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HomeMy WebLinkAbout2015-7-8:�pNTUC/rEr``, R AN Staff: Minutes for July 8, 2015, adopted Oct. 7 Town of Nantucket Audit Committee www.nantucket- ma.gov MINUTES t Wednesday July 8, 2015 4 Fairgrounds Road, Training Room — 3:00 p.m. ,E- A r- f,- F. ?5 Libby Gibson, Town Manager; Brian Turbitt, Finance Director; Deb Weiner, Treasurer; Bob Dickinson, Assistant Town Accountant; Terry Norton Town Minutes Taker Department Heads: None Attending Members: Bob DeCosta, Rick Atherton, Matt Mulcahy Absent Members: None Public: None Auditor: Anthony Roselh, Roselh, Clark & Associates (RC&A) by remote call Documents used: Copy February 9 and April 22, 2015 minutes; FY2014 Management Letter. 1. CALL TO ORDER DISCUSSION/APPROVAL OF 1. February 9, 2015: Motion to Approve as amended. (made by: Atherton) carried 2 -0 UPDATE ON 1 Turbitt: Under Informational Comments, the new pension accounting standards, the Town received a report from the accounting firm hired by Barnstable County and we forwarded it to our auditors; they have reviewed it. It does meet the requirements the Town needs to have in this year's audit. Roselli — He talked to the auditors about how the County and Nantucket Islands Land Bank work. The information is there, just have to put it together the data. The County and Land Bank are lumped into one line even though they are separate entities; he wants to make sure everyone is comfortable with that and that the Land Bank owns no part of that liability. There are other auditors involved with the Land Bank. All other information is fine. DeCosta — Asked if the Land Bank shouldn't own that. Roselli — It is only coming through as County. He wants to ask the actuaries how they want to allocate that or if it is all County. Stated that he believes the Land Bank should own a piece of that liability. Weiner — As far as the payroll process where Barnstable collects this information, the Land Bank is included in that; so that when the County pays the Barnstable retirement, Land Bank is included. Gibson — Clarified that the Land Bank is an entity in the County government but is not part of the County government. DeCosta — Stated a need for a Letter of Agreement between the Land Bank and County stating that the Land Bank will be responsible for these fees, in perpetuity. If the Land Bank should dissolve, the County would have to absorb that. Roselli — He suggested someone checking the Land Bank legislation. He will give the actuary a call; they put the figures together. Stated that he knows what the total number is, so coming up with an allocation shouldn't be too difficult. That will have to be communicated to the Land Bank auditors. Turbitt — Under Findings and Recommendations, the unemployment filings are being submitted with the correct rates. Health Insurance Trust, they have created the additional revenue and fund balance codes, and at the year -end close, will allocate the fund balance among the additional fund balance codes to clear that out for the audit. The collector is in the process of finalizing what are un- collectable motor vehicle excise tax; should be done by the end of July. The assessor has the authority to make the determination of what is a write off. Property taxes take more time. Printed receivable reconciliation report; will be ensuring it worked the way it Page 1 of 3 Minutes for July 8, 2015, adopted Oct. 7 should. Cash reconciliation has been removed. The closing process is in the works; doing a hard close at the end of July for FY2015. After that there is 1 month for a period 13 reconciliation. Capital projects are under ongoing review for potential reappropriations. Had a meeting with the Department of Public Works (DPW) and First Bank to finalize setting up lock boxes so that Finance can take over all the billing and remove collections of all the bills. Finance will have provisions for people to pay by credit card or to mail the payment check and will provide DPW with a list of payees so they can clear their receivable list. Also he will work on setting up on- line billing. Kara Buzanoski has finished research on video surveillance; hopefully that will be coming soon. Atherton — Suggested charging 25 cents for processing checks. Weiner — Stated that she's not sure that's legal, but she will look into it. Turbitt — Have been doing period audits at the tipping fee calculations at the scale house; to date they have been to the penny every time. For over the weekend, they have a night bag which is being deposited. Atherton — Asked if a test of the scale has been performed. Roselli — The register balances to the penny. His firm ensured trucks are going over the scales, but they have no way to verified the accuracy of the scale; it has to be certified by the state once a year. Stated he's not sure whether DPW or Waste Options is responsible for certification of the accuracy of the scales. Turbitt — Stated that next time he goes out there, he will check to ensure the certification is prominently posted. Under Cash Collection, tamper -proof bags that are being used at the DPW over the weekend. Accounts Receivable will be part of the write -off policy being written. Commercial Land Fill fees, in November to review those. Turnovers at sewer and DPW are being done in a more timely manner. Operations review for payroll, there's been some progress; have a quote from the software company that does timesheet reporting software for police and Our Island Home (OIH) to role that out to Fire and DPW. In the process of running concurrent payrolls with an export from police to ensure accuracy. Weiner — Stated that the testing she is doing is going very well. Turbitt — In the process of reviewing all contracts in the MUNIS table for accuracy in accordance with the new agreement and Memoranda of Agreement. Human Resources is almost done with the review of master sheet for employee step increases. Have a form changing benefits and he has worked with Amanda Johnson on hiring process form. Training, Finance has set up two MUNIS training dates known as an assessment test. That's scheduled for September Mulcahy — Asked if the airport will be part of this MUNIS training. Turbitt — Said he will probably bring in those airport personnel who do that work. File security, all payroll cabinets are locked at night and the door into the area as well as the administrators door; there is a sign -out sheet for anyone who picks up payroll for a department. Have a reconcile process for receiving departments before pay is transferred. Outsourcing is on a back burner during the timesheet work on Fire and DPW. Turbitt — Auditors were here in May for interim testing work and review status. Had them go to as many departments as possible to test the cash drawer procedures. Roselli — Stated they did a cash - handling site visit to departments with a cash register. Collectors office balance, Wannacomet Water Company balanced, Land Fill balanced. Town Clerks office has a lot of internal control issues; there was no reconciliation procedure; they don't use the cash register; they tried to maintain a tally sheet but weren't diligent. There was always more money in the drawer than on the tally sheet. They found that the dog license area has no enforcement. He provided information to the town clerk that every time a dog gets a rabies shot, that notification should come to the town clerk's office. In 2014, there were 154 dogs paid for and in 2015 387 dogs were licensed. Based on statistic, there are probably close to 3,000 dogs on the island. Mulcahy — Asked if the Town faces a liability issue for unlicensed dogs. Gibson — Definitely. Turbitt — The Town clerk has the register and is ready to use it. Stated that Town clerk wants to change the fee structure. Gibson — The BOS has to approve that. Turbitt - Stated that process hasn't been started. He told the Town Clerk to program the register with current fees and use it. Stated that the Town clerk told him that the office doesn't have enough staff. Page 2 of 3 Minutes for July 8, 2015, adopted Oct. 7 Roselli — Town Clerk gets a rabies reports from the veterinarians but all the Town Clerk does is scan them; other towns will send out a reminder when the license is due. Discussion about ways for Town Clerk to know where there are dogs that should be licensed and notify dog owners that the dogs should be licensed. Roselli — Noted that some of this will be highlighted in the 2015 Management Letter. The biggest problem is the Town Clerk's office can't provide the backup for what is in the cash drawer. DeCosta — Asked if there were any other departments with problems. Roselli — Stated that one of his staffers looked into school lunch; he hasn't reviewed those findings. Turbitt — The issue with school lunch is they continue to have overages in the 5 -15 dollar range every day. Explained how that might be occurring. Finance has been working with them to rectify procedures. Further discussion about licensing of dogs and how to know when dogs are vaccinated and other shortcomings in the Town Clerk's office handling of cash. Rosel i — There is a way to compare birth and marriage certificates and taxi licenses to the money received. Noted that those are not being handed out in numerical sequence. The auditors will be back the first week in September. Reviewed new policies at the Massachusetts Department of Revenue (DOR) on certifying free cash; he told the DOR Director that the towns won't like putting off certification to January for spring town meetings. V. DATE OF Wednesday, September 23, 2015 3:00 p.m. Motion to Adjourn: 3:45 p.m. Submitted by: Terry L. Norton Page 3 of 3