HomeMy WebLinkAbout2014-07-29 - Finance-Accounting Committee Meeting MinutesMINUTES OF THE
YORBA LINDA WATER DISTRICT
FINANCE - ACCOUNTING COMMITTEE MEETING
Tuesday, July 29, 2014, 4:00 p.m.
1717 E Miraloma Ave, Placentia CA 92870
1. CALL TO ORDER
The July 29, 2014 meeting of the Yorba Linda Water District's Finance -
Accounting Committee was called to order by Director Hawkins at 4:00 p.m. The
meeting was held in the Admin Conference Room at the District's Administration
Building located at 1717 East Miraloma Avenue in Placentia, California 92870.
2. ROLL CALL
COMMITTEE
3.
4.
5.
Director Phil Hawkins, Chair
Director Michael J. Beverage
STAFF
Steve Conklin, Acting General Manager
Delia Lugo, Finance Manager
OTHER ATTENDEES
Nitin Patel, Partner, White Nelson Diehl Evans LLP
Kassie Radermacher, Audit Manager, White Nelson Diehl Evans LLP
PUBLIC COMMENTS
None.
ACTION CALENDAR
4.1. Investment Report for the Period Ending June 30, 2014
Mrs. Lugo presented the Investment Report for the Period Ending June
30, 2014. She reported that the average yield for June 2014 was 0.63%
Mrs. Lugo also reported that the overall increase in the investment
balance from the previous month is approximately $2 million. This is
primarily due to the net proceeds $521,000 from the sale of the Plumosa
Building and a positive net effect of $1.4 million between revenues and
expenses for the month of June. In addition, Mrs. Lugo noted the effects of
transfers that occurred from the Water and Sewer Operating Reserve
Funds to the Water and Sewer Capital Project Reserve Funds. The
primary purpose of the transfers was to end the fiscal year in accordance
with the reserve policy and projected funding levels.
DISCUSSION ITEMS
5.1. Auditor Discussion with Those in Governance
Mr. Nitin Patel, Partner with White Nelson Diehl Evans LLP, and Kassie
Radermacher, Audit Manager with White Nelson Diehl Evans LLP,
addressed the Committee on what their responsibilities are as
independent auditors as they pertain to the year -end audit field work and
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the interim field work. Mr. Patel informed the Committee that the interim
field work was completed this past June and that the year -end field work
will begin on Monday, August 18, 2014 for approximately 7 working days.
A report on findings will be made to the Committee on September 22,
2014 and the Board in October of 2014. The Committee had a few
questions for Mr. Patel, after which he and Ms. Radermacher left the
meeting.
5.2. Periodic Review of "AA" Bond Rating by Fitch Ratings
Mrs. Lugo informed the Committee the Fitch Ratings will be performing a
periodic review of all outstanding bonds pertaining to YLWD. This review
is to ensure Fitch is in compliance with their policy as a rating agency. A
copy of the last review of August 2012 was included in the package for the
Committee's review and for reference on any questions they may have.
Mrs. Lugo informed the Committee of the conference call that will be held
on Monday, August 4, 2014 where a Fitch Ratings representative will be
asking a series of questions related to the current financial position of the
District, future debt plans, proposed rate increases, changes in
management, and such. The Committee was also informed of the
requested documents requested from Fitch Ratings to be submitted prior
to the conference call. Mrs. Lugo invited Mr. Conklin to be included in the
conference call, which he accepted.
5.3. Budget to Actual Results for June 2014
Mrs. Lugo reviewed the June 2014 Budget to Actual Results report with
the Committee. Mrs. Lugo noted that the expenditures to date are
trending as previously reported. The item noted was the recording of the
Special Item due to the sale of the Plumosa property.
5.4. Future Agenda Items and Staff Tasks
None.
6. ADJOURNMENT
6.1. The meeting was adjourned at 4:25 p.m. The next Finance - Accounting
Committee meeting is scheduled to be held Monday, August 25, 2014 at
4:00 p.m.
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