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From YouTube: Dearborn Heights Study Session: 11/24/20
Description
Dearborn Heights Study Session regarding the Plante Moran Audit taking place Tuesday, November 24th 2020 via Zoom.
A
B
Thank
you
so
much.
My
name
is
martin
olenick.
I'm
the
audit
partner
on
the
audit
clearly
and
nikki
acho
is
with
me
and
joe
malanchik.
He
was
supposed
to
be
in
oh,
it
says
he
can't
unmute
himself
so
don't
mind.
Joe
maleshik
is
and
then
nikki
achoo
are
the
two.
So
nikki
is
the
audit
manager
and
joe
is
the
senior
needed.
A
B
Thank
you
so
much
thank
you,
and
so
we're
going
to
be
presenting
the
audit
to
you,
as
well
as
the
findings
from
the
2020
financial
statement
audit
before
we
start
with
the
numbers
and
the
graphs
etc.
I
did
want
to
point
out
that
the
thickest
of
the
documents-
and
I
realized
that
very
likely
you
have
a
digital
version
of
the
pdf,
which
is
84
pages-
we're
not
going
to
go
through
like
we
have.
We
haven't
in
the
past
page
by
page
joe's,
going
to
cover
that
in
graphical
form.
B
What
we're
going
to
do
is
just
want
to
point
out
that
on
page
one
of
that
financial
statement
is
the
opinion
letter.
That
is
the
only
document
that
technically
belongs
to
plant
moran,
and
that
document
that
page
or
a
couple
pages
do
state
that
you
can
rely
on
the
financial
statements
as
they
are
presented.
It
is
unmodified
opinion.
Once
again,
we
did
have
a
few
findings,
as
we
have
the
last
few
years,
there's
actually
much
less
in
scope
of
findings.
B
There
have
been
a
lot
less
entries
and
so
on
that
we
had
to
post
provide
to
the
city
in
order
to
make
the
statements
accurate,
but
those
adjustments
have
been
posted
and
they
are
included
in
the
statements.
So
therefore
they
are
materially
correct
and
they
you
can
rely
on
them,
like
I
said,
for
budgeting
purposes,
etc.
So
I
just
wanted
to
highlight
that
that
is
again
once
once
again
unmodified
opinion.
B
So
with
that,
I'm
going
to
turn
it
over
to
joe,
so
you
can
go
through
the
graphs
and
then
following
the
graphs
nick,
and
I
are
going
to
provide
you
with
the
findings
summary
from
the
federal
single
audit
report,
as
well
as
the
post
audit
letter.
So
with
that
joe,
if
you
can
cover
the
graphs
and
nikki,
I
believe
she's
going
to
be
the
driver
for
the
sharing
the
screen.
B
Not
what
I
can
do
is
if
I
have
the
ability
I.
D
Perfect,
so
I
guess
you
can
go
to
the
next
slide.
G
D
So
this
first
slide
just
shows
a
five-year
trend
of
the
main
corporate
fund
revenue.
As
you
can
see,
revenue
has
remained
relatively
consistent
this
year
and
increased
about
2.8
million
dollars
and
property
taxes
is
the
most
significant
portion
of
this
revenue
at
55
percent
of
the
revenue
and
millage
rates
and
increased
slightly
this
year
and
nikki.
You
can
go
to
the
next
slide.
D
And
taxable
value
of
the
city
also
increased
this
year.
This
kind
of
just
shows
that,
prior
to
2008
with
the
recession,
taxable
values
drop
declined
drastically
and,
as
you
can
see
since
then,
taxable
values
have
increased
slightly
year
after
year.
D
D
So
so
this
payment,
as
you
can
see,
caused
a
decrease
in
2020,
but
it
was.
It
has
been
fully
reinstated,
going
forward
for
fiscal
year
2021.
So
we
expect
to
see
an
increase
again
in
fiscal
year.
2021.
D
On
this
slide
is
the
corporate
fund
expenditures
and
again
just
a
five-year
trend
in
total
expense
expenditures
increased
about
2.7
million
dollars
from
our
prior
year
and
our
largest
increase
is
really
in
public
safety
and
public
works
increased
about
a
million
dollars
each
due
to
various
capital
purchases
that
were
made
throughout
the
year.
I
H
If
you
don't
mind,
you
said
major
expenditures
that
we've
got
in
public
works
and
I
think
you
said
general
government
is
that
correct.
B
B
Maybe
they
were
so,
they
were
capital,
expenditures,
fixed
assets
and
we
can
double
check,
but
I
believe
some
of
them,
especially
in
public
safety,
were
grant
related
expenses
for
fixed
assets.
E
Yeah,
sorry,
it's
assistance
to
firefighters.
There
was
a
regional
grant
that
the
city
received
this
year
for
purchasing
equipment
and
then
distributed
it
to
other
communities.
H
J
C
A
F
D
And
here
we
go
so
this
slide
highlights
the
corporate
fund
balance
and
typically,
we
like
to
look
at
the
health
of
a
fund
to
look
at
the
unassigned
and
the
assigned
fund
balance,
so
what's
really
available
for
the
city
to
spend
and
as
a
ratio
of
our
total
annual
expenditures
and
typically
a
measure
that
we
like
to
meet
is
15
to
30
percent.
D
So,
as
you
can
see,
the
city
is
trending
upwards,
since
2014.
we're
the
city's
here
at
14.5
percent,
really
nothing
that
we
see.
That
is
anything
that
is
worth
further
follow-up
or
anything
like
that.
But
just
something
worth
noting.
B
If
I
can
add
to
that,
too
is
so:
you
can
see
in
2014
the
city
had
the
deficit
clearly
and
since
then,
and
joel
mentioned
earlier
on
some
earlier
slides,
just
the
property
tax
values,
how
much
they
depleted
during
the
recession
about
10
years
ago,
and
even
though
it
the
property
taxes
have
been
going
up.
Unfortunately,
they
haven't
rebounded
to
the
levels
that
we,
you
know
the
city
had
in
2009.
B
So
it's
really
put
a
strain
on
the
general
and
the
corporate
fund,
but
you
can
see
that
overall,
you've
been
able
to
really
manage
a
lot
of
the
expenses
and
you've
been
able
to
move
that
fund
balance
upwards
and,
as
joe
said,
you
know
a
lot
of
times.
We
see
between
50
and
even
30
percent,
but
the
kind
of
the
spot
that
a
lot
of
municipalities
have
been
looking
at
over
the
years
is
probably
between
10
and
20.,
so
you're
kind
of
in
that
ballpark.
B
The
higher
percentages
have
been
really
coming
into
play
over
the
years
since
the
recession
and
now
with
covid,
just
kind
of
to
be
more
on
the
safe
side
and
save
money
for
a
rainy
day
kind
of
deal.
But
you
know
looking
at
14
and
a
half
percent
15
of
your
fund
balance.
It
is
kind
of
right
there
where
at
a
minimum
you
should
be-
and
I
would
I
would
agree
completely
with
joe-
that
nothing
that
would
really
alert
us
to.
You
know
really
big
concerns
or
anything.
B
The
couple
things
that
I
think
this
alludes
to
very
well
during
the
presentation.
If
I
was
looking
at
like
big
areas
of
kind
of
to
watch
out
for
and
what
the
city
needs
to
focus
on
is
really
looking
at
your
future
expenditures,
especially
water
and
sewers.
You
know
there's
some
significant
projects
that
are
coming
up.
I
know
there's
some
bonding,
that's
discussed,
etc,
but
so
that
would
be
a
big
item
and
then
the
other
item
is
looking
at
the
opeb
funding
overall.
B
So
I
know
the
city
set
up
a
couple
trusts
this
year
for
the
general
employees,
as
well
as
the
public
safety
employees,
and
that's
definitely
an
item
that
it's
a
liability
that
the
city
is
going
to
have
to
fund
over
time.
And
that
would
be
definitely
an
area
of
focus
that
I
would
recommend
so
sorry
to
interrupt
joe.
D
Problem
so
this
slide
highlights
the
the
breakout
of
the
fund
balance
the
different
components.
The
non-spendable
is
related
to
prepaids,
where
cash
has
already
left
the
city.
Restricted
fund
balances
can
only
be
used
for
certain
purposes,
based
on
the
revenue
source
and
the
assigned
and
unassigned
like
we
saw
in
the
previous
slide.
That's
what's.
Fund
balance
is
available
to
use
for
the
city
and
then
the
re
assigned
funds.
D
Our
city
has
designated
two
million
dollars
for
to
be
used
for
retiree
healthcare
in
the
future,
and
the
unassigned
portion,
as
you
can
see,
continues
to
increase
and
that's
just
the
re
building
up
those
reserves,
so
those
will
continue
to
be
built
up
going
forward
next
slide,
nikki
and,
as
martin
alluded
to
here's,
the
breakdown
for
the
water
and
sewer
fund
revenue
increased
about
a
million
dollars
which
was
an
increase
of
water
sales
and
sewage
disposal
charges
in
the
year.
D
In
total,
the
capital
outlay
decreased,
since
not
all
projects
were
able
to
be
completed
in
time
in
the
year
just
due
to
coved
and,
as
you
can
see
just
overall
in
the
past
five
years,
there's
been
an
operating
income
shortfall
so,
which
is
why
rates
have
had
to
increase
just
to
try
to
make
up
for
this
deficit
here
in
the
water
and
sewer
fund
over
the
past
five
years.
B
Yeah,
this
essentially
shows
the
water
and
sewer
fund
over
the
last
six
years
more
on
a
cash
basis.
So
if
you're
looking
at
the
income
statement
and
the
financial
statements,
it's
truly
an
accrual
type
statement.
So
it
shows
the
depreciation
expense
and
some
other
things
that
are
more
accrual.
So
it
doesn't
really
drive
the
cash
balance.
So
the
goal
of
this
slide
is
looking
at
the
operating
income
without
depreciation
kind
of
looking
at
more
on
a
cash
basis
over
time,
and
then
that
adds
up
over
six
year
period,
almost
25
million
dollars.
B
And
then,
if
you
look
at
how
much
the
city
has
been
spending
on
capital
outlay,
as
well
as
debt
payments
over
this
time
same
time
period,
it's
actually
26.7
million.
So
you
can
see
that
you
have
higher
obligations
over
that
time
period
versus
the
actual
cash
coming
in,
and
that's
one
of
the
reasons,
as
joe
mentioned,
that
you
know
you
have
had
to
make
some
difficult
decisions
in
increasing
the
rates
in
order
to
be
able
to
fund
those
expenditures.
Given
the
older
infrastructure
within
the
city.
D
And
then
this
last
slide
just
highlights
the
unrestricted
net
position
available
for
the
city,
and
we
see
an
increase
in
this
year's
just
based
on
prior
year
had
costs
related
to
dua,
with
the
city
taking
on
costs
from
from
that
when
it
came
into
the
city's
costs
and
everything
from
the
county.
So
overall,
that
really
is
the
end
of
the
graphs.
If
anyone
has
anything
else,.
B
Oh
and
we
can
we'll
cover
the
letters,
as
I
mentioned
earlier,
feel
free
to
ask
us
any
questions.
If
you
have
them
now,
but
you
know
we'll
definitely
be
sticking
around
for
any
questions.
After
the
letters
as
well-
and
I
know
the
letters
will
have
some
findings
etc.
So
I
definitely
want
to
make
sure
that
we
address
any
questions
you
may
have.
I
Not
a
question
director,
hosham
and
mo
bay
dune
want
to
be
let
in.
G
Thank
you
chair.
I
wanted
to
point
something
out
that
martin
you
on
or
joe
either
one
of
you,
but
on
the
slide
dealing
with
page
five
and
page
four
there.
There
was
a
proposal
that
I
am
vetoing,
but
it
was
to
move
the
two
million
dollars
that
is
in
a
sign
but
restricted
and
fund
balance.
G
That
will
reduce
our
corporate
fund
balance
by
2
million,
which
would
put
us
below
10
percent,
and
that's
one
of
the
reasons
that
I
vetoed
it
and
john
riley
was
trying
to
tell
the
council
that
that
is
our
cushion
in
that
fund
balance
for
cash
flow
and
for
being
within
the
parameters
that
we
should
be,
and
we
do
not
want
to
transfer
it.
But
what
is
your
take
on
that?
Martin.
B
So
so,
first
of
all,
the
assigned
fund
balance
means
that
you
know
the
council
has
assigned
a
portion
in
order
to
be
able
to
use
for
a
specific
purpose
in
this
case
for
open
funding.
It
does
not
have
to
be
transferred
for
opeb
at
this
time.
It's
up
to
the
city
to
decide
when
that
actual
transfer
occurs.
B
B
If
you
drop
below
a
certain
level,
you
may
not
be
able
to
have
enough
funds
enough
cash
in
the
bank
in
order
to
be
able
to
cover
current
liabilities
and
primarily
would
be
any
debt
payments
and
clearly
labor
costs,
so
salaries
and
wages.
So
that
would
be
a
concern
having
that
money
and
the
assigned
fund
balance
doesn't
mean
that
you
necessarily
have
to
spend
it.
B
You
can
still
invest
in
it,
based
on
the
city's
requirement
on
what
you're
allowed
to
invest
in
being
able
to
transfer
to
the
trust
definitely
opens
up
more
investment
opportunities.
However,
once
you
put
the
money
in
the
trust,
you
cannot
take
it
back
in.
So
that's
the
biggest
concern
that,
like
it's,
it
just
locks
you
in
and
it's
only
being
able
to
be
utilized
for
other
post-employment
benefits,
so
long-term
health
care
costs
for
retirees.
B
So
that
would
be
a
concern
that
once
you
put
that
in
it's
essentially
locked
away
so
in
case
there's
a
rainy
day,
you
will
not
be
able
to
utilize
it.
It's
clearly
up
to
the
city
to
determine
what
you
would
like
to
do
with
it,
but
it
does
prevent
you
from
being
able
to
utilize
it
for
other
purposes.
Once
it's
in
the
trust.
H
Please
I
had
a
question
on
something
else,
but
society
on
the
line
right
now,
martin,
you
said
it
can
never
be
brought
back
in
now.
The
keyword
is
never
never
as
in
not
in
the
same
fiscal
year
or
never
never.
B
Never
ever
unless
it's
for
post-employment
benefit
payments.
So
when
the
city
receives
you
know
the
invoices
for
the
post-employment
benefits,
you
can
pay
as
you
go,
which
in
historically
the
city
has
been
paying
the
invoices
from
operations
annually,
but
once
it's
in
the
trust,
you
can't
use
that
money
and
you
can
apply
it
towards
some
of
those
post-employment
benefits,
but
you
can't
use
it
for
capital
expenditures,
for
example,
so
it
definitely
lacks
you
in
from
that
perspective,.
B
So
the
city,
can
you
decide
the
city
council
can
decide
how
to
assign
that
portion.
So
you
can
relieve
the
assignment
and
just
say
you
know
we
can
put
it
back
and
unrestrict
it
if
you
feel
that
it's
needed
in
operations
or
you
can
leave
it
in
the
sign
so
that
way
down
the
road,
you
can
still
transfer
the
money
for
the
op.
B
H
I
see
okay
and
the
main
reason
for
my
question
was
in
regards
to
page
eight.
You
have
the
water
and
sewer
fund
unrestricted
in
that
position
and
obviously
we
have
quite
a
bit
of
an
increase
from
19.
We
had
a
major
decrease
in
19
and
quite
a
bit
of
an
increase
in
20..
Can
anybody
give
me
a
little
detail
on
this?
Why
there
was
suddenly
a
jump,
because
in
five
years
where
it
was
below
the
zero
line,
yeah.
B
Nikki
joe,
I
belie
is.
F
That
related
to
the
actuarial
analysis.
B
Eight
page
eight,
so
it's
page
nine
of
the
pdf
and
so
the
unrestricted
fund
balance
and
water
and
sewer
fund
of
1.1
million.
E
Two
index
so
a
big
piece
of
that
without
getting
into
the
details,
I
believe,
is
related
to
dua
joe
had
touched
upon
this,
so
the
communities
purchased
the
dua
system
from
the
county
last
year,
and
when
that
happened,
there
was
a
large
loss
that
was
recorded
in
2019
that
didn't
recur
this
year.
H
Okay,
but
there
was
nicole,
there
was
a
loss
of
over
2
million
and
15,
almost
2
million
and
16.
K
H
E
B
Thank
you.
I
can
check
and
see
what
do
was
impact
was
for
2020
as
we're
going
through
these
discussions.
So
that's
not
an
issue
I'll
look
in
the
files
right
now,
but
I
believe
the
big
the
biggest
impact
by
far
was
the
duo
reporting
this
year.
C
I
do
going
back
to
the
two
million
dollars,
keeping
it
where
it
is
now
it
you're
you're
saying
it
can
be
used
for
whatever
the
city
decides
to
use
it
for.
B
This
is
so
it's
not
a
restricted
fund,
so
it's
purely
assigned
by
the
council
for
a
specific
use
and
you
can
decide
to
use
it
for
any
other
purpose.
If
you
choose
to.
B
Health
care,
it
is
not
it's
purely
an
assignment
that
you
have
the
intention
of
down
the
road,
putting
it
towards
post-employment
benefits,
but
it
doesn't
legally
restrict
you
to
only
use
it
for
that.
You
can
change
your
mind
at
any
point
in
time
and
put
it
as
unrestricted
or
you
can
make
it
restricted
for
certain
capital
outlay
or
whatever
you.
The
council
would
like.
E
If
you
would,
if
you
looked
at
the
total
fund
balance
in
the
corporate
fund,
it's
you
have
the
non-spendable
portion
and
you
have
the
restricted
portion.
Those
have
to
be
categorized
the
way
they
are,
but
the
rest
of
the
pool
is
really
just
a
categorization
for
transparency
based
on
how
council
in
the
city
is
intending
to
spend
it
in
the
future.
C
I
Thank
you,
madam
chair,
regarding
the
water
fund,
martin
and
nicolette.
The
is
that
surplus
for
this
year
for
2020.
How
much
of
that
is
the
increase
in
water
rates?
Is
that
why
we
and
will,
can
we
expect
a
surplus
next
year
like
that,
or
is
that
our
surplus
for
2020,
just
a
one-time
thing
one-time
event.
B
Like
the
overall
income,
so
on
slide,
eight,
it's
the
fund
balance,
so
whatever
is
remaining,
and
so
I
did
check
and
it
is
the
dua
write-off
last
year.
So
that's
why
you
had
the
significant
loss
last
year,
so
this
year
you
end
up
adding
to
the
fund
balance,
but
so
technically
it's
the
1.1
million
dollars.
You
have
unrestricted
net
position,
so
you
can
utilize
it
for
any
purposes.
B
The
fund
is
required
to
have
over
the
coming
months,
whether
it's
salaries,
whether
it's
capital,
outlay,
etc.
I
I
Really
the
same
as
councilman
abdullah's,
so
that
increase
or
the
the
surplus
I'm
sorry
this
year
and
the
loss
of
all
the
prior
years,
at
least
that
we
have
in
front
of
us
is,
is
due
to
the
down
river
authority
in
a
write-off
and
not
due
to
you,
know
the
water
rates
bringing
in
more
money
or
anything
like
that.
F
So
let
me
I'll
open
up
last
year's
statements.
If
you
can
give
me
one
second
and.
B
So
if
I
look
at
your
last
year's
statements,
there
is
so
your
water
and
sewer
rates
did
increase
slightly
last
year
about
five
or
six
percent
and
your
total
revenue
increased
one
usage
went
up
a
little
bit,
plus
the
water
and
sewer
rates.
So
your
overall
water
and
sewer
revenue
went
up
from
19.9
million
last
year
to
21.3
million
so
that
essentially
added
on
to
the
surplus
this
year,
because
the
expenses
overall
stayed
about
the
same.
You
had
about
20.4.
B
H
So,
martin,
back
to
the
two
million
dollar
question,
there's
been
a
push
to
have
that
as
the
restricted
fund
and
put
it
away
where
we
don't
have
as
a
city
access
to
it
and
you
got
one
hand
the
mayor's
position,
which
is
you
know
you
got
to
keep
that
over
tempe.
You
know
you
don't
drop
it
all
the
way
down
to
10.
B
Yeah,
so
my
biggest
concern
is
making
sure
the
fund.
The
corporate
fund
is
healthy
overall
and
you
want
to
make
sure
you
have
so
much
working
capital.
So
your
current
assets,
specifically
cash-
and
you
know,
there's
some
other
ones,
but
it's
mostly
made
up
of
cash
can
pay
your
current
liabilities,
which
are
coming
due
in
the
next.
You
know
30
60,
90
days.
If
you
transfer
that
two
million
dollars
out
you
really
shorten
that
time
period
of
how
many
days
of
availability
you
have
for
you
know
covering
some
of
those
expenses.
B
So
the
and
it
gives
you
the
flexibility
if
you
leave
it
assigned
and
let's
just
say
next
year-
and
I
I
don't
know
what
the
budget
calls
for
next
year
offhand.
But
let's
just
say,
the
budget
calls
for
an
additional
fund
balance
a
surplus
of
a
million
dollars.
Revenues
exceeding
expenses,
so,
if
you're
able
to
add
on
a
million
dollars
to
your
overall
fund
balance
next
year
at
that
point,
you'd
be
probably
around
20
or
a
little
bit
over
20.
H
B
H
B
Yes,
so
the
disadvantage
it
technically,
it
ties
your
hands
a
little
bit
from
the
perspective
that
once
you
transfer
it,
you
will
not
be
able
to
use
it.
The
disadvantage
is,
to
be
honest,
the
biggest
disadvantage
of
not
transferring
is
that,
if
you
transfer
to
the
trust,
the
trusts
are
able
to
invest
in
other
vehicles,
investment
vehicles
and
likely
earn
a
little
bit
more
interest.
B
At
the
end
of
the
day,
the
employees
and
the
retirees
are
not
any
worse
off
or
any
better
off
from
the
perspective
that
they're
still
going
to
get
their
health
care,
so
they're
not
missing
out
on
it.
It's
unlike
a
pension
where
especially
a
defined
contribution
pension.
Where
you
know
your
401k
goes
up
and
you
can
invest
in
better
investment
vehicles.
B
Therefore,
you're
going
to
get
more
money
in
this
case,
both
the
pension,
which
is
defined
benefit,
as
well
as
the
opeb,
which
is
again
essentially
a
defined
benefit
plan,
because
the
employee's
going
to
get
the
health
care
coverage,
no
matter
what
their
90
worse
off.
What
ends
up
happening
is,
if
you're
able
to
invest
in
better.
B
Overall,
I
don't
know
like
stock
market
or
mutual
funds,
or
things
like
that,
and
if
you
can
gain
more
money,
that
means
down
the
road.
The
city
doesn't
have
to
provide
other
funds
to
cover
that,
because
the
investment
earnings
are
help
cover
some
of
those
expenses.
H
B
I
So
I
guess
one
of
the
advantages
of
having
the
money
available
for
the
city
and
for
cash
flows.
You
keep
the
city
going,
the
city,
doesn't
bounce
checks
or
go
bankrupt
and
does
better
overall
and
has
a
better
bond
rating
overall
and
therefore
having
the
funds
available
keeps
the
whole
entity
going
as
opposed
to.
If
we,
if
we
protect
money
over
here
and
tuck
money
over
there
and
lowered
everybody's
water
rate,
it
would
all
be
great,
except
the
city
could
go
out
of
business.
B
That's
very
true,
like
it
does
help
your
overall
finances
and
helps
you
be
able
to
fund
those
expenses,
and
you
know
to
give
you
kind
of
a
little
background
to
on
the
pension
and
opeb
as
well.
So
pension
historically
has
been
a
requirement
to
be
pre-funded.
B
So
not
only
do
you
have
to
make
the
payments
that
are
required
to
be
made
in
any
single
fiscal
year,
but
you
also
have
to
pre-fund
it
over
a
certain
time
period
and
the
city
has
been
doing
that
over
time.
So
that's
why?
If
you
look
at
the
general
employees
pension
system,
I
believe
it's
about
67
percent
funded
and
then,
if
you
look
at
the
police
and
fire,
I
believe
it's
around
72
or
something
like
that.
So
that's
why
you've
been
pre-funding
opeb.
There
is
no
such
law.
There
has
never
been
such
law.
B
So,
even
though
now
the
state
of
michigan
is
kind
of
mandating
and
kind
of
pushing
municipalities
to
pre-fund,
and
they
they
require
a
40
level
of
funding,
it's
more
of
if
you're,
not
at
40.
You
have
to
report
to
us
how
you
try
and
get
to
40
over
a
certain
time
period
and
I
believe
it's
a
30-year
time
period
to
get
to
the
40
percent.
But
historically
the
opeb
is
not
required
to
be
pre-funded.
It's
a
pay
as
you
go.
So
if
you
get
200
000
in
expenses,
you
know
a
month.
B
The
city
just
has
to
cut
that
check
for
200
000,
there's,
no
trust
that
has
to
be
set
up,
there's
nothing
that
has
to
be
making
that
it's
required
to
just
as
long
as
you're
keeping
up
with
the
current
expenses.
It's
totally
fine!
A
A
J
B
So
those
are
technically
two
different
things,
so
when
you're
budgeting
for
next
year,
I
don't
know
what
your
budget
looks
like.
So
if
your
revenues
are
in
excess
of
your
expenditures
for
next
year,
so
I
guess
that's
a
question
for
the
mayor
or.
J
B
It's
so
to
answer
your
question.
You
have
to
look
at
the
time
period
throughout
the
year
progressively,
so
not
just
at
june
30th
of
2020.
at
june,
30th
30th
2020
you'd
still
have
a
fund
balance,
but
there's
a
time
period
during
the
year
when
you're
collecting
property
taxes,
when
all
that
cash
hasn't
come
in
that,
potentially
you
would
have
run
out
of
cash,
and
I
don't
I
don't
know
your
balances
on
a
weekly
basis
through
the
year.
B
Unfortunately,
during
the
audit,
it's
more
of
a
focus
on
the
snapshot
of
6
30,
20,
20
and
6
30
19
in
the
past.
But
if
there's
potential
that
come
july
august
or
early
september,
you
could
have
run
out
of
cash
because
your
property
taxes
are
actually
not
due
until
I
believe
in
september.
So
you
have
about
90
days
or
about
75
days
of
operations
that
has
to
be
sustained
with
the
cash
that's
within
the
city
in
order
to
make
payroll
any
capital
outlay.
Things
like
that.
J
B
The
restrictive
funds,
I
believe
here
there
you're
only
allowed
to
use
for
a
specific
purpose.
I
I
don't.
I
don't
know
how
much
you'd
be
able
to
use
and
someone
sometimes
too,
the
restricted
funds
are
already
spoken
for,
maybe
already
been
spent
as
well.
So
and
again,
I
don't
know
the
cash
balances
on
a
weekly
basis,
because
I
don't
know
if
your
restricted
funds
would
have
covered
enough
of
the
cash
needs
for
that
first
75
days,.
B
Well,
so
very
likely,
if
you
don't
have
enough
cash,
you
probably
wouldn't
be
able
to
make
payroll.
That's
usually
the
first
item
which
clearly
that's
a
huge
issue.
I
don't
know
about
one
step
morale,
but
just
overall
concerns
over.
You
know
people
working
and
things
like
that
or
layoffs
and
et
cetera.
So
it
does
cause
a
lot
of
issues.
The
other
issues,
potentially
as
councilman
constant
mentioned,
is
you
know,
bond
ratings
could
diminish
as
well.
So
then
you're
talking
about
extra
interest
costs
on
borrowings
in
the
future.
B
So,
for
example,
the
loan
that
you're
looking
are
the
bonds
that
you're
looking
to
issue
for
water
and
sewer
fund
instead
of
looking
at
the,
I
believe
it
was
two
or
three
percent
interest
rates.
That
could
be
significantly
impacted,
so
you
can
just
imagine
you
know
on
20
million
dollar
loan.
You
know
increase
even
by
one
percent,
we're
talking
about
some
significant
dollars
accumulating.
J
F
J
B
Well,
so
the
police
on
fire
opeb,
the
liability
itself
is
121
million.
In
total
the
general
government
employees
open
trust,
is
only
15
million.
So
if
you're
looking
at
the
dollars
that
are
being
funded
or
paid,
the
liability
for
the
general
employees
is
much
smaller.
So
as
a
percentage.
What
you're
funding
for.
B
So
that's
that's
why
the
differential,
but
to
answer
your
question
honestly,
2
million
the
city
council
could
decide
to
put
in
you
know
any
dollar
amount
of
that
into
the
trust.
So
you
don't
have
to
put
in
the
full
2
million.
If
you
chose
that
you
know
you're
comfortable
with
putting
let's
just
say,
500
000
this
year
that
it's
still
going
to
give
you
enough
of
a
surplus
that
you
can
maintain
operations
and
then
wait
12
months
and
see
how
the
operations
are
doing
and
decide,
maybe
put
another
500
000
at
that
time.
J
K
So
I
was
looking
at
the
findings
in
one
of
the
attachments
you
sent.
I
mean
that's
that
looks
alarming.
You
know
with
a
lot
of
significant
findings.
Yes,
so,
okay,
so
I
mean
I
don't
want
to
go
through
all
of
it,
but
one
of
one
of
my
questions
for
clint
moran
is
several
meetings
ago.
You
know
we
talked
about
giving
the
information
for
the
financial
audit
that
we
had
a
forensic.
You
know
we
call
forensic
audit
about
the
financial
audit,
so
the
last
I
heard
I
don't
know.
K
If
there's
any
update,
you
know
that
you
guys
are
not
supplying
the
company
who's
doing
the
for
rent
or
the
financial
audit.
The
information,
because
you
know
looking
at
these
findings.
That's
to
me
that's
alarming,
especially
moving
funds.
You
know
a
lot
of
the
findings
that
are
very
significant,
so
I
guess
I
need
to
know
what
the
status
is
for
you
guys
supplying
that
information.
What
needs
to
be
sent?
K
I'm
I'm!
I
don't
know
if
there
was
a
subpoena
to
get
that
information
from
plant
marine,
but
the
last
I
heard
that
there
still
don't
have
all
the
information.
I
know
so.
Council
members
were
supplied
with
a
way
to
go
in,
but
I
I
tried
to
go
in
there,
but
the
information
it
looked
like
it
was
encrypted.
K
So
we
still
I
mean
the
council
approved
or
we
voted
on
trying
to
get
the
information.
So
I
don't
know
what
the
issue
is,
and
I
don't
know
if
you
guess
applied
it,
but
as
of
maybe
a
week
or
so
back
there
was
nothing
so
play
moraine.
I
guess
they
have
to
talk
to
their
legal
team.
So
I
like
to
find
out
what's
going
on
yeah.
B
So
we
have
provided
all
the
information
about.
I
believe
it
was
the
first
week
in
september
that
was
requested
that
we
were
able
to
provide,
because
we
had
the
documents
clearly
there's
some
documents
that
we
don't
have
possession
of
that
were
on
the
request
list,
so
we
couldn't
provide
those
if
the
city
council
was
not
able
to
access
those
documents
in
the
secure
website.
B
We
are
happy
to
honestly
provide
you
copies
of
that
document.
Those
documents,
even
if
it's
hard
copy
or
we
can
share
them.
We
can
also
send
the
links-
and
I
don't
know
if
we
did-
that
or
not
nikki-
you
may
know,
but
we
can
share
the
also
the
links
to
with
the
mayor
and
the
comptroller,
and
perhaps
they
can
provide
you
with
the
documents.
B
She
said
deal
that,
while
you
gave
us
this
information
even
when
we
didn't
or
something
like
that,
so
we
want
to
make
sure
that
we're
giving
you
the
documents
that
you
see
exactly
what
we've
provided
and
then
you
know
exactly
what
you
gave
versus
the
third
party.
Second,
guessing
the
information
that
we
gave
and
maybe
saying
we
didn't
give
them
enough
or
something
like
that.
So
it
honestly
it
creates
a
lot
of
problems
for
us
if
we
just
gave
it
to
someone
else.
B
So
that's
why
we
have
to
give
it
to
the
city
only
and
we
can
give
it
to
the
city
council.
We
can
give
it
to
others
in
the
administration
and
we're
happy
to
do
so
and,
like
I
said,
we
gave
that
now
it's
almost
three
months
ago,
we
haven't
heard
anything
since
I
didn't
know
if
this
was
even
looked
at.
We
haven't
heard
any
questions
or
anything
like
that.
So
I
assumed
all
the
information
was
adequate,
but
I
really
didn't
even
know
that
this
wasn't
even
looked
at
yet.
F
K
B
Yeah,
please
do,
and
I
just
let
me
know,
feel
free
to
give
me
a
call
feel
free
to
give
me
a
call,
my
cell
phone
or
send
me
an
email,
and
what,
like
I
said,
what
we
can
do
is
we
can
even
reproduce
them
hard
copy
wise
and
we
can
send
them
to
the
council
and
that
can
be
passed
on
as
well.
B
It
will
take
probably
a
couple
weeks
to
have
that
done
just
with
kovitt
and
there's
limited
personnel
in
the
office
to
be
able
to
print
those
documents,
but
we
can
definitely
do
that.
B
You
no
problem
and
nikki
since
councilman
bazi
was
talking
about
the
findings.
I
think
this
would
be
a
good
segue
to
talk
about
the
findings
from
the
especially
from
the
signal
single
audit
report,
because
those
were
the
most
significant
items.
The
post
audit
letter
were
just
general
recommendations
that,
I
would
say,
would
be
more
internal
control,
kind
of
button,
up
items
versus
material
weaknesses
or
significant
deficiencies.
K
I
mean
I,
I
know
we
have
less
than
about
10
minutes
for
the
we
have.
We
have
the
regular
meeting
shortly.
So
I
know
I
mean
we
can
read
the
findings.
Is
there
a
way
that
we
can
actually
get
like
more
in
detail,
because
I
know
some
of
it
just
kind
of
highlights
the
findings
where
some
issues
with
let's
say
money
is
being
moved
in
general
but
is
is:
can
we
get
something
more
specific.
B
E
So
you
should
have
the
other
deliverable
that
martin
was
referring
to.
This
is
referred
to
on
the
cover
page
is
the
federal
awards
information,
and
so
I'm
starting
on
page
nine
of
that
document,
where
the
where
the
findings
are,
and
so
this
first
finding
is
related
to
journal
entries
that
we
identified
during
the
audit
in
order
for
the
financial
statements
to
be
properly
dated
at
june
30th,
the
entries
that
we
identified
were
related
to
receivables,
deferred
revenue,
accounts
payable
and
net
position.
E
I
we
do
want
to
point
out,
though,
that
this
is
a
comment
we've
had
in
the
letter
for
for
a
few
years.
It's
like
martin
alluded
to
we're
looking
at
things
from
a
thousand
feet
and
at
one
point
in
time,
so
there
are
things
that
naturally
we're
gonna
catch
as
part
of
our
procedures,
but
this
year
the
number
of
entries
that
were
identified
by
us
did
decrease
significantly
from
what
we
would
have
found
in
the
past.
B
And
essentially
so,
the
thought
process
is:
it's
called
the
material
weakness,
because
if
the
city
was
literally
going
to
print
their
financial
statements
and
issue
those
without
us
checking
and
posting
those
entries,
the
statements
would
have
been
materially
misstated.
So
when
we
were
testing,
we
noticed
that
certain
things
were
not
adjusted.
As
of
your
end,
that
needed
to
be
adjusted
as
the
items
that
nikki
mentioned
and
those
were
posted
because
we
provided
the
detail,
the
support,
etc
from
our
testing
to
the
city
and
the
city
agreed
that
those
items
needed
to
be
posted.
E
Moving
on
to
the
next
page,
the
the
second
finding
we
have
relates
to
the
allocation
of
costs
between
funds,
and
there
was
progress
made
during
the
year
on
a
few
of
the
items.
Since
this
is
a
repeat
comment,
but
there
are
a
couple
that
do
remain
to
to
still
be
reviewed.
E
So
specifically,
it's
the
allocation
of
the
insurance
and
retiree
health
care
expenses
between
the
corporate
fund
and
the
water
and
sewer
fund,
the
indirect
costs
that
go
into
the
construction
code,
fee
calculation
and
then
the
annual
fee
charge
to
the
police
and
fire
pension
fund.
E
These
don't
have
an
updated
underlying
basis
to
support
the
amounts
that
are
charged,
and
so
the
recommendation
here
is
that
the
city
continue
to
revisit
these
allocation
methodologies,
just
to
ensure
that
funds
are
paying
for
their
full
share
of
the
expense
and
that
the
allocations
being
done
are
are
reasonable
and
supported.
A
I
have
mo
has
a
comment
and
then
we
need
to
wrap
this
up.
We're
getting
close
to
the
starting
time
of
our
next
meeting.
L
Yeah,
I
didn't
know
if
it
was
public
comments
or
not.
I
just
wanted
to
come
and
say:
congratulations
to
lisa
hicks
happy
thanksgiving
to
everybody.
You
know
I
know
it's.
The
holidays,
mascot
stay
safe
and
great
job
to
play.
Moran
and
everything
that
you're
doing
out
here.
B
Yeah,
the
other
items
I
mean
so
the
first
couple
that
nicolette
mentioned
were
previous
findings.
Next
couple
are,
to
be
honest,
the
new
ones.
You
know
the
bank
reconciliation
timing,
timely
reconciliations
should
be
performed
and
the
other
one
is
making
sure
that
you
can
accumulate
and
summarize
your
federal
expenditures
making
sure
that's
accurate,
so
those
will
be
the
biggest
items
overall,
I
would
say:
there's
no
other,
like
significant
items
other
than
buttoning
up
and
those
are
in
the
documents
that
are.
You
know
that
were
delivered
to
you
as
well.
B
We're
also
happy
to
answer
any
questions
subsequent
to
this
meeting,
so
don't
feel
that
you
know
the
time
limit
stops
immediately,
feel
free
to
reach
out
to
us
outside
of
formal
meetings,
or
we
can
also
attend
another
study
session
or
anything
like
that.
If
you'd
like
to
as
well.
M
M
Oh
hi
hi
martin,
we
had
our
general
government
pension
board
meeting
prior
to
this
city
council
study
session,
and
one
of
the
items
that
came
to
our
attention
through
an
email
from
somebody
at
plant
moran
through
linda,
was
that
the
general
government
pension
fund
would
no
longer
be
part
of
the
city's
audited
financial
statements.
Because
of
the
makeup
of
its
board
for
the
2021.
B
So
there's
a
new
gatsby,
that's
coming
out:
that's
not
effective
until
next
year,
so
it's
guys
be
number
84
and
it's
looking
at
fiduciary
funds
differently.
So
there's
different
definitions
of
how
it
qualifies
to
be
included
in
the
financial
statements,
and
I
know
that
we
were
talking
with
your
with
the
city
and
deciding
on
how
to
be
able
to
present
the
statements
and
the
pension
itself
in
the
statements
next
year.
B
So
nothing's
been
concluded
upon,
I
don't
believe
nikki
fully,
but
it
does
there's
some
question
marks
on
how
it's
going
to
be
presented
because
of
the
new
guess
be
coming
out.
I
would
say:
for
most
municipalities,
it's
not
a
huge
difference.
However,
in
this
case
it
could
be.
B
M
I
see
so
you'll
come
back
with
the
administration
and
or
the
council
and
there'll
be
further
discussion
regarding
that.
B
Correct
and
it's
going
to
be
one
of
those
things
that
we'll
be
definitely
covering
with
the
new
comptroller,
to
make
sure
that
you
know
we're
able
to
show
this
properly
for
the
21
year.
B
Guys
now
it
doesn't
have
a
boring
moment,
so
there's
always
new
pronouncements
and
everything.
So
unfortunately
they
don't
let
it
be.
There
is
a
new
pronouncement
that
came
out
this
past
year
that
the
only
one
that
ever
anybody
liked
is
actually
delayed
a
lot
of
the
pronouncements,
but
that's
pretty
much.
It.
H
Before
we
close
yeah,
just
a
quick
question
for
martin,
obviously
there's
a
lot
of
different
things
that
are
recommendations
and
conditions
and
criteria
and
findings.
What
is
the
process
that
you're
going
to
use
at
plant
moraine
to
be
able
to
follow
up
on
this,
to
make
sure
that
the
city
administration,
you
know,
checks
off
things
that
as
having
been
done
versus
waiting
until
the
I
hope,
not
the
next
audit
between
monthly
basis
or
weekly
basis
or
somehow
weekly
basis,
whatever
it
happens
to
be.
B
Yeah,
so
we're
happy
to
come
back
at
any
point
in
time
during
the
year
if
the
city
corrects
some
of
these
items,
for
example
like
the
allocations,
the
calculations
we're
happy
to
come
back
and
take
a
look
and
see
if
that's
been
corrected,
the
year-end
adjustments,
it's
a
little
bit
more
challenging,
because
that
would
be
one
that
clearly
is
done
only
once
a
year.
Usually,
but
you
know,
bank
requisitions
are
done
timely,
that's
another
one
that
can
be
checked
anytime
at
any
point
in
time.
B
So
we're
happy
to
do
so
at
any
point
at
any
time.
If
the
city
would
like
us
to
normally.
H
What
happens
is
see?
That's
not
what
I'm
looking
for,
because
based
on
that,
that
would
mean
that
the
city
is
policing
itself
and
they're,
calling
you
to
come
out
and
check
what
they
did
or
didn't
do.
So,
if
somebody
didn't
do
nothing,
they
won't
call
you
is
there
a
way
we
could
do
it
where
you
automatically
go
ahead
and
look
into
this,
and
if
it's
I
said,
a
counselor
I'd
be
more
than
happy
to
do
a
resolution.
They'll.
B
A
Thank
you
this
time,
I'd
like
to
end
our
study
session,
we're
going
to
recess
for
about
10
minutes,
we'll
be
back
at
705
to
begin
our
meeting.