HomeMy WebLinkAbout11.b. Committee Minutes-Finance 02-25-19 Page 1 of 6
Item ll.b.
,ek CENTRAL SAN
SANITARYCENTRAL CONTRA COSTA , .
March 7, 2019
TO: HONORABLE BOARD OF DIRECTORS
FROM: KATIE YOUNG, SECRETARYOF THE DISTRICT
SUBJECT: FEBRUARY 25, 2019 - FINANCE COMMITTEE - CHAIR CAUSEYAND
MEMBER NEJEDLY
Attached are minutes of the above Committee meeting.
ATTACHMENTS:
1. Finance Committee Minutes 02-25-19
2. Item 3.a. (Handout)
March 7, 2019 Regular Board Meeting Agenda Packet- Page 101 of 107
Page 2 of 6
,or76—
I CENTRAL SAN
CENTRAL • ■ • COSTA . IMHOFF PLACE, MARTINEZ, CA 9AS53-A37
SPECIAL MEETING OF THE BOARD OF DIRECTORS:
CENTRAL CONTRA COSTA DAVID R, WILLIAMS
President
SANITARY DISTRICT MICHAEL R.MCCILL
FINANCE COMMITTEE Presiden t Pro Tem
PAUL H CAUSEY
JAMES A.NEJEDLY
M I N U T E S TAD J PHECKI
PHONE: (925)228-9500
Tuesday, February 25, 2019 FAX 3�2-0192
www.cententralsan.org
2:00 p.m.
Executive Conference Room
5019 Imhoff Place
Martinez, California
Committee:
Chair Paul Causey
Member Jim Nejedly
Staff.
Katie Young, Secretary of the District
Ann Sasaki, Deputy General Manager
Phil Leiber, Director of Finance and Administration
Stephanie King, Purchasing and Materials ServicesManager
Shari Deutsch, Risk Management Administrator
Erica Brooks Peters, Temporary Senior Internal Auditor
Laci Kolc, Risk Management Specialist
Donna Anderson, Assistant to the Secretary of the District
1. Call Meeting to Order
Chair Causey called the meeting to order at 2:00 p.m.
2. Public Comments
None.
March 7, 2019 Regular Board Meeting Agenda Packet- Page 102 of 107
Page 3 of 6
Finance Committee Minutes
February 25, 2019
Page 2
3. Introductions
a.* Erica Brooks Peters, the new temporary Senior Internal Auditor will be
introduced to the Finance Committee by Director of Finance and
Administration Philip Leiber
Mr. Leiber noted that Ms. Brooks Peters was formally introduced to the full
Board at last week's Board meeting and at this meeting she would provide a
general framework for her work in the coming months.
Ms. Brooks Peters distributed an Internal Audit Proposed Work Plan (through
June 30, 2019), a copy of which is attached. She briefly reviewed her top five
priority projects and a list of reporting deliverables for the remainder of this
fiscal year and next.
In response to a question from Chair Causey, it was noted that staff
conducted a Request for Proposal (RFP) process for audit services in 2018.
Upon reviewing the RFP results, the Finance Committee recommended not
proceeding with an outside accounting firm for audit services due to the
billing rates. Instead, the Committee suggested contracting with an
individual. Mr. Leiber said Ms. Brooks Peters will be performing the internal
audits and her work can be supplemented with external resources, if needed.
Mr. Leiber said the main internal audit focus this year will be on revenues.
While roughly 90-95% of Central San's revenue comes from just a few
sources (sewer service charges, City of Concord, and ad valorem taxes), it
also has quite a few other sources of revenue (recycled water, rents, etc.).
Therefore, staff has deemed it prudent to look at all these areas.
COMMITTEE ACTION: Welcomed Ms. Brooks Peters.
4. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures dated March 7, 2019
Staff responded to various questions from the Committee Members
regarding the expenditures listing. Additional information was requested on
the following items:
1) Page 9, Check#222563 -- $134,215.86 to Stericycle Environmental
The Committee wanted to know why the vendor is five months behind
on its billings because it can be problematic for Central San when it
comes to closing out the books at year end.
March 7, 2019 Regular Board Meeting Agenda Packet- Page 103 of 107
Page 4 of 6
Finance Committee Minutes
February 25, 2019
Page 3
2) Page 23, Check#222694 -- $9,491.18 (Procurement card (P-card)
purchase)
It was explained that this was a P-card expenditure for a tool kit and
pipe fittings and that additional information will be provided at the next
meeting.
3) Page 56, Check#38889 -- $60,062.75 to Roto Rooter Sewer Service
It was noted that the underlying invoices were for potholing work
connected with the Walnut Creek Sewer Renovations, Phase 13
project. The Committee sought additional information as to what was
included in the $325 hourly rate indicated on the invoices.
COMMITTEE ACTION: Recommended Board approval.
b. Review January 2019 Financial Statements and Investment Reports
COMMITTEE ACTION: Recommended Board receipt.
C. Receive the 2018 annual report of the ICMA 401 a and 457 Deferred
Compensation Plans
COMMITTEE ACTION: Recommended Board receipt.
5. Other Items
a. Review and provide input on Highmark Capital Management Government
Accounting Standards Board (GASB 45) Other Post-Employment Benefits
(OPEB) Sub-Trust and Pension Sub-Trust Quarterly Reports (Fourth Quarter
Calendar Year 2018)
Mr. Leiber announced that Andrew Brown of Highmark was unable to attend
this meeting due to illness. He noted that the returns for the fourth quarter
2018 were down but the January 31, 2019 update shows positive movement
thus far in the first quarter. He will invite Mr. Brown to address the
Committee when the First Quarter 2019 report is available.
COMMITTEE ACTION: Reviewed the report.
b. Review Risk Management Loss Control Report as of February 19, 2019
Ms. Deutsch reviewed the Loss Control Report with the Committee.
COMMITTEE ACTION: Received the report.
March 7, 2019 Regular Board Meeting Agenda Packet- Page 104 of 107
Page 5 of 6
Finance Committee Minutes
February 25, 2019
Page 4
C. Receive list of future agenda items
COMMITTEE ACTION: Received the list.
6. Announcements
None.
7. Future Scheduled Meetings
a. Tuesday, March 26, 2019 at 2:00 p.m.
Tuesday, April 23, 2019 at 2:00 p.m.
Tuesday, May 21, 2019 at 2:00 p.m.
8. Suggestions for Future Agenda Items
None.
9. Adjournment— at 2:26 p.m.
* Attachment
March 7, 2019 Regular Board Meeting Agenda Packet- Page 105 of 107
Page 6 of 6
Item 3.a.
(Committee Handout)
�,ZZ D Central Contra Costa Sanitary District
Internal Audit Proposed Work Plan (Through 6/30/19)
Prepared by: Erica Brooks Peters, Temporary Sr. Internal Auditor, 2/20/19
Top 5 Priority Projects
1) Continue the implementation of the Internal Audit (IA) function (Maturity
Model, Policy, Procedures) (Approximately 5 hours per week)
2) Re-implement the quarterly reporting on IA status and remediation of
pending audit findings (Approximately 2-4 hours per week)
3) Complete the FY 18/19 and FY 19/20 audit plans (Approximately 4-8 hours
per week)
4) Complete the scope and execution of the revenue audit (Approximately 20-
25 hours/week)
5) Provide IA guidance on ERP implementation and ad-hoc projects as needed
(Approximately 3-5 hours per week)
Reporting Deliverables and Estimated Dates (Proposed) to Executive Mgmt.
1) Quarterly IA status report— Includes status on pending audits, findings and
other projects plus work completed to date.
a. Q3 —4/9/19
b. Q4 - 7/9/19
2) Revenue Audit Report— 6/12/19 (pending scope)
3) FY 18/19 Audit Plan — 3/29/19 (IA projects through 6/30/19)
4) IA Policy and Procedures—5/23/19
5) FY 19/20 Audit Plan — 6/28/19 (IA projects through 6/30/2020)
March 7, 2019 Regular Board Meeting Agenda Packet- Page 106 of 107