►
From YouTube: Dearbron Heights City Council Study Session 12-10-19
Description
Plante Moran Audit Report
A
Good
evening,
I'd
like
to
start
our
open
study
session.
This
is
the
audit
report
from
plant
Lauren.
Before
we
begin
I'd
like
to
apologize,
this
study
session
was
originally
scheduled
for
last.
Wednesday
council
unanimously
agreed
to
postpone
the
study
session
in
two
till
today,
due
to
the
fact
that
there
was
no
one
here
to
record
it
for
the
public,
we
felt
it
was
important
for
our
residents
be
able
to
see
the
results
of
our
yearly
audits
I
plant
Moran.
This
point
I'd
like
to
begin
it
I.
C
Good
evening,
thank
you
for
having
us.
It's
always
a
pleasure
to
be
here.
We
appreciate
the
opportunity
continue
to
serve
the
city
of
Dearborn
Heights.
As
the
council
chairwoman
just
mentioned,
we
did
complete
the
city's
audit
for
the
fiscal
year,
ended,
2019
and
so
we're
here
to
share
the
audit
results.
C
C
We
will
go
over
our
findings.
We
are
encouraged
because
we're
starting
to
see
some
progress,
there's
been
a
lot
of
transition
within
the
finance
department
over
the
past
several
years,
and
so
I've
been
at
this
meeting.
Where
there's
been
discussions
about
recurring
findings
and-
and
you
know
how
and
when
those
are
being
addressed,
and
so
we
are
encouraged
to
see
some
of
that
being
improved
and
the
team
kind
of
stabilizing
having
the
same
folks
in
place.
C
We're
also
encouraged
by
you
know
the
ongoing
results
in
the
general
fund
in
seeing
this
city,
you
know
making
progress
with
rebuilding
your
fund
balance,
as
with
your
neighbors
you're,
not
out
of
the
woods
yet
there's
a
lot
to
be
done.
There's
a
lot
of
deferred
maintenance
legacy
costs
you're
dealing
with
what
every
other
community
is
dealing
with,
and
so
on
balance
you
know,
I
think
a
report
is
that
you
know
kudos
to
the
team
for
having
a
strong
year
for
making
some
improvement,
but
caution.
C
You
know
to
everyone
that
there's
still
a
lot
of
work
to
be
done
and
that
there
will
be
some
financial
challenges
for
the
city
ahead
as
there
will
be
in
continue
to
do
with
many
local
communities
so
with
that
I'll
go
ahead
and
turn
it
over
to
Nicolette
to
cover
the
slides.
Now
that
we
have
those
ready
to
go
and
then
following
the
slides,
she'll
go
ahead
and
cover
the
single
audit
report,
which
is
the
results
of
both
our
federal
lords
audit
and
our
financial
statement.
Audit.
E
Hi
so
as
Lisa
at
least
I
mentioned,
the
Graff
package
is
used
to
kind
of
highlight
some
of
the
key
financial
items
from
the
statement,
so
we're
not
going
through
all
100
pages
of
the
report.
So
the
first
slide.
This
shows
a
five-year
trend
of
corporate
fund
revenue,
so
revenue
has
remained
relatively
consistent.
Increasing
from
prior
year
about
2.2
million
property
taxes
do
comprise
the
city's
most
significant
portion
of
corporate
fund
revenue
at
55%
millage
rates
this
year
did
decrease
slightly,
but
your
taxable
value
was
up.
E
D
E
This
next
slide
is
used
to
illustrate
the
the
historical
trend
of
state
shared
revenue,
so
Steve
shared
revenue
payments.
Do
you
make
up
the
city's
second
largest
source
of
revenue
and
since
2014
this
revenue
has
been
increasing
and
for
fiscal
year
20?
It's
expected
to
increase
again
based
on
the
governor's
budget
recommendation.
E
Slide
5:
this
shows
a
five-year
trend
of
corporate
fund
expenses,
so
in
total
expenses
increased
approximately
four
million
dollars
from
last
year,
public
safety.
That
category
did
increase
about
a
million
dollars
due
to
an
increase
in
capital
purchases,
there's
an
ambulance
and
other
vehicles,
and
then
the
general
government
category.
That
increase
was
primarily
due
to
the
final
payment
on
the
Warren
Valley
golf
course.
E
Slide
6.
So
when
we
look
at
the
health
of
a
fund,
we
often
use
the
guideline
of
the
ratio
of
unassigned
fund
balance
and
a
sign,
so
it's
truly
available
to
spend
compared
to
your
total
annual
expenditures
and
so
15
to
30%.
It
is
often
the
measure
that's
cited,
but
obviously
will
differ
based
on
each
community's
needs
and
strategic
plan.
So
this
slide
does
show
the
past
seven
years
of
that
ratio
which
has
been
improving
each
year
and
so
for
the
year
ended
six.
E
Slide
7,
so
this
shows
the
five-year
trend
of
the
corporate
funds
fund
balance
components,
so
non
spendable
is,
is
really
two
prepaids
where
the
cash
has
already
left
the
city.
The
restricted
fund
balance
can
only
be
used
for
certain
purposes,
based
on
the
the
source
of
that
revenue,
but
assigned
in
and
and
on.
A
sign
like
we
saw
in
the
previous
slide,
is
the
fund
balance
that's
really
available
for
for
City
use,
I'm.
D
Sure
developed,
so
we
call
I
had
a
question
for
you
on
the
previous
page
you
hit
on
there.
The
fund
balance
at
six
point:
eight
zero,
two
million
and
then
the
next
one.
Here
this
one
says
ten
fought
I'm,
sorry,
ten
point:
three:
seven:
nine
million,
both
of
them
for
2019.
What
is
the
difference
in
there?
What
are
we
missing
out
on?
Why
is
Everglades?
Is
there
such
a
gap
there
and
what's
the
difference
between
the
two
so.
E
This
six
point,
eight
is
what
is
assigned,
so
it's
not
restricted,
it's
not
spendable
and
it
hasn't
been
assigned.
The
six
point,
eight
is
that
unassigned
and
then
you're
assigned.
So
if
you
look
at
your
financial
statements,
two
million
dollars
has
been
assigned
for
retiree
health
care,
so
you're,
saying
all
of
our
fund
balance
pot.
We've
earmarked
two
million
dollars
or
retiree
health
care
goes
with
that
talisman
muscat.
F
The
reason
is
that
we
asked
her
well,
I
can
answer
it.
It's
not
in
there
be
the
fact
that
that
was
assigned
years
ago,
and
if
we
run
into
a
year
that
we
have
a
problem
and
need
to
make
that
contribution.
That's
kind
of
a
reserve,
an
insurance
policy.
If
you
will
that
we
can
make
that
commitment
to
the
health
care
for.
E
What's
in
the
trust,
account
for
the
OPA
plan
is
what
you
had
planned
out
in
accordance
with
your
corrective
action
plan,
which
I
believe
you're
still
on
track
to
do
for
2020
that
two
million
it's
just
to
show
that
over
the
reserves
that
you've
built
up,
you
have
to
you're
planning
to
set
aside
two
million
in
case
there's
a
situation
where
you
would
want
to
pre-fund.
Over
and
above
your
corrective
action
plan
funding
the.
C
Way
that
the
accounting
rules
work
is
that
council
has
discretion
to
assign
or
earmark
funds
like
you
did
in
the
not
this
body,
but
I
think
a
few
several
years
ago
the
council
took
this.
So
there
was
a
resolution
that
decided
to
set
that
two
million
aside.
However,
it
was
not
resolution
was
not
to
put
it
into
the
trust
so
based
on
the
accounting
rules,
they're
still
discretion
by
this
body
to
in
fact
reallocate
that
two
million
into
the
trust
or
to
do
something
else
with
it.
C
B
G
G
F
E
Thank
you
thanks
so
slide
8.
This
graph
shows
the
past
six
years
of
the
water
and
sewer
funds
operating
income
compared
to
cash
paid
for
capital
items
and
debt.
So
operating
income
did
increase
there,
while
your
capital,
outlay
and
debt
service
expenses,
increased
and
so
infrastructure
needs
will
will
continue
to
rise
in
the
next
few
years.
So
it'll
be
important
to
consider
this
one
setting
those
those
rates
for
next
year.
E
And
then
the
last
slide
shows
the
unrestricted
that
position
of
the
water
and
sewer
fund,
which
has
been
in
the
deficit
for
the
past
few
years,
mainly
because
the
fund
has
significant
investments
in
capital
assets.
But
but
overall,
the
fund
is
operating
very
close
to
break-even
this
year,
adding
$200,000
to
net
position.
E
D
I
had
a
question
extra
for
Alicia.
If
you
don't
mind
you
mentioned
earlier,
when
you
started,
you
said
we
could
rely
on
these
numbers
and
that's
great
obviously,
you've
done
your
homework
there.
But
then
you
said:
we've
made
you
made
a
stain
of
we've
made
a
lot
of
progress,
which
is
that's,
that's
a
good
sign,
but
that
doesn't
tell
me
where
we
are
away.
Are
we
if
you
had
to
grade
us
hypothetically,
to
give
us
a
perspective
on
this
yet
to
grade
us?
As
far
are
we
a
level?
Are
we
BC
where
we?
H
C
And
I'm
sure
so
I'll
start
with
the
general
fund.
So
if
you
recall,
if
we
go
back
to
the
slide
that
making
percentage
for
several
years
ago,
I'm
not
telling
anything-
you
don't
already
know
but
dear
one
paints
was
hit
especially
hard
when
there
was
an
economic
downturn
and
the
significant
decline.
You
saw
the
experience
here
and
that
that
pick
your
bottom
line.
There's
no
question
about
that.
So
what
happened
in
those
years?
Is
you
mean
you
had
no
reserves?
C
You
know
that
put
the
budget
frankly
and
kind
of
realign
revenues
and
expenses,
and
so
you
can
see
just
from
what's
happening
with
the
fund
balance,
if
that
has
happened
so
now
today,
rather
than
having
zero
savings,
the
city's
at
about
you
know
ten
percent
of
unassigned
or
that
fifteen
percent
of
a
sign
of
in
and
I'm
I
think
he
said.
So.
A
lot
of
folks
have
kind
of
moved
up
that
metric
about
what
should
that
target
percentage,
be
how
much
of
your
annual
expenditures
that
you've
had.
C
I
D
So
that's
what
I'm,
sorry
just
follow-up
questions.
So
in
the
supplemental
before
you
gave
us
a
federal
award,
supplemental
information,
June
30th
2019
report
on
the
back
of
that
you
had
the
summary
of
the
audit
through
the
result
and
that's
what
make
sure
this
is
the
same
thing
as
you've
addressed
there.
If
there's
an
additional
information
that
we
need
to
have,
there
was
three
items
that
were
marked
not
too
good.
To
be
honest
with
you,
I
mean
one
of
them
was
material
weakness,
SAS,
slash
weaknesses
identified,
you
put
yes,
what
are
those
material
weaknesses.
C
E
One
of
the
other
deliverables
that
you
have
in
front
of
you
is
the
federal
awards
audit.
So
since
the
audit
is
performed
under
general
auditing
standards,
we
do
include
any
findings
that
we
have
in
this
report.
Under
the
federal
audit,
we
did
test
CDBG
this
year.
We
had
no
findings,
but
we
did
have
a
few
financial
statement.
Findings
you
mentioned.
So
if
you
want
to
turn
to
page
four
I,
like
page
nine.
E
So
the
first
finding
this
is
a
repeat
finding
and
it's
related
to
accounting
entries
that
we
would
have
identified
as
part
of
the
audit,
so
liability
should
I
mentioned.
We
did
see
an
overall
decrease
in
the
number
of
journal
entries
that
we
did
identify,
because
when
we
started
on
it
we
would
expect
that
everything
is,
is
locked
up,
everything's
been
reconciled
to
the
GL
and
it's
ready
for
us
to
come
in
and
look
at
the
entries
that
we
did
identify
spanned
across
the
corporate
fund.
E
Lauren
super
fund,
the
full
accrual,
as
we
fund
Tiffa
fund,
Drug,
Enforcement,
Fund
library
fund
and
the
major
and
local
streets
fund,
and
so
again,
like
Alicia
mentioned.
We
know
that
you've
had
turnover
in
this
department
for
the
past
few
years,
but
we
would
continue
to
recommend
that
the
focus
really
be
on
strengthening
the
controls
in
the
comptroller's
office.
I
D
C
C
I
So
I
know
for
the
last
two
audits
that
I'm
been
part
of
you
know.
I
keep
hearing
the
same
thing.
We
have
changed
in
personnel,
but
I.
Don't
think
there's
an
excuse
for
that
here,
since
we
have
a
mayor
who
is
a
CPA
and
we
keep
having
the
same
Fighting's
which
are
related
to
a
financial
issue.
So
I
don't
think
that's
an
excuse
that
we
have
new
comptroller
every
few
years,
since
we
do
have
the
same
mayor
as
a
CPA
and
we
keep
noting
the
same
issues.
I
The
other
thing
here,
I,
don't
see
any
amounts.
So
when
you
say
there's
an
issue
like
say
with
water
funds
or
funding
going
from
one
to
the
other.
You
know
like
for
me,
for
example,
I'd
like
to
see
an
amount,
you
know
not
I
mean
this
could
be
you
know,
ten
thousand,
it
could
be
a
million
dollars.
We
don't
know
you
know.
We
know
there
was
an
issue
and
there's
like
material
weakness
or
something
like
that.
D
C
For
her,
like
only
the
entries
so
as
an
example
of
using
full
beep,
if
you
literally
funky
so
let's
say
your
general
fund,
you
purchase
the
truck
okay.
It's
an
expensive
general
fund,
the
Montrose
David
in
your
government
wide
statements,
that's
treated
as
an
asset
like
you
would
a
normal
business.
So
there's
a
book
only
entry
to
record
that
as
an
asset
and
like
a
liability
and
your
government
wide
fund,
it
never
affects
your
cash,
doesn't
affect
your
general
fund.
So
that's
probably
half
of
these
are
those
types.
B
On
page
ten
I
see
significant
deficiencies,
the
knees
keep
reoccurring.
These
are
recurring
things
all
the
time
and
I
how?
How
does
someone
stay
if
it
was
a?
How
do
you
stay
in
business?
If
you
keep
getting
the
same
things,
and
you
know
you
say
you
buy
a
truck,
it's
a
it's.
An
asset
and
I
understand
it's
an
asset,
but
it
still
cost
money.
Money's
got
to
come
from
somewhere
and
I
see
a
lot
of
day
and
even
on
page
11.
Coming.
E
I
And
again,
you
know
that's
some
of
the
stuff
that
we
can't
bring
it
up
at
the
council.
I
know:
I'm
a
costumer
muscat,
myself
and
few
others
have
brought
that
issue.
When
you
have
an
invoice.
That
is
that's
a
reference,
the
water
fund.
We
know
that
entry
shouldn't
go
to
the
water
fund.
So
that's
one
of
the
questions.
That's
why
I
was
raising
a
concern
that
would
look
to
see
if
there's
an
entry
for
something
like
what
the
entry
is.
E
E
It
relates
to
those
allocations,
so
this
is
all
has
been
repeated
in
years
past
and
it
relates
to
the
allocations
made
between
funds
for
between
the
general
fund
and
the
Water
and
Sewer
indirect
charges
on
construction
code
fees,
annual
fee
paid
to
the
police
and
fire
fund,
and
then
an
annual
fee
paid
to
the
library
they're.
The
basis
for
these
charges
hasn't
been.
A
K
C
K
I
I
mean
that's,
that's
an
a
prime
example
that
one
statement,
fewer
sentences
down
from
20
19,
0
0.
Finding
an
annual
fee
is
charged
to
the
Police
and
Fire
pension
trust
fund
for
services
provided
by
the
corporate
fund,
with
no
documented
basis
to
support
the
amount
charged.
So
so,
something
like
that
I'd
like
to
see
what
that
amount
is
again.
I.
Think.
E
L
A
gives
the
city
for
administrating
the
pension
fund,
so,
as
you
recall,
the
fire
control
Macari
is
helping
out
a
part-time
administrating,
the
bus,
so
that
would
cover
his
salary.
Total
cover
might
work.
The
deputy
treasurer's
were
others,
lives,
work
putting
together
tonight
for
the
benefit
calculations
and
for
them
keeping
the
payroll
of
what's
determined
for
the
pension
system,
so
for
the
operating
of
a
whole
pension
system,
35,000
is
reasonable.
That
puts
the
pension
for,
like
the
city
council,
pension
board
authorized
to
pay
the
city
to
provide
those
services
to
the
board.
Thank
you.
E
So
the
third
finding
is
related
to
the
schedule
of
expenditures
of
federal
awards,
which
is
on
page
six
of
this
report
that
just
lists
out
all
of
your
federal
expenditures
for
the
year
and
so,
along
with
the
financial
statement
records.
The
expectation
will
be
that
the
sefa
is
complete
and
accurate
at
the
time
we
start
auditing.
However,
we
did
identify
as
part
of
the
audit
that
$38,000
federal
forfeiture
expenses
were
left
off
of
the
sefa,
and
so
that
had
to
be
added
in
forward
or
for
it
to
be
materially
stated.
D
Give
more
information
on
something
like
this,
so
I
mean
$38,000,
it's
a
lot
of
money.
So
when
you
say
something
like
that,
it's
left
off
and
I
get
it.
There's
probably
eight
billion
numbers
going
back
and
forth
all
day
at
the
city,
but
yeah,
eight,
thousands,
pretty
significant
amounts.
So
how?
How
is
that
dropped
in
what
actions
are
being
put
in
place
or
recommended
to
the
city?
I
presume
that
you
meet
with
everybody.
You
know
personally
to
make
recommendations.
How
does
sound
like
that?
Get
dropped
in
may
not
get
caught.
I.
E
D
When
you
clean
it,
we
so
when
you
so
when
you
have
a
finding,
you
know
in
some:
it's
significant
is
there
and
some
is
it
and
I
had
honestly
some
concerns.
You
know
because
throughout
here
you
had,
you
know,
as
we
mentioned
earlier
material
weaknesses.
I
mean
these
are
words
that
scare
me
honestly,
material
weaknesses,
significant
deficiencies,
you
know
non-compliance.
These
are
not
words
that
make
me
feel
comfortable
with.
D
What's
going
on
over
here
and
I'm
sure
buddy's
doing
their
best,
no
doubt
about
it,
but
with
that
be
in
the
case,
if,
if
their
best
is
not
good
enough,
then
do
you
make
recommendations?
Does
the
mayor
make
changes?
Do
you
want
us
to
make
I
mean?
Obviously
it's
not
our
Forte
accounting
but
somebody's
got
to
make
some
changes
in
and
make
sure
you
said,
four
things
don't
happen
or
unless
I'm
wrong,
and
this
is
very
fairly
common.
In
most
cities
we
tried,
but
imagine
that
that's
not
the
case.
C
A
little
more
context
on
the
finding
that
we're
talking
about
number
3
on
page
11
on
page
6
of
the
report
that
we're
looking
at
now
is
the
schedule
which
shows
the
total
federal
awards
that
were
spent
during
the
year.
So
federal
dollars
are
word
to
see
that
you
actually
spent
during
the
year
that
schedule
omitted
the
$38,000.
It
was
reported
in
the
city's
general
ledger
system.
It
was
in
your
fund
statements,
it's
in
your
financial
reports,
but
the
miss
was
getting
it
added
to
that
schedule.
So
that's
that
was
that
that
was
the
issue.
C
That's
particular
schedule
needs
to
include
everything
and
there
was
a
lapse
and
controls
which
didn't
pull
that
amount,
but
it
but
the
reason
we
identified
it
is
because
it
was
correct
in
your
general
ledger
system,
so
I
I
just
want
to
clarify
that
so
relative
to
where
do
you
go
with
these
types
of
findings?
I
mean
the
best
we
can
do
is
say,
here's
what
we
identified
and
here's
our
recommendation
and
then
it
really
becomes.
You
know
a
policy
decision
as
to
how
you
want
to
go
about
rectifying
them.
C
I
will
tell
you
that
is
pretty
common
for
us
to
have
finding
like
corrections.
So
we
still
would
say
that
we'd
like
to
see
that
number
come
down
in
terms
of
the
entries
identified.
So
we
do
still
think
there's
an
area
to
keep
improving
on
that.
But,
as
the
mayor
said
that
it
was
acknowledged
that
there
was
some
assist
additional
assistance
and
development
and
training
opportunities
with
the
team.
And
so
the
mayor
did
take
action
to
ask
us
to
bring
in
some
resources
to
help.
And
that's
just
happened
in
recent
months.
So.
D
F
A
M
Lives
when
I
think
of
the
initial
seatbelt
it
wasn't
on
there
I
reached
out
to
departments
that
have
federal
funding
to
see
if
there
was
anything
else
that
I
should
anticipate.
They
told
me
no
and
I.
Just
I'll
have
to
do
a
better
control
on
that
I
just
figured
if
they
know
what
they're
buying,
with
their
venture
funds
when
you're
buying
it,
but
I
didn't
miss
that
because
it
happens
if
it
was
actually
paid
for
in
August.
I
M
M
G
You
I'm
just
playing
all
right
so
with
the
audit
report,
I
mean
I
have
two
things
that
really
just
come
to
me
screaming.
There's
I,
never
liked
seeing
deficiencies,
especially
when
they're,
reoccurring
and
I
do
appreciate
attention
to
that.
But
I
really
want
to
hear
on
our
OPA
bond
our
liabilities.
Our
legacy
cost
in
particular
compliance
with
public
acts,
202
from
2017
submission
of
form
5572
to
michigan,
Treasury
Department,
and
how
funded
are
we?
G
C
What
the
what
the
state
is
looking
for,
all
communities
to
target
is
being
30%
funded
over
30
years,
so
the
city
of
Dearborn
Heights
has
a
ways
to
go
right,
but
you've
taken
the
first
step,
which
is
good.
You
didn't
I
mean
until
this
year.
You
didn't
have
a
trust
that
you
had
zero
pre
funding.
So
the
fact
that
you
start
the
trust
that
was
the
first
right
step,
you've
made
an
initial
deposit.
C
You've
got
to
keep
building
on
that
and
your
plan
calls
for
you
to
keep
funding
that
over
time
to
work
towards
that
target
that
the
state
has
set
out
for
you.
So
I
do
think
it's
important
for
the
council
to
keep
that
top
of
mind
as
you're
budgeting.
You
had
some
discussion
about
that
earlier
and
making
sure
that
you're,
steadfast
and
continuing
to
work
toward
you
know
chipping
away
at
putting
some
funding
aside
for
that,
but
I
would
say
kudos
on
taking
a
step
to
getting,
but
we
do.
G
Other
thing
is
I'm.
Looking
at
the
water
loss
and
I
know,
directors
tell
me
no
I
have
met
and
talked
about
this,
but
the
infrastructure
liability
that
this
community
is
going
to
incur
is
in
my
mind
a
mountain
I
mean
we
were
looking
at.
Water
loss
has
increased
to
15
percent
when
it
was
8
percent
in
2018,
I
mean
that's
significant
for
us
and
that's
costing
everybody
money,
and
we
will
see
that
in
our
water
rates.
You
know
it's
really
unfortunate.
So
that's
just
a
comment.
G
Besides,
the
LED
leads
in
175
homes,
oh
yeah
known
homes,
so
these
are
some
issues
that
I
tell
you
just
keep
putting
the
flag
up
on
those
issues
because
we
really
need
to
be
planning
this
stuff
out.
I
mean
we
need
to
do
some
long-term
visiting
I'm
talking
5
10
15
years
as
a
community,
or
else
how
are
we
going
to
be
able
to
do
this?
We
can't
keep
going
to
our
residents
asking
for
more
and
more
money
and
taxing
you.
We
need
to
be
more
responsible
on
the
planning.
A
G
E
So
the
last
finding
is
related
to
procurement
standards
under
the
uniform
grant
guidance,
the
new
single
audit
rules.
These
rules
were
effective
back
in
2015,
however,
communities
had
the
option
of
deferring
one
of
the
components:
the
new
procurement
standards
for
three
years,
and
so
the
city
exercised
that
option
to
defer
the
new
procurement
standards.
C
J
C
E
A
D
For
Nicole
I
mean
it's
the
second
time
you've
mentioned
this,
and
you've
mentioned
that,
there's
not
that
anything.
That's
been
borrowed
from
water
and
not
been
repaid,
but
yet
we
consistently
pre
consistently
see
that
most
council
meetings
where
there
has
been
things
charged
to
water
and
then
we've
asked
as
a
council.
D
You
know
we'd
like
to
see
you
know
that
brought
right
back
to
the
water
and
then
show
us
proof
of
that
and
I,
don't
know
about
any
of
you
guys,
but
I
haven't
personally
seen
it
to
be
honest
with
you
where
it
has
been
brought
back,
but
then
you
you're
mentioning
that
you've
never
seen
it.
That
kind
of
concerns
me
because
it's
been
happening
on
it
seems
like
almost
every
other
meeting.
We.
C
Added
on
a
sample
basis
in
our
sample
last
year,
we
did
find
an
issue
that
was
rectified
in
our
sample
this
year,
our
expanded
sample.
We
didn't
not
identify
any
issues,
so
it
doesn't
mean
it
didn't
happen.
It
just
means
we
didn't
see
it
and
what
we
tested,
because
it
is
on
a
sample
basis.
We
do
statistical
sampling,
okay,.
D
So
question:
don't
look
at
everything,
so
being
that
that's
okay,
so
you
mentioned
in
the
sample,
didn't
come
up
and
I
could
get
that
I
mean
I,
get
that
let's
say,
there's
a
thousand
receipts.
It
was
twenty
like
that
they
may
even
have
run
across
the
same
twenty.
But
what
if
you
asked
right
now
to
look
into
it
a
little
bit
further?
Is
there
an
option?
Yeah.
F
You
can
either
do
it
now
or
I.
Do
it
before
the
audit,
but
when
I
have
concerns
about
a
particular
Department
I,
let
them
and
keep
them
informed
and
I
will
ask
them
to
update
and
go
more
intensive
in
a
particular
area
and
there's
usually
a
reason
for
that
and
I
discuss
that
with
them,
and
certainly
if
the
consul's
group
feels
that
they
want
more
effort
done
in
a
particular
manner.
All
you
need
to
do
is
tell
them,
and
they
will
accomplish
that.
Well,
but.
D
To
be
fair,
mr.
mayor
we've
had
situations
where
there's
been
a
charge
of
just
whatever
it
happens,
to
be
the
head
monthly
reduced
water,
but
that
was
charged
to
water,
and
then
it's
been
brought
up
where
this
shouldn't
have
been
charged
water
and
then
we've
been
told
that
there's
gonna
be
some
corrective
action
that
we
would
see
the
receipts
as
proof
that
this
has
been
done,
and
quite
frankly,
at
least
in
my
reference,
unless
you
guys
have
others,
I
haven't
seen
it.
F
Well,
here's
here's
the
key
component
because
mr.
Sami
came
aboard
and
after
a
couple
meetings
he
got
the
flavor
of
regarding
this
and
mr.
Sami
has
been
taking
a
very
watchful
eye,
as
has
the
controller
and
myself
in
regards
to
the
allocation
of
those
particular
things
and
I.
Think
I
think
we
have
it
under
control.
Am
I
incorrect
or
but.
M
And
Sunday,
since
this
new
fiscal
year,
I
did
some
last
year,
but
I
have
sent
the
council
inventory
reports
with
every
financial
statements.
The
one
report
I
did
like
six
months
up
in
a
row
where
you
can
see
you
see,
expenses
and
things
that
you
see
every
month
that
there's
money
going
out
of
that
inventory
account
which
means
it's
being
allocated
to
the
proper
departments.
Some
would
have
been
providing
you,
those
reports,
this
new
fiscal
year,
but.
F
M
Which
are
provided
from
the
DPW
and
then
John
has
been
allocating
them
without
the
water
fund,
paying
if
they
know,
specifically,
it's
not
water.
If
it's,
you
can't
not
allocate
the
gasoline.
The
gasoline
goes
into
one
tank
and
then
we
bill
each
department.
You
can't
take
that
bill
and
decide
when
they
use
it.
How
much
just
on
the
basis
most.
D
Of
the
time,
though,
it's
been
four
things
that
have
been
clearly
not
water,
and
now
that's
that's
ones.
I've
been
an
issue
because
so
in
sort
of
circumstances,
you're
gonna
have
things,
are
gonna,
be
used
by
the
water
department
and
by
hypothetically
highway
or
whatever
I
get
that
on
I
get.
You
know,
tank
of
gas.
You
can't
split
up,
so
you
just
allocate
I
get
that,
but
there's
been
some
ends.
Many
and
some
incidences
where
it's
been
situations
where
it's
been
things
that
have
been
charged
to
water
and
then
some
of
us
have
brought.
D
You
know,
issue
with
that
and
then
you're
saying
it's
being
allocated
back,
but
then
maybe
an
exact
allocation.
Maybe
you
could
email
us
a
copy.
The
allocation
back
or
like
the
mayor
mentioned,
maybe
in
the
beginning,
bring
them
up
specifically
because
when
you
get
the
financial
report,
as
you
are
aware,
in
the
marriage
mansion,
we
are
not
accounts,
I
mean
you
got.
M
D
B
C
This
is
really
just
a
compliance
issue,
so
I
think
so
this
has
to
do
with
your
federal
awards.
Funding
I
think
what
needs
to
not
happen
is
that
I
keep
repeating
you
over
year,
because
then
you
know
you're
a
granting
agencies
and
say:
okay,
wait
a
minute.
You're
gonna
comply
with
the
rules
or
not
right
because
they
get
these.
C
So
the
council
needs
to
look
at
your
procurement
policy,
make
some
modifications
so
that
you
comply
with
the
new
requirements
for
what
needs
to
be
built
into
your
procurement
policy,
adopt
it-
and
this
goes
away-
it's
very
simple-
to
rectify
this
issue,
so
I
would
HIGHLY
encourage
count.
You
know
the
team
to
do
that,
and
so
that
you
don't
have
a
recurring
issue
that
the
granting
an.
B
C
Have
to
check
I
feel
like
number
two
is
two
or
three
years
now:
the
number
one,
the
nature
of
the
items
we
find
changes
you're
over
here.
It's
not
like.
We
find
the
exact
same
errors
year
over
year,
but
the
concept
of
finding
corrections
that
have
to
be
made
to
materially
correct
your
financial
statements
that
has
recurred
for
several
years.
B
D
D
I,
don't
know
if
that
can
be
done
where
you
guys
come
in
present
to
us,
maybe
at
a
study
session,
the
findings
that
you
found
so
far,
and
this
way
we
can
make
much
quicker
corrective
action
instead
of
waiting
into
an
engineer
to
find
out
no
matter
what
it's
too
late,
I
mean
whatever
corrective
action.
You
gonna
do
it's
too
late
for
that
particular
year,
because
because
it
seems
like
as
long
as
I've
been
on
the
council
been
hearing,
you
know
these
again
words
that
I
don't
like
to
hear
you
know
weak
non-compliant.
D
C
Couple
of
thoughts
on
that,
and
one
is
that
you
know
the
scope
of
our
audit-
is
to
audit
your
financial
statements
as
of
the
end
of
the
year.
So
it's
not
part
of
our
engaged.
It's
not
part
of
a
requirement
for
you
to
have
us
here
all
year.
Doing
testing
that
would
be
outside
of
your
audit.
Most
of
what
we're
testing
is
the
numbers
as
of
six
thirty
year
end,
so
that
that
wouldn't
work
for
our
audit,
because
then
we'd
be
doubling
up
on
time
and
effort.
C
However,
if
you
wanted
us
to
engage,
you
know
throughout
the
year,
we
you
we
could
talk
about,
structuring
something
that
got
us
out
here
for
maybe
a
few
days,
and
you
know,
maybe
we
could
look
at
progress
on
prior
things.
It
would
be
outside
of
the
scope
of
our
audit,
but
we
could,
you
know,
arrange
something
where
we.
What.
D
C
G
D
F
I
So
I
know
I
mentioned
this
before
I
mean
I've
done
auditing
for
many
years
and
for
different
companies.
So
I
mean
this.
The
stuff
that
I've
been
seeing
here,
the
company
will
probably
lose
their
certification
in
a
lot
of
cases.
So
actually
what
I
like
to
see,
instead
of
having
you
guys,
come
and
wasting
more
money,
I'd
like
to
see
the
administration
I
mean
you
would
think
that
they
will
do
like
most
cities
or
most
corporations
do
their
own
internal
audit,
especially
with
something
like
this.
It's
repeat:
findings.
I
The
year
after
year
after
year
and
I
said
I've
gone
like
almost
ten
years
and
there's
a
lot
of
repeat,
repeat:
findings
from
6-7
years
back.
So
what
I
like
to
see?
Is
that
see
what
the
administration
before
we
approve
the
next
budget
to
see
what
the
administration
is?
Gonna
do
one
an
eternal
audit
to
make
sure
that
when
plant
moraine
comes
for
another
audit,
you
know
we're
not
gonna
see.
This
is
embarrassing
that
we
see
that
the
same
repeat,
findings.
So
again
we
shouldn't
have
to
wait
another
year
next
year.
I
We
do
the
same
thing.
Oh,
we
got
another
repeat:
findings,
okay,
two
of
the
three
or
two
of
the
whatever
I
think
there
should
be
an
internal
audit
and
I
think
the
administration
needs
to
provide
us
with
something.
What
what
are
they
gonna
do,
what
tools
they
can
put
in
place.
So
there's
no
more
repeat
findings,
because
this
is
over
which
we
keep
seeing
this
over
and
over
and
we
keep
approving
the
budget.
It.
K
C
So
if
you're
gonna
do
do
it
internally,
I
mean
you
know.
Certainly
the
team
could
provide
updates,
write
quarterly
monthly
updates
on
status
of
the
findings.
Now,
if
you
want
an
internal
audit,
you
know
the
mayor's
correct.
That's
different!
That's
a
significant
time
resource
allocation
matter.
If
you
were
asking
us
to
come
and
provide
quarter
updates
to
give
an
independent
opinion,
that
would
be
a
challenge
for
us
to
do
because
we're
not
here
all
year
and
we
don't
know,
what's
happening
until
we
come
audit
the
books
and
records
on
your
end.
K
C
Would
say:
well,
it's
probably
a
combination,
so
there
it's
a
combination
of
folks
that
maybe
have
the
team
and
resources
to
effectively
deal
with
these
things
internally
and
those
who,
maybe
don't
aren't
quite
there,
will
engage
us
to
come
help
correct
some
of
the
the
findings
and
part
of
that.
Some
of
that
has
happened
in
recent
months.
C
Where
the
mayor
reached
out
to
Martin,
Oleynik
and
said:
hey,
do
you
have
some
resources
that
can
help
our
team
with
learning
some
of
these
things
or
front
we're
having
issues
with
so
that
we
don't
keep
having
repeat
findings?
So
that's
that's
new
one
in
recent
months,
but
that
that
has
started
any.
C
Would
really
depend
on
this
goal,
so
it's
all
it's
a
time
and
effort
game
right,
so
it
did.
It
really
depends.
You
know
how
much
the
council
wanted
us
just
to
get
to
dig
into
things,
so
it
could
be
from
like
a
few
thousand
dollars
to
more
than
that.
I,
don't
you
know
depends
how
much
time
we're
spending
here
you
know.
So
we
do
offer
a
discounted
rate.
B
Comment
comes
from
Muscat,
oh,
let's
not
forget.
This
is
just
a
audit
report,
okay,
they're,
given
things
and
they
test
things,
and
so
it's
just
an
audit
report
and
when
we
go
through
the
budget,
maybe
we
could
have.
One
of
them
come
sit
with
us.
So
when
we
have
questions
to
ask
as
we
go
line
by
line,
it
may
help
us,
because
I
have
a
gazillion
questions
here:
yeah
and
we're
not
gonna
get
through
it
tonight.
We.
H
H
C
M
M
H
That's
what
we
want
is
because
I
have
seen
it
previously
and
it's
repeated
item
now.
The
water
loss
I
do
agree
with
Lisa.
The
loss
is
almost
1.3
million
dollars.
If
I'm
not
mistaken
annually.
I
would
strongly
recommend
to
the
City,
Council
and
administration
that
we
have
five
years
a
plan
to
replace
the
old
pipes
and
to
see
how
we
can
reduce
this,
because
this
was
8%
last
year
and
it's
back
to
15%.
That's
lots
of
money
to
hack.
H
N
So
if
that's
an
issue,
we
need
to
make
sure
that
there
are
controls
in
place
to
make
sure
that
hydrants
aren't
just
open.
Knowing
people
need
to
be
opening
hydrants
or
the
gentleman
over
in
the
corner
with
the
badge
is
on
that
one.
Only
gentlemen
are
allowed
to
open
up
waters
for
free
and
putting
fires
out.
Anybody
else
doesn't
have
that
permission
or
that
right-
and
this
is
a
this-
is
just
an
audit.
Like
the
lady
here
said,
it's
not
a
deep
dive.
It's
just
all
it
is.
It's
statistical.
N
N
A
O
Good
evening,
everyone
Joe
Hachem
Watson
drive
just
for
my
experience,
I'd
like
to
talk
about
a
couple
of
things
about
audits
and
what-have-you.
There's
many
types
of
viruses
compiled
state
ministers,
bookkeeping
statements
is
qualified,
citizen
and
unqualified
statements.
The
unqualified
statements
is
the
top
of
the
line.
It's
the
Kadlec
of
auditing.
Once
you
get
that
that
means
the
auditors
got
everything
they
have
requested,
the
city
or
the
bank
or
the
administration
or
the
store
did
not
offer
any
documents
they
asked
for
whatever
they
want.
That's.
O
P
My
name
is
that
frolic
I
wouldn't
address
the
issue
in
the
plan.
Moran
I
used
to
work
for
a
garden
city,
school,
Public
Schools,
and
they
had
planned
Moran
there
and
you
know
what
happened
to
them:
they're
privatized
right
now
and
I
stated
to
them
when,
because
the
secretaries
were
in
the
Union
and
I
was
in
the
Union,
I
said
you're
coming
next
and
they
thought
I
was
full
of
beans
and
they're
privatized
too.
And
what
was
the
charge?
P
The
drop
plant
Moran
right
up
to
that
because
it
was
a
lot
of
hanky-panky
going
on
between
pride,
Moran
and
superintendent
of
the
Kansas
City
Schools,
so
Superintendent
Garden,
City
School
resigned
after
death
to
sue
because
he
didn't
want
to
pay
some
charges
whatever.
What
I'm
saying
is
they
privatize?
You
need
to
get
independent
somebody
else,
besides
planting
Moran,
to
check
out
what's
going
on
here:
okay,
because
I,
don't
trust
plant
Moran,
hey
Ben!
Thank
you.
Any.