►
From YouTube: Dearborn Heights Study Session: 8/21/18
Description
Study Session regarding the Plante Moran Financial Presentation taking place Tuesday, August 21st 2018.
Follow along with the presentation slides at this link: https://drive.google.com/file/d/16ZqfUm7p9nDgKuk9mABB1UeWG2GMH_wy/view?usp=sharing
C
Names,
Martin,
Olynyk,
I'm,
a
partner
on
the
audit
engagement
and
with
me,
is
Alicia
Watkins
and
Nikki
I'd
show
who
you
say,
thinking
the
restroom
right
now,
but
she's
gonna
come
right
in
so
they're
gonna
cover
the
presentation
on
the
just
overall,
the
financial
situation
go
over
the
financial
statements
a
little
bit
feel
free
to
ask
any
questions
if
you
have
any
during
the
presentation
or
if
you'd
like
to
you,
can
hold
up
until
the
end
as
well,
and
we
will
answer
to
our
best
abilities.
So
thank
you.
Thank
you.
D
So
what
we
thought
we
would
do,
and
we
were
invited
to
talk
about
specifically
about
the
city
of
Dearborn
Heights
financial
data.
We
thought
it
might
be
helpful
to
spend
some
time
giving
a
little
bit
of
background
instead
of
setting
the
stage
and
providing
some
context
around
governmental
financial
statements.
What
you,
as
a
governing
body,
should
be
looking
at
kind
of
interpretation
of
some
of
the
data
and
kind
of
start
there
before
we
get
into
the
actual
numbers.
D
Okay,
so
will
we
did
also
want
to
know
if
Nikki's
gonna
help
out
there
with
the
slides,
maybe
for
now
we
can
keep
going
and
follow
along
since
you'll.
Have
it
in
front
of
you
so
slide,
one
just
kind
of
gives
an
overview
of
what
we're
going
to
talk
about.
We
would
like
to
round
up
the
conversation
talking
a
little
bit
about
Public
Act
207
and
provide
a
little
bit
of
education
about
that.
There's
a
lot
of
discussion.
The
city
is
going
to
be
required
to
submit
a
corrective
action
plan
pursuant
to
public
act
OH.
D
So
before
we
dive
into
that,
though,
we
thought
it
would
be
helpful
to
maybe
provide
some
clarity
about
our
role
as
your
auditors
and
about
what
it
is
that
we
do
exactly.
So
that's
why
we
did
include
our
audit
opinion
in
here
I'm,
not
going
to
rate
it
too.
It's
three
pages
they'll
spare
you,
but
it
does
a
couple
of
things
so
one
it
clarifies
for
the
reader.
You
know
our
responsibility
versus
the
city's
responsibility
when
you're
looking
at
your
financial
statements,
so
we
are
just
so.
D
D
We
do
a
lot
of
much
of
what
we
do
is
validating
what's
been
given
to
us.
So
our
starting
point
is
that
your
finance
team
will
hand
us,
what's
called
like
a
download,
a
child
balance
or
general
ledger
download
and
those
are
all
the
numbers
that
comprise
your
financial
statements
and
that's
our
starting
point.
D
They'll
say
here:
Plante
Moran,
here's
our
numbers
have
at
it,
and
so
what
we
do
is
we
take
that
information
and
we
validate
it
back
to
your
system,
so
everything
that
we
receive
on
any
of
our
audits
we're
always
either
looking
to
validate
it
back
to
sorts
documents.
To
you
know
software
and
many
times
when
it
gets
into
auditing
procedures,
then
we
also
do
third-party
validations
with
banks
looking
at
vendor
invoices
actuary
reports.
So
those
are
all
the
things
that
sort
of
go
into
us
being
able
to
provide
an
audit
opinion.
D
C
F
C
Items,
that's
always
a
risk
items
cash,
it's
just
an
annual
organization
that
always
becomes
a
higher
risk.
So
that's
one
of
the
things
that
one
is
third-party
validation,
so
we
do
confirmations
with
all
the
banks
to
make
sure
that
the
balances
are
exactly
what
you
say,
but
we
also
work
with
the
treasurer's
department
to
make
sure
that
they
are
valid
and
look
at
the
reconciliations
and
things
like
that.
So
there's
a
lot
of
testing
back
and
forth
and
it's
not
just
one
department,
its
various
departments
throughout
the
city,
great.
G
I
was
a
lead
auditor
for
a
few
years
and
one
of
the
things
I
met
when
I
worked
for
an
aerospace
company,
even
though
the
company
was
paying
me,
I
was
working
for
them,
but
I
still,
if
I
had
any
findings.
That
is,
let's
say
like
some
of
the
stuff
that
I've
had
seen
here.
Significant
finding
it
was
I
was
actually
compelled
to
report
it
to
the
house
to
the
Federal
Bureau
of
it
I'm,
sorry,
FAA,
okay
or
even
if
it's
something
fraudulent
to
that
yeah
I,
obviously
as
its
aerospace.
G
G
D
So,
first
in
force,
first
through
our
primary
responsibility,
is
to
the
governing
body.
So
that's
that's
our
first
responsibility
to
make
sure
the
council
becomes
aware
of
anything
that
we
find,
and
so
that's
why
we
write
the
letters
that
we
do.
It
is
addressed
to
council
so
that
we
have
a
responsibility
there
when
we
perform,
because
we
perform
a
single
audit
for
the
city.
We
also
have
a
responsibility
to
report
any
findings
to
the
Federal
Clearing
House,
who
manages
it.
Basically,
it
has
a
database
for
all
communities
that
get
federal
grants.
D
So
if
you
get
a
federal
grant,
we
actually
do
the
filing.
We
take
our
audit
report
and
file
it,
along
with
our
findings
in
the
city,
provides
their
corrective
action
plan
and
that
all
goes
to
the
federal
Clearing
House
and
then.
Lastly,
we
also
file
everything
with
the
state
on
the
city's
behalf,
including
the
financial
statements
and
our
management
letter
comment.
So
those
are
kind
of
the
three
layers,
so
the
local
municipality,
the
governing
body,
the
state
and
because
you
receive
federal
funds.
It
also
goes
to
the
feds.
E
D
C
D
A
I
E
D
So
we
get
a
lot
of
information
from
the
comptroller's
office.
As
has
been
mentioned,
we
get
quite
a
bit
from
Treasury
on
pension
in
cash
matters,
but
then
we
also
interface
with
like
the
DPW
folks
when
we're
getting
into
like
water
and
sewer
fun
testing
I'm
in
that
activity.
We
do
work
with
those
folks
there
when
we're
testing
grants,
depending
on
the
type
of
grant
that
we're
testing.
Sometimes
we
interface
with
the
police
department,
Fire
Department,
the
CDBG
team,
so
it
depends
what
grants
were
testing
each
year.
D
There
have
been
times
where
we've
done
some
surprise
procedures
at
some
of
the
remote
locations,
so
I
think
last
year
or
two
years
ago
we
did
some
procedures
with
one
of
the
rec
centers.
So
sometimes
it
varies
each
year
because
we
do
build
some
different
procedures.
Oh
yes,
so
we
do
work
with
the
court.
We
go
over
there
I.
D
H
C
Ahead,
if
I
can
just
add
on
is
the
furnish
them
is
that
you
see
it's
not
the
format
that
the
city
gives
it
to
us.
It's
literally
a
an
account
balance,
quote/unquote
dump
from
the
system
and
that's
automatically
mapped
into
the
financial
service.
So
we
can
see.
Ok,
what
are
the
balances
and
everything
for
each.
You
know
for
cash,
for
receivables,
fixed
assets,
etc,
and
at
that
point
we
look
at
the
numbers.
C
We
go
back
to
test
it
to
make
sure
that
we
received
the
accurate
information,
so
the
the
interface
that
make
sure
that
the
download
was
accurate.
So
we
go
back
and
actually
trace
accounts
to
go
back
into
your
system
to
make
sure
that
it
worked.
And
then,
after
that,
that's
when
we
start
doing
our
testing
and
we
start
doing
this
old,
9:1
cache.
Ok,
that's
verified
that
that
cash
balance
is
actually
accurate,
that
it's
the
full
amount.
C
That's
not
misstated,
it's
not
too
low,
too
high,
which
ever
way
so
we
go,
and
we
test
that
balance
and
we
keep
going
line
by
line
essentially
to
make
sure
that
the
balances
are
accurate
in
the
finish
perfect.
So
it's
not
that
we're
just
given
potentially
incomplete
data,
and
there
it
is,
we
don't
take
anyone's
work
for
it.
It's
kind
of
like
Alicia,
said
before
that
you
know
you
can
have
no
the
faith
and
the
numbers
and
so
on,
but
you
have
to
test.
C
You
have
to
have
the
validity
I
mean
you
make
sure
that
it's
actually
accurate.
What's
given
to
us,
that's
why
we
can
give
you
the
opinion
letter
the
opinion
itself
in
front
of
the
finest
things
everything
else
belongs
to
the
city,
the
financial
statements,
the
numbers
and
everything
else,
the
opinion
letter
it
comes
from
us
saying:
yes,
we
tested
it,
we
can
rely
on
it
going
back
to
council
members,
as
he's
comment
about
some
of
the
findings
that
we
had
significant
findings.
Yes,
we
did
have
some
significant
findings
over
the
last
few
years.
C
Just
from
the
perspective
that
we
as
we
test
it,
we
had
adjustments
to
the
records,
so
we
had
posted
adjusting
journal
entries
in
order
to
make
sure
that
you're
in
compliance
with
Accounting
Standards,
so
again
the
published
document,
the
financial
statements
based
on
our
testing-
you
can
rely
on
it.
It
is
accurate
testing
and.
D
G
D
We
do
interview
employees
every
year
as
part
of
our
procedures.
That
is
a
requirement.
That's
been
passed
down
from
our
industry
and
we
talked
about.
We
asked
about
whether
folks
have
any
concerns
Weathers
areas
they
want
us
to
look
at.
We
have
a
responsibility
to
ask
people
if
they're
aware
of
fraud
or
a
suspicion
of
fraud
and
every
single
audit
that
we
do
so
that
is
a
part
of
our
process.
We
talk
to
different
people
every
year,
different
departments,
staff
management
and
we
will
always
talk
to
Council
as
well.
D
D
So,
starting
on
page
five
is
where
we
get
into
just
a
just:
a
high-level
conversation
about
financial
reporting.
You
know
when
you
look
at
your
financial
statement.
Sirs
there's
a
whole
lot
there,
as
you
know,
and
so
just
trying
to
break
it
down
a
little
bit
to
the
fact
that
you
have
a
set
of
you
know
a
couple
of
different
set
of
statements.
So
the
fund
based
statements,
which
is
like
your
budget
statements
and
then
you
have
these
government-wide
statements.
D
D
You
know
bills
to
vendors.
It's
not
looking
at
kind
of
the
full
picture.
It's
not
looking
at
30
year
dead
or
long-term
obligations.
It's
just
really
looking
at
what
happened
this
year.
How
do
we
do
and
do
we
meet
our
budget
and
then
the
government-wide
is
where
you
get
into
it,
really
the
full
picture
of
how
we
do
in
long
term
and
how's
all
the
resources,
the
city
doing.
We
pull
them
together
and
we're
going
to
talk
about
both
of
them
this
evening.
D
So
on
page
7
we
get
into
you
know
what
as
a
governing
body,
what
should
you
be
looking
for
when
you're
reviewing
the
financial
saving,
because
there's
a
lot
of
information
in
there?
So
certainly
the
auditors
opinion,
which
is
what
we
started
with
you-
are
always
going
to
be
aiming
to
receive
an
unmodified
or
a
clean
opinion,
and
that
basically
means
that
you're.
D
You
know
actual
revenues
and
expenses
compared
to
what
you
expected
them
to
be,
and
then
page
8
just
gets
into
some
some
other
things.
Some
of
this
is
actually
a
little
bit
duplicitous,
but
other
things
to
look
at
is
you
know,
are
its
particular
fun
subsidizing
another
fun.
It's
not
really
the
case
here,
but
some
municipalities.
We
do
see
that,
and
so
that's
important
to
understand
in
terms
of
how
the
finances
are
flowing.
D
The
last
item
talks
about
whether
there's
any
over
reliance
upon
any
one
revenue
source.
So
there
are
certainly
communities
that
might
have
a
really
large
industrial
client
or
you
know,
manufacturer
or
something
in
their
community.
That
makes
up
thirty
forty
percent
of
their
tax
base
if
they
lost
that
one
taxpayer
that
they'd
be
devastated,
you're
a
little
bit
more
diversified,
so
you
have
give
more
flexibility.
You
know
you
don't
have
as
much
risk
I
would
say,
but
that's
something
to
understand.
D
Are
we
over
relying
on
any
one
particular
source
and
what
sort
of
risk
does
that
leave
us
with
in
general,
for
municipalities,
as
we
all
know,
the
primary
sources,
property
tax
revenue
right?
So
when
the
market
hit
every
municipality
got
hit
several
years
ago,
all
right
so
getting
into
page
ten.
Let's
just
spend
a
little
bit
of
time
talking
about
fund
balance
cuz!
That's
it's
a
key
discussion
item
when
thinking
about
the
the
health
of
a
local
municipality.
So
so
what
is
what
is
fund
balance?
D
I
mean
it's
basically
the
difference
between
your
assets
and
liabilities
or
your
equity,
as
some
might
refer
to
it
in
the
private
sector.
Another
way
to
think
of
it
is
it's
similar
to
kind
of
our
personal
finances
right,
what
what
assets
do
I
own
and
what
claims
are
out
there
against
those
assets.
So
just
because
I
get
my
paycheck
for
a
thousand
bucks
doesn't
mean
I
have
a
thousand
bucks
available,
because
I
already
know
that
my
rents
due
and
my
utilities
are
due.
D
C
Misconception
a
lot
of
times
is
fun:
equals
cash.
Doesn't
that
because
a
lot
of
times
you'll
have
some
assets
that
come
in
still
that
are
not
necessarily
converted
to
cash
yet,
and
then
you
have
outstanding
liabilities
that
you
know
kind
of
Alicia's
example:
rent
payment
or
utilities.
Things
like
that.
So
it's
kind
of
like
what's
remaining
that
you
can
spend
in
the
future.
D
D
You
know
everyone
has
a
different
answer
on
this,
but
what
what
we're
hearing
more
often
is
is
kind
of
a
10%
threshold,
but
generally
for
thinking
of
a
bond
agency,
it's
10
to
20%
and
then
there's
some
other
metrics
we'll
talk
about
because
other
folks
have
put
out
all
their
metrics
but
kind
of
all
within
the
same
range.
I
would
say,
certainly
when
we
think
about
the
appropriate
target
for
fund
balance.
D
D
So,
on
page
11
I
think
we
talked
about
a
lot
of
this
I.
Think
one
thing
that
is
important.
The
second
bullet
on
this,
which
maybe
doesn't
get
talked
about
as
often
and
sort
of
in
today's
economic
time,
for
local
municipalities.
But
you
know,
there's
a
there's
appropriate
range.
Most
most
of
the
discussion
is
about
sometimes
whether
there's
enough,
if
there's
too
little,
but
you
can
also
have
a
situation
where
you
have
too
much
and
I
you
know
I.
We
had
that
conversation
with
one
of
my
clients
several
years
ago.
D
It's
a
it's
a
small
Authority,
but
they
have
a
millage,
and
you
know
they've
done
a
really
great
job
of
building
their
fund
balance
and
because
they're
small,
they
really
should
have
a
higher
percent.
They
should
probably
have
20
to
25
percent,
but
they
started
creeping
up
to
like
30
35,
and
you
get
to
that
point.
And
now
the
conversation
is.
Are
you
are
you
over
collecting?
So
it's
it's
a
balance
right.
You
want
a
hat.
D
C
To
you
want,
especially,
the
theory
is,
if
you
keep
the
fund
a
little
bit
lower,
the
current
residents
are
paying
for
current
services.
So
if
the
fund
balance
goes
up
too
high,
then
the
current
residents
are
potentially
paying
for
a
future
resident
moves
into
the
C.
So
there's
a
lot
of
schools
of
thought
on
that,
but
again
there's
a
wide
range
of
what's
kind
of
a
safe
I
guess,
fund
balance
and
that
10
to
20
percent
is
usually
the
threshold
to
look
at
again.
If
you
rewind.
B
C
D
Part
comfortable
range
yep.
Thank
you
all
right,
so
on
slide,
12
we've
talked
already
about
risk
tolerance,
loan,
your
revenue
sources,
sorta
versification
there
at
the
tax
base,
knowing
upcoming
spending.
So
that's
also
thinking
about
you
know
kind
of
looking
ahead.
A
lot
of
communities
are
doing
forecasting.
So,
if
you
are,
you
know
saving
for
a
particular
project,
or
you
know
you
know
economic
development
or
a
large
purchase
and
that's
part
of
what
you're
saving
for
just
like
you
know
what.
D
Personally,
we
might
have
a
little
more
cash
in
the
bank
when
we're
saving
for
a
vacation
or
saving
to
buy
a
new
car
or
house
or
whatever.
So
that's
something
else
to
take
into
account.
You
might
have
a
here's,
our
operational
reserve
target,
but
we're
also
saving
for
a
large
purchase.
That's
going
to
be
three
million
dollars,
and
so
we
want
to
have
that
in
addition
to
our
operational
target.
D
Yeah
so
whatever
the
case
might
might
be,
but
if
you're
yeah,
so
economic
development,
I,
would
say,
deferred
maintenance
and
capital
purchases
are
kind
of
probably
the
three
big
things
that
we
see
in
the
and
also
I'd
add
a
fourth
one.
Some
folks
are
also
saving
too
for
pre
funding
of
pension
and
retiree
health
care.
So
that's
probably
the
four
buckets
that
we're
seeing
where
folks
are
setting
aside
a
little
bit
more
than
they
normally
would
to
be
able
to
pay
for
those
things
in
the
future.
D
And
then
the
last
item
on
page
12
is
just
if
again
this
wouldn't
be
the
case
early
for
Dearborn
Heights.
But
just
you
know,
if
you're
talking
to
peers
out
there
like
a
Township
that,
for
example,
that's
a
1231
year
end,
they
levy
taxes
on
December,
1st,
like
they're,
you
know
counterparts
in
the
cities
and
then
they
collect
a
whole
bunch
of
cash
in
December
for
the
next
year
because
their
30-year
starts
in
January.
D
So
they
should
have
more
cash
because
there's
a
timing
thing
here
and
they
got
to
make
that
cash
cash
last
for
the
rest
of
the
year.
So
again
it's
just
varying
facts
and
circumstances.
So
then
page
14,
just
we've,
talked
about
the
range
small
versus
large.
You
know
when
we
think
of
small.
You
know
small
village,
small
township,
you
know
a
large
government,
you're
talkin
city
of
Detroit.
You
know
Dearborn
Heights
is
really
somewhere
in
between
those
the
GFO.
D
A
has
sort
of
always
suggested
that
best
practice
from
their
vantage
point
is
at
least
two
months.
So
that's
close
to
17%
when
the
state
of
Michigan
was
looking
at
scorecards
and
trying
to
assess
fiscal
health
of
communities.
Several
years
ago,
one
of
the
triggers
they
put
out
was
13%.
They
wanted
to
see
communities
have
at
least
13%,
so
just
some
other
ways
to
look
at
in
other
metrics.
That
other
folks
have
used
around
fund
balance
adequacy.
C
D
Then
the
last
slide
we
have
on
fund
balance
is
slide,
15,
just
clarifying
the
different
components
of
fund
balance,
because
if
you
think
of
your
financial
statements,
you
have
fun
balance,
but
then
you
have
all
these
categories
of
fund
balance
so
things
that
are
non
spendable.
So
that
literally
means
they
are
not
in
a
spendable
form
and
an
example.
The
best
example,
the
most
common
XML
I
guess,
was
probably
a
couple,
but
an
example
is
inventory.
For
example,
it's
an
asset.
It's
a
current
asset.
It
shows
up
on
your
balance
sheet
as
an
asset.
D
It's
not
something
you
can
spend
it's
something
you
will
use
over
time
and
deplete
that
asset,
so
that
has
to
get
pulled
from
you
know,
sort
of
available
cash
and
then
restrictions
are
anything
that
are
legally
are
contractually
restricted
by
third
parties
for
specific
purposes,
and
you
and
you
have
some
of
those
funds.
So,
for
example,
some
of
the
I
think
it's
30
percent,
but
there's
like
some
some
of
your
RMA
insurance
pool
money.
Some
of
it
can
be
used
and
some
of
it
has
to
be
maintained.
You
can't
touch
it.
D
It
has
to
be
available
to
pay
for
insurance,
or
you
know
some
communities
get
Metro
Act
monies.
Those
can
only
be
used
for
a
right-of-way
type
things,
and
so
peg
fees,
cable,
peg
fees.
Franchise
fees
can
be
used
as
you
want.
Peg
fees
are
designated
for
specific
purposes,
public
education
and
and
so
forth.
So
the
point
of
that
is
really
anything.
That's
restricted
is
a
third
party
restriction
and
even
as
council,
you
have
no
discretion
over
how
those
funds
are
spent.
It's
determined
for
you.
I
D
Are
long-term
assets
that
would
actually
not
be
in
those
numbers
because
they
don't
show
up
on
your
general
fund.
They
just
show
up
on
these
government-wide
statements.
So
what's
what's
typically
a
current
resource?
Well,
I!
Guess
a
non
spendable
item
would
be
inventory
prepaid
expenses
so
like
a
lot
of
times,
insurance
bills,
they
require
you
to
pay
early.
So
if
you
paid
that
in
advance
of
when
the
costs
were
the
services
were
used
or
costs
were
incurred,
you
would
have
a
prepaid
asset
that
you
use
over
time.
C
D
C
J
J
So
this
slide
shows
a
five-year
trend
of
the
corporate
fund
revenue.
So,
as
you
can
see,
a
revenue
has
remained
relatively
consistent,
increasing
year-over-year
with
a
small
drop
from
2016
to
2017,
and
we
should
talked
about
this,
so
property
taxes
do
make
up
the
most
significant
portion
of
your
corporate
fund
revenue.
Overall
growth
will
be
stalled
on
property
taxes,
as
those
taxable
values
continue
to
rise
to
where
they
were
pre.
2009.
F
C
Know
5
10,
even
15
percent,
depending
on
the
neighborhood,
depending
on
the
municipality,
you
can
only
tax.
The
maximum
is
five
percent
right
or
CPI.
Cpi
has
been
only
about
one
percent.
This
is
something
like
that.
So
that
creep,
as
you
know,
stack
scible
values
are
going
up.
Your
taxable
revenue
or
the
tax
revenue
is
not
gonna,
be
going
up
at
the
same
pace
by
any
means.
So
I
just
wanted
to
make
sure
that
remind
everybody,
because.
H
J
So
the
next
slide
shows
that
same
five
year
trend
for
the
corporate
fund
expenses.
So
there
has
been
some
fluctuation
over
the
years,
but
again
relatively
consistent
for
this
five
years
there
was
kind
of
an
increase
from
2016
to
2017,
primarily
related
to
you
can
see
in
public
works,
general
government,
public
safety,
mostly
related
to
cap,
away
expenditures
and
personnel
costs.
H
A
D
D
J
Slide
19.
This
statement
is
directly
from
the
2017
audited
financial
statement,
so
one
of
the
things
that
Leisha
talked
about
as
counsel
as
reviewing
of
the
budget
actual
statements,
so
this
just
show
that
just
for
the
corporate
fund
budget
actual
results
it's
over
the
top.
You
can
see
that
total
revenue
was
actually
four
million
dollars
less
than
budgeted,
and
then
it
breaks
out
each
function
of
government,
so
John
government,
public
safety
and
public
works.
J
In
total
there
were
no
variances
on
the
expense
side
and
then
the
rest
of
the
statement
is
on
slide
20,
where
it
shows
that
same
thing,
for
it
breaks
it
out:
Community,
Economic,
Development,
recreation
and
culture,
and
then
debt
service
had
no
budget
variances
for
the
year
ended,
June,
30th,
2017
and
then
in
total
at
the
bottom.
You
can
see
that
revenues
exceeded
expenses
by
1.3
million,
so
that
that
access
is
what
you
added
to
fund
balance
last
year
and.
C
E
J
This
shows
the
the
five-year
trend
of
corporate
fund
expenses
compared
to
available
fund
balance,
which
would
be
comprised
of
that
assigned
and
unassigned
that
Alicia
talked
about,
so
the
other
components
that
the
city
has
their
non
spendable,
which
we
talked
about
and
then
their
american,
which
have
those
outside
restrictions
on
what
they
can
be
used
for
based
on
the
revenue
source.
So,
for
example,
at
the
city
like
alicia
talked
about,
there
was
3.7
million
of
unassigned
and
2
million
of
assigned,
and
so
some
communities
like
to
focus
only
on
that
on
a
science
portion.
J
J
H
Question
for
you,
Nikki,
with
our
fund
balance.
Currently
at
thirteen
point
two
percent,
which
you
said
is
what
the
state
of
Michigan
typically
looks
for.
Ideally
and
I
know
you
had
mentioned,
preferably
over
ten
percent,
which
it
is
it
now.
If,
when
we
close
the
deal
on
a
golf
course,
that's
gonna
be
one
point:
eight
million.
Obviously,
it's
gonna
drop
as
I
understood
from
the
mayor.
A
lot
of
it
gonna
come
from
the
fund
balance.
Obviously
always
gonna
come
from
the
fund
balance
is
they're,
gonna
put
us
in
any
type
of
danger.
E
We
expect
the
revenues
to
exceed
expenditures
for
the
year.
Those
numbers
have
not
been
audited
yet,
but
there's
an
amount
that
we
have
in
mind,
and
so
it'll
it'll
principally
match
a
good
point
of
the
purchase
of
the
golf
cloth,
so
yeah
I'm,
not
I,
don't
know
that
it's
a
million
eight
there's
one
of
the
things
that
I
need
to
have
discussions
is
how
this
all
gets
affected.
E
When
because
the
golf
course
is
going
to
be
in
a
separate
enterprise
zone
on
enterprise
owned,
Enterprise
Fund,
so
consequently
I'm
not
sure
how
that
all
coordinates
and
relates
to
the
corporate
general
fund
balance
because
they
put
the
investment
in
the
enterprise.
Does
that
become
a
part
of
the
corporate
fund
balance?
Or
is
it
totally
separate,
and
only
in
the
cup
I'm
not
sure
how
that's
going
to
look
it'll.
J
E
My
thought
is,
the
revenues
that
are
generated
by
the
operator
of
the
golf
course
would
pay
that
particular
field
be
transferred
by
this
body
back
to
the
corporate
fund.
So
I
see
it
as
kind
of
a
receivable
for
the
initial
investment,
and
then
we
and
besides
some
1.8
million,
because
I
have
somebody
when
you
come
into
audit,
will
present
those
to
you
had
somebody
go
through
all
the
costs
in
regards
to
surveying
cost.
C
You
know
one
thing
I
do
want
to
mention
is
every
few
more
an
expense
of
the
corporate
fund.
It
doesn't
mean
to
be
evaluated
because
if
there's
no
intent
or
that
you
can't
pay
it
back,
maybe
it
should
be
an
expensive
that
for
an
expenditure
yeah,
it
should
be
looked
at.
So
it's
not.
You
know
a
definite
that
the
funds
are
going
to
be
infected
or
not.
C
C
Fund
example:
here's
the
water
sewer
fund,
so
basically
it's
a
fund
that
is
paid
back
by
the
users
of
the
fund
for
the
services
performed
so
for
water
and
sewer.
The
residents
that
purchase
water
they
paid
for
each
individual
unit
back
to
the
city.
Golf
course
will
be.
The
users
of
the
golf
course
will
pay
for
it
part.
E
Of
the
agreement
with
the
county
was
Eric
who
operates.
The
golf
course
pays
a
fee
to
County,
so
the
county
does
not
lose
money
on
it
or
it
takes
the
risk
of
operating
it
and
has
to
pay
a
fee
so
that
fee
I
see
in
the
future
is
paying
off
the
investment
of
the
1.8
plus
in
the
golf
course,
and
hopefully
would
bring
back
additional
revenue.
I
E
As
a
body,
we
all
need
to
sit
down
and
we're
getting
very
close.
Now
we
got
the
other
piece
on
the
insurance
this
week
or
last
week,
I'm
calling
off
it's
Thursday
or
Tuesday.
So
the
liquor
license
is
the
next
thing,
so
I
would
expect
that
the
closing
date
is
probably
just
after
Labor
Day
and
what
eric
has
to
do
is
he
pays
this
fee.
E
Yes,
and
so
consequently,
that
revenue
then
would
be
coming.
This
body
then
has
to
make
a
determination
in
myself
if
we
want
to
continue
with
Eric
or
use
somebody
else,
but
first,
let's
gain
possession
of
it
we're
enormous
at
the
end
of
the
year.
I,
don't
think
this
is
at
the
time
and
I
know.
Somebody
asked
me
about
a
plan
and
I
be
the
first
to
admit:
I'm,
not
a
golfer
I
do
not
claim
to
have
any
knowledge
on
how
to
run
a
golf
course.
My
suggestion
would
be
to
utilize.
E
Is
it
trust,
presa
from
plant
Brandt
who
assisted
us
in
the
purchase
and
doing
some
of
the
due
diligence
and
to
help
us
come
up
with
a
plan
to
maximize
because
I
think
there's?
In
fact,
you
and
I
have
had
conversations
and
I
totally
agree
and
I
think
at
the
last
meeting.
That
thing
is
being
underutilized:
the
banquet
center
nine
banquets
when
you
have
a
in
52
weeks,
Friday,
Saturday
and
Sunday.
That's
a
hundred
and
fifty
potential
dates
and
they
in
the
county
only
had
nine.
E
That's
ridiculous
and
and
I
think
that
some
of
the
items
that
are
related,
in
fact
when
I
talked
to
Eric,
he's
excited
and
I,
think
what
the
counties
told
us
to
leave
them
alone
until
we
close
and
I
would
suggest,
Eric
come
in
here,
but
Eric
like
to
put
some
simulators
and
some
other
things
that
maybe
you
as
golfers
would
appreciate.
I
know
what
a
simulator
is,
but
I
mean
he's
saying
that
in
the
in
the
wintertime
you'd
like
to
do
that.
My
feeling
is
that
it's
a
beautiful
view
from
the
restaurant.
E
I
E
E
I
think
we
can
do
much
better
than
that
with
with
these
ideas
and
thoughts,
and
that's
why,
on
the
crest,
no
staff,
there
were
two
people
that
I
worked
with,
and
we
did
our
due
diligence
and
went
to
the
golf
course
and
they
knew
the
stuff
in
in
essence,
like
I,
didn't
realize
that
carts
for
it's
the
first
thing
they
asked
Eric
was:
do
you
own
the
carts?
He
goes.
Oh,
no
I
brought
him
and
he
told
him
and
they
got
well.
That's
what
you're
supposed
to
do.
E
Nobody
owns
the
carts
and
then
and-
and
they
went
through
item
by
item
and
the
reason
we
did,
that
is,
we
wanted
to
make
sure
we
weren't
buying
something
that
was
going
to
just
was
losing
money.
It
was
not
losing
money.
Now,
commissioner
Webb
told
us
that,
but
in
her
due
diligence
and
they
opened
the
books
up,
we
found
it.
It
makes
money.
The
question
is,
can
it
make
a
lot
more
money
and
then
us
share
as
a
city
in
those
proceeds
and
I
think
we
can.
J
So,
moving
on
to
slide
23,
that
was
all
corporate
fun.
We're
gonna
give
into
the
water
and
sewer
fun
slide,
shows
the
five-year
trend
of
the
water
and
sewer
fund
operating
and
non-operating
revenue.
So,
as
you
can
see,
revenue
overall
has
remained
relatively
consistent
since
2014
slide.
24
shows
the
same
five-year
trend
on
the
expense
side.
Expenses
did
increase
in
2017,
but
that
increase
does
correlate.
If
you
look
back
to
the
increase
in
the
operating
revenue
on
that
previous
slide
bless.
K
E
Can
I
bring
up
one
thing:
there's
always
been
a
lot
of
discussion
in
regards
to
the
general
fund
that
the
water
in
soar
fund
are
subsidizing
to
general
fund,
which
should
not
be
the
case.
Each
should
stand
alone.
I
would
hope
that,
in
your
analysis
and
review,
you
can
help
give
assurances
to
some
of
the
councilmembers
and
if
somehow
it's
happening,
you
now
put
a
stop
to
it,
but
you,
if
you
find
that
we
are
doing
something
in
the
end,
it's
one
fund
is
subsidizing.
E
C
D
K
K
C
D
K
D
D
We
haven't
come
across
any
instances
where
any
one
fund
is
paying
for
something
that
they
shouldn't
be
I
just
want
to
say
that
outright.
However,
our
audit
is
not
a
100.
We
don't
audit
100%
of
the
city's
transactions.
We
can't
we'd
have
to
have
a
team
here
all
year
round.
You
process
thousands
and
thousands
and
thousands
of
what
we
do
was
beyond
on
a
sample
basis,
and
we
look
at
when
we
test
the
expenses.
For
example,
we
look
at
what
fun
paid
for
me.
What
account
II
got
was
ported
to
what
we
pulled
the
invoices.
D
C
Now
the
thing
to
just
also
say
so:
we
decide
on
the
sample
and
if
the
municipality
cannot
provide
the
sample
because
they
said
well,
the
invoice
is
missing.
Let's
just
say
we
don't
select
a
different
sample.
That
means
that's
an
exception
at
that
point.
It's
an
error,
so
we
need
proof
or
otherwise
it's
an
error
and
based
on
testing
that
we've
done
over
the
last
in
the
home
years.
We
have
not
found
any
errors
in
the
way
the
expenses
were
allocated
or
charged
to
which
fund,
which
account
acceptance.
Where.
D
We
found
errors
which
you'll
see
in
our
report
is
like.
Maybe
the
tiny
I've
wearing
things
like
it
should
have
been
recorded
in
this
fiscal
year
and
the
bill
came
in
late
instead
of
putting
in
the
right
year
it
got
put
in
the
next
year's
budget,
so
we
have
found
errors
relative
to
timing,
but
specifically
to
your
question.
Councilman.
H
So
you
said
when
you
do
find
errors
where
they're
put
in
the
wrong
year.
Is
this
something
that
you
look
into
where
this
is
in
order
that
something
happened
by
accident?
It
happens,
obviously,
with
8
billion
transactions
in
the
city,
it
could
happen,
but
if
it's
happening
to
consistent,
it's
happy
if
it's
happening
consistently.
What
is
the
next
action
step
that
you
take
to
make
sure
that
it
is
not
a
not
only
happening
consistently,
but
just
as
importantly
intentionally
or
worst-case?
H
C
What
we'll
do
is
we'll
test
and
see
how
much
of
a
dollar
amount
it
becomes.
So
if
it's
something
that's
of
significance,
one
is
that's.
Gonna
have
to
be
posted
and
adjusted
in
the
records.
So
that
way,
your
financial
statements
are
accurate
still
and
then,
on
top
of
that,
we
give
you.
We
provide
the
council
with
such
a
significant
deficiency,
so.
C
Was
issues
with
cut-off
and
we
had
adjustments
in
this
in
business
in
this
area.
If
it
we
come
up
with,
based
on
our
testing
that
the
dollar
amount
is
not
significant,
we
often
have
up
what
we
call
a
pest
adjustment.
So
technically
the
adjustment
doesn't
have
to
be
posted
by
the
city,
because
it's
not
materials
to
financial
statements,
but
we
still
report
that
pest
adjustment
to
you
so
that
way,
you
know
what
was
passed
on
to.
E
Any
time
they've
been
timing,
difference
and
I've
made
it
very
clear
that
we
don't
we
don't
play
around
with
that
stuff,
but
I've
concurred
in
a
post-closing
adjustment,
so
it
gets
in
the
right
year.
It's
only
appropriate
right,
I,
don't
recall
those
being
significant,
but
maybe
I'm
incorrect,
I'm,
gonna,
I'm,
gonna,
say
I.
Think
one
year
was
around
I,
don't
eighty
thousand
or
something
but
maybe
I
shouldn't
even
say
anything
I,
don't
recall
the
numbers.
C
I
There
was
a
particular
item
that
came
up
at
our
last
meeting
where,
as
well
cleared
up
now
that
you're
here
and
we
can
talk
about
a
vehicle,
was
purchased
by
the
water
department.
A
boom
truck-
and
you
guys
are
film
in
on
what
happened,
because
it
was
a
boom
truck
for
the
water
department
and
new
water
department
doesn't
wouldn't
use
a
boom
truck,
and
there
was
a
there
was
this
feud
about.
If
that
those
funds
were
coming
out
of
the
water
department
funds
and
what
they
were
for
the.
K
K
D
K
They
respond
that
protects
with
that.
My
question
was:
how
do
I
know
that
something
is
one
item
is
being
paid
for
from
water
and
how
do
I
know
it's
really
reinforced
there
is,
there's
got
to
be
a
check
and
balance
there,
but
why
would
anything
of
that
nature
be
even
charged
to
water
in
the
first
place.
E
M
Water
fund-
there's
inventory,
accounts
as
you
are
speaking,
and
one
of
them's
materials
for
parts.
So
a
lot
of
those
parts
because
of
the
DPW
is
part
owned
by
the
water
department.
All
of
those
expenses
get
posted
to
the
inventories
of
the
water
department
and
then
it's
requisitioned
out
and
reimbursed
by
the
appropriate
department.
So
the
part
to
the
boom
that
he's
talking
about
not
that
I've
seen
it
physically
the
requisition
it
will
be
put
back
to
the
DPW.
M
K
That's
what
I
want
to
do
I
want
to
follow
the
trail,
to
make
sure
that
everything
that
not
considered
water
gets
paid
back
to
water
I
mean
that
you
know
I'm
told
that
the
water
department
owns
everything.
So
if
the
water
department
owns
something-
and
somebody
else
is
using
something
that
belongs
to
water,
should
they
be
paying
water
to
use
them,
I
mean
that's
just
like
you
have
a
house
I'm
using
your
house.
Don't
like
pay
you
the
same
thing.
It's
to
me.
K
It's
just
wood
nickels
at
that
point
in
time,
but
it's
got
to
go
back
to
that
fund
and
I.
Don't
see
that
paper
trail
they
did
the
exact
part.
That's
purchased,
actually
go
back
to
water.
I,
don't
see
it,
they
can
say
a
portion
of
it
goes
back
a
certain
amount
or,
however
they
do
it.
But
I
want
to
know
that
to
me
that
the
bill
should
never
even
be
charged
to
water.
Should
you
know
we
the
highway
fund?
We
have
a
repair
and
maintenance
fund.
K
D
E
If
the
cops
I
think
all
of
us
are
in
unison,
because
I
keep
getting,
this
question
is
I'm,
not
sure
why
that
I
have
a
guest,
a
menace
of
why
that
procedure
was
set
up.
But
that's
how
we
follow
it
here
and
I.
Don't
have
a
problem
with
it
going
directly
to
highway.
I
suspect
that,
because
of
the
restriction
on
X
51
money,
somebody
came
up
with
this
vehicle
to
utilize
to
allocate
the
costs
and
take
that
look
as
to
whether
or
not
a
qualifies
for
act
51.
E
But
that
is
that's
one
guess
the
other
thing
as
most
communities
and
probably
if
we,
if
we
were
in
Livingston
County
you'd,
find
that
young
cities
that
are
growing
finance
their
operations
through
tapping
fees,
I
assume
that
still
the
proper
thing.
So
when
this
city
was
first
formed
and
they
were
charging
two
thousand
dollars
for
people
to
tap
into
the
water
that
gave
up
cash-rich
back
in
the
in
the
60s
mid
60's
here,
and
so
the
water
department
ended
up.
E
D
E
Well,
that's
what
I
keep
being
being
told
so
I've
been
telling
them
if
I'm
incorrect.
So
even
I'm
not
asking
you
necessarily
in
because
I
am
certified
I'm
concerned
about
the
procedure
and
that
the
procedure
makes
sense
and
it's
being
followed.
It
is
number
one,
but
number
two
is
I:
don't
have
a
problem
changing
procedure
of
direct
allocation.
If
that's
what
we
should
do.
G
D
G
A
G
D
G
Yes,
since
we're
on
this
topic:
okay,
so
since
2012
I
went
back
to
2012
audits
every
year,
there's
a
hit
with
allocation
of
money
or
something
from
what
this
fund
to
or
from
the
water
fund,
moving
to
another
fund,
so
going
I
guess
going
to
what
councilman
must
have
mentioned.
Since
you
guys
already
found
there
was
a
deficiency.
There
was
money
taken
away
from
that,
let's
say
whatever
$100,000
the
following
year:
do
you
guys
audit
to
make
sure
that
money
gets
put
back
into
the
water
fund,
for
that
particular
amount?
I.
C
G
D
Years
so
we're
kind
of
reminding
ourselves
about
our
procedures
from
here
goes
to
that's.
Why
I
pulled
up
this,
so
we
did.
You
know
I
kind
of
made
the
general
statement
that
it's
prudent
to
revisit
your
cost
allocations
and
that
something
that
we're
constantly
looking
at.
We
do
have
a
comment
in
last
year's
letter.
That
says
so
some
of
them
are
just
general.
Some
of
it
says
you
have
some
ruled
allocations
that
you've
got
to
revisit
and
refresh
and
make
sure
they
so
make
sense,
but
we
did
actually
because
of
the
act.
D
51
audit
requirement
that's
going
to
be
out
there
getting
to
some
of
that.
We
do
note
that
there
were
some
equipment
charges
for
major
and
local
roads,
for
which
the
source
data
could
not
be
produced,
so
the
trail
wasn't
clearly
there,
and
so
that
actually
is
the
finding.
In
our
report
last
year
we
were
just
trying
to
catch
up
to
you
guys
who'd
be
able
to
talked
about.
This
was
good
in
the
year,
but.
C
A
lot
of
the
findings
from
the
allocations
are,
from
the
perspective
of
making
sure
you
update
the
analysis
so
that
you're
utilizing
the
correct
percentages
of
how
much
to
allocate
the
rates
the
hours
etc.
If
the
city
has
been
updating
a
lot
of
that,
not
the
whole
thing
yet
now
during
our
testing.
Looking
at
the
allocations
and
things
like
that,
it
did
look
reasonable
but
again
they're
dated
calculations,
so
we'd
like
to
the
city
to
update
them.
D
So
your
question
was:
do
we
go
back
and
look
at
the
prior
year,
so
we
we
do
revisit
them
just
to
understand.
If
management's
made
any
progress,
if
there's
been
any
changes,
if
systems
or
processes
have
been
improved
and
then
we
sometimes
we
did.
We
designed
the
procedures
based
on
what
we
learned.
So
if
you
know
if
we
found
something
to
be
an
error
and
we
went-
and
they
said
oh
well,
you
know
we
haven't
had
a
chance
to
get
into
that.
You
know
we
had
ten
things
to
do.
D
I
D
Very
know
what
the
outcome
is
going
to
be
great.
These
things
haven't
been
addressed
with
two
of
the
things
that
we
understood
to
be
improved,
that
we
have
to
go
in
and
validate
that
it's
been
improved
and
the
issues
are
no
longer
still
present.
So
we
do
follow-up,
but
some
some
things
change
every
year,
so
our
other
procedures
are
not
exactly
the
same
year
over
year.
We're
required
to
build
some
unpredictability,
so
we
could
have
something
come
up
this
year,
based
on
something
new
and
different,
that
we
did
that
we
don't
do
every
single
year.
I
C
The
money
needs
to
be
transferred,
normally
the
issues
that
we
identify,
for
example
the
cutoff
issue
for
expenses.
That's
already
corrected
in
the
statements.
We
just
want
to
make
sure
the
following
here
that
your
cutoff
is
not
wrong
again
to
following
it:
okay,
so
it's
not
that
you
need
to
transfer
money
back
or
anything
like
that,
because
the
statements
are
still
accurate
because
we
made
sure
that
those
adjustments
were
posted.
C
It's
just
next
year
we
go
in,
and
that's
gonna
be
why
those
things
that
we'll
test
again,
because
we
knew
that
there
were
problems
in
the
past
okay.
Now
we
test
other
things
as
well,
but
if
there's
problem
areas
we'll
make
sure
that
hit
those
again
because
I
mean
from
year
to
year,
unless
we
see
continuous
improvement,
we're
gonna
keep
testing
the
same
thing.
D
E
A
couple
audit
once
that
have
been
for
a
couple
years
and
Linda
and
I've
talked
by
cheetahs
started
in
January.
So
those
audit
comments
from
last
year
really
with
John
who
left
at
December
31st,
but
the
two
that
we
wanted
to
kind
of
concentrate
on.
One
was
the
payroll
system
recording
a
lot
of
the
accruals,
and
so
Linda
has
suggested
to
me
using
we
found
that
ADP
could
not
handle
that
comment.
So
she
found
another
company.
I
met
with.
E
What's
the
name
of
the
company,
so
I
don't
know
if
you're
familiar
with
them,
they
have
said
that
they
can
do
that
in
the
payroll
system.
So
I
have
to
make
a
decision
tomorrow
if
we're
going
to
go
with
them,
but
that
would
hopefully
eliminate
the
one,
and
the
second
thing
that
we've
talked
about
is
when
John
was
here.
I
talked
about
during
the
summer,
be
SNA
getting
the
fixed
asset
package
and
then
getting
the
fixed
assets.
E
All
updated,
I
think
we're
going
to
come
back
to
the
council
and
ask
them
to
purchase,
be
us
in
a
software
and
then,
when
this
got
a
plan
to
attack
that
so
we
we
do
take
these
seriously
because
I
don't
want
to
keep
going
Plus
when
I
was
an
auditor,
nothing
was
more
frustrating
than
if
you
had
an
audit
comment.
You
came
back
to
the
client
and
it
was
like
it
was
ignored.
We
don't
ignore
seriously.
J
Okay,
so
moving
on
to
slide
25,
which
is
on
the
Water
and
Sewer
corner.
So
this
slide
shows
the
five
year
relationship
of
net
income
to
operating
revenue
in
the
water
and
sewer
fund,
and
the
key
thing
we
wanted
to
point
out
here
is
a
net
income
being
positive
for
those
past
five
years
shows
that
the
rates
you're
setting
have
been
sufficient
to
cover
operating
expenses,
but
we'll
talk
about
more
about
operating
income
after
town
of
slide
26.
J
J
The
enterprise
to
make
its
people
yep
so
there's
four
components
of
that
position.
So
the
most
significant
piece
is
this:
is
this
orange
column?
So
this
is
the
investment
made
in
your
infrastructure
and
assets
of
the
system,
and
then
you
have
two
two
categories
of
restrictions
that
are
set
aside,
that
are
funded
through
property,
tax
levies
and
also
assets
that
are
held
with
the
county
to
pay
off
debt.
And
then
this
small
portion
is
your
unrestricted
or
what's
available
to
be
spent
by
the
city.
L
J
So
we
went
to
slide
to
the
next
section,
so
slide,
28
we're
gonna
get
into
the
government-wide
statements,
or
we
should
talked
about
the
two
bases
of
accounting,
they're
included
in
your
financials.
So
this
is
a
screenshot
of
the
June
30th
2017
statements.
This
is
the
government-wide
statement
of
net
positions,
so
it's
the
balance
sheet
on
this
full
accrual
basis.
So
this
is
where
you'll
see.
J
So,
if
you
wanted
to
like
it's
pg9
of
your
of
your
statements,
so
this
is
where
you'll
see
long
term
assets,
so
capital
assets,
the
long
term,
liabilities,
the
debt
pension
and
retiree
obligations
that
you
wouldn't
see
reported
on
a
fund
based
statement
and
then
the
second
part
of
the
statement
opposition
is
on
slide
29.
So
this
shows
all
the
components
of
your
net
position
for
your
governmental
activities.
The
business
type
activities
your
component
units,
and
so
this
snippet
really
does
show
it
gives
a
good
picture
of
the
long-term
financial
health
of
a
city.
J
This
is
on
page
10
of
your
statements.
So
if
you
look
down
this
unrestricted
deficit,
it's
85
million
at
the
bottom,
so
the
unrestricted
opposition
for
the
governmental
activities
in
total.
So
this
is
all
of
your
funds
except
water
and
sewer
in
component
units.
So
the
fact
that
that's
negative
indicates
that
legacy
costs
the
pension
and
retiree
health
care
costs
earned
today
have
not
yet
been
funded.
But
if
you
come
down
further
total
in
that
position,
it's
just
it's
a
it's
a
deficit,
it's
a
smaller!
D
So
this
is
gonna
tie
into
our
public
xu
a
two
conversation
where
the
states
kind
of
come
in
and
said:
wait
a
minute.
Everyone's
got
these
huge
unfunded
liabilities.
You
know
most,
maybe
not
all,
but
most
communities
in
the
state
and
what
are
we
gonna
collectively
all
do
about
it
from
sort
of
a
fiscal
sustainability.
G
G
D
Funding
is
part
of
it,
so
they
require
they're
requiring
you
to
have
a
corrective
action
plan
as
to
how
you're
going
to
deal
with
it
you
so
it's
gonna,
be
a
combination
of
reducing
the
library,
the
ability
and
or
increasing
assets
to
close
the
funding
gap
so
that
you're,
better
funded,
so
part
of
it
will
be
more
more
funding,
but
part
of
it
will
also
be
looking
at.
Like
your
plan.
C
Ss,
investing
the
cash
to
make
sure
that
you
have
some
earned
revenue
from
that.
The
banker
returns
right
now
are
so
small
that
if
you're
able
to
put
in
a
trust,
there's
other
vehicles,
you
can
invest
in
to
get
a
better
rate
of
return.
So
there's
just
a
lot
of
things
you
can
do,
but
it's
not
an
overnight
requirement
to
get
to
a
certain
level.
So.
G
C
E
There
for
pension
and
what
I
was
told,
there's
a
number
that
for
the
audit,
oh,
but
health
care
law
building
was
168
million
693.
All
my
discussions,
seminars
I've
got
to
is
I
was
told
that
by
2048
or
30
years
we
have
to
be
at
a
forty
percent
funding
of
that
168
and
that
controlling
factors
are,
like
you
say,
putting
money
in,
and
that
would
but
other
controlling
things
is
your
plans.
E
What
you
offer
for
health
care,
which
is
this
gentleman
here,
helps
us
in
that
regards,
and
so
we
got
to
come
up
with
a
plan
that
the
council
has
to
all
agree
on
and
I
have
to
agree
on
as
a
mayor
separately
and
submit
that.
So
that's
when
I
think
mr.
Camilleri
from
your
firm
is
going
to
help
us
and
take
us
through.
So
we
can
formulate
this
plan
in
that,
hopefully,
Treasury
would
adapt.
D
K
See
this
has
been
the
question
for
quite
some
time
when
we
saw
the
160
call
169
million
dollars.
How
does
anybody
I
mean
even
comprehend
that
much
money,
and
even
if
you
take
takes
you
30
years
to
get
to
a
certain
percent?
It's
almost
like
a
double
double
whammy.
There
you
have
to
make
up
that
difference,
but
still
pay.
As
you
go
correct.
E
C
N
Name
is
jonathan.
Sri
amphi
from
plant
moran
group
benefit
advisors.
We
we
help
the
city
manage
the
the
active
and
retiree
benefit
plans
that
are
offered.
So
what
are
some
things
that
other
communities
are
doing?
I
mean
some
communities
have
taken
them?
I
would
call
it
the
more
draconian
approach
of
eliminating
retiree
health
care.
N
Some
communities
are
doing
that
prospectively,
including
including
here,
where
some
new
employees,
based
on
the
most
recent
collective
bargaining
agreements,
anybody
hired
into
the
city
new,
wouldn't
in
the
future,
get
retiree
health
care.
There
are
other
things
that
are
going
on,
though,
in
the
healthcare
industry,
especially
right
now
around
controlling
costs.
N
So
in
the
past,
medical
benefits
have
been
predominantly
driven
through
networks.
So
you
have
a
PPO
plan
or
an
HMO
plan
that
gives
you
access
to
networks
and
you
are
or
the
plan
sponsor
accepts.
Whatever
reimbursement
rates
are
negotiated
by
that
PPO
or
HMO,
so
Blue,
Cross
or
Health
Alliance
plan,
or
or
name
your
insurance
company,
you
as
the
employer,
are
accepting
what
those
insurance
companies
or
those
networks
are
negotiating
with
the
hospitals
for
purposes
of
reimbursement.
N
There
is
a
growing
trend
in
health
care
that
saying
employers
are
trying
to
take
more
of
that
control
back
to
say,
insurance
companies.
You
are
no
longer
working
in
my
best
interest,
my
interest
being
the
employers
interest
to
control
costs,
so
I'm
no
longer
going
to
rely
on
you
negotiating
reimbursement
levels
with
hospitals,
I'm
going
to
do
that
myself.
N
I
am
going
to
piggyback
off
the
work
of
the
federal
government,
who
gets
the
best
deals
and
I'm
simply
going
to
pay
some
type
of
function
of
what
the
federal
government
pays
and
you'd
be
shocked.
You
know
I've
seen
some
of
these
numbers
where
a
Blue
Cross
or
a
Health
Alliance
plan,
or
an
Aetna
they're,
paying
about
250
to
400
percent
of
what
Medicare
pays
for
that
same
service.
N
So,
if
we're
able
to
simply
piggyback
off
the
work
and
the
the
pricing
that
the
federal
government's
putting
in
place,
we
could
actually
keep
benefits
the
same.
There
would
be
lower
reimbursements
to
the
hospitals
and
doctors,
but
still
fair
and
we
could
actually
lower
costs.
So
it's
it's.
It's
a
it's
a
growing
trend
and
it
allows
benefits
to
be
maintained.
Let's
still
control
costs,
okay,.
G
J
D
So
I
was
just
saying
it's
it's
a
little
misleading
unfairly
so
and
I'll
tell
you
why?
Because
actuators
have
always
used
this
actual
required
contribution
language,
which
is
appropriate
for
like
a
pension
system,
because
you
do
have
a
legal
responsibility
to
fund
that
this
state
mandates
local
communities
to
fund
that
that
language,
just
stuck
so
for
Oh
keV,
that
language
has
been
used,
actually
are
required
when
in
actuality,
it's
not
required.
There's
no
legal
authority
which
requires
a
community
so
actually
going
forward
that
language
has
been
changed.
D
It's
now
called
actuarial,
determined
contribution
because
it
was
tripping
up
folks
saying
everyone
was
thinking.
You
had
a
requirement
because
that's
the
language
that's
used,
but
for
Oh
pav,
there's
nothing
that
where
this
state
does
not
require
or
any
other
you
know,
authority
does
not
require
you
to
make
that
so
going
forward.
That
language
is
a
cure.
You're,
going
to
see
that
language
change
in
actuarial,
valuations
to
ADC
or
actual
determined
contribution
for
OPA.
E
And
the
law
in
Public,
Act,
OH
I,
read
that
it
said
the
plan
to
be
submitted
had
to
be
affordable,
which
would
indicate
that
there's
no
way
you're
gonna
pay
one.
Third,
like
the
city's
around
forty
million
dollars
in
the
use.
What
thirteen
million
of
its
total
revenue
for
an
open
up
liability
that
is
not
going
to
be
incurred
right
away,
is
not
yes,.
D
So
it
has
to
be
like
a
fair,
reasonable
and
they
do
use
the
word
affordable
plan,
which
it's
I
think
it's
the
municipal
stability
board.
They
put
in
place
that
what
it's
called
and
they
actually
have
to
approve
your
plan.
So
your
community's
can't
just
throw
a
fluff
plan
together
and
say:
hey
we,
we
put
a
plan
together
and
check
the
list
they
have
to
say
is
this?
Is
this
sustainable?
Is
it
reasonable?
Is
it
measurable?
Are
there
any
limitations?
E
D
A
D
C
Risk
there's
different
reasons
for
setting
up
a
trust.
Earlier
I
mentioned
that,
if
you
put
in
a
trust,
you
can
usually
invest
in
different
vehicles.
So
that
way
you
can
have
a
better
return
versus
keeping
the
money
in
the
city
in
the
city.
My
assumption
is
your
returns,
probably
about
one
percent
on
your
funds
and
the
trust
you
can
probably
get
up
to
a
few
percentage
points,
so
you
can
build
up
that
balance
much
quicker.
So
that's
usually
a
really
good
way
of
doing
that.
C
That
and
the
trust
does
technically
separate
the
funds
away
from
the
city.
So
it's
City
no
longer
has
control
over
it,
but
it
does
separate
that
money
specifically
for
that
purpose,
so
there
are
definitely
benefits
to
it
that
I
guess
the
negative
is
that
the
city
no
longer
has
the
funds
within
the
city
bonds.
D
K
D
E
The
reason
I
wanted
we
looked
at
the
trust.
The
difficulty
was
especially
if
you
go
back
three
or
four
years
is
cash
flow.
The
one
thing
that's
really
impressed
me
that
in
running
a
governmental
operation,
cash
flow
is
so
so
important,
and
if
we
move
that
in
revocable
trust,
you
can't
draw
the
money
back,
I'm,
not
sure
if
they
can
loan
money
back
and
so
the
concern
was
and
the
reason
it
didn't
go
into
revocable
trust
because
we
needed
that
cash
flow
for
John
to
operate
and
paid
the
bills
as
a
treasurer.
E
D
K
So
I
would
rather
see
someone's
healthcare
retirees
money
regardless
if
it's
a
pension
of
health
care
be
put
somewhere
where
you
can't
touch
it,
but
I
didn't
write
it
down,
agree
I,
don't
like
the
idea
of
cash
flow
and
I
needed
I'm
going
to
take
it
because
there's
no
guarantee
it
goes
back
in
that's
been.
My
number
one
concern
is
to
make
sure
these
people
get
everything.
They've
worked
for
and
they've
been
promised
agreed.
K
I
L
Of
vanish
on
Timoney,
which
was
out
tension
attorneys
in
Gary,
we've
already
kind
of
started
the
process
of
doing
a
big.
It's
a
125
trust.
Okay,
it's
other
thing
was,
is
then
the
market
crash?
And
then
we
said
well,
they
put
it
on
the
shelf.
Is
we
had
no
money
to
fund
it
and
then,
if
a
something
better
may
come
up-
and
you
know
what's
a
wide
word-
the
trusted
himself
I
mean
if
there's
already,
there's
already
started
the
process.
L
E
D
D
N
The
industry
right
now
is
between
nine
and
twelve
percent
a
year
for
health
care
that
the
city
operates
a
self-assured
medical
plan,
so
you
can
see
from
year
to
year.
Those
increases
vary
quite
a
bit,
but
if
you
look
at
it
over
time,
like
a
five
or
six
year
period,
you're
gonna
see
a
run
rate.
That's
very
similar
to
what
the
market
is.
E
N
E
G
N
N
That's
a
that's
an
opportunity
where
that
like
I
was
explaining
earlier
where
GM
said.
Listen,
we
have
enough
purchasing
power.
I!
Don't
need
to
rely
on
an
insurance
company
to
negotiate
an
arrangement
with
a
health
system,
I
negotiate.
All
I've
got
some
of
the
best
negotiators
in
the
world
working
here.
Let
them
let
them
handle
that
and
negotiate
something
direct
with
Henry
Ford.
The
truth
of
the
matter
is
any
employer
can
do
that.
You
actually
don't
need
the
purchasing
power
of
General
Motors
to
do
it.
You
just
need
to
be
working
with
somebody.
N
That
knows
how
to
do
it.
So
there's
opportunities
like
that
out
there
there
just
hasn't
been
much
of
an
appetite,
and
frankly
there
may
have
been
an
absence
of
the
knowledge
that
you
could
do
it
that
way
it
was
even
an
option,
so
you're
seeing
more
employers
get
creative.
As
these
issues
become
more
problematic
to
their
bottom
line
or
the
liabilities
become
scary
enough.
E
Because
the
unions
are
here,
I'd
like
to
have
from
each
of
the
unions
or
or
if
you
designate
one
or
two
people
but
working
with
us
as
we
go
through,
so
you
immediately,
you
know
you're
part
of
the
decision-making
process,
and
you
know
where
we're
going
so
my
pledge
to
you.
It's
give
me
a
name
or
two
from
each
respective
union
and
you'll,
be
in
in
all
the
meetings,
because
this
is
significant.
F
E
And
twenty-eighth
will
be
to
start
but
I'd,
like
you
included
when
I,
when
I
meet
with
the
various
groups
and
so
you're
aware
of
the
direction.
It's
a
big
thing
to
have
to
swallow
and
deal
with.
But
we
might
also
bite
the
bullet
and
get
it
done
and
then
you're
all
assured
healthcare
and
the
guys
that
men
and
women
that
came
before
you
will
have
the
healthcare.
E
I
L
D
Period
to
be
some
people
are
going
with
the
shorter
amortization
period,
maybe
like
20
versus
30
years
to
try
to
put
more
in,
but
obviously
that
has
to
be
affordable
to
the
particular
community,
but
I
think
what
we're
seeing
is
somewhere
between
20
and
30
Jonathan.
You
look
at
a
lot
of
valuations.
I
met.
E
With
a
couple
communities
and
what
they
did,
in
fact,
one
of
our
neighbors
did
this
so
went
out
and
bonded,
and
so
they
they
hit
that
requirement
and
then
they're
paying
off
the
debt.
According
to
the
state
law,
you
have
to
have
a
double-a
rating
which
we
do
not
have.
We
are
very
strong,
a
rating
that
is
not
something
eligible
to
us,
but
there
is
talk
in
the
legislature
of
allowing
a
class
a
rated
a
of
doing
the
same
thing.
So
that's
also
a
potential
situation.
E
G
E
G
L
G
N
I
could
a
Clinton
Township
actually
has
a
fairly
well-established
health
care
committee.
That's
made
up
of
their
HR
director
and
representatives
from
every
Union
in
the
township.
It's
been
functioning
for
three
to
four
years
now,
very
well.
So
if
there's
any
interest
in
speaking
with
them,
I
can
make
that
connection,
and
you
can
ask
them
questions
about
how
they
put
that
together
and
how
they
maintain
it.
But
it's
been.
It's
been
functioning
very
well.
N
J
Already
started
these
discussions,
but
we're
gonna
get
into
some
of
the
funding
and
funding
status
with
other
pension
plans
in
the
retiree
health
care.
So
this
first
slide
shows
the
general
government
pensions
plan
total
assets
compared
to
that
total
pension
liability,
which
calculates
the
difference
between
the
two
is
that
net
pension
liability
that's
recorded
on
the
face
of
your
financial
financial
statements.
L
So
this
funding
level
is
the
Gatsby
67-68
funding
level.
Is
that
right?
Okay,
just
because
the
mayor
demonstrated
on
the
board
here,
a
different
funding
levels
which
are
what
our
contribution
or
the
actuarial
annual
actuarial
annual
valuations
funding
level
and
so
I
guess
what
I
want
to
say
is
that
the
pensions
have
multiple
funding
levels
at
depending
on
which
source
you'll
use.
Is
that
right.
L
D
The
accounting
rules
require
the
liabilities
to
be
measured
under
certain
terms
and
assumption,
so
it's
very
prescriptive
around
the
types
of
assumptions
of
how
discount
rates
are
handled,
the
actuarial
accrual
method
being
used
and
so
and
it's
probably
little
more
conservative.
So
it
results
in
a
different
percentage.
But
it's
just
an
accounting
number
like
it's
just
what
has
to
go
on
your
financial
statements
for
GAAP
purposes,
but
most
of
our
clients
also
don't
fund
based
on
that,
because
that's
just
for
a
county.
E
The
funding
actuality,
one
of
the
things
that
has
come
up
and
I
think
it's
gonna
be
held
true
in
the
public,
yet
because
a
couple
of
which
what
your
assumptions
are
definitely
influences
this
now
to
the
credit
of
our
board,
they
put
in
a
rate
of
return
from
investments
that
is
more
conservative
and
realistic.
I
was
told
that
one
seminar
that
some
of
the
communities
are
using
a
rate
of
return
of
nine
percent.
That
is
not
realistic,
but
heavily
influences.
E
A
J
J
K
D
N
The
prescription
drugs
were
being
run
through
the
same
plan
that
the
active
and
pre
sixty
five
retirees
had
and
the
city
was
actually
collecting.
What's
called
the
retiree
drug
subsidy,
that
subsidy
is
not
a
promise
from
the
federal
government,
so
the
actuaries
cannot
take
into
consideration
those
funds
to
offset
your
liabilities.
So
simply
by
making
that
change
from
2013
to
2014
no
change
in
benefits.
We
just
ran
it
through
a
different
financing
vehicle.
So
to
speak,
we
lowered
the
old
PAP
boom
considerably.
Thank.
N
And
that
actually
has
to
do
with
the
the
costs
of
retiree
retiree
medical
million
in
one
year,
so
that
that
would
that
would
be
quit.
That
would
come
with
normal
cost
increases
and
any
type
of
changes
in
mortality
tables,
and
things
like
that,
so
the
same
thing
that
Martin
was
saying
is:
if
people
are
going
to
be
living
longer,
they're
going
to
be
getting
health
care
longer.
Okay,
thank
you.
A
I
I
C
C
E
And
I
believe
that
liability
is
8
or
9
million
correct,
that
debt
is
funded
through
property
taxes
and
when
we
look
down
there
other
things
so
in
our
budget
we
put
in
and
I
think
Jonathan
helps
us
with
the
amount
of
the
estimate
in
inflation.
So
if
you
added
the
in
the
general
funders
at
health
care
in
health
care
for
retirees,
basically,
if
you
had
those
two
together,
that'll
get
you
the
eight
or
nine
million
that
we
figure
we're
gonna
have
to
pay
this
year.
So
that's
how
we
fund
it.
E
H
Because
one
of
me
I
mean
talk
about
health
and
we're
main
reasons
we're
here.
Today's
there
were
some
questions,
but
some
council
people
about
some
things
are
of
concern
as
well
make
sure
you
know,
for
my
personal
viewpoint,
that
we
definitely
address
those
and
if
there's
ever
it's
an
expert
to
be
able
to
address,
might
be
you
guys
and
gals.
So
if
you
don't
mind.
J
Yep,
so
in
that's
yep,
the
next
three
slides
just
show
for
the
pen
to
pension
plans
and
uro
pet
plan
required
contribution
compared
to
the
actual
contributions
so
like
we
talked
about
for
the
two
pension
plans,
you're
required
to
fund
that
fire
contribution,
so
the
city
has
been
meeting
those
requirements
and
then
open.
If
you
turn
to
Slide
36.
This
is
what
councilman
bagsy
was
referring
to.
D
G
D
Ask
questions
you
know
the
informations
here
available
for
you,
I
guess,
I
think
what
one
thing
that
maybe
two
things
that
aren't
in
there
that
are
important
I
did
mention
earlier,
though,
the
funding
requirements
getting
to
that
40%
is
in
fact
over
30
years
and
then
the
timeline
for
getting
under
that
revenue
trigger
is
five
years.
So
that's
not
in
here,
but
if
you
just
I
want
to
make
sure
you
understood
that,
because
we
thank.
G
Questions
yeah,
if
we're
done
with
this
I'd
like
to
go
over
some
of
the
findings
here,
and
this
will
make
sure
that
we
I
mean
nobody
likes
to
repeat
findings:
the
auditors
or
even
the
oddities,
the
first
one
on
2017
one.
It
talks
about
35.
There
was
35
adjusting
journal
entries
into
the
accounting
records
during
the
course
of
the
audit.
A
C
C
A
E
That
that's
really
a
statement
on
John
who
is
no
longer
controller.
We
didn't
have
it
many
I,
miss
fence,
but
I'm
convinced,
Linda
and
I've
talked
about
it
and
Linda
is
very
familiar
with
post.
Closing
adjustments
and
I
think
will
do
a
good
job
and
but
I
miss
you,
since
we
never
got
34
when
you
were
here.
G
Again,
everyone
mentioning
these
this
nobody
wants
to
repeat
findings
for
a
chair,
especially
2018,
since
I
mean
you
guys
that
you're
in
the
process
of
doing
an
audit.
The
other
thing
that's
thanks.
Actually
that
stands
out
as
when
you
mentioned
you
know
some
of
that
was
it
some
adjustments,
especially
you
know,
payroll
absentee.
G
E
M
Payroll,
we
handle
all
of
the
six
vacation
compensated
absences
and
such
I
have
been
in
talks
with
Paylocity
and
once,
if
we
sign
up
with
them,
they
will
be
able
to
keep
that
information
within
the
payroll
system.
Currently
we're
actually
using
paper
cards.
That's
tracking
this
information
and
there's
room
for
error
there.
So
if
we
get
the
software
that
I'm
requesting
next
year,
it
won't
have
to
be
done
manually
and
that
will
lessen
the
chance
of
any
errors
that
we
have
on
our
part.
But.
M
We've
gone
through
the
spreadsheets
that
we
did
now,
but
it's
still
it's
a
manual
basis
and
anything
set
to
manual
you're
susceptible
for
more
arrows.
That's
why
I
want
this
payroll
upgrade
and
I
want
to
get
into
a
real,
fixed
asset
software,
because
those
spreadsheets
are
unmanageable
and
unreliable
when
it
comes
to
population.
M
Done
by
slips
when
we
get
this
new
software,
if
we
get
it,
it'll
be
computer-generated.
So,
if
I
put
in
for
time
off
and
it's
gonna
go
to
the
mayor,
the
mayor
thinks
he
accepts
it.
It'll
be
automatically
marked
on
my
timecard
when
that
time
comes,
even
though
I
put
my
request
in
8
months
in
advance.
K
G
So
last
last
item:
you
have
one
of
the
findings.
Here
there
was
a
demolition
company
that
was
used
and
I
was
concerned
about
this
one,
because
this
has
something
to
do
with
federal
funding.
2017
0:04
talks
about
that
the
city
did
not
perform
that
check
for
suspension
in
the
department
before
engaging
their
contractor
used
to
perform
demolition
service.
G
However,
the
city
that
subsequently
confirm
the
contractor
was
not
was
not
suspended
or
debarred,
but
there
was
a
finding
and
there
was
also
a
corrective
I
shouldn't
letter
that
was
sent
by
the
controller
I'm
just
kind
of
curious.
How
did
you
guys
find
this
one
here?
Did
you
guys
look
at
that
suspension
for
vendors
or
so.
D
D
G
H
G
H
G
A
F
Susie
and
Todd
Academy
Street,
a
lot
of
this
is
great
for
me.
If
you
put
a
medical
chart
in
front
of
me,
I
can
read
it.
I
can
tell
you
everything
about
that
patient
just
by
looking
through
the
tests
test
results.
However,
what
I
do
look
at
is
the
financial
statement.
Audit
findings.
I
can
understand
those.
It's
very
concerning
to
me
as
a
resident.
The
city
does
not
have
sufficient
comprehensive
processes
and
controls
in
place
to
complete
its
accounting
and
financial
reporting
functions,
which
should
include
a
review
function
that
would
prevent
or
detect
misstatements.
F
During
the
audit,
we
identified
a
signal
significant
number
of
adjustments
to
the
accounting
records
in
order
to
correctly
state
the
city's
financial
statements
it.
This
is
from
plant
moraine.
We
also
identified
various
subject:
adjustments
to
the
accounting
records
that
technically
should
have
been
made
in
order
to
correctly
state
the
city's
financial
statements
at
year-end,
but
we're
not
as
management
did
not
deem
these
items
to
be
significant
enough
to
correct
in
the
accounting
records.
These
items
are
referred
to
as
past
adjustments
since
the
PD,
since
the
city
passed
on
recording
them.
F
C
C
D
F
And
my
other
concern
is
the
water
fund
constantly
thousands
and
thousands
of
dollars
are
taken
out
of
the
water
fund
for
things
that
have
nothing
to
do
with
the
water
fund.
It's
like
the
boom
truck
as
councilman
must
get
set.
We
don't
have
sewers
in
the
sky,
we
don't
have
water
mains
in
the
sky,
so
why
is
a
boom
truck
and
I've
seen
it
a
couple
of
few
times
and
they
acclaims,
so
why?
Why
is
this
money
being
taken
out
of
the
water
fun
when
it
should
be
taken
out
of
something
in.
B
E
E
I
think
it's
from
2003,
but
it
was
obtained
by
Mayor
Canfield
Ruth
Canfield
and
indicated
that
they
came
to
the
same
conclusion:
did
act
345
while
being
restricted
only
for
police
and
fire,
which
is
what
we
do
could
be
utilized
for
both
pension
and
health
care,
but
only
the
healthcare
for
placing
fire
only
for
police
and
fire
only
I
agree.
That's
why
we
do
it.
B
Can
we
tag
other
expenses?
The
health
care
you
know
fund?
Can
we
take
other
expenses
related
to?
Something
else?
Has
nothing
to
do
with
the
health
care?
Is
that
accepted
in
the
general
accounting,
except
we
collected
money
for
the
healthcare
system.
My
understanding
there
was
many
tagged
for
something
else.
It
has
nothing
whatsoever
to
do
with
the
healthcare
is
that
accepted,
or
this
should
be
addressed,
that
when
we
collect
money
for
X
or
Y
or
Z,
it
should
be
in
the
financial
statement.
It
should
be
declared
and
there
a
number
specific
number.
B
Dean
you
added
the
contracts
which
are
funded
by
federal
funds,
meaning
sometimes
an
Ibis
very
specific
I
looked
at
the
average
cost
per
square
foot
nationwide
for
building
its
hundred
and
twenty-five
dollars
per
square
foot.
We
have
bathroom
where
that
the
square
foot
cost
$300
per
square
foot.
Now,
do
you
audit
these
things
to
correct
them
to
see
if
next
time
you
know
we
go
for
better
process
to
build
it
or
for
quotations.
C
E
Requirement
might
at
CDBG
mr.
Abdul
Haq
gave
me
a
paper
in
which
he
got
some
quote
from
a
contractor.
They
could
have
done
the
job
slightly
under
100,000
I
did
talked
to
the
director
at
CDBG
and
he
indicated
that
the
project
had
to
be
bid.
That
was
a
little
bitter.
The
other
thing
is
that
all
the
employees
are
subject
to
davis-bacon,
so
the
wages
are
going
to
be
significantly
different
and
in
the
contractor
he
had
to
qualify
as
a
federal
contractor,
and
so
that
and
some
other
things
that
came
up
on
the
particular
project.