HomeMy WebLinkAbout2009-08-11 - Finance-Accounting Committee Meeting Minutes
MINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
August 11, 2009
A meeting of the Finance-Accounting Committee was called to order by Director
Beverage at 4:00 p.m. The meeting was held at the District's Administrative Office at
1717 E Miraloma Ave, Placentia CA 92870.
COMMITTEE STAFF
Director Michael J. Beverage, Chair Ken Vecchiarelli, General Manager
Director John W. Summerfield Diane Cyganik, Finance Director
Sandi Van Etten, Senior Accountant
1. PUBLIC COMMENTS
None.
2. ACTION CALENDAR
2.1. Monthly Financial Statements for June 2009
The financial statements were reviewed and discussed. Ms. Van Etten
explained the year end revenue and expense reclassifications and their
impact on the financial statements. She also went into further detail
explaining how the accrued water revenues were historically recorded in
prior years at June 30th of every fiscal year by netting the prior year
unbilled water receivable against the current year unbilled water
receivable and recording the difference. Ms. Van Etten reported that this
practice will be changed starting with FY 2009/10 in that the water unbilled
receivables accrued on June 30th will be reversed as of July 1St to capture
a more correct and concise snapshot of revenues earned for the current
fiscal year. Accrued revenue refers to money that has been billed but not
yet received in the current fiscal year; that is captured in the year earned
by an accounting practice called accruals. For expenses incurred as of
June 30th, there was a $775,571 increase in supplies and services
compared to May 2009. The major component of the increase was
$434,893 in costs from jobs that are not considered capital assets and are
therefore expensed at the end of the year. After this discussion, the
financial statements were accepted as presented.
2.2. Monthly Investment Report for June 2009
The investment report was reviewed and discussed. The Committee noted
the percentage yields were considerably lower on all investments with the
exception of Wells Capital Management at 1.10%. Ms. Van Etten noted
that the District would need to withdraw money and that the withdrawal
would be from the California Asset Management Program ("CAMP").
Director Beverage asked if there is a maximum amount/percentage that
the District was required to keep in the CAMP account. Also, Directors'
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Beverage and Summerfield asked which capital jobs are approved for
bond reimbursement under the US Bank 2008 Bond Revenue Bond. The
Committee recommended adjusting withdrawals whenever possible to
maximize the District's rate of return on the balance of the investments.
Therefore, investments that have the lowest percentage yield would be
drawn down first barring applicable restrictions. Staff will look into these
matters and report back to the Committee with their findings. Following
these discussions, the investment report was accepted as presented.
3. DISCUSSION ITEMS
3.1. Monthly Portfolio Reports for July 2009
Keith Khorey of Wells Capital Management was contacted prior to the
Committee meeting and reported to Staff that the portfolio remains status
quo in the investment arena. The Committee opted not to call Mr. Khorey.
3.2. Cash Out Audit for Finance Director
Mr. Vecchiarelli opened a discussion with the Committee regarding the
option to perform a cash out audit triggered by the resignation of Finance
Director Diane Cyganik. Mr. Vecchiarelli stated that he had consulted on
this matter with Mr. Nitin Patel, a partner of the District's audit firm Diehl,
Evans & Company. Mr. Patel opined that since the District is already in the
process of completing the year end audit for Fiscal Year 2008/09, the cash
out audit procedure used in the past would add little or no value and was
not really necessary. Mr. Patel further stated that most agencies do not
conduct such audits; however, he would be happy to provide additional
services at the District's request. The Committee concurred that the
additional work and expense was not necessary and recommended
notifying the full Board of Directors about this decision.
3.3. Future Agenda Items and Staff Tasks
No items were noted by the Committee.
4. ADJOURNMENT
4.1. The Committee adjourned at 4:45 p.m. The next regular meeting of the
Finance-Accounting Committee will be held September 8, 2009 at 4:00
p.m.
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