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HomeMy WebLinkAbout2011-09-26 - Finance-Accounting Committee Meeting Minutes MINUTES OF THE YORBA LINDA WATER DISTRICT FINANCE-ACCOUNTING COMMITTEE MEETING September 26, 2011 A meeting of the Finance-Accounting Committee was called to order by Director Collett 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 Ric Collett, Chair Ken Vecchiarelli, General Manager Director Robert R. Kiley Stephen Parker, Finance Director 1. PUBLIC COMMENTS None. 2. ACTION CALENDAR 2.1. Contract Extension with Total Compensation Systems Mr. Parker explained that Total Compensation Systems has a signed Professional Services Agreement to complete the District's other post- employment benefits actuarial for the 2011 fiscal year - which was completed at a cost of $3,800. The District has the opportunity to use a less expensive "roll-over" valuation for the 2012 and 2013 fiscal years through Total Compensation Systems at a cost of $1,400. Mr. Parker explained that staff recommended extending the current PSA with Total Compensation Systems, but as the cost of the roll-over valuation is greater than 10% of the original contract, according to current purchasing procedures, Board authorization is necessary. The Committee recommended that this item be placed on the consent calendar for the Board's consideration at the next meeting on October 13, 2011. 3. DISCUSSION ITEMS 3.1. Audit Update (Verbal Report) Mr. Parker explained that while the auditors had not yet provided the final journal entries, staff felt confident that the CAFR would still make it to the Finance-Accounting Committee at the next meeting, and would be able to go on to the full Board for the second meeting in October. Mr. Parker shared that there were a couple of management letter comments that were found by the auditors, but they were items that staff had already corrected and they should be called significant deficiencies, which is the lower of the two main classifications of management letter comments. 3.2. July 2011 & August 2011 Budget to Actual Results Mr. Parker presented both the July and August Budget to Actual results, as the new Committee meeting date allows staff to provide more timely 1 information to the Committee. Mr. Parker explained that in both months revenue is trending below budgeted levels. Through August, water revenue is 18.4% of the annual budget, while historical averages tell us that 24% of the District's revenue usually comes by August. Mr. Parker explained that salary-related expenses were lower than budgeted as one half of July's salaries were earned in June, and were accrued back in to the prior fiscal year. Mr. Parker said that salaries would trend lower than budget all year for this reason. Mr. Parker also pointed out a few supplies and services expenses that were higher than budgeted through this point. Dues and Memberships were higher because the annual charge for LAFCO and CSDA memberships hit in July - this will even off as the year progresses. Also, through August, Insurance was very high as the annual JPIA premium was paid - this line item was also not expected to go over budget this year. 3.3. Investment Reports through August 2011 The investment reports for July and August were presented by Mr. Parker. Mr. Parker explained that the yield decreased in both months as the District put more money into LAIF, which has a lower yield than the CalTRUST Short Term account and as the yields in the CalTRUST Short Term and Medium Term accounts decreased due to the ecomony. Mr. Parker explained the purposes of a couple of transfers that were made in July. The first was to replenish the Reserve for Debt Service, which was very low because the District is not selling as many units annually as we did when we set the rates in 2008 to pay for the debt service of the bonds. The second was to reconcile the Water Operating and Water Capital Reserves relating to the fourth quarter of the prior fiscal year to reimburse Water Operating for capital projects that Water Operating paid for. 3.4. Status Report on Committee Specific Strategic Plan Initiatives Mr. Parker gave an update on the Stratgic Plan Initiatives that related to Fiscal Responsibility. In conjunction with his responses, he mentioned that some of the items would be satisfied with the workshop the Board had scheduled in January. 3.5. Future Agenda Items and Staff Tasks The Committee asked that staff present a summary of the information that would be given to the whole Board during the scheduled workshop in January. Mr. Parker indicated that information could be shared at the following Committee meeting. 4. ADJOURNMENT 4.1. The Committee adjourned at 5:04 p.m. The next regular meeting of the Finance-Accounting Committee will be held October 24, 2011 at 4:00 p.m. 2