everything will be wiped out. November 25, 2014; 9:00 a.m. Motion to Adjourn: 9:53 a.m. Submitted by: Terry L. Norton Page 3 of 3