HomeMy WebLinkAbout2014-02-24 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Monday, February 24, 2014, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The February 24, 2014 meeting
Accounting Committee was calle d
The meeting was held in the
Administration Building located a
California 92870.
2. ROLL CALL
COMMITTEE
3.
4.
of the Yorba Linda Water District's Finance-
to order by Director Beverage at 4:00 p.m.
Admin Conference Room at the District's
t 1717 East Miraloma Avenue in Placentia,
Director Michael J. Beverage, Chair
Director Phil Hawkins
STAFF
Steve Conklin, Acting General Manager
Delia Lugo, Finance Manager
PUBLIC COMMENTS
None.
ACTION CALENDAR
4.1. Submission of 2013 Audit Reports
Mrs. Lugo presented the Audited Financial Statements for the Year
Ending June 30, 2013. She summarized the three reports that were being
presented to the Committee as a result of the completion of the audit
process. The language of the opinion letter was reviewed, and Mrs. Lugo
explained that the District received and unqualified ( "Clean ") opinion.
Mrs. Lugo went over the GAS (Governmental Auditing Standards) letter,
which described the auditor's review of internal controls and identified five
items as significant deficiencies, where internal controls could be
improved. The Committee asked if the staff had the opportunity to review
the comments prior to them being issued, and Mrs. Lugo indicated that
they had.
Discussion continued in regards to the timing of the audit being
completed, and Mrs. Lugo assured the Committee that there are goals in
place to have the field work start as usually scheduled in regards to the
year ending June 30, 2014. The Committee supported presenting the
CAFR, GAS Letter and Communication to Those in Governance letter to
the whole Board for acceptance at its March 13, 2014 meeting.
5. DISCUSSION ITEMS
5.1. Draft Reserve Policy for FY 2014/15
Mrs. Lugo presented the Reserve Policy for FY 2014/15. In the
discussion, Mrs. Lugo explained that it is an annual requirement to review
existing reserve requirements and funding levels. Mrs. Lugo stated that
staff will not be proposing any major changes to the existing policy. The
only changes made consisted of updating account balances for the
Employee Liability Reserve in regards to the District's OPEB liability.
5.2. Draft Finance Department Budget for FY 2014/15
Mrs. Lugo presented the package of the Proposed 2014/15 Supplies and
Services Budget for the Finance Department. The budget package
contained individual section detailed budgets, as well as a consolidated
department as a whole budget. The presented 2014/15 documents reflect
a budget total of $439,675, which is an 8% increase when compared to
the prior year's budget. Mrs. Lugo explained that this increase is
predominantly in the areas of Uncollectible Accounts and Fees and
Permits. The Fees and Permits increase is related to projected increases
in banking services in relation to lock box and credit card or auto debit
processing fees. The increase in Uncollectible Accounts pertains to the
potential write -off of unpaid customer billing balances. The Committee
approved the proposed Finance Department Supplies and Services
Budget for FY 2014/15.
5.3. Projected Operating Revenues for FY 2014/15 (To be provided at the
meeting.)
Mrs. Lugo presented the Projected Operating Revenues for FY 2014/15.
Water Revenues are the driving force when projecting revenues for the
District. Water Revenues are broken down into three categories —
residential, commercial /fire, and landscape irrigation. Mrs. Lugo explained
that a formula using the average units of consumption (first six months of
actual units consumed annualized forward of the current FY) and the
number of connections for each category is used to project revenues.
Three scenarios were presented to the Committee: no conservation
efforts, a 5% voluntary conservation effort, and a 10% voluntary
conservation effort. The presentation of scenarios reflected the following
overall increases in projected revenues for the District: an 11.81%
increase where no conservation efforts were taken into consideration; a
7.8% increase where 5% voluntary conservation efforts were taken into
consideration; and a 3.8% increase where 10% voluntary conservation
efforts were taken into consideration. After some detailed discussion, the
Committee decided to support presenting the Projected Operating
Revenues for FY 2014/15 where a 5% voluntary conservation effort would
be taken into consideration.
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5.5. Budget to Actual Results for January 2014
Mrs. Lugo reviewed the January 2014 Budget to Actual Results report with
the Committee. Mrs. Lugo noted that the expenditures to date are
trending as previously reported with the exception of Materials in the
Supplies and Services section of the Sewer Fund statement which are at
175% of the annual budgeted amount. This is primarily due to
unbudgeted expenses pertaining to the adjustment of manholes in relation
to the City Yorba Linda's "Street Rehabilitation Program" and manhole
adjustments in the unincorporated areas with the boundaries of the City of
Placentia.
5.6. Investment Report for the Period Ending January 31, 2014
Mrs. Lugo presented the Investment Report for the Period Ending January
317 2014. She noted that the average yield for the reporting month is
0.62 %. Mrs. Lugo stated that the overall decrease in the investment
balance from the previous month is approximately $1 million. This is due
to the biannual payment of $1,566,425 to OCWD for the Replenishment
Assessment fees. A hand -out that reports the use and available balance
of the Line of Credit between the District and Wells Fargo Bank was
available for review and discussion. There were no other key items to
discuss.
5.7. Future Agenda Items and Staff Tasks
None.
6. ADJOURNMENT
6.1. The meeting was adjourned at 05:08 p.m. The next Finance - Accounting
Committee meeting is scheduled to be held Friday, March 28, 2014 at
8:00 a.m.
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