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From YouTube: Subcommittee on Conference of 10-7-20
Description
City of Chelsea
via WebEx
A
A
I
just
want
to
make
sure
that
the
public
and
and
the
council
knows
that
we're
not
out
there
looking
for
100
someone-
that's
maybe
you
know
taking
a
hundred
dollars
or
or
to
that
effect
and
we'll
have
a
little
conversation
about
some
fraud
procedures
that
the
city
is
doing
to
prevent
or
or
mitigate.
You
know
anything
fraudulent
and
we'll
talk
about
that
a
little
bit
a
little
bit
later
in
the
report.
A
D
A
A
Opinion,
which
means
none
of
those
things
existed
so
so
so
that's
that's
good.
That's
that
that's
good
news.
The
city's
had
a
clean
opinion
for
at
least
20
straight
years,
maybe
even
longer
that
I
can
that
I
can
recollect
I'll
go
back
and
research.
So
we've
continued
that
trend.
The
city
also
did
a
kafir.
A
A
The
typical
report
is
about
40
or
50
pages.
This
is
a
150
pages,
there's
all
kinds
of
information
that
goes
into
this
cafe
that
the
financial
team
has
to
put
a
lot
of
that
together.
So
there's
just
a
tremendous
amount
of
effort
to
go
and
it's
an
optional
report.
I
know
it's
required
under
your
charter,
but
in
in
the
outside
world.
This
is
an
optional
report.
You
don't
have
to
do
it
and
the
city
has
chosen
to
put
it
in
the
charter
as
a
requirement,
it's
transparent.
A
A
E
C
A
A
Doing
you
the
way
I
measure
it
is
I
look
at
the
reserve
balances?
Are
the
reserve
balances
increasing
or
are
they
decreasing?
Are
they
decreasing
so
that
their
deficits,
or
are
they
going
up
in
a
nice
straight
line
and
then
maybe
stabilizing,
and
I
thought
it
kind
of
tells
a
story
about
the
management
of
a
particular
community
if
your
reserves
are
steadily
increasing?
That
means
that
you're
managing
your
budget
very
well.
A
Your
expenses
are
under
control,
you're,
usually
turning
back
some
expenses
back
to
the
general
fund
and
you're
usually
doing
very
well
with
your
revenues.
Your
your
revenues,
you're
not
aggressively
forecasting
revenues.
I
I'm
involved
in
situations
with
with
other
towns,
where
they
aggressively
forecast
revenues
that
really
are
not
achievable.
A
So
what
happens
is
when
those
revenues
don't
come
in
you
end
up
with
a
deficit
at
the
end
of
the
year
and
to
me,
that's
poor
management.
That's
not
what's
happening
here,
and
this
is
part
of
the
reason
why
you're
getting
a
very
nice
bond
rating
is
you've
got
this
nice.
If
you
go
back
to
2010,
you
had
about
14
million
in
reserves
and
right
now
you
have
about
40
million
in
reserves.
A
So
the
standard
poor
who
does
your
bond
rating
is
looking
for
15
percent
of
reserves
to
give
you
a
score
of
a
one
in
reserves,
and
you
folks
are
at
almost
26
so
you're
11
over
the
standard
and
poor
metric,
which
is
which
is
great.
The
state
average
is
about
10,
so
you
over
double
the
state
average
and
then
the
low
metric
is
four
percent.
A
A
B
A
Minus
the
8.9,
so
your
reserves
went
up
by
about
3
million
dollars.
So
that's
just
an
explanation
of
why
the
reserves
went
up
and
some
of
the
receipts
that
were
way
over
your
permits
did
great
your
motor
vehicle
excise
did
great.
Some
of
your
meals
tax,
you
know
did
did
very
well
so
so
some
of
these
things
came
in
a
lot
a
lot
better
than
forecast,
not
sure
where
they
with
the
lockdown
in
the
fourth
quarter.
2020,
I'm
not
sure
if
this
trend
continued
into
2020
or
not,
I'm
not
sure.
E
We
have
historically
been
conservative
in
estimating
that
revenue
source
because
of
the
sum
of
volatile
and
for
each
of
the
past
years
that
I've
been
here,
the
number
has
substantially
exceeded
our
estimate
last
year.
We
just
for
perspective
of
where
we
are
now
with.
That
number
is
really
at
risk.
We
collected
last
year.
It
appears
the
final
audit
isn't
done
obviously,
but
it
appears
we
collected
around
21
million
in
motor
vehicle
excise
tax
for
this
budget
year
for
creation.
D
A
F
E
Me
a
report,
I
know
I
I
did
send
the
council,
we
haven't,
got
the
quarterly
we
just
got
which
hasn't
been
reported
yet
because
I
will
be
reported
to
you
when
I
send
you
september's
focus
fees.
We
have
received
the
meals
tax
receipts
for
the
first
quarter,
which
are
surprisingly
not
too
bad.
I'm
surprised
by
it.
I'm
really
looking
forward
to
the
room
excise
tax
number.
E
E
C
A
Course,
yeah
I'm
expecting
the
occupancies
to
be
down.
It
will
be
reported
on
friday,
as
the
city
manager
has
indicated.
The
meals
tax
is
surprising.
Surprisingly,
it's
held
up
because
of
the
takeouts.
A
lot
of
people
are
still
doing
the
take-outs
they're,
not
they're,
not
cooking
at
home,
and
what's
happening
even
in
my
house
where
people
were
locked
down,
so
they
weren't
all
out
doing
their
thing.
We
were
doing
more
takeouts
because
who
wants
to
cook
a
meal
for
seven
people.
I
got.
A
I'd
be
like,
let
me
just
go
grab
something
it's
a
long
day,
yeah,
it's
it's
a
lot,
it's
a
lot
easier!
So
and-
and
there
was
always
lines
when
I
went
to
places
so
I
said
I
said
to
myself-
I
don't
think
the
meals
tax
is
going
to
be
hit
that
badly
and
we're
seeing
the
numbers
coming
in
a
lot
higher
than
people
had
anticipated
on
the
meals
tax
side,
the
hotel,
that's
a
different
story.
F
F
E
A
F
F
A
That
was
a
good
discussion
on
receipts.
You
were
also
on
your
expense
side.
You
were
4.2
million
under
so
so
19
ended
up.
You
know
in
the
positive
and
the
city's
got
a
double
a
bond
rating.
I
wanted
to.
You
know,
put
that
out
there.
That's
that's!
That's
not
easy
to
get.
You
got
a
double
a
bond
rating,
especially
with
the
demographics
of
the
city,
to
be
a
double.
A
bond
rating.
A
You
have
strong
financial
policies
and
procedures
and
management
is
strong
and
management
meets
the
targets
in
your
financial
policies
and
procedures.
So
you've
got
a
very
good
grade
and
that's
what
leveraged
your
double
a
bond
rating
getting
to
a
triple
a
is
probably
next
to
impossible,
just
because
of
the
the
demographic
profile,
but
but
but
you're
you're,
doing
great
on
the
financial
side
and
the
economic
side.
A
A
A
They
were
going
to
flat
level
the
state
8
from
the
year
before,
and
so
when
we
spoke
with
the
s
p
guy,
he
was
like
yeah,
you
know
with
the
whole
environment
and
everything
this
might
have
slipped
from
the
double
a
plus
to
double
a,
but
they
ended
up
giving
them
reiterating
the
double
a
plus.
But
it's
it's
it's
very
difficult,
so
you
guys
are
where
you're
at.
A
B
A
Keep
forecasting
your
revenues
conservatively,
which
it
sounds
like
the
team
is
doing
that
based
on
the
conversation
enhance
revenue
where
you
can.
I
don't
know
if
you've
looked
at
fees
and
things
like
that
and
if
they
haven't
changed
in
years,
you
may
want
to
look
at
what
surrounding
communities
are
doing
for
fees.
There
may
be
a
way
to
to
increase
some
of
your
local
fees
and
and
then
just
monitor
the
budget
aggressively,
like
you,
have
been
keep
doing.
A
A
A
And
what
I
was
finding
is
in
some
of
the
other
places
you
were
ten
yeah
and
I
didn't
know
if
you
changed
that
or
not
so
that
was
one
of
the
things
I
when
I
did
a
survey
before
I
was
even
your
auditor.
I
saw
that
you
folks
were
low
when
I
did.
The
survey
was
about
two
years
ago,
so
I
don't
know
if
that
kind
of
got
you
to
say
hey,
maybe
we
should
go
higher.
The
average
is
about
twenty.
A
Some
of
them
do
go
to
thirty
thirty
dollars.
So
what
that?
What
a
demand
for
you
is
if
you're
late
on
your
motor
vehicle
exercise
or
or
some
one
of
your
payments,
you're
allowed
to
attach
a
charge
on
that
when
you
rebuild
and
the
state
allows
you
to
go
as
high
as
30
on
that,
and
I
was
finding
that
a
lot
of
communities
were
still
at
five
dollars
and
ten
dollars
and
when
I
was
doing
the
math,
it
was
coming
out
to
like
a
couple
of
hundred
thousand
dollars.
A
A
I
I'm
not
sure
what
you
do
for
your.
We
didn't
specifically
go
into
dog
fees,
because
it's
not
a
big
part
of
the
city,
so
we
didn't
go
in
and
audit
that,
but
I
don't
you
know,
that's
where
I
find
that
there
could
be
some
some
better
processes.
When
I
go
look
when
a
city
says,
can
you
go
look
at
the
dogs,
you
know
what
we're
doing
for
dog
licenses.
A
B
A
And,
and
are
our
fees
reasonable?
So
that's
an
area
where
you
can
boost
it
up?
I
know
springfield
mass
had
a
company
come
in
and
they
were
only
collecting
25
or
30
000
in
dog
fees.
They
had
a
company
come
in
and
do
like
a
a
study
and
they
got
it
up
to
like
three
or
four
hundred
thousand
dollars
in
in
collections
of
dog
fees.
So
it's
definitely
an
area
where,
if
you
do
have
a
lot
of
dogs
that
you
can,
you
can
do
things
with.
B
H
F
You
tom
I'm
looking
at
larger
places
as
far
as
trying
to
get
some
savings
here
in
taking
advantage
of
the
rating
that
we've
had
for
a
while
now,
and
also
like
many
homeowners
and
property
owners
of
the
interest
rates,
has
any
of
our
long-term
debt
been
evaluated
to
see.
If
we
can't
refinance
at
this
point
to
take
advantage
of
these
new
lower
rates
that
are
out
there,
maybe
pay
off
some
of
the
ones
that
are
really
low,
just
to
get
them
off
our
books.
So
to
speak.
Yes,.
E
A
A
B
A
A
You
have
to
make
for
people
that
have
worked
for
the
city
who
retire
as
city
employees,
that
you
you
contribute
towards
their
health
insurance
and
the
the
the
overseers
have
put
out
this
this
gatsby.
So
to
speak.
This
requirement
that
you
calc
you
have
to
calculate
that
liability.
So,
while
ned
hasn't.
B
A
Your
your
open
is
actually
being
facted
into
this
into
this
number.
He
hasn't
retired,
yet
but
they're
saying
at
some
point
he's
going
to
retire.
So
they
start
to
say:
what's
that
liability
now
and
they
do
that
for
every
single
employee
in
the
city
and
they
come
up
with
this
gigantic
number.
It's
it's
206
million
yeah.
B
C
A
For
the
for
this,
for
the
city
and
the
person
that
does
that
it's
actuarial
firms
come
out
and
do
that
calculation
for
you,
you
send
them
all
kinds
of
information.
Is
it
female?
Is
it
a
male?
What
are
you
what's
your
age?
What
what
departments
are
you
working
in
and
then
they
do
this
massive
crunch
of
a
number
and
say
in.
A
To
fund,
if
you
had
this
in
an
account
right
now,
you
would
be
able
to
fund
this.
The
people
that
are
currently
working
for
the
city
and
who
are
going
to
retire
you'd
be
able
to
fund
them
out
of
this
account
on
an
annual
basis.
That's
kind
of
what
this
whole
calculation
is
and,
and
that's
a
good
size
number,
but
it
compares
to
to
medford
and
malden
it's
very
comparable
everett.
It
compares
you
all.
Those
cities
are
in
the
200
to
250
million
range,
so
so
it's
not
like
you're
behind
or
anything
like
that.
A
A
Trust
planned
document.
You
went
through
that
whole
process
which
now
allowed
you
to
move
that
money
from
just
a
stabilization
fund
into
a
trust,
and
the
reason
that's
important
is
it
gives
you
some
flexibility,
the
discount
rate,
the
actuary
uses
3.25
the
higher
that
discount
rate
is
the
lower
your
liability
is
going
to
be
so
by
moving
it
into
a
trust
fund.
F
Bit,
I
guess
a
little
bit
of
more
in
layman
terms
of
of
so
we
are
we're,
throwing
money
into
an
account,
but
we've
set
up
funds,
or
rather
buckets
so
to
speak,
to
earn
a
return
and
and
we're
hoping
that
the
return
that
we're
earning
supersedes
what
our
payments
are
going
to
be.
Is
that
what
what's
he
saying.
C
A
The
future
yeah
in
the
future.
So
if
you
start
putting
money
what's
going
to
happen,
what
I'm
telling
all
my
clients
is
it's
impossible
for
you
to
fund
funded
the
way.
You
should
be
right
now,
because
you
should
have
started
this
back
in
1970
if
you
were
going
to
be
where
you
should
be
and
and
that
hasn't
happened.
So
what
I'm
telling
all
my
clients
is,
your
pen,
your
pension,
is
in
great
shape,
you're
almost
70
percent
funded.
A
So
that's
gonna
fall
off
in
probably
what
12
years
about
that's
gonna
be
eight
years
eight
years,
that's
gonna
fall
off
so
that
big
pension
expense
payment
that
you
have
to
make
to
the
pension
fund.
That
goes
away
and
it
becomes
much
lower.
Now
it
creates
millions
of
dollars
that
you
can
put
towards
opif
and
that's
when
you're
going
to
start
really
hitting
this
liability
hard
and
when
you
do
that
that
discount
rate's
gonna
go
up
to
seven
percent.
A
About
12
million,
so
you
figure
you're
still
going
to
have
to
pay
about
two
a
year
for
the
normal
cost.
You
might
be
freeing
up
as
much
as
10
million
dollars
a
year
to
put
towards
opec
starting
eight
years
from
now,
and
that's
when
you'll
really
start
to
make
a
dent
into
this
into
this
number.
But
it's
good
to
keep
putting
the
drips
and
drabs
in
here.
It
shows
the
bond
people
that
you're
thinking
about
it
that
you're
not
neglecting
it
that
you
have
a
plan
and
they
like
to
see
the
little
three
100.
E
A
J
G
E
So
it
might
have
been
a
subsequent
evaluation.
I
will
tell
you
that
one
thing
that's
going
to
help
in
the
next
time.
We
do
this.
You
would
expect
this
number
to
go
up,
but
one
thing
we're
going
to
really
be
helped
by
is
the
fact
that
all
of
our
retirees,
all
of
them
at
65,
have
been
forcibly
put
into
medicare.
A
A
A
A
And
the
problem
is
you're
going
to
see
this
number
go
up.
I
think
I
would
suspect,
because
the
the
bond
rates
went
down
because
of
what
happened
with
covert
so
on
june
30,
the
bond
rates
went
down
down
to
about
2.5
or
2.6,
so
so
that
discount
rate
is
going
to
go
down
a
little
bit.
I
think,
and
it's
going
to
cause
this
liability
to
increase.
So
unless.
A
So
it
I
mean
it's
a
liability
down
the
road,
you're
you're,
just
you're
obligated
to
pay
the
retirees
you
have
that
liability.
It's
it's
a
it's
a
benefit
that
you
offer
to
get
people
to
come
work
for
the
city.
So
it's
something
to
I
just
wanna.
I
always
like
to
talk
about
it
because
it's
such
a
big
number-
and
I
want
everyone
thinking
thinking
about
it.
A
B
A
Rate
is
7.25
because
you
have
sufficient
funds
in
the
pension.
You've
been
funding
it
since
1991.
I
believe
so.
You've
got
30
years
of
really
good
funding
into
this
pension,
so
they're
allowed
to
use
a
better
discount
rate.
They
can
make
better
use
of
the
investments.
The
percentage
that
you
funded
is
67.5.
So,
like
I
said
earlier
about
70,
that's
great
there's,
not
many
communities
that
are
at
that
at
that
level.
In
fact,
the
counties
a
lot
of
towns
and
cities
belong
to
counties,
county
systems
where
you
have
your
own.
A
A
C
A
E
B
C
J
J
So
the
first
three
of
our
observations
were
actually
carryovers
from
your
prior
audit
firm,
but
we
felt
that
they
were
significant
enough
that
you
know
we
should
also
also
comment
on
them.
The
first
was
fraud
prevention
measures.
The
city
did
substantially
make
progress
on
this
during
the
year
they
hired
firms
to
do
a
financial
operations
review
and
also
an
assessment
of
the
current
fraud
prevention
initiatives.
J
You
know
to
improve
the
fraud,
prevention
and
internal
controls.
One
of
the
things
that
we
do
usually
recommend
is
that
the
finance
team
out
of
the
the
city
auditor's
office,
you
know,
choose,
on
a
rotating
basis,
certain
departments
to
visit
throughout
the
year,
just
to
make
sure
that
the
measures
once
they're
in
place
are
still
you
know
still
operating
as
they
were
intended.
J
E
F
A
Upon
departments,
thanks
to
inspections,
the
other
one
that
we
see
tom
clerks,
you
know
because
they
take
a
lot
of
a
lot
of
cash.
We
didn't
haven't
specifically
looked
at
this
city
clerk's
office,
but
the
last
one
I
did
they
had
a
box
and
that's
where
they
put
the
cash.
There
was
no
receipt.
Pre-Numbering
there
was.
There
was
none
of
that
going
on.
It
was
going
into
a
box.
Someone
could
have
took
20.
A
There
was
a
woman
that
worked
in
that
office
for
40
years.
She
could
have
took
twenty
dollars
a
day
and
I
did
the
calculation
it
would
come
out
to
over
two
hundred
thousand
dollars
and
no
one
would
know
that,
because
only
twenty
dollars
would
be
missing
and
no
one
would
know,
and
because
there
was
no
prenumbering.
A
A
A
Because
review
the
munis
online
point
of
sale,
they
implemented
that
so
every
department
that
receives
cash
gets
a
cash
register
and
then
you
you
have
it
forces
you
to
reconcile
and
then
it
posts
automatically
throughout
the
throughout
the
city.
I
don't
know
if
you
need
that
based
on
what
you're
doing,
but
but
it
was
something
that
you
know
revere
had
done
and.
A
A
If
you
increase
fees,
we
would
expect
that
revenue
to
go
up.
If
you
know
if
this,
for
some
reason,
there's
less
activity,
but
we
would
talk
to
talk
to
ed
if
we
saw
something
unusual
like
building
permits,
drop
and
we'd,
say:
hey
what's
going
on
in
in
building
permits
and
then
ed
would
offer
an
explanation
and
if
the
explanation
didn't
make
sense,
we
say
well
that
doesn't
make
sense.
You
know.
C
A
Maybe
we
need
a
closer
look
at
that,
so
we
do
that
in
the
audit.
We
actually
look
at
year-to-year
trends
and
I'm
sure
you
do
that
as
part
of
your
process.
You
do
the
same
thing
so
that
if
you
see
something
really
dropping
off
it's
going
to
cause
you
to
go
yeah,
it's
going
to
cause
you
to
go.
Look
at
that.
A
So
so
I
I
and
that's
the
most
important
one,
because
finding
the
20,
bucks
and
100
bucks
is
so
hard
to
do
and
it's
happening
I'm
telling
you
it's
happening:
okay,
but
you're,
not
gonna,
you're,
not
gonna!
You
won't
see
it
in
any
sort
of
analytical
way
that
you
do
it,
but
finding
the
big
stuff,
you're
gonna,
you're
gonna,
see
it
based
on
the
revenue
trends.
You
are
going
to
see
it.
D
F
D
D
J
To
the
going
to
the
federal
you
know,
the
federal
clearinghouse
and
one
one
area
that
we've
seen
a
lot
of
issues
with
is
we
may
make
a
passing
comment
in
the
management
letter
about
this
about
grants
and
things
like
that,
and
then
the
fed
say
well
why
you
know
if
they
ever
review,
one
they'll
say
well.
Why
isn't
it
involved
so
honestly,
what
we
try
to
do
is
keep
them
separate,
so
they're
not
showing
up
in
mormon.
F
H
A
So
yeah
in
the
treasury's
office
I
mean
half.
The
audit
is
in
the
treasurer's
office,
we're
we're
looking
at
every
bank
reconciliation
where
we're
doing
sample
testing
of
deposits,
we're
looking
at
we're
tying
out
real
estate
money,
that's
coming
in
to
what's
being
recorded.
So
we
do
a
lot
of.
We
do
a
lot
of
work
in
the
treasurer's
office
itself.
D
A
Of
this
fraud
stuff
that
and
the
treasurer's
office
has
good
controls
most
of
this
fraud
stuff
that
we're
talking
about
is
when
you
get
to
the
outside
departments,
where
they
don't
have
that
strong
oversight
and
they
don't
have
those
strong
controls.
Like
you
know,
I
I
was
doing
an
athletic
another
one.
I
was
doing
an
athletic
audit
and
they
collect
money
for
the
the
thanksgiving
day
game,
seven
thousand
dollars.
A
A
You
know
if
someone
sees
you
doing
that
number
one
you're
you're,
risking
your
safety
and
number
two.
You
know
someone
could
could
take
the
money,
so
so
people
in
the
other,
the
outside
departments,
because
they're
not
as
structured
when
it
comes
to
cash
because
it
strips
and
drops
where
the
treasurer's
office
that's.
The
treasurer's
function
is
to
collect
cash,
so
they
have
to
have
those
controls
and-
and
the
state
also
looks
at
the
treasurer's
controls.
A
E
A
A
F
A
F
B
B
A
They
have
to
do
a
reconciliation
at
the
end
of
each
night.
They
have
to
check
out
and
everything's
got
to
balance
which
a
department
head.
Doesn't
it
the
police?
What,
if
you're
going
down
to
the
police
department
paying
for
some
for
some
permits?
I
don't
know
if
the
police
handles
any
cash
here,
but
the
police.
A
A
H
B
A
Not
kids,
you
don't
want
kids
collecting
money
at
the
gate.
A
lot
of
places
will
do,
sell
pre-number
tickets,
but
they
also
that
you
also
can
pay
when
you
go
to
the
gates.
So
sometimes
that
doesn't
help,
and
but
what
I
see
in
a
good
system
is
when
I
give
you
five
dollars:
they
have
two
tickets,
they
give
me
half
of
the
ticket
which
has
number
101
on
it
and
they
keep
the
other
half
which
has
101..
A
So
at
the
end
of
the
day,
if
you
sold
a
thousand
tickets
to
that
game
and
it
was
eight
dollars
a
ticket,
you
should
have
eight
thousand
dollars
you.
They
should
be
doing
that
reconciliation
at
the
end
of
the
game
and
then
and
then
they
should
be
bringing
that
to
the
treasurer's
office,
the
reconciliation
with
the
money
and
show
it
all
balancing.
Now,
if
I've
got
a
friend
and
I'm
collecting
money,
yeah
just
go
in,
you
know.
I
B
H
It
you
you
take
this
down
to
three
seats
down
to
the
treasures
office.
You
pay
them,
you
come
back,
you
give
us
the
receipt
or
give
us
a
receipt,
and
you
have
a
transaction
and
you
have
a
paper
trail.
I
think
that's
an
honest
system
and
I
think
that's
a
system
that
shows
you
also
checks
and
balance,
and
I
think
we
I
mean,
even
with
the
with
the.
D
D
J
Sure
we
can
go
there
so
about
five
years
ago
the
department
of
elementary
and
secondary
education
came
up
with
some
updated
guidelines,
so
one
of
the
things
was,
they
reiterated
a
long-standing
policy
of
theirs
that
wasn't
necessarily
enforced,
that
you
know
in
the
large
says
they
need
to
be
audited
annually.
The
student
activity
accounts.
Unfortunately,
a
lot
of
communities
said:
well,
we
get
audited
annually.
So
that's
part
of
it.
J
Well,
as
tony
said,
you
know
we're
doing
a
financial
statement
level
audit,
so
our
materiality
for
transactions
may
be
very
high,
especially
in
chelsea.
You
guys,
you
know
you
have
a
large
budget,
so
the
student
activity
transactions
would
fall
away
under
our
materiality
level.
So
while
some
transactions
may
end
up
in
our
testing,
we're
not
specifically
looking
at
them,
so
what
what
desi
came
out
and
said
is
listen,
it
says,
need
to
be
audited
annually.
J
J
You
know
someone
from
the
treasurer's
office,
but
someone
independent
of
the
process
internally
needs
to
look
at
it
and
part
of
the
updated
guidelines
was
kind
of
a
step-by-step
thing
for
someone
internally
to
look
at
and
actually
when
we
do
it
as
independent
auditors,
we
actually
use
those
same
procedures,
but
what
they
also
said
is
at
least
once
every
three
years.
These
accounts
need
to
be
audited
by
an
independent
auditing
firm
when
asked
they.
J
A
If
I
give
my
son
five
dollars
because
they're
saying
he's
going
to
the
museum
of
science,
I
want
to
make
sure
that
five
dollars
has
spent
on
the
bus
the
admission
you
know,
and
all
that
not
on
some
party,
some
party
that
they're
having
some
get
together
for
the
teachers
where
they
buy
pizzas
and
that's
what
we
find
when
we
go
through
these
accounts
that
they
end
up
collecting
more
for
the
field
trip
than
the
field
trip
costs.
They
have
some
money
left
over
and
then
they'll
have
some
teacher.
A
B
F
F
We
have
several
departments
that
that
have
the
overtime,
isd,
dbw,
fire
and
police
I'd
like
to
know,
if
there's
any
measures
in
place
that
try
to
make
sure
that
we
don't
have
that
going
on
here,
and
maybe
it's
maybe
tom
to
talk
about
it
or
if
you
guys
examine
any
of
that
sort
of
thing,
because
that
is
sort
of
fraud
abuse.
Also.
So
I
wanted
to
know
if
you
not.
B
G
G
F
C
H
A
J
Yeah
because
you
go
ahead,
and
but
we
do
do
payroll
testing
as
part
of
our
procedures,
particularly
with
grants
we're
required
to,
but
we
also
in
larger
communities,
especially
chelsea.
We
do
also
a
test
of
non-grant
expenditures
in
payroll,
so
we
do
follow
it
throughout
the
process.
Unfortunately,
and
one
of
our
steps
is,
you
know,
take
the
person
take
a
certain
payroll
check
trace
it
back.
You
know
to
a
time
sheet,
so
we're
looking
at
some
sort
of
time
sheet,
but
unfortunately,
if
they're,
you
know
we
got
to
take
that
on
facebook.
J
J
You
know
transmittal
or
something
also
by
you
know.
You
know
in
case
of
police
who
is
the
police
chief
or
whoever
authorized
to
sign
off.
You
know,
in
that
case
we're
relying
on
the
timesheet
being
correct
and
the
department
had
approval
you
know,
and
we
do.
We
do
plenty
plenty
of
times
run
into
the
fact
that
oh
yeah,
I
know
we
pulled
it
and
yeah
this
one
isn't
signed
off
and
you
know
we
like.
E
F
So
well,
you
brought
something
up.
You
mentioned
the
word
and
that
was
grant
spending,
so
the
state
police
incident
actually
was
part
of
grant
spending.
They
had
received
federal
grants
to
pay
for
that
extra
details
to
enforce
speeding,
and
that
was
the
money
that
was
being
infused.
It
wasn't
actually
state
general
funds
but
grant
funding.
So
so
two
things
again,
you
know
if
there's
any
checks
and
balances
on
in
the
state
police.
I'm
again
I'm
not
trying
to
bash
anyone,
but
the
department
hands
worry
not
so
they.
F
It
was
all
part
of
the
the
that
whole
troop
that
they
all
signed
on
and
it
was
a
large
mess.
So
it's
possible
that
you
know
I'm
just
wondering
if
there's
checks
and
balances
beyond
that
to
make
sure
it's
not
happening.
Second,
in
regards
to
you
you're
saying:
grant
spending,
does
this
review
auditing
just
talk
about
the
spending
of
general
funds,
or
do
you
also
review
in
this?
The
city
of
chelsea
receives
a
large
amount
of
grants
that
they
apply
for
and
then
the
departments
will
spend
yeah.
We
look
at
that.
F
J
All
right,
so
we
are,
as
tony
mentioned
earlier.
You
spend
more
than
700
spending
based
on
spending.
If
you
spend
more
than
750
000
a
year
in
federal
funds,
we're
required
to
do
an
audit
specifically
of
grants.
Now
it's
a
major
program
audit,
so
we're
not
necessarily
nothing
necessarily.
We
are
not
supposed
to
look
at
every
every
grant,
as
they
spec
the
office
of
management
and
budget
specifies
exactly
how
we're
supposed
to
determine
what
is
a
major.
J
J
J
40
of
these
single
audits
in
over
half
of
them,
it's
consistently
every
year
the
special
education
brand
on
at
least
20
of
our
40.
Just
because
that
by
far
is,
is
the
largest
grant,
even
here
with
you
guys
for
coverage
per
when
we
have
to
maintain
a
certain
coverage
as
part
of
the
rules,
you
have
to
test
a
certain
percentage
school
lunch
indoor
title
one
here
will
be
audited
nearly
for
coverage
purposes.
It
has
to
one
of
the
two
has
to
be
audited
almost
every
year.
J
In
order
for
us
to
make
the
make
the
coverage
the
public
safety
grants
that
you
would
bring
up.
You
know
it
would
really
be
a
one-off
honestly.
At
this
point
I
know
back
in
the
day.
You
know
when
the
cops
grants
you
know
we're
a
lot
larger,
then
you
know
you
would
tend
to
look
at
those,
but
at
this
point
it
most
of
the
most
of
the
public
safety
grants.
Don't
pop
up
over
that
threshold
for
us
to
look
at.
J
J
F
J
Because
there's
also,
I
mean
there
is
a
what
they
call
an
a
program
and
a
b
prayer
program.
So
you
know
your
a
programs
are
over
750
000.
Your
b
programs
are
between
187
500
and
750
000.,
so
there
is,
there
is
a
possibility
that
we
do
look
at
b
programs
so
that,
but
it
still
would
have
to
be
over
that
187
500
floor
to
be
part
of
potentially
part
of
the
equation.
So
like.
A
A
council
on
agent
grant.
You
know
that
that
your
senior
senior
department
gets
that
wouldn't
be
looked
at.
It's
always
it's
probably
80
or
90
000.
It's
way
under
scope
and
it's
they
use
that
also
for
expenses
or
whatever
they
do,
but
we
wouldn't.
We
wouldn't
look
at
that.
Just
to
answer
your
question.
F
F
B
J
F
E
And
within
that
paperwork
there
our
guidelines-
let's
say
what
the
performance
period
is
what
it
can
be
spent
on.
We
set
up
a
budget,
we
are
tracking
the
budget
expenses.
No,
we
don't
get
an
over
time
sheet
from
the
police
department
when
there's
no
other
kind
of
expenditure,
but
we
do
get
an
over-time
request
through
the
payroll.
C
B
E
B
G
D
J
A
E
A
E
A
A
So
so
so
typically,
and
what
was
happening
in
rivera
was
there's
a
safe
in
the
meter
yeah.
The
quarter
goes
in
to
the
safe,
the
guy
emptying
the
meters
can't
get
into
that.
Safe
he's
got
a
trolley
yeah
same
here
that
just
turns
and
the
quarters
go
in
and
then
he
doesn't
have
the
key
to
the
trolley.
The
treasures
office
has
the
key
to
the
trolley.
I'm
assuming
the
same
process
is
in
place
here.
A
The
problem
with
revere
is
the
they
were,
they
were
broken,
the
safes
were
broken
so
and
a
lot
of
the
meters
didn't
have
safes
in
them
because
they
hadn't
they
had
not
been
replaced,
so
they
had
been
broken
taken
out.
So
the
quarters
were
just
sitting,
they
were
just
sitting
in
the
and
if
someone
wanted
to
help
themselves
the
quarters
they
could
and-
and
we
found
the
same
thing
in
another
city
up
north-
that
we
did
that
we
went
in
and
looked
at
so.
A
A
It's
just
like
a
cash
register.
Tell
you
how
many
quarters
went
through
how
many
credit
cards
went
through
what
the
debit
cards
went
through
and
then
you
reconcile
that
to
your
to
your
take
so
the
smart
meters
and
when
we
were
driving.
I
was
looking
around
and
I
said
I
don't
think
they
have
smart
meters.
I
might
it
just
might
have
been
one
area,
but
it
doesn't
look
like
you
have
smart
meters
in
them.
E
A
G
A
I
E
E
E
Amount
on
fire
details
or
police
details
that
isn't
going
to
be
paid,
we're
going
to
be
looking
for
an
unlocking
free
cash
stabilization
to
cover
that
there's
nothing
we
can
do
if
we've
exhausted.
All
of
our
options
to
try
to
collect
and
employees
said
that
we
cannot
collect,
we
still
have
outstanding
receivables.
E
D
J
Okay,
so
that
contributory
retirement
system
report
is
just
a
report
on
specific
items,
that's
required
in
order
for
us
to
determine
the
actual
net
pension
liability.
That
does
not
represent
an
audit,
however,
because
we
need
to
issue
that
report.
We
do
have
to
perform
some
limited
procedures
to
make
sure
that
the
data
you
know
is
appropriate,
so
yeah,
so
so
there
was
actually
a
finding
in
our.
J
B
J
You
know
what
our
recommendation
was
that,
on
you
know
a
regular
basis
with
you
know,
an
annual
basis
that
both
the
retirement
system
and
the
city
are
city.
Auditors
office
sit
down,
go
through
the
listing
of
the
pay
codes
and
make
sure
that
they're
they
calculated
correctly,
because,
obviously
you
know,
as
time
goes
on
different
pay
clothes
get
added.
J
One
of
them
was,
you
know
the
narcan,
you
know
so
sometimes
things
get
added
on
the
fly
and
you
know
mean
the
whole
ramifications
of
putting
in
the
payload
gets
lost
in
the
system
there
exactly
and
and
the
staff
who
did
that
testing
did
extrapolate
it
out.
It
was
not
a
it
wasn't
a
significant
or
material
amount
of
money
that,
but
it
wasn't
an
amount
of
money.
So
it
does.
You
know
that's
why.