HomeMy WebLinkAboutFinance MINUTES 09-27-22 Page 2 of 5
I CENTRAL SAN
CENTRAL •NTRA COSTA SANITARY DISTRICT 5019 •
REGULAR MEETING OF THE BOARD OF DIRECTORS:
DAVID R. WILLIAMS
CENTRAL CONTRA COSTA President
SANITARY DISTRICT BARBARA D.HOCKETT
President Pro Tens
FINANCE COMMITTEE MARIAHNLAURITZEN
MICHAEL R.MCGILL
TAD J PILECKI
MINUTES
PHONE: (925)228-9500
Tuesday, September 27, 2022 FAX: (925)372-0192
2:00 p.m. www.centralsan.org
(All attendees participated via videoconference)
Committee:
Chair Mike McGill
Member David Williams
Staff.-
Roger S. Bailey, General Manager
Katie Young, Secretary of the District
Philip Leiber, Director of Finance and Administration
Steve McDonald, Director of Operations
Benjamin Johnson, Internal Auditor
Danea Gemmell, Planning and Development Services Division Manager (joined during Item 4.a.)
Kevin Mizuno, Finance Manager
Oliva Ruiz, Accounting Supervisor
Christopher Thomas, Accounting Supervisor
Shari Deutsch, Risk Management Administrator
Amelia Berumen, Assistant to the Secretary of the District
1. Notice
This meeting was conducted virtually in accordance with the provisions stipulated in
Assembly Bill 361 and adopted by the Central San Board of Directors on
September 15, 2022. The agenda included instructions for options in which the public
could participate.
2. Call Meeting to Order
Chair McGill called the meeting to order at 2.00 p.m.
3. Public Comments
None.
October 6, 2022 Regular Board Meeting Agenda Packet- Page 312 of 317
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Finance Committee Minutes
September 27, 2022
Page 2
4. Items for Committee Recommendation to the Board
a. Review and recommend approval of expenditures incurred August 12, 2022
through September 15, 2022
Chair McGill commented on his appreciation for the way the procurement
card reports have evolved and are useful for his review. He inquired to the
status of the Internal Auditor's review of this function. Mr. Johnson
responded that he intends to conduct an audit of the process in detail in
2023 during the first quarter. Chair McGill added the descriptions provided
for the card activity can be hard to decipher and opined it would be good to
have the internal auditor conduct a review of the process for added
assurance.
Staff responded to inquiries of various expenditures to the satisfaction of the
Committee. Matters that require further staff review are noted below.
Check 306933, City of Martinez Water System, $1,755.60 (p. 38-39 of 171)
Although the total payment amount was not of concern, Chair McGill asked
why there were several small invoice charges for water that occurred over a
similar period of time. Staff stated they would look into the matter with the
approving division and provide an update at the next meeting.
Check 306956, Keller Canyon Landfill, $25,137.33 (p. 42 of 171)
Staff will provide an update as to what the spoil removal and service charges
were for that occurred in early June.
COMMITTEE ACTION: Recommended Board approval.
b. Receive Quarterly Financial Review for quarter ending June 30, 2022
Mr. Mizuno provided an overview of the unaudited results detailed in the
report provided in the agenda materials. He stated the annual audit is
progressing on time, including new auditing pronouncements that were
added of how Central San accounts for leases on the balance sheet. Staff
engaged a consultant early in the spring and the report will be completed on
time. He announced the Annual Comprehensive Financial Report (ACFR)
will be presented to the Board later this calendar year.
The Committee had limited questions.
COMMITTEE ACTION: Recommended Board receipt.
October 6, 2022 Regular Board Meeting Agenda Packet- Page 313 of 317
Page 4 of 5
Finance Committee Minutes
September 27, 2022
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C. Receive Financial Overview through the month of August 2022
Mr. Mizuno reviewed the report provided in the agenda materials which
included a snapshot of the first two months of the fiscal year. He noted the
August capital spending was significantly lower than expected.
Staff is currently reviewing the difference in coordination with the Capital
Projects Division. Operations and Maintenance fund spending was
$2.7 million under the year-to-date forecast.
COMMITTEE ACTION: Recommended Board receipt.
d. Receive Semi-Annual update on Strategic Risk Inventory/ Enterprise Risk
Management (ERM) Program
Ms. Deutsch provided a brief overview of the ERM Program and focused
attention to the Rank and Scores listing (p. 164 of 171) as of the second half
of the 2022 calendar year. The risks in the "top ten"have generally been
stable, though some changes take place on occasion.
For this report, she highlighted that the physical security breach risk had
moved up into the top ten attributed to the increase of homeless
encampment cleanups required and trespassing; there has been more
people in the area than in the past.
Chair McGill inquired whether some scores should come down over time.
Ms. Deutsch responded scores may get smaller as the risk is mitigated or
other elements of the risk score were reduced.
Member Williams noted he was surprised by the economy/recession
category score, especially with all the news reports of a pending recession.
Ms. Deutsch acknowledged the observance and advised that discussion of a
recession may not have been as prevalent when the ERM team met to
discuss scores at this particular time. This difference illustrates how the
strategic risk landscape evolves over time but that the recession risk was
also noted earlier in the year.
COMMITTEE ACTION: Recommended Board receipt.
5. Other Items
a. Review Risk Management Loss Control Report as of September 8, 2022
Ms. Deutsch highlighted that one new claim had been received since the last
report, and was subsequently denied.
COMMITTEE ACTION: Received the report.
October 6, 2022 Regular Board Meeting Agenda Packet- Page 314 of 317
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Finance Committee Minutes
September 27, 2022
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6. Announcements
None.
7. Suggestions for Future Agenda Items
a. Receive list of upcoming agenda items and provide suggestions for any
other future agenda items
COMMITTEE ACTION: Received the list.
8. Future Scheduled Meetings
Tuesday, October 25, 2022 at 2:00 p.m.
Monday, November 21, 2022 at 2:00 p.m.
Tuesday, December 20, 2022 at 2:00 p.m.
Chair McGill announced he had a schedule conflict with the upcoming November
and December meeting dates.
9. Adjournment— at 3:10 p.m.
October 6, 2022 Regular Board Meeting Agenda Packet- Page 315 of 317