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HomeMy WebLinkAbout09.d.1)a) Minutes-Finance Committee 11-28-16Central Contra Costa Sanitary District 1111 1 1.1 11111,11 W , 1,1 1,111111 1,1111, Protecting public health an Committee: Chair Tad Pilecki Member Paul Causey e environment 50191rrihofPlace , Martinez, C4 9455D-4397 REGULAR MEETING OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT FINANCE COMMITTEE MINUTES Monday, November 28, 2016 3:00 p.m. Executive Conference Room 5019 Imhoff Place Martinez, California Invited Guest: Vikki Rodriguez, CPA of Maze & Associates (left after Item 4.) 9.d.1)a) Staff: General Manager Roger S. Bailey Deputy General Manager Ann Sasaki Director of Finance and Administration Phil Leiber (arrived during Item 4.) Director of Engineering and Technical Services Jean -Marc Petit Finance Manager Thea Vassallo Finance Administrator Todd Smithey (left during 5.a.) Finance Administrator Chris Thomas Senior Administrative Technician Cindy Granzella 1. Call Meeting to Order Chair Pilecki called the meeting to order at 3:01 p.m. 2. Public Comments None. 3. Old Business BOARD OF DIRECTORS: TAD J. PILECKI President PAUL H. CAUSEY President Pro Tem MICHAEL R. MCGILL JAMES A. NEJEDLY DAVID R. WILLIAMS PHONE: (925) 228-9500 FAX: (925) 372-0192 www.centralsan.org a. Review staff's response to questions regarding expenditures at the October meeting: Check / Date Amount #211676 $97,500.00 9/29/16 #211942 $300.00 10/06/16 #37420 $2,876.55 9/22/16 Vendor EBMUD / Lab and Other Alameda LAFCO Taborda Solutions, Inc. Finance Committee Minutes November 28, 2016 Page 2 Information Requested Chair Pilecki asked for a short memo to identify the costs/summary of the studies for BACWA Chair Pilecki asked for more information Member Causey asked why this was billed to a capital project, and another payment to the same vendor was billed through Operations and Maintenance (O&M) Chair Pilecki asked for clarification on the acronym NMS in the staff response. Ms. Vassallo explained that it stood for Nutrient Management Study. b. Review staff's response to question regarding September 2016 Financial Statements and Investment Reports COMMITTEE ACTION: Reviewed staff's responses. 4. Review (1) draft basic audited Financial Statements for fiscal years ended June 30, 2016 and June 30, 2015 — audit performed by Maze & Associates, and (2) Memorandum on Internal Control and Required Communication — Invited guest: Vikki Rodriguez, CPA of Maze & Associates Ms. Rodriguez stated that Maze & Associates is issuing an unmodified opinion for the audited Financial Statements. She also stated that there were no material weaknesses or significant deficiencies noted as part of the auditor's internal control review in connection with the audit process. The Committee reviewed the documents, and staff responded to questions. Member Causey asked why certain risks associated with State of California Local Agency Investment Fund (LAIF) investments are not discussed more substantially in the notes to the financial statements. Ms. Rodriguez stated that the LAIF is not considered a high risk investment and that the disclosure standards were met. Chris Thomas noted that note 2 to the financial statements does provide certain information related to the risks of the investments. Mr. Bailey suggested that it be a future investment policy discussion with the full Board. COMMITTEE ACTION: Reviewed and recommended Board approval. Finance Committee Minutes November 28, 2016 Page 3 5. Expenditures a. Review Expenditures Member Causey referred to page 33 of the expenditures and stated that he would recuse himself from recommending Board approval of a payment to RMC Water and Environment due to a potential conflict of interest. b. Review P -card statement Chair Pilecki asked for additional information for a charge on page 8 of the statement, in the amount of $215.28 to Disney Resorts. COMMITTEE ACTION: Reviewed and recommended Board approval. 6. Review October 2016 Financial Statements and Investment Reports Ms. Vassallo stated that O&M revenue is currently running at a $0.9 million favorable variance, and expenses are running at a $1.9 million favorable variance. She stated that sewer construction is close to budget, and that Pump Zone Fees and Main Line Inspection Fees are driving the favorable variance. Year-to-date, the capital program has spent approximately 27% of the annual budget. Member Causey referred to page 14 of the Financial Statement, and stated that not all adjustments that were discussed at the recent Engineering & Operations Committee were reflected in the report. Chair Pilecki stated that there were also some adjustments in the report that were never discussed with the Engineering & Operations Committee. Mr. Petit will review the report, and provide an update. COMMITTEE ACTION: Reviewed and recommended Board approval. 7. Announcements a. Future scheduled meetings: Tuesday, December 27, 2016 at 3:00 p.m. b. Receive list of Scheduled/Parking Lot items COMMITTEE ACTION: Received the announcements. Finance Committee Minutes November 28, 2016 Page 4 8. Suggestions for future agenda items Member Causey requested staff input regarding suggestions to improve the operations or procedures with the Finance Committee for the upcoming year. 9. Adjournment — at 4:55 p.m.