►
From YouTube: City Council Sub Committee of 3-16-22
Description
City of Chelsea, Discuss Independent Audits for FY2020
https://www.chelseama.gov/city-council/events/125281
A
I'll
ask
the
clerk
for
a
roll
call.
B
Counselor
cooperville
is
absent:
counselor
t,
garcia,
yeah,
council,
robinson
yeah,
council
taylor,
he's
at
opera
council
lopez,
yeah,
council,
vega,
maldonado,
president
and
council.
I
was
in
ada
councillor
brown
council,
video
councillor
de
jesus
and
councillor
garcia,
judy.
B
B
A
C
I'm
sorry
about
that
good
evening.
Everyone,
my
name,
is
ed
dunn,
I'm
the
city
auditor
with
us
tonight
is
our
assistant
city,
auditor,
so
chet
toda
and
representatives
of
our
independent
audit,
firm,
roselli
clark
and
associates
tony
roselli
and
paul
gagano.
We
are
here
tonight
to
talk
about
the
fy,
20
audit
and
financial
reports.
It
is
important
to
keep
in
mind
that
this
is
fy
20,
not
fy21,
we're
a
bit
behind
on
this
because
of
covid
and
and
other
things
that
we
needed
to
get
through
in
order
to
gather
all
this
information.
C
C
D
So
I
apologize
for
being
late.
Just
talking
to
the
president
regarding
this
meeting
I
wanted
to
attend,
you
know
the
meeting
I
was
at
I'm
so
again
counselors.
This
is
something
that
we
have
to
have
annually.
It's
given
us
an
update
on
our
audit,
we'll
hear
tonight
the
the
overview
of
the
artist.
As
mr
dunn
has
stated,
we
are
behind
because
of
covet
we're
hoping
tonight.
We
can
get
some
feedback
from
you
over
the
past
years
and
also
identify
some
weaknesses.
E
My
name's
tony
roselli,
this
is
paul
gargano
and
we're
both
partners
with
roselli
clark
and
associates.
Thank
you
for
having
us
tonight
so,
as
has
been
mentioned,
this
is
the
2020
audit
we're
in
the
process
of
doing
21.
So
hopefully
we'll
be
back
not
a
year
from
now.
But
maybe
later
you
know
in
the
late
part
of
the
summer
or
the
middle
of
the
summer,
we'll
be
back
and
get
back
on
a
good
schedule
with
the
covet
and
everything
the
city
relies
on
a
lot
of
outside.
E
You
need
to
get
an
opeb
report,
a
pension
actuarial,
there's
just
a
lot
of
things
that
you
need
to
rely
on
from
the
outside
and
all
of
that
got
bottlenecked
with
with
the
pandemics.
So
the
city
like
a
lot
of
other
communities,
it
was
behind
and
is
in
the
process
of
catching
up.
So
so
I
commend
the
city
for
actually
getting
through
this
really
challenging
time.
E
So
today
I'm
gonna
talk
about
or
tonight
I'm
gonna
talk
about
the
economic
trends.
So
we'll
talk
about
where
you
are
with
your
reserves
and
where
they're
trending
and
how
you
compare
we'll
talk
about
your
bond
rating
because
it's
very
important
to
the
city
as
the
bond
rating.
You
do
a
lot
of
capital,
so
we'll
talk
about
how
to
maintain
it
and
and
what
you
need
to
do
to
keep
that
very
good
bond
rating
that
you
have
I'm
going
to
talk
about.
E
Opeb
there's
been
some
interesting
developments
in
opeb
that
are
helping
the
city
pension
same
thing
and
then
we'll
talk
about
some
informational
items
and
observations,
which
would
be
any
findings
that
we
had.
So
that's
what
we're
going
to
talk
about
today
and
excuse
me
if
I
haven't
mentioned
it,
but
the
powerpoint
is
what
I'm
following.
If
everyone
can
follow
along.
E
So
the
first
thing
I
just
for
those
of
you
who
are
new
to
the
process
I
just
wanted
to
describe
what
do
we
do
in
an
audit
and
the
first
thing
the
public
thinks?
Is
you
you're
doing
an
audit
you're
gonna,
look
at
everything.
You're
gonna
find
everything.
If,
if
somebody
had,
you
know
taken
something
for
five
dollars,
you
know
you're
gonna
know
where
it
is.
That's
really
not.
What
an
audit
is.
E
An
audit
is
more
of
a
a
process
that
is
put
out
by
the
the
gagas,
which
is
the
government
accounting
office
in
washington.
It's
called
the
yellow
book,
so
they
give
us
the
procedures
that
we
perform
in
the
process
of
performing
those
procedures.
If
we
see
something
that
we
believe
is
unusual,
that
requires
further
investigation
that
could
lead
to
a
a
misappropriation.
E
E
E
It's
also
sent
to
the
federal
government
to
see
if
you're,
in
compliance
with
your
federal
grants,
the
the
division
of
local
services,
which
is
the
state
office,
gets
a
copy
of
the
report
to
see
if
there's
anything,
they
need
to
be
involved
with.
So
that's
the
basic
reason
for
the
audit.
I'm
happy
to
report
that
there
was
a
clean
opinion,
which
means
that
we
had
no
qualifications.
E
We
did
have
minor
findings
which
we'll
talk
about,
but
but
to
rise
to
the
level
of
qualifying
the
opinion.
There
would
have
to
be
such
a
severe
event
in
the
city.
That
would
cause
us
to
do
that,
and
there
was
no
such
thing
as
a
material
weakness
or
a
significant
deficiency,
and
please
ask
questions
as
as
we
go
if
you
have
any.
E
So,
let's
move
along
to
economic
trends-
and
I
mean
this
is
a
great
slide
pays
for.
E
Trends
so
the
city's
balances
that
are
in
reserves
the
way
the
bond
rating
calculates.
The
reserves
is
over
40
million
dollars
about
43
million.
You
peaked
actually
back
in
2017
at
about
45
million,
and
it
looks
like
you're
making
your
way
back
there,
which
is
a
great
great
place
to
be
for
the
city.
You
can
see
that
back
in
2010
your
reserves
were
very
low.
Coming
out
of
the
great
recession,
your
reserves
were
probably
13
or
14
million,
which
is
low
for
a
a
city
of
this
size.
E
The
high
metric
that
the
bond
rating
agencies
look
for
is
15
percent.
So
so,
when
you
go
to
get
your
bond
rating,
they
have
seven
areas
that
they
look
at.
One
of
them
is
your
reserve
ratio
and
15
puts
you
in
a
tier
one,
category
for
reserve
ratio.
E
So,
with
respect
to
that
particular
category,
you're
well
above
the
15
percent,
so
in
the
eyes
of
the
bondholders
you're
in
good
shape
from
a
solvency
standpoint
and
the
city
is
balancing
its
budget,
it's
meeting
its
forecasts,
so
so
a
lot
of
good
things
to
get
that
reserve
ratio
where
it
needs
to
be
any
questions
on
those
two
pages.
Those
are
two
pretty
important
concepts:
okay,.
E
Okay
on
the
next
page,
I
just
talked
about
what
what
helped
you
get
to
these
good
numbers,
these
lofty
numbers,
so
the
the
local
receipts
exceeded,
forecast
by
6.2
million.
So
last
year
there
was
the
the
pandemic
things
were.
You
know
this
is
actually
a
great
number,
because
if
you
remember
at
the
end
of
20,
you
were
losing
a
lot
of
revenue
because
of
the
lockdowns,
but
you
still
manage
to
exceed
your
forecast
by
6.2
million
dollars,
which
is
which
is
fantastic.
E
A
lot
of
other
communities
barely
barely
got
past
even
on
their
revenues.
Some
had
deficits
in
their
revenues,
but
you
were
6.2
million
in
front.
The
biggest
number
was
the
motor
vehicle
excise.
When
I
looked
at
it,
your
expenses
were
5.5
million
under
budget,
so
you
had
an.
If
you
add
the
5.5
to
the
6.2,
you
had
an
11.7
million
dollar
budget
surplus,
which
was
then
offset
by
a
planned
use
of
free
cash
of
10.8
million.
E
E
So
your
your
bond
rating
is
a
double
a.
We
can
go
to
the
next
page
page.
Seven,
your
bond
rating
is
a
double
a
which
is
very,
very
good
investment
grade.
It's
one
step
below
the
aaa.
To
be
honest
because
of
the
demographic
profile
of
the
city,
it
would
be
very,
very
difficult
to
get
to
triple
a
not
impossible,
but
very
difficult
just
because
of
the
demographic
profile
which
doesn't
measure
to
like
a
wellesley
or
a
newton.
It's
just
it's
just
the
income.
E
You
continue
to
forecast
revenues
conservatively.
So
if
you
use
your
free
cash
and
your
budgeted
revenue
conservatively
you,
it
replenishes
it
by
itself.
Look
for
areas
where
you
can
enhance
revenues.
Look
at
your
local
receipts,
things
that
you
charge
for
when
was
the
last
time
that
you
had
an
increase
in
different
fees,
that
you
have
take
a
look
at
that
and
see.
E
If
there's
any
areas
where
you
can
increase
your
revenues
and
monitor
your
budget
aggressively,
which
the
city
does
city
does
a
great
job
on
its
budget
and
it
it
at
the
end
of
the
year.
It
does
a
good
job
of
turning
back
funds
to
surplus
long-term
financial
projections.
Always
look
ahead.
Look
at
what's
happening
three
years
down
the
road.
Do
we
have
a
major
event?
We
need
to
plan
for
now.
City.
E
Does
a
very
nice
job
of
looking
five
to
ten
years
down
the
road
enforce
your
financial
reserve
policies
and
one
of
the
things
we're
going
to
talk
about
next
is
opeb.
Your
other
post-employment
benefit
liabilities.
I'm
sorry
before
we
just.
D
Move
on
I
just
want
you
know
the
counselor,
especially
we
have
a
new
counselor
with
us
that
this
report
that
you're
giving
us
is
only
up
to
is
it
june
20th
for
2020.?
Yes,
okay,
all
right
so
just
want
us
to
know
we're
in
2022
about
to
go
into
the
next
year.
So
this
is
the
report
leading
up
to
2020..
E
Thank
you
any
questions
yet
other
than
what's
okay.
So
next,
let's
talk
about
your
opeb,
so
opeb
is
other
post
employment
benefits.
So
what
that
means
is,
as
employees
are
working
for
the
city
of
chelsea,
they
are
earning
a
benefit
each
year
that
they
work
because
at
the
end
of
their
careers
they
will
get
medical
benefits.
Life
insurance
they'll
get
certain
benefits
that
you
all
of
a
sudden
will
owe
them
the
accounting
standards
and
the
regulations
say
you
need
to
start
calculating
that
liability
now,
so
that
you
know
what
it's
going
to
be.
E
So
that's
good
news
that
liability
came
down
and
the
reason
it
came
down
is
there
was
a
a
favorable
trend
in
your
medicare
premiums,
so
they
were
projected
to
go
up
ten
percent,
but
they
actually
went
down
four
percent.
So
there's
a
14
swing
on
your
medicare
premiums
that
had
this
40
million
dollar
impact
on
the
city.
E
E
Your
discount
rate
is
3.25
percent,
which
is
on
the
low
end,
and
the
reason
it's
low
is
because
the
amount
that
you
have
in
the
plan,
which
is
about
2.4
million
in
relation
to
the
liability
which
is
160
million,
is
very
low,
so
your
discount
rate
has
got
to
be
lower.
So
if
that
discount
rate
goes
up
to
say
five
percent,
it
has
a
tremendous
impact
on
your
opeb
liability
that
starts
to
drop
significantly.
E
E
From
some
conversations
we
had
prior
to
the
meeting,
I
believe
the
city
is
planning
on
once
the
pension
becomes
fully
funded,
there'll
be
a
what
we
call
a
pension
windfall
that
falls
out
of
your
budget.
That
can
then
be
used
to
to
be
more
aggressive
with
opeb,
so
so
that
that's
a
very
good
plan
to
have,
and
when,
when
is
that
happening,
is
that
2028?
E
So
so
it's
it's,
not
it's
not
too
far
off
so
so
putting
what
you
can
into
opeb
now
is
is
the
best
step,
knowing
that
you're
going
to
have
a
lot
more
coming
in
beginning
in
28.
D
E
Yeah
I
mean
you,
don't
want
you
don't
want
to
be
in
a
situation
where
the
the
thing
that's
happening
is
people
are
living
longer,
right,
great
news
for
old
guys.
Like
me,
you
know,
but
but
but
not
not
good
news
for
the
cities
that
have
to
fund
the
liabilities,
so
you've
got
people
living
into
their
90s
now
easily.
E
You
know
with
the
medical
advancements
and
you
have
to
pay
their
meta
medical
benefits
so
that
that
numbers
that
life
expectancy
is
getting
bigger
and
bigger
and
bigger,
and
it's
stretching
out
so
it's
gonna,
you
don't
wanna
get
out
10
years
from
now
and
then
all
of
a
sudden
you
you,
the
city,
goes,
you
know,
has
a
major
financial
problem
because
you
can't
fund
your
your
insurance.
So
it's
definitely
something
to
think
about.
E
So
your
pension
liability
very
similar
to
opeb
only
it's
your
retirement
benefits,
so
if
you're
in
the,
if
you're
in
the
private
sector,
it's
like
social
security,
you
know
you
retire
and
you
get
a
you
get
a
social
security
check.
This
is
the
same
thing.
If
you
work
in
a
city
at
the
end,
you
get
a
pension.
The
city's
been
doing
a
great
job.
With
this
you
right
now,
you're
at
76.5
funded.
E
So
you
can
see
that
the
discount
rate
being
used
by
the
actuary
is
7.25
instead
of
the
3.25
that's
used
for
opeb.
So
that
reduces
your
liability
significantly.
Your
pension
liability
is
only
56.7
million,
so
you're
way
in
the
upper
tier
in
the
state
of
massachusetts.
Right
now
the
average
is
parac.
Put
a
report
out
last
week
is
65
percent,
so
you're
11
above
the
average
on
the
pension
and
you're
scheduled
to
be
fully
funded
by
2028,
which
is
about
seven
or
eight
years
ahead
of
most
of
my
other
clients.
E
So
so
the
city
is
doing
a
really
nice
job
on
the
pension
side
and
you'll
see
the
benefits
of
that.
Hopefully,
when
this
is
fully
funded
and
you
can
move
some
of
that
money
over
to
funding
your
opeb.
E
And
great
performance
on
your
investments
for
for
this
fiscal
for
that
fiscal
year,
16.1
percent
return,
so
that
was
off
the
charts.
Any
questions
on
pension
or
op
before
we
go
into
the
opera
slide.
D
I
got
one
question
with
the
pension,
I
mean,
I
see
that
the
state
average
is
65
and
houses
is
76.5.
E
I've
I've
seen
I've,
that's
a
great
question.
I've
seen
that
in
strategic
sessions
with
other
cities
and
towns,
I've
seen
that
talked
about
should
we
lower
what
we
put
in
the
pension
and
increase
opeb
most
have
taken
the
position.
Let's
take
care
of
one
liability.
First,
you
know,
let's
get
rid
of
our
pension
liability;
first,
we're
so
close,
and
then
let's
focus
on
opep,
that's
the
general
consensus.
But
that
is
a
good
question.
Some
have
said:
hey
it's.
The
whole
thing
is
really
a
retirement
bucket.
The
whole
thing.
E
So
if
we
lowered
some
of
the
pension
in
pension
assessment
that
we
make
and
increase
our
opeb,
you
know
that's
another
avenue.
You
can
look
at
with
your
actuaries
to
see
what
the
impact
is.
But,
but
that
is
a
good
question.
Most,
like
I
said,
are
not
doing
that
they're,
going
fully
full
on
board
with
the
pension
getting
that
out
of
the
way
and
then
moving
over
to
opeb.
E
Yeah,
unless
you
made
it
up
through
investment
returns,
which
we
don't
count
on
investment
returns
really
above
the
seven
percent.
You've
had
a
couple
of
very
fortunate
years,
but
now
we're
in
kind
of
a
bad
investment
cycle
now.
So
so
that's
an
unknown,
but
it
would
push
it
out
for
sure
no.
E
B
E
So,
unfortunately,
you
were
categorized
as
a
non-entitlement
community,
so
you
didn't
get
the
40
50
60
million,
that
a
lot
of
the
cities
around
boston
got.
You
got
11.9
million,
still
a
good
sum
of
money.
E
The
spending
can
be
done
one
of
two
ways:
it's
either
restricted
into
four
buckets,
which
is
revenue
replacement,
which
can
be
used
for
basically
anything
premium
pay,
which
is
to
pay
people
that
were
on
the
front
line,
employees
that
were
on
the
front
line
during
the
covet
pandemic.
E
Direct
covet
expenses
and
water
saw
cable
infrastructure.
Those
are
your
four
buckets
or
if
you've
done
a
revenue
replacement
calculation,
which
you
probably
have
done
at
this
point
for
year,
one
if
you
are,
if
you
can
take
the
whole
thing
as
revenue
replacement.
That's
what
I'm
recommending
that
way.
You
have
a
very
flexible
way
of
of
spending
it.
The
a
rule
just
came
out
about
a
month
ago,
that
is
allowing
a
one-time.
E
So
if
you
don't
meet
like
I
have
like
the
city
of
medford,
they
got
four
14
or
15
million
in
the
first
year
as
revenue
replacement.
E
So
if
you
got
14
to
15
million
you're
above
your
11.9
and
you'd,
be
you'd,
be
good
but
say
you're
below
the
11.9
say
you're
at
six
or
seven
million,
but
you
wanted
more.
You
could
actually
elect
to
take
a
one-time,
10
million
dollar
revenue
replacement,
so
you
could
call
10
10
million
dollars
revenue
replacement,
but
then
you're
done
calculating
revenue
replacements.
So
that
would
be
your
your
number
and
then
that
10
million
could
be
used
on
basically,
basically
anything
in
in
the
in
the
city.
E
So
so
that's
kind
of
the
the
overview
on
opera.
I
mean
we
could
talk
about
opera
forever,
there's
so
many
twists
and
turns,
but
that's
kind
of
the
overview.
Are
there
any
questions
on
on
that.
D
No,
we
it's
interesting,
but
but
again
this
is
something
that
we've
had
a
meeting
last
night.
We
have
a
vote
tonight,
so
it's
not
too
much.
We
can
input
on
it
right
now,
but
thank
you
for
putting
it
in
there,
because
it
is
something
that
we've
really
been
watching
the
funds
and
how
the
funds
will
be
dispersed
and
allocated.
Thank
you.
E
E
B
F
We
have
one
informational
item
in
the
management
letter.
It's
been
in
the
management
letter
for
a
couple
years.
Now
it's
a
new
lease
accounting
standard
that
goes
into
effect
next
fiscal
year.
F
It's
going
to
require
you
to
mainly
capitalize
all
you
all
of
your
leases,
all
of
your
material
leases
where,
in
the
past,
a
lot
of
you
know
if
you
lease
you
know,
computers
or
copiers,
the
user
usually
were
just
expensed
on
the
books
and
on
the
financial
statements,
and
there
wasn't
much
work
that
needed
to
be
done
now,
where
you
have
to
capitalize
them.
It's
going
to
require
the
departments
to
maintain
a
you
know,
a
perpetual
list
of
all
their
current
leases
and
we're
going
to
be
needing
that
you
know
for
the
audit.
D
So
that's
everything,
that's
everything,
automobiles!
You
know,
computers,
copy
machines
that
starts
in
2001
or
2022,
because
that's.
F
It's
been
threatened
to
go
into
place
for
a
number
of
years.
The
pandemic.
You
know
they
they
gave
you
a
little
more
leeway,
but
now,
finally,
it's
it's.
The
time
has
arrived,
so
we've
been,
we've
been
putting
this
in
the
management
letter
to
give
people
a
heads
up
and
some
time
to
comply
and
get
the
information.
Hopefully,
hopefully,
everyone's
heeded
our
warnings
and
is
going
to
be
ready.
D
For
us,
when
we
come
in,
can
I
ask
why
the
urgency
or
what
is
necessary,
to
put
everything
in
there
at
this
time?
We
haven't
done
it
in
the
past
years.
F
E
D
E
It's
the
obligation,
so
I'm
assuming
your
school,
probably
has
a
lot
of
chrome,
chromebook,
leases
and
and
a
bunch
of
other
leases,
but
those
are
off
the
they're
kind
of
off
the
books.
Now
that
obligation
is
not
on
the
books,
so
what
that's
going
to
allow
visibility
to
is
you've
got
this
big
liability
that
you're
paying
off
every
year,
just
like
a
bond
that
right
now
is
not
on
the
books.
So
so
it's
bringing
all
that
back
into
the
financials.
D
E
It
would
be
least
income
in
that
situation.
If
you're
leasing,
a
concession
stand
to
a
third
party,
it
would
be
lease
income
and-
and
it
would
be
a
lease
asset,
not
a
liability,
but
it
sounds
like
that
might
not
be
like
meet
the
threshold
of
being
material.
If
it's
a
small,
we'll
we're
going
to
look
at
at
all
of
them
and
then
then
decide
which
one
is
material
and
which
one
is
not.
Okay,.
D
E
F
And
then
our
actual
comments
and
observations
from
the
management
letter,
the
first
two
relate
to
receivables,
parking
ticket
receivables
and
fire
detail
receivables
in
the
case
of
parking
ticket
receivables.
I
know
the
city
has
worked
for
a
number
of
years
trying
to
get
the
parking
ticket
receivables
balances
on
the
ledger
which
has
been
accomplished.
F
The
city
had
been
recording
all
the
activity.
It
was
just
you
know.
At
the
end
of
2020,
a
full
reconciliation
hadn't
been
able
to
be
accomplished,
so
I
know
the
I
know
the
account
the
auditing
office
and
the
treasurer's
office
are
working
on
that.
I
don't
know,
I
don't
know
what
to
share
with
them.
Okay
right,
I
I.
C
F
And
I
believe
one
of
the
things
that,
in
addition
to
covet,
I
know
there
was
a
change
of
vendor
as
well,
and
I
believe
that
that's
really
the
last
step
is
getting
getting
a
good
prior
balance
out
of
the
vendor
to
be
able
to
reconcile
fire
detail
receivables.
Historically,
the
city's
always
reconciled
those
timely.
I
know
in
2019
there
was
an
issue
of
turnover
and
some
reports
didn't
get
run.
So
there
was
a
gap
where
months
weren't
getting
reconciled.
F
C
All
right
so
we'll
be
working,
then,
through
this
fiscal
year
and
we'll
probably
becoming
a
council
to
ask
for
a
supplement
to
just
zero
that
out.
We
don't
know
exactly
what
the
liability
is
yet
we'll
be
working
that,
through
in
the
next
several
months
and
we'll
come
to
the
council
with
a
proposal
to
resolve
it
once
and
for
all.
C
F
Is
student
activities?
These
are
the
funds
of
the
student
activity
funds
run
by
the
individual
schools,
our
you
know.
In
the
past
we
had
the
comment.
There
was
two
items.
One
was
that
that
the
the
funds
themselves
weren't
audited,
there's
a
requirement
of
an
annual
audit,
but
and
but
the
annual
audit
does
not
have
to
be
done
by
your
actual
auditor.
F
The
annual
audit
can
be
done
by
someone
internally
who's
not
involved
in
the
process,
but
according
to
the
department
of
elementary
and
secondary
education.
They
do
require
once
every
three
years
for
an
actual,
ought
independent
auditor
to
come
in
and
audit
them.
You
know
when
we
started
auditing
the
city
in
2019.
F
F
F
So
what
happens
is
as
the
schools
run
their
activities
that
their
checking
account,
you
know,
gets
drained
down
and
as
it's
getting
close
to
being,
you
know
fully
spent
they'll.
Send
the
invoices
upstairs
here
to
city
hall,
to
ask
for
money
to
be
replenished.
The
practice
recommended
by
deci
the
department
of
education.
Is
that
it
hand
it
gets
handled
through
the
normal
warrant
process.
So
you
know
once
so
there's
they
cut
the
checks
and
then
the
invoices
get
sent
up
to
the
city
auditor's
office
for
review
and
then
processed.
F
F
Now
it
was
bypassing
the
city,
audit
city,
auditor's
office
and
the
warrant
and
just
going
directly
to
the
treasurer's
office,
so
they
would
send
the
invoices
up
to
the
treasurer,
who
would
review
the
invoices
and
then
replenish
the
funds
and
then
notify
the
city
auditor
on
the
side
to
say:
hey,
we
just
replenish
the
account.
You
know
record
that
in
the
ledger
that
that's
not
the
recommended
practice
of
desi,
so
you
know
that
that
was
our
one
comment
remaining
on
the
student
activities
that
they
comply
with.
E
And
just
to
be
clear
so
that
everyone
knows
what
student
activities
are:
it's
the
yearbook,
the
prom,
the
dances,
the
field
trips,
it's
things
that
are
outside
of
the
normal
government
activity.
It's
it's!
It's
money
that
you
collect
from
the
students
that
you
have
a
stewardship
to
to
protect
those
monies
and
make
sure
they're
spent
properly
and
about
20
years
ago.
There
was
no
audit
requirement
and
there
was
a
lot
of
fraud
because
the
they
would
collect
the
money
from
the
students.
E
But
then
they
wouldn't
know
if
it
got
spent
on
a
field
trip
or
or
dance
or
whatever,
and
the
people
that
were
administering
those
knew
there
was
no
audit.
So
they
would.
A
lot
of
stuff
was
done
in
cash,
so
they
would.
They
were
taking
the
money.
So
these
regulations
went
into
play
that,
if
you're
going
to
run
the
activity
through
the
through
the
city
and
through
the
schools,
you
got
to
follow
all
these
regulations.
So
that's
just
to
kind
of
give
you
a
backdrop
of
of
what
this
is
all
about.
D
And
we're
aware
of
that,
and
we've
embraced
that,
because
again,
it's
accountability.
You
know
also
opens
up
a
fair
process.
As
you
stated
prior
I'm
celebrating
my
20th
year
on
the
council,
and
there
was
a
lot
of
conversation
about.
You
know
different
type
of
athletic
events
where
all
the
cash
was
taken
and
sure
cash
was
returned
in
and
since
that
the
council,
with
the
city
manager
prior
and
it's
on,
our
new
city
manager
have
been
keeping
a
close
eye
on
that.
D
So
that's
definitely
something
we
want
to
make
sure
that
everyone
feels
that
it's
a
safe
practice.
Yes,
counselor
glasses.
G
Is
the
correct
process
being
taken
care
of
now
so
are
they
is
the
school
going
back
to
the
auditor.
G
F
The
next
comment
was
related
to
stagnant
special
revenue
accounts.
A
number
of
years
ago,
the
department
of
revenue
was
actually
the
former
director
of
the
division
of
local
services
requested
that
the
audit
firms
kind
of
go
through,
and
you
know,
comment
on
if
cities
and
towns
have
stagnant
accounts,
because
not
only
is
it
money,
that's
not
being
used
it
also.
F
You
know
it's
cumbersome
when
they're,
when
you're
closing
the
books,
you
know
and
you're
also
reporting
your
your
balance
sheet
to
the
department
of
revenue,
and,
if
you
have
you
know
a
hundred
stagnant
accounts
there,
it's
just
it
makes
the
process
cumbersome.
So
they
requested
that
we
go
through
during
our
audits
and
and
make
a
comment
regarding.
Are
there
any
stagnant
accounts
and
you
know
and
try
to
get
you
know,
communities
to
to
go
through
the
process
of
investigating
the
accounts
and,
seeing
you
know,
is
the
purpose
still
still
active.
F
F
F
There
was
98
accounts
hundred
thousand
dollars
and,
and
again
this
could
be
old
grants
old,
revolving
funds.
You
know
gift
gift
funds
where
the
money
was
taken
in
you
know
five
years
ago,
but
you
know
they
were
fully
spent.
So
the
purpose
is,
you
know,
has
been
completed
or
it
just
could
be
funds
that
the
department
doesn't
know
they
have.
F
In
addition,
there's
also
some
capital
project
accounts,
but
you
guys
are
actually
you.
You
do
a
very
good
job
of
of
cleaning
up
those
accounts
over
time
and
using
them
in
the
cip
process.
So,
however,
at
the
end
of
2020
there
was
about
125
000
in
those
accounts
that
could
be
rehashed
and
reused
and
put
towards
other
capital
projects.
E
F
And
that
was
it
for
the
the
unresolved
comments.
We
did
have
some
prior
comments
that
were
resolved
by
the
city.
During
the
year.
You
completed
a
fraud
risk
assessment.
You
recorded
your
market
value
adjustments
in
your
investments
and
there
was
an
issue
with
retirement
deductions
that
were
also
that
was
also
completed.
H
So
all
of
the
items
in
the
manager
management
letter
are
ones
that
we
are
aware
of,
they're
ones
that
we
work
to
resolve,
but
they're
they
tend
to
take
a
lot
of
time
to
just
get
through,
and
so
we
chip
away
at
them
as
time
allows
so,
for
example,
the
special
revenue
accounts
all
these
accounts
that
are
there's
a
hundred
of
them.
They
have
relatively
small
dollar
values
in
all
of
them,
but
totally
they
add
up
to
600
000.
H
Yes,
that's
not
insignificant,
but
in
a
200
plus
million
dollar
budget.
It's
not
all
that
material.
So
it's
a
matter
of
prioritizing
the
time
of
the
auditors
and
saying,
okay,
you
know
we
have
so
many
other
things
we're
trying
to
accomplish.
When
the
auditor
has
time
he
in
his
office
turns
its
attention
and
starts
chipping
away
at
some
of
those
accounts,
so
we
can
close
them
out
and
typically
we
come
to
the
council
and
say:
we've
closed
out
these
accounts.
B
D
Okay,
so
thank
you.
We
appreciate
your
time
again.
We
thank
you
for
your
patience
with
us
and
apologize
for
the
tardiness,
but
again
it's
something
required
that
we
have
to
do
and
we
look
forward
to
getting
up
to
speed
on
the
2021
year
and
moving
forward
how
we
can
continue
to
consolidate
and
continue
to
work
with
our
treasurer
and
his
staff
and
make
sure
that
we
are
meeting
all
the
requirements.