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HomeMy WebLinkAbout2014-12-16Minutes for December 16, 2014, adopted Feb. 9, 2015 Town of Nantucket Audit Committee www.nantucket- ma.gov ` 4 k MINUTES Tuesday December 16, 2014 ` ' J 4 Fairgrounds Road, Training Room — 9:30 a.m. L Staff: Libby Gibson, Town Manager; Gregg Tivnan, Assistant 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: Kara Buzanoski, Director DPW Attending Members: Rick Atherton, Bruce Miller, Matt Mulcahy Absent Members: None Auditor: Anthony Roselh and Chad Clark, Roselli, Clark & Associates (RC&A) by Skype Documents used: Copy October 7, 2014 minutes; FY2013 Management Letter Progress spreadsheet; 2014 DPW Operations Review spreadsheet October 7, 2014, adopted as amended by unanimous consent Roselli — Most attention was focused on preparing a Comprehensive Annual Financial Report (CAFR); that has been accomplished. They are going through the final stages and hope to issue as final by December 19. Right now not at a point to discuss findings. The single audit is not yet done, will be scheduled within the next couple of weeks. Hopefully the CAFR will be final and go on the website Friday and then it will be sent to the Government Finance Officers Association (GFOA). The Finance Department will then distribute it to the interested parties. Atherton — Asked to whom the CAFR is addressed. Clark — The report is addressed to Board of Selectmen (BOS). Gibson — Asked if the BOS would have an opportunity to make changes if they so wish. Roselli — It does not have to go to the GFOA until December 31. He could send a draft for the BOS to review over the next 12 days and still leave time to submit it. Atherton — This is an important new document issued by the Town. He would like to see a copy before it goes out. Turbitt — State he will forward his copy to the BOS and the Audit Committee members this week. Roselli — Suggested Mr. Atherton focus his attention on the letter of transmittal. Asked that any review be accomplished by December 25. Once this is nailed down, their attention will turn to the 2014 management letter. Turbitt — Part A, have met with firms interested in doing bus with the Town. Will put out a quality -based request for proposal (RFP). Not only looking at moving OPEB but also at stabilization funds and scholarship trust funds to earn better returns. Atherton — Asked how it interfaces with State. Turbitt — That is still an option; however we would have to petition them. Mulcahy — Including stabilization and scholarship, asked if there is a better way to get better interest rates. Page 1 of 3 Minutes for December 16, 2014, adopted Feb. 9, 2015 Turbitt — By pooling all that, we get a better fee structure. We can look at the state option and have a more in depth discussion about that as the process proceed. It would be valuable to have in reviewing the RFPs. Health Insurance Mandate, have received a proposal from the health insurance consultant; it will be completed by June 30, 2015. Findings and Recommendations relative to Nantucket Memorial Airport, everything has been addressed with the only outstanding item being the General Manager working on how to consolidate accounts. Roselli — The 2014 airport audit went well. He is satisfied that the Management Letter issues from FY2013 have been corrected and addressed for the most part. Clark — Some things are still being implemented. Jamie Miller, the Airport business and finance manager, is being trained on the system to use it more efficiently; there will be further improvements in FY2016. Turbitt — Under Municipal Finance Department Payroll, most of these issuesare cleaned up. The only outstanding item is the IRS garnishment. Stated that a check for most of the money has been received from the IRS and he and Mr. Roselh are drafting a letter asking to waive the remaining penalty. Stated he is hopeful that will happen. Sewer and water was also completed; but he left e- billing open as they are always looking at opportunities to do that. Under Municipal Finance Department, the Health Insurance Trust. Asked Mr. Roselli to address that. Roselli — Health Insurance Trust the way the liabilities were done has all been corrected and there has been a full accrual. Everything looks fine on that. Turbitt — Working forward with the Internal Control Process to do cycle audits of cash; this flows into Aged Reconciling Items. The Finance Department is doing a full close on November and has until Monday morning at which point he will review the entire process. He had thought it was cleaned up from FY2013 Management Letter but there are still some small reconciliation items. The reconciliation is between what's posted in MUNIS and what's in the treasurer's cash book. His goal is to have no discrepancy. Atherton — Going back to Health Insurance Trust, asked how much utilization information the board has access to in order to better understand the business. Gibson — A couple of times a year, she and Mr. Turbitt meet with the consultant and the Blue Cross representative. There are a lot of claims about prescription drug use that have names attached. A report would be needed to review the top numbers. Turbitt — Data needs to be presented without identifying what it was for and thus disclosing who it was for. Gibson — Said she can provide the renewal report which has some of that information. Turbitt — Have made a lot of progress clearing these items. Expect the 2014 audit will show a lot of progress in some of the still outstanding areas. PAYROLL V. OPERATIONAL REVIEWS PROGRESS Turbitt — The first item is Chapter 90 reimbursement; they now have a process in place to track the projects to ensure items are being charged correctly. Finance Department now has to sign off on authorizations and when the project is done, Finance signs off on the reimbursement request. Mass DOT suggested waiting until projects are fully complete then going for the full reimbursement. He and Ms Buzanoski are still working on written policies and procedures and hope to have that done soon. Video surveillance, Ms Buzanoski has been researching what type of camera system that would work best at the weigh station. Finance did periodic audits of Waste Options tipping fees at the scale house; and it matched to the penny. They will continue those. Buzanoski - Cash is being picked up daily and a lock box has been installed on the door. The cash runs about $500. Turbitt — Reviewing Accounts Receivable to ensure delinquent fees are not getting too far out. Page 2of3 Minutes for December 16, 2014, adopted Feb. 9, 2015 Buzanoski — They are not turning them over to a collection agency; instead decided to try to work with the client. Once they are notified they can only pay cash. Turbitt — There is a discussion on the septic system conversion happening at the BOS meeting with the proposed policy change for residents who have wells but are on Town sewer. Gibson — If a house has a private well and Town sewer, they would be required to have a meter installed for billing purposes. Buzanoski — There have been complaints that a 4 -bed family isn't the same as a home for an elderly couple, so it tracks to water usage. Stated the opinion people will find out that the flat -rate is cheaper. Turbitt — The process for conversion is included in discussion at BOS meeting on Wednesday. Operational review of payroll; the Payroll Work Group is reviewing options for DPW. Thinking about implementing a payroll system similar to that used for Police, Fire, and Our Island Home. The problem with outsourcing payroll and being an island is if an employee receives a check, as opposed to direct deposit, and the planes are not flying, he /she won't get their checks. Can't force an employee to use direct deposit. Have started to do payroll reconciliation. Atherton — Asked if as part of the quarterly review, Finance would it be hard to run a balance sheet for perhaps 20 major categories. Turbitt — It would probably be more meaning full to look at the full balance sheet at the end of each quarter. They can run a balance sheet at the end of each quarter to compare to the prior year. Roselli — The CAFR is due December 31, 2014 and the single and school audits are due March 31, 2015 January 27, 2015 9:00 Review of 2014 Draft Management Letter Motion to Adjourn: 10:08 a.m. Submitted by: Terry L. Norton Page 3 of 3