Financial Management Focus Area Committee Minutes
June Quarterly Board
Northfield Inn
Rollie Spaniol, Chairman
June 2, 2008
Present: Absent:
Chairman, Rollie Spaniol Mark Besse
Lee Bunting Dave McCormick
Terry Davis Rich Nichols
Phil Fossler Emery Oesch
Jerry Snodgrass Erin Pate
Stacy Stremsterfer Kenny Vosholler
Steve Mozley
Judy Cordier
Annyce Winters
Debbie Holsapple
Cindy Moon
Donna Roads
Chairman Rollie Spaniol called the meeting to order at 3:10 p.m.
Approval of Agenda
Lee Bunting asked to add the FY 09 Budget to the agenda under new business. Terry Davis asked to add Staff to the agenda under new business. Jerry Snodgrass made a motion to approve the agenda with the additions. Lee Bunting seconded the motion, motion passed by voice vote.
Approval of Minutes
The March Financial Management Focus Area Committee minutes were read. Phil Fossler stated that he was marked as absent when he was in fact at the March meeting. Lee Bunting made motion to approve the minutes of the March Financial Management Focus Area Committee with the change that Phil Fossler was present. Jerry Snodgrass seconded the motion, motion passed by voice vote.
Review Financials
Discussion was held. Phil Fossler made a motion to approve the Financials as printed. Lee Bunting seconded the motion, motion passed by voice vote.
SWCD of Illinois Insurance Account Update
Debbie Holsapple handed out her report which is included. There were no questions or discussions. Lee Bunting made a motion to approve the report. Jerry Snodgrass seconded the report, motion passed by voice vote.
Old Business - none reported
New Business
FY 07 Audit Report
The financials of the AISWCD were audited by the accounting firm of Cowan, Epperson, & Associates, P.C. Mr. Darren Epperson was present to report their findings and take questions. Mr. Epperson issued an unqualified opinion of the financial statements of the AISWCD to be in accordance with the U.S. Generally Accepted Accounting Standards. Mr. Epperson did note that they had found certain deficiencies in internal control that they considered being significant deficiencies and other deficiencies that they considered to be material weaknesses. The full audit report is included in the minutes.
There were corrections or clarifications that were addressed during the meeting. Those are as follows:
One such correction or need for clarification was a $43,000.00 surplus due to employee turnovers in the SWCD of Illinois Insurance Account. Mr. Epperson stated that the way that they understood the grant agreement between the Illinois Department of Agriculture and the AISWCD and pursuant to the Illinois Grant Recovery Funds Act, the Grantee agrees to remit to the Grantor any unexpended grant funds no later than 105 days after the end of the Grant Agreement. Based on the grant agreement, Mr. Epperson felt that it was entirely possible that the IDA was entitled to this money. He recommended that the AISWCD obtain approval from IDA to spend this money in subsequent periods. Debbie Holsapple, administrator for the SWCD of Illinois Insurance stated that the funds were spent in subsequent periods but since the AISWCD books were being audited on a physical year and the books for the SWCD of Illinois Insurance is on the same fiscal year as the State of Illinois (July 1-June30) she felt that they would not have seen that. Debbie Holsapple then asked Mr. Epperson if the SWCD of Illinois Insurance were to obtain the Grant Agreement with IDA instead of the AISWCD and have the AISWCD serve as the Fiduciary of the account then would it be possible for the SWCD of Illinois Insurance account to be audited separate from the AISWCD books. Mr. Epperson stated that it would be possible and that he would recommend that if it were in agreement with IDA.
An account in the AISWCD Foundation account was added to place unused interest into a temporarily restricted account and a permanently restricted account would then only hold the original $20,000.00 McKibben funds as permanently restricted since only the interest can be used on these funds.
A prior period adjustment was needed to record a disbursement of $133,239.00 in the correct billing period. The computerized records reported the disbursement on December 15, 2006. However, the disbursement was not issued until the following year on January 4, 2007. Mr. Epperson suggested that there needed to be controls established with the SWCD of Illinois Insurance and AISWCD to ensure cash disbursements and cash receipts are recorded in the computer the date of issuance. Debbie Holsapple stated that she had sent the bill to the AISWCD on the date entered and she had no control over when they paid it.
The other issue that Mr. Epperson brought up was a $40,000.00 grant agreement with the State of Illinois Department of Agriculture that states that you must follow the financial management procedural guide provided by the Department or must have an audit performed under Generally Accepted Governmental Auditing Standards. It is our understanding that neither method has been followed. Mr. Epperson stated that they recommend that one of these methods be followed or the grant agreement be modified to accept audits performed under the modified cash basis of accounting. Mr. Epperson stated that Rich Nichols had said that he would ask IDA to modify the agreement in the future.
Mr. Epperson stated that if anyone had any further questions they could email them to him at depperson@ceassoc.com.
Mike Hoffman Contract
Mike Hoffman’s current contract is for $24,000.00 and it is time to renew it. Rollie Spaniol stated that he would accept a recommendation to renew Mike Hoffman’s contract at the current level. Lee Bunting made the recommendation to renew Mike Hoffman’s contract for $24,000.00. Jerry Snodgrass seconded the motion, motion passed by voice vote.
Illinois Elected County Officials Association Membership
The cost of membership to the Illinois Elected County Officials Association is $400.00. Jerry Snodgrass made a motion to approve the membership dues to the Illinois Elected County Officials Association. Lee Bunting seconded the motion, Phil Fossler apposed, motion carried by show of hands.
AISWCD
Terry Davis stated that according to the bylaws there should be a ½ percent dues increase. The Executive Board decided that they would not increase the dues this year but will revisit it next year. Lee Bunting stated that he agreed with the Executive Board and recommended that the dues increase be revisited next year. Jerry Snodgrass seconded the motion, motion passed by voice vote.
NACD Legislative Trip to Washington
Current amount budgeted for the NACD Legislative Trip to Washington is $8,800.00 The Legislative Committee wish to send Terry Davis, Jim Todd, and Rich Nichols at an estimated cost of $6,200.00. Jerry Snodgrass will already be in Washington for the NACD Regional Meetings and has asked that they cover the cost of 2 additional nights at a cost of $500.00. Cindy Moon will be there as the President of the NCDEA and Rollie Spaniol recommended that they give $500.00 to Cindy to help cover her costs. Estimated the AISWCD could offer 2 $800.00 scholarships for 2 directors to attend. Lee Bunting made a motion to approve the spending of the budgeted $8,800.00 as recommended. Jerry Snodgrass seconded the motion, Phil Fossler apposed, motion passed by show of hands.
NACD Dues
Lee Bunting made a motion to pay the NACD Dues in the amount of $1,775.00. Jerry Snodgrass seconded the motion, motion passed by voice vote.
FY 09 Budget
Rollie Spaniol stated that he did not feel that they were ready to discuss the FY 09 Budget at this time. Tabled.
Staff
Terry Davis stated that since there will be no grant from IDA this year for the position which Stacy Stremsterfer is currently paid through it is the recommendation of the Executive Committee to take the funds from the funds budgeted for the position which Sarah Dillman was being paid as well as additional funds from sources elsewhere in the budget in order to retain Stacy Stremsterfer. Jerry Snodgrass made a motion to approve the recommendation of the Executive Committee. Phil Fossler seconded the motion, motion passed by voice vote.
Adjournment
Rollie Spaniol adjourned the meeting at 5:20 p.m.
Minutes provided by Annyce Winters