[00:00:01]
SO I GUESS WE HAVE EVERYBODY'S HERE.SO, UM, TECHNOLOGY IS ALL SET AND READY TO GO.
[I. CALL TO ORDER]
UM, I'LL GO AHEAD AND CALL THIS MEETING TO ORDER AT 1230.THIS IS THE ROOTS AND COUNTY BOARD OF SUPERVISORS, FINANCE AND PRODUCT COMMITTEE MEETING.
IF THAT'S THE MEETING YOU WERE PLANNING ON ATTENDING IN THE RIGHT PLACE.
IF YOU'RE NOT PLANNING ON ATTENDING THAT MEETING, THIS WOULD BE A TIME TO BE PLANNING.
UH, IT IS AUGUST 3RD, UH, 1230, AND THEN I'VE CALLED THE MEETING TO ORDER.
WE HAVE FOUR OF THE FIVE VOTING MEMBERS HERE, UH, THE COUNTY ADMINISTRATOR, SO WE CAN PROCEED AND WE HAVE SOMEONE TO TAKE MINUTES.
SO I SOUNDED LIKE YOU GOT EVERYTHING WE NEEDED TO GO AHEAD AND GET, GET STARTED HERE.
UH, FIRST ITEM ON THE AGENDA IS THE APPROVAL OF THE MINUTES FOR
[II. APPROVAL OF MINUTES FROM MAY 4, 2021 (PAGE 2-3)]
MAY 4TH, 2021.THOSE ARE MY PAGES TWO AND THREE OF YOUR PADS THAT THEY WERE CIRCULATED IN ADVANCE OF THE BOARD MEMBERS.
ARE THERE ANY ADDITIONS, DELETIONS, OR CORRECTIONS TO THE MINUTES? I HAVE ONE COLLECTION.
THE DEPARTMENT OF SOCIAL SERVICES, FINANCE MANAGER, DON.
THEY SHOULD BE BEVERLY LONG LIST OF BENEFIT PROGRAMS, SUPERVISORS.
THANK YOU FOR THAT ADDITIONAL ADDITIONAL ADDITION, CORRECTION, ENTERTAIN A MOTION TO APPROVE THE MINUTES AS AMENDED.
SO WE'LL HAVE A SECOND, SECOND ALL IN FAVOR, SIGNIFY BY SAYING AYE.
ANY OPPOSED? SAY NO, THE MOTION PASSES.
[III. FY2021 AUDIT KICK OFF]
IS OUR FISCAL YEAR 2021 AUDIT KICK OFF WHEN HE FINISHED THE FISCAL YEAR ON JUNE 30TH.NOW IT'S TIME TO START GOING TO NOTES, RESULTS.
LEAVE THE AUDITS ARE DO NO LATER THAN THE END OF NOVEMBER.
SO NOW'S A GOOD TIME TO GET STARTED.
SO WITH THAT SAID, UM, WOULD YOU LIKE TO WALK US THROUGH THE, UH, KICK OFF WITH THE AUDIT? DID YOU WANT TO SAY ANYTHING BEFORE YOU? UM, NO.
UM, I JUST WANT A QUICK INTRODUCTION.
BEST BETSY HENDRICK IS A PARTNER WITH PB MAYORS.
YOU USUALLY SEE MY HAIR, MY GARBER, BUT, UM, BETSY IS HERE IN HIS PLACE, BUT BETSY ALSO IS THE PARTNER THAT COMES OUT IN THE FIELD.
AND AS SUPERVISORS, SUPERVISORS, SUPERVISORS, OUR AUDITS AND ANDREW NICHOLS IS OUR MANAGER FOR OUR AUDIT AND SHE KEEPS EVERYBODY, UM, ALL THE AUDITORS IN LINE, UM, UNDERNEATH HER.
SO, UM, THEY'RE COMING OUT HERE THAT LAST WEEK IN SEPTEMBER TO DO THE AUDITS.
AND I BELIEVE YOU HAD A HANDOUT AND I WANT TO ASK AT THIS POINT, IS THIS, THIS IS YOUR HAND, THAT NEEDS ONE.
DOES EVERYBODY HAVE A HANDOUT? THERE ARE EXTRAS HERE.
WELL, GOOD AFTERNOON, ANDREW AND I ARE THRILLED TO BE HERE WITH YOU TODAY.
I JUST SAW MIKE, THE SORRY THAT HE HAS A CONFLICT.
AND AS BARBARA SAYS ON YOUR ACCOUNT, WE ACTUALLY HAVE TWO PARTNERS ASSIGNED TO THIS ONE, BOTH MIKE AND I.
SO OVER THE YEARS, YOU'VE BEEN USED TO SEEING MIKE AND I'VE BEEN A LITTLE BIT BEHIND THE SCENES, BUT I'VE DEFINITELY BEEN INVOLVED IN, INTO THE DETAIL AND INTO THE WEEDS.
SO MIKE AND I COLI OUR STATE LOCAL GOVERNMENT NICHE FOR THE FIRM.
THE FIRM HAS IDENTIFIED CERTAIN NICHES AND INDUSTRIES THAT WE WANT TO FOCUS ON AND ALLOCATE ADDITIONAL RESOURCES TO.
UNFORTUNATELY, I DON'T HAVE TO BE A PART OF A NICHE THAT WE'RE TRYING TO GROW, AND WE HAVE A PRETTY SIGNIFICANT, YOU KNOW, SIZE TO, UH, CLIENTS AND TEAM MEMBERS AND TEAMMATES AND ALL OF THAT.
UM, YOU MAY HAVE HEARD BACK IN DECEMBER, WE ACTUALLY ACQUIRED TWO OFFICES IN
THEY WERE FORMER RSM OFFICES, AND I KNOW IN THE PUBLIC ACCOUNTING, WE'RE ALL HERE FOR, UM, BUT OUR STEM IT'S ACTUALLY THE FIFTH RANKED CPA
[00:05:01]
FIRM IN THE COUNTRY.AND WE ARE AN ALLIANCE FOR THE BAR SIM.
SO WE PAY A FEE EVERY, EVERY YEAR.
AND WHAT WE GET FOR THAT IS THEIR AUDIT METHODOLOGY, ADDITIONAL DEPTH AND RESOURCES.
IF WE NEED TO, TO PROVIDE A SERVICE TO A CLIENT THAT MIGHT IMPAIR INDEPENDENCE, WE CAN ALWAYS REACH OUT TO THEM AND PARTNER WITH THEM.
AND WE HAD A GREAT RELATIONSHIP WITH THOSE OFFICES IN NORTH CAROLINA.
SO WHEN THEY CAME ON BOARD, WE KIND OF DOUBLED OUR NICHE SIZE AND WE HAVE ADDITIONAL MANAGERS AND ANOTHER PARTNER.
AND SO THAT WE ADDED, AND THE TRANSITION BETWEEN BOTH TEAMS HAS JUST BEEN REALLY SEAMLESS BECAUSE WE USE THE SAME AUDIT METHODOLOGY PROGRAMS. SO IT'S BEEN A REALLY GOOD COMBINATION FOR THE FIRM.
SO I HAVE BEEN AT THE FIRM FOR OVER 24 YEARS, SPECIALIZING IN STATE LOCAL GOVERNMENT IS WHAT I LOVE TO DO.
IT'S MY PASSION TO, UM, BARBARA.
UM, YOU KNOW, I THINK YOU EITHER, YOU, YOU, WHEN YOU STARTED THE FIRM, I THINK SOMETIMES THESE TYPES AUDITS, BECAUSE THEY HAVE SO MUCH VOLUME AND SO MANY DIFFERENT AREAS OF SERVICE, IT CAN BE OVERWHELMING AND YOU QUICKLY SOON DECIDE WHICH ROUTE AND WHICH PATH I'M GOING TO TAKE AT NIGHT.
I'M GLAD THAT I TOOK THIS ONE.
IT HAS BEEN FANTASTIC OVER THE YEARS.
AND IN ADDITION TO CO-LEADING OUR STATE LOCAL GOVERNMENT, THAT'S ALSO OUR ASSURANCE LINE LEADER IN THE CENTRAL REGION.
SO I LEAD OUR ANA PRACTICE AND THE CENTRAL REGION, WHICH IS OUR OFFICES IN RICHMOND AND FREDERICKSBURG, WARRENTON, AND HARRISONBURG.
SO ANSWERING, BUT YOU'D LIKE TO TALK A LITTLE BIT MORE, CAUSE I KNOW YOU HAVE A CERTIFICATION WITH THAT.
IT'S ALWAYS GOOD FOR PEOPLE TO KNOW THAT.
UM, SO I'VE ANDREA NICHOLS, I'M THE MANAGER OUT OF THE HARRISONBURG OFFICE.
AND I HAVE 16 YEARS OF EXPERIENCE IN LOCAL GOVERNMENTS AND LOCAL GOVERNMENTS ARE PRETTY MUCH ESSENTIALLY THE ONLY THING THAT I DO ALL YEAR LONG.
SO I SPECIALIZE IN SCHOOLS AND AUTHORITIES, THINGS LIKE THAT.
I AM A FEDERAL COMPLIANCE NERD AND THE REST OF THE TEAM LIKES TO, UM, GIVE ME A LITTLE GRIEF ABOUT THAT, BUT I HAVE AN AI CPA, SINGLE AUDIT, ADVANCED CERTIFICATION.
AND SO, UM, MY SPECIALTY IS STAYING UP TO DATE ON ARPA CARES ACT AND ANY SINGLE AUDIT CONSIDERATIONS.
AND I KNOW DEBBIE AND I HAVE KEPT THE PHONE LINES HOT THIS YEAR.
SO IN A LITTLE BIT ABOUT LIKE ON OUR SECOND PAGE, UM, THE REST OF OUR CLIENT SERVICE TEAM, CHRIS TYLER, I PUT IT HERE BECAUSE UNDER OUR CONTRACT, OH, WE OBVIOUSLY ALSO NOT ONLY AUDIT COUNTING AND SCHOOLS AND SOCIAL SERVICES, BUT WE ALSO AUDIT, UM, THE COMMUNITY SERVICES PIECE.
AND SO CHRIS HAS BEEN OUR SENIOR INCHARGE OVER THE YEARS ON THAT AUDIT.
AND THEN I ALSO INCLUDED ON THIS CLIENT SERVICE TEAM.
AND SO NINA MCAVOY, UM, YOU KNOW, THE LAST, I DON'T KNOW HOW MANY YEARS EVERY DAY WILL Y'ALL KNOW WHEN WE OPEN THE NEWSPAPER, WE WATCH TV, WE HEAR ABOUT BREACHES.
AND SO RECOGNIZING THAT IT RISKS ARE THEIR INFORMATION TECHNOLOGY AND ALL THAT.
WE STARTED BRINGING IN OUR IT SPECIALISTS INTO OUR AUDIT TOO, BECAUSE THERE'S CERTAIN PIECES OF INFORMATION TECHNOLOGY WE OBVIOUSLY NEED TO CONSIDER, UM, WHEN WE DO OUR INTERNAL CONTROL UNDERSTANDING AND TO GET COMFORTABLE WITH THE INTEGRITY OF THE SYSTEMS THAT ARE PRODUCING YOUR FINANCIAL REPORT, WE BROUGHT THOSE SPECIALISTS IN TO LOOK AT THE IT COMPONENT AND WE FEEL LIKE THAT THAT'S KIND OF THE VALUE ADD.
YOU DON'T GET CHARGED ANYMORE.
IT'S JUST, WE HAVE OUR CYBER SPECIALISTS AND OUR, IT PEOPLE BEING A PART OF OUR TEAM, BEING ABLE TO DO A DEEPER DIVE INTO YOUR COMMISSION TECHNOLOGY SYSTEMS AND TO ACTUALLY MAKE RECOMMENDATIONS FROM THAT.
AND SO NINA HAS ACTUALLY, YOU KNOW, EVEN THOUGH SHE'S IN A DIFFERENT ARM OF OUR FIRM, UM, WE'VE, WE BELIEVE SHE'S A VERY IMPORTANT PART OF OUR AUDIT TEAM.
SO SHE, SHE HAS A LOT INFORMATION.
SHE USED TO BE AT A BIG FOUR AND THIS IS THE WORK THAT SHE DOES EVERY DAY.
SO, UM, THAT'S A LITTLE BIT ABOUT OUR TEAM.
WE OBVIOUSLY HAVE OTHER TEAM MEMBERS THAT ARE A PART OF OUR AUDIT STAFF AND WE COME OUT INTO THE FIELD.
WE'VE ALREADY COMPLETED, UH, THE PRELIMINARY PHASE OF THE AUDIT, WHICH ANDREA WE'LL ABOUT IN A LITTLE BIT.
UM, WE HAVE FINAL FIELD FIELDWORK SCHEDULED FOR SEPTEMBER, AND THEN WE WILL BE RIGHT ON TRACK FOR A TIMELY DELIVERY, UM, IN NOVEMBER.
SO AUDIT COMMITTEE OVERSIGHT ON THE NEXT SLIDE FOR OUR PROFESSIONAL AUDITING STANDARDS REQUIRE US TO HAVE A SPEEDING REQUIRED, HAS TO COMMUNICATE TO THOSE CHARGED WITH GOVERNANCE.
UM, SOME OF THE OBJECTIVES OF THOSE PROFESSIONAL STANDARDS, UM, INCLUDE THAT WE CLEARLY COMMUNICATE TO YOU WHAT THE SCOPE OF OUR AUDIT IS THAT WE'VE OBTAINED ANY INFORMATION THAT YOU ARE WILLING TO PROVIDE THAT COULD BE RELEVANT AND TO OUR AUDIT WORK AND ANY INSIGHTS, ANYTHING THAT'S UNUSUAL THAT WE MIGHT NOT BE AWARE OF, OR YOU WANT TO CALL OUR ATTENTION TO.
WE WANT TO MAKE SURE WE HAVE THAT TWO WAY LINES OF COMMUNICATION GOING SO THAT IF SOMETHING DOES CONCERN YOU, THAT YOU DON'T HAVE ANY ISSUE PICKING UP THE PHONES THAT, HEY, BETSY, I HEARD THIS OR I, THIS, THIS IS WORRYING ME AT NIGHT.
CAN YOU MAKE SURE THAT YOU DESIGN YOUR AUDIT PROCEDURES TO CONSIDER ANY RISKS THAT MIGHT BE ASSOCIATED WITH THAT? UM, AND SO THAT'S, THAT'S PART OF THIS, THIS MEETING.
SO OUR SCOPE OF SERVICES, OUR AUDITS ARE OBVIOUSLY
[00:10:01]
CONDUCTED IN ACCORDANCE WITH PROFESSIONAL AUDITING STANDARDS, GOVERNMENT AUDITING STANDARDS, AND ALSO THE REQUIREMENTS OF THE VIRGINIA AUDITOR OF PUBLIC ACCOUNTS.SO WE KNOW THAT WE ARE, HAVE BEEN ENGAGED TO AUDIT, TO PERFORM AN AUDIT AND TO ISSUE AN OPINION ON YOUR FINANCIAL STATEMENTS FOR THE COUNTY.
THAT INCLUDES THE DISCRETELY PRESENTED COMPONENT UNIT SCHOOLS, AND ALSO FOR THE FINANCIAL STATEMENTS OF THE COMMUNITY SERVICES.
WE WILL ALSO PERFORM A SINGLE AUDIT IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND ALL OF THE FEDERAL RULES THAT WE HAVE THAT WE NEED TO FOLLOW, UM, AND ISSUE SEPARATE OPINIONS, ONE INTERNAL CONTROL OVER OUR FEDERAL AWARDS AND COMPLIANCE.
SO WHAT ARE OUR PLANS DELIVERABLES FOR AUDIT REPORTS OR COMPLIANCE REPORTS FOR THE SINGLE AUDIT? AND WE CAN'T FORGET ABOUT, UM, THE AGREED UPON PROCEDURES THAT WE MUST DO TO COMPLY WITH THE AUDITOR OF PUBLIC ACCOUNTS RULES.
SO WE HAVE A SHERIFF'S INTERNAL CONTROL ENGAGEMENT, AND AGREED UPON PROCEDURE THAT WE DO A LANDFILL CERTIFICATION.
WE HAVE AGREED UPON PROCEDURES THAT THE APA REQUIRES US TO DO OVER THE ANNUAL TRANSMITTAL FORMS. WE HAVE A FEDERAL DATA COLLECTION FORM THAT WE HAVE TO FILE.
AND THEN WE HAVE AN EXAMINATION REPORT OVER THE VRS CENSUS DATA THAT WE DO AS WELL.
AND WE ALWAYS, UM, TAKE ANY OBSERVATIONS, UH, THAT WE, THAT WE IDENTIFY AS WE DO OUR WORK.
THEN, YOU KNOW, IF IT'S NOT A FINE, IF IT'S A MATERIAL FINDING IT'S GOING TO BE IN THE BACK OF YOUR FINANCIAL STATEMENTS, IF IT'S, UH, JUST A, UH, MINOR CONTROL DEFICIENCY OR EVEN A RECORD
AND SO OVER THE YEARS, I THINK WE'VE CONTINUED TO TRY TO MAKE SURE WE KEEP OUR AUDITS FRESH AND PROVIDES YOU WITH SOME CONSTRUCTIVE SUGGESTIONS, UM, TO CONSIDER GOING FORWARD.
AND NOW I'M GOING TO TURN IT OVER TO ANDREW TO JUST KIND OF SUMMARIZE A LITTLE MORE ABOUT OUR AUDIT APPROACH, RIGHT? SINCE I AM KIND OF THE BOOTS ON THE GROUND, SO TO SPEAK AT HANDLE ALL THE DAY-TO-DAY LOGISTICS.
AND SOMETIMES IT'S NICE JUST TO GO OVER THE STAGES OF THE AUDITS AND LET YOU KNOW EXACTLY WHAT HAPPENS THROUGHOUT THE YEAR AND WHERE WE ARE IN THE PROCESS RIGHT NOW.
SO FIRST IN THE VERY BEGINNING, THIS OCCURS IN THE SPRING.
THIS IS WHAT WE CALL OUR PRELIMINARY FIELD WORK.
AND THIS IS WHEN WE REACH OUT TO ALL THE DIFFERENT DEPARTMENTS AND GET AN UNDERSTANDING OF YOUR INTERNAL CONTROLS.
AND THEN WE, UM, INTERVIEW VARIOUS PEOPLE.
WE PERFORM WALK THROUGHS, WE DO TEST OF CONTROLS TO MAKE SURE THAT OKAY, HERE'S WHAT YOUR POLICY SAYS IS THE POLICY ACTUALLY CONSISTENT WITH WHAT'S HAPPENING? UM, SO THEN WE TAKE THE RESULTS OF ALL THAT FROM THE SPRING, AND THEN WE PERFORM OUR RISK ASSESSMENT.
AND THIS IS A VERY TAILORED APPROACH.
WE DON'T USE THE SAME RISK ASSESSMENT PROCEDURES FROM CLIENT TO CLIENT, OR EVEN FROM YEAR TO YEAR BECAUSE WE KNOW THINGS ARE CHANGING VERY RAPIDLY.
SO WE COMPILE ALL OF THIS INFORMATION INTO OUR RISK ASSESSMENT PROCEDURES.
AND THEN THAT REALLY INFORMS THE TESTING THAT WE'RE DOING IN THE FALL COMING UP IN SEPTEMBER.
AND THIS IS WHEN, UM, ACCOUNT BALANCE HAS BEEN ACCORDED.
THE NUMBERS ARE PRETTY STABLE.
WE'RE AUDITING SPECIFIC ACCOUNT BALANCES TO MAKE SURE THAT THE FINANCIAL STATEMENTS ARE ACCURATE.
AND THEN AFTER THAT PROCESS, THEN WE GO BACK AND WE COORDINATE WITH MANAGEMENT TO GET THE FINANCIAL STATEMENTS AND THE OTHER REQUIREMENT REPORTING OUT THE DOOR.
THIS IS A LITTLE BIT DEEPER DIVE INTO.
SO THE CONTROLS THAT I HAD TOUCHED ON PREVIOUS THING, WE, UM, DO AN INTERNAL CONTROL EVALUATION THROUGHOUT THE AUDIT, BUT OUR REVIEW AND UNDERSTANDING IS NOT UNDERTAKEN FOR THE PURPOSE OF EXPRESSING AN OPINION ON THE EFFECTIVENESS, BUT WE ARE REQUIRED BY GOVERNMENT AUDITING STANDARDS TO GAIN AN UNDERSTANDING AND TEST THE INTERNAL CONTROL, UM, AS IT RELATES TO THESE VARIOUS ITEMS THAT YOU SEE HERE, AND THEN WE ARE REQUIRED THROUGH, UM, CFR PART TWO HUNDREDS TO PERFORM ADDITIONAL PROCEDURES, TO OBTAIN AN UNDERSTANDING OF INTERNAL CONTROLS, SPECIFICALLY OVER FEDERAL PROGRAMS. AND THEN YOU CAN SEE SOME OF THE FUNCTIONS HERE.
THESE ARE SOME OF THE VARIOUS DEPARTMENTS, UM, AND TRANSACTION CYCLES THAT WE DO A LITTLE BIT DEEPER DIVE IN BECAUSE WE CONSIDER THEM TO BE SIGNIFICANT.
UM, I WON'T READ THEM ALL HERE, BUT TREASURY PAYROLL, ACCOUNTS PAYABLE, THINGS LIKE THAT.
WE'RE NOT JUST RELYING ON MANAGEMENT'S WORK.
WE'RE ACTUALLY DRILLING DOWN INTO THE SPECIFIC DEPARTMENTS AND REACHING OUT TO THOSE SPECIFIC PEOPLE.
AND THEN THE NEXT ITEM THAT WE HAVE IS FRAUD INQUIRIES.
WE ARE REQUIRED BY AUDITING STANDARDS TO REACH OUT THROUGHOUT ALL VARIOUS LEVELS.
SO ALL THE WAY FROM THIS COMMITTEE
[00:15:01]
DOWN TO RANDOM INDIVIDUAL PEOPLE, WE MIGHT PICK, UM, UH, SOCIAL SERVICES, BENEFIT WORKER, OR A TREASURY FRONT DESK CLERK OR VARIOUS PEOPLE.AND THIS CAN BE A SURPRISE AND THIS CAN CHANGE THROUGHOUT THE YEAR, BUT WE ARE INTERVIEWING THEM TO SEE, DO YOU HAVE ANY CONCERNS? HAS MANAGEMENT ASKS YOU TO DO SOMETHING THAT YOU FEEL UNCOMFORTABLE WITH? HAVE YOU BEEN ASKED TO DO SOMETHING THAT YOU DON'T UNDERSTAND OR, UM, YOU KNOW, ANY, ANYTHING THAT CAN INFORM, UM, OUR FRAUD RISK ASSESSMENT.
AND THEN, UM, WE, UH, HAVE SEEN, THEN WE USE THAT TO ASSESS THE RISK OF FRAUDULENT FINANCIAL REPORTING.
AND THEN THAT WILL ALSO INFORM OUR FINAL AUDIT TESTING.
AND THEN YOU CAN SEE SOME OF THE GUIDANCE HERE THAT MANAGEMENT IS RESPONSIBLE FOR IMPLEMENTING SYSTEMS THAT PRESENT PREVENT FRAUD.
SO THIS IS ALL PART OF A COMPREHENSIVE LOOK AT, ARE THE CONTROLS OPERATING, UM, AND IS THE SYSTEM DESIGNED EFFECTIVELY? SO REALLY KIND OF WHERE WE ARE NOW WITH THE AUDIT, WE'VE CONDUCTED THE PULMONARY FIELD WORK.
WE'VE COME BACK, MIKE AND I HAVE CONDUCTED OUR REVIEWS AND WE'VE DECIDED AS A RESULT OF ALL THE INTERNAL CONTROL WORK, WE'VE DONE OUR TEST CONTROLS.
WE HAVE NOW, UH, TAILORED OUR AUDIT PROGRAMS FOR FINAL.
AND THAT'S WHERE WE HAVE DECIDE WHAT PROCEDURES WE'RE GOING TO CLOT, WHICH TRANSACTION CYCLE AND ACCOUNT BALANCE.
AND THAT'S REALLY WHERE WE ARE NOW BETWEEN NOW AND THEN WE'LL BE HAVING CONVERSATIONS.
SO WE'VE PROBABLY ALREADY STARTED HAVING SOME CONVERSATIONS ABOUT SINGLE AUDIT, BUT WITH SINGLE AUDIT, WE'D HAVE TO FOLLOW THE OMB COMPLIANCE SUPPLEMENT THAT'S ISSUED AND UPDATED EVERY YEAR.
AND RIGHT NOW IT HAS NOT BEEN ISSUED YET.
I SAT IN ON A AICP WEBCAST LAST WEEK AND THEY SAID SOON, UM, SO AS SOON AS IT'S OUT THERE, WE WILL HAVE THE MAIN SPECIFICATIONS THAT WE NEED TO BE ABLE TO PERFORM THOSE AUDITS.
AND WE LIKE TO DO THAT COMPLIANCE WORK OUTSIDE OF FINAL IF WE, WE CAN DO SO.
UM, BUT REALLY IT'S, IT'S GOING TO BE DEPENDENT ONLY WHEN WE GET THAT GUIDANCE FROM OMB AND THAT'S KIND OF WHERE WE ARE TODAY, BUT DO YOU HAVE ANY QUESTIONS FOR US OR CONCERNS OR ANYTHING THAT YOU WANT TO CALL TO OUR ATTENTION? THAT'S WHAT YOU WANT TO JUST HIGHLIGHT ANYTHING NEW COMING UP.
UM, AND I MEANT TO SAY THAT, YOU KNOW, ONE OF THE THINGS THAT WE TRY TO REMIND OUR CLIENTS OF IS THAT WE WANT TO BE IN A PARTNERSHIP WITH YOU.
WE'RE NOT GOING TO SACRIFICE OUR PROFESSIONAL STANDARDS, BUT WE CERTAINLY WANT TO HELP YOU SUCCEED.
AND WHEN WE HAVE NEW GASBY IMPLEMENTATIONS THAT ARE ON THE HORIZON, WE WANT TO MAKE SURE THAT WE'RE POINTING THOSE OUT TO YOU AHEAD OF TIME.
I KNOW NEXT WEEK WE'RE OFFERING EVERY YEAR, WE OFFER FREE TRAINING, UM, TO OUR CLIENTS.
AND SO WE HAVE ONE SCHEDULED NEXT WEEK AND I BELIEVE YOUR FOLKS WERE ALL ASSIGNED UP FOR IT, WHICH IS GREAT, BUT WE HAVE A NEW GOVERNMENTAL ACCOUNTING STANDARD.
THAT'S GOING TO BE A PRETTY BIG ONE THAT WILL GO INTO EFFECT NEXT YEAR FOR THE JUNE 30, 20 TO 2022 FISCAL YEAR END.
AND THAT'S THE ONE RELATED TO LEASES.
AND SO WE NEED TO, UH, IN THIS TIME PERIOD BETWEEN NOW AND THEN REALLY NEED TO BE TAKING SOME TIME AND INVENTORYING OUR LEASES, BOTH WHERE WE MIGHT BE THE LEASEE AND BOTH WHEN WE'RE GOING TO BE LIKE THE LESS SORE AND COLLECT AND ALL THE INFORMATION THAT WE NEED IN ORDER TO BE ABLE TO DO THE ACCOUNTING AND GET THE ACCOUNTING TREATMENT, CORRECT NEXT YEAR IN THE, IN THE FINANCIAL STATEMENTS.
UM, BUT ANOTHER ONE I KNOW I ENTERING UP BOTH HAS SPENT A LOT OF TIME ON HIS WEEK, ENCOURAGE OUR CLIENTS LIKE DON'T WAIT UNTIL WE'RE HERE IN THE FIELD TO ASK THIS QUESTIONS.
IF YOU HAVE QUESTIONS, CALL US ANYTIME.
I KNOW WE'RE GETTING A LOT OF PHONE CALLS ABOUT ARPA RELATED QUESTIONS.
AND, YOU KNOW, AS WE GET INFORMATION, YOU KNOW, THE GA QC, THE GOVERNMENT AUDIT QUALITY, UM, UH, THE AICP GOVERNMENT AUDIT QUALITY CENTER, I THINK THAT THEY ARE ALWAYS ON THE FOREFRONT OF THE EMERGING, UM, TOPICS AND ROLES THAT COME OUT.
AND I SAID AN EXCELLENT CPE LAST WEEK.
AND WHEN WE GET THAT INFORMATION, WE TRY TO PASS IT OUT AS SOON AS WE CAN.
UM, BECAUSE WE'RE, WE, AGAIN, WE WANT YOU TO SUCCEED.
WE DON'T WANT TO HOLD BACK ON THAT AND THEN SHOW UP AND SAY, OH, YOU HAVE A FINDING.
IF WE, IF WE DON'T HELP, UM, MAKE SURE THAT YOU'RE AWARE OF ALL THIS AS WE COME AS THEY COME UP.
SO THE BIG ONE FOR NEXT YEAR IS DEFINITELY RELATED TO LEASES.
IF YOU WORK IN A FOR-PROFIT, THEY ALSO HAVE A RELATED FASBE STANDARD.
UM, THEY'RE A LITTLE BIT DIFFERENT BETWEEN GATSBY AND FAST, BUT, UH, THE LEASE STANDARD IS A BIG ONE.
I THINK, FOR EVERYBODY WITH THEIR FINANCIAL REPORTS FOR NEXT YEAR, UH, FUNNY JUST BOTTLE ON BUTTON, THINGS THAT ARE EITHER RACING CURRENT OR COMING AROUND THE CORNER.
WE MIGHT UNDERSTAND AN ELISA IS A SPACE THAT YOU'RE GOING TO END UP IN MOST CASES, CAPITALIZING AND OPERATING LEASES.
SO THEY WON'T BE BLURRING THE LINE BETWEEN, YOU KNOW, ELIMINATES THE DISTINCTION WHERE CAPITALIZE ON YOUR BOOKS DO OPERATE.
IN LEAST IF THEY'RE OFF BALANCE SHEET, NOW THEY'RE GOING TO BREAK THOSE ON BALANCE SHEET.
[00:20:01]
OF A YEAR OR TWO AGO.I THINK IT WAS 68, CAPITALIZED YOUR DEBT, PENSION LIABILITY IN A DIFFERENT WAY, USE A DIFFERENT DISCOUNT RATE BECAUSE IT SHIFTED FROM, FROM A PORTFOLIO ACCRUAL TO THE BORROWING COSTS FOR IF YOUR RENT OUT OF ASSETS.
SO IT KIND OF INFLATED YOUR NUMBERS ON THE BOOKS, BUT THAT TOOK YOU TO THE PENSION LIABILITY THAT I THINK WAS IT OPEN? IS THAT 75, 75? SO IT IS ON OUR BALANCE SHEET AS WELL, CAPITALIZE VALUE WITH THAT.
AND THEN, UH, ANOTHER ONE IS POTENTIALLY OUT THERE.
I DON'T THINK IT'S COMING YET, BUT I WANTED TO GET YOUR TAKE ON IT IS, UH, ECONOMIC INCENTIVES WHERE THE GOVERNMENT MAY HAVE OFFERED SOME INCENTIVES.
THOSE NEED TO GET OUT JUST THE FOOTNOTES AT THIS.
AT THIS POINT, WE ACTUALLY DO HAVE A REQUIREMENT TO DISCLOSE IF WE HAVE SOME OF THOSE TAX INCENTIVE AGREEMENTS, THIS IS A DISCLOSURE, IT'S A DISCLOSURE.
YOU'RE NOT CAPITALIZING ON THE VALUE OF THAT.
SO AMAZON'S THIRD HEADQUARTERS WAS COMING IN.
YOU DON'T PUT THE 10 BILLION ON OUR BOOKS YET.
IT'S STILL THE FOOTNOTES DISCLOSED.
THEN WE DID ATTEMPT TO JUST, UH, SO, UM, SO I THINK THAT TAKES CARE OF MOST OF THE THINGS THAT THEY'RE MOVING HERE FROM OFF BALANCE SHEET NOTES OR OTHER THE BALANCE SHEET, UH, MY UNDERSTANDING CARTER COMING RIGHT AROUND THE CORNER.
UM, BUT THIS IS ALL VERY HELPFUL BY THE WAY.
I MEAN, WHEN WE GO SOMEWHERE, WE SAY, HI, WE'RE FROM THE GOVERNMENT HERE TO HELP.
AND YOU GUYS GO SOMEWHERE AND HIDE WHERE THE WATER IS, WE'RE HERE TO HELP, BUT WE REALLY DO BELIEVE THAT.
AND WE REALLY DO EMBRACE YOU GUYS.
AND YOU MENTIONED WORKING AS A TEAM TOGETHER BECAUSE IF WE, IF THERE'S ANYTHING, WE CAN TAKE THAT TO WANT TO KNOW ABOUT US.
BUT HAVING SAID ALL THAT, I BELIEVE WE'VE HAD A CLEAN AUDIT LAST YEAR.
UM, WHAT YOU USED TO WANT, WASN'T UNQUALIFIED OPINION.
LIKE YOU GUYS, WEREN'T QUALIFIED TO GIVE YOU AN OPINION, BUT NOW IT'S A DIFFERENT, THEY CALL IT SOMETHING DIFFERENT, MODIFIED, NOT UNQUALIFIED.
SO YOU AREN'T QUALIFIED TO GIVE AN UNMODIFIED OPINION, BUT WE'VE HAD NOW FOR A COUPLE OF YEARS WITH ZERO FINDINGS, I THINK REFRESH FOR PEOPLE AROUND THE ROOM THAT TAKES US OUT OF THE HIGH RISK CATEGORY, WHERE THE WE'RE NOT IN A HIGH RISK CATEGORY BAR FOR WHAT? UM, CAN YOU TALK ABOUT WHAT THE IMPLICATIONS OF THAT ARE, THAT WE'VE HAD, YOU KNOW, WHAT IT'S FOR SEVERAL YEARS AND WE'LL HOPE TO KEEP THAT STREAK ALIVE, BUT WHAT THAT MEANS FOR THE COUNTY MOVING FROM WHAT WE WERE IN A HIGH RISK OF YEARS AGO TO WHERE WE'RE NOW HIGH RISK.
WELL, AND I THINK, YOU KNOW, IT'S A TESTAMENT TO, UM, THE KNOWLEDGE AND THE SKILL SET AND EXPERIENCE OF, OF, UH, YOUR FINANCE DIRECTORS, BOTH AT SCHOOLS, COUNTY AND SOCIAL SERVICES, BUT ALSO TO THE TURN OF THE TOP THAT'S ESTABLISHED WITH, IF WE DO HAVE A FINDING, WE HAVE TO PUT IT OUT THERE.
WE'RE NOT JUST GOING TO LET IT SIT THERE.
WE'RE GOING TO CONTINUE TO WORK AND TRY TO PUT IN SYSTEMS IN PLACES, IN PLACES WHERE MAYBE WE DIDN'T HAVE, OR IDENTIFY RESOURCES THAT WE NEED IN ORDER TO FIX THE ISSUE.
AND SO THOSE FINDINGS WERE PRIMARILY RELATED TO FEDERAL PROGRAMS, NOT NECESSARILY RELATED TO FINANCIAL REPORTING.
AND BECAUSE OF THAT, WE AUTOMATICALLY HAD TO DESIGNATE THE COUNTY AS A HIGH RISK ODDITY AS IT RELATED TO FEDERAL PROGRAMS AND SINGLE AUDIT.
SO THE IMPLICATION THAT IT HAD ON US AS AUDITORS IS THAT WE AUTOMATICALLY HAVE TO AUDIT 40% OF YOUR FEDERAL EXPENDITURES TO DATE.
NOW THAT WE'RE BACK TO LOW RISK, WE HAVE TO, OUR COVERAGE LIMIT IS 20%, WHICH IS YES.
AND PASS THOSE SAVINGS ON TO US.
WE NEED TO JUST SLOW DOWN WITH HOW MANY STANDARDS AND NOW OUR AUDIT REPORTS ARE GOING TO LOOK DIFFERENT A YEAR FROM NOW BECAUSE AUDITING ARE CHANGING.
I MEAN, EVERY, EVERY YEAR IT SEEMS LIKE THERE'S JUST MORE AND MORE AND MORE AND MORE, BUT I KNOW THE GOAL WITH GAS, WITH ALL OF THESE REPORTING TO CHANGE CHANGES ARE TO MAKE FINANCIAL STATEMENTS MORE CONSISTENT FROM ONE LOCALITY THAN THE OTHER, AND TO BE MORE TRANSPARENT.
BUT IT ALSO SEEMS TO ADD ANOTHER LAYER OF COMPLEXITY TO READ HER.
SO AS YOU FIGURE OUT THE RULES THAT CHANGED, ESPECIALLY THIS YEAR WITH ALL THE DIFFERENT PROGRAMS SPECIAL ONE-OFFS, UM, OKAY.
UM, FOLKS, ADDITIONAL QUESTIONS FROM GETTING ASKED THIS MORNING.
UM, SO THIS IS MY SECOND TIME GOING THROUGH THIS.
I, I UNDERSTAND WHAT YOU SAID ABOUT, YOU KNOW, OUR JOB IS TO COME IN AND TEST THE CONTROLS THAT WE HAVE IN PLACE.
I'VE DONE RISK WORK BEFORE WHERE I SEEN ORGANIZATIONS GET IN TROUBLE WHEN THOSE CONTROLS ACTUALLY DIDN'T EXIST.
SO HOW DO WE CLOSE THE GAP ON IT? AND MAY MAYBE IF WE WERE JUST AROUND ONE OF THOSE GAPS, HOW DO YOU INFORM US OF WHEN YOU SHOULD HAVE A PROCESS FOR THIS, OR YOU DON'T HAVE CONTROL HERE THAT YOU'RE ACTUALLY TESTING.
SO IF WE WERE TO GO IN AND LOOK AT A TRANSACTION CYCLE THAT DID NOT HAVE ADEQUATE INTERNAL CONTROLS FROM OUR PERSPECTIVE, WHICH MEANS THAT WE DIDN'T HAVE ENOUGH SEGREGATION
[00:25:01]
OF DUTIES, YOU KNOW, THAT ONE PERSON LET'S USE PAYROLL.IF WE HAD ONE PERSON THAT COULD GO IN AND CHANGE, PAY RATES, PROCESS, PAY, DO THE BANK RECONCILIATIONS AND, YOU KNOW, JUST SET UP A FICTITIOUS EMPLOYEE AND PAY THEM.
UM, AND NO ONE WOULD KNOW, WELL, WE KNOW, OH, THERE IS NOT A STRONG INTERNAL CONTROL STRUCTURE THERE.
WE WOULD AUTOMATICALLY, WE PROBABLY WOULDN'T EVEN TEST.
IT CONTROLS THE TESTS, BUT WE WOULD AUTOMATICALLY CALL THAT A MATERIAL WEAKNESS IN FINANCIAL REPORTING.
AND IT WOULD BE INCLUDED IN THE BACK OF YOUR FINANCIAL STATEMENTS AND WHAT WE CALL THE
AND IT WOULD BE LABELED MATERIAL WEAKNESS IN FINANCIAL REPORTING BECAUSE WE DON'T THINK ENOUGH CONTROLS EXIST TO MAKE SURE THAT WE FEEL LIKE THAT THERE WOULDN'T BE A MATERIAL ERROR IN THAT TRANSACTION CYCLE, EARN THAT ACCOUNT CLASS IN YOUR FINANCIAL STATEMENTS.
SO THERE WOULD BE A RECOMMENDATION THAT WE TIGHTEN THAT UP AS OPPOSED TO WE FOUND THREE DISHES IN FOUR YEARS.
WE DIDN'T GET INTO QUITE THIS MUCH DETAIL IN THE SLIDES, BUT WE EVALUATE YOU NOT ONLY THE OPERATING EFFECTIVENESS OF THE CONTROL ASSETS DESIGN, BUT WE'RE ALSO EVALUATING WAS THE CONTROL DESIGNS PROPERLY.
DOES IT EXIST? SO WE'RE LOOKING AT BOTH ANGLES.
WE JUST DIDN'T GET QUITE THAT MUCH DETAIL, NOT AN ORGANIZATION I'VE WORKED WITH PAST AND OUT OF FLYING COLORS BECAUSE THEY FOLLOWED THE PROCESSES.
I WAS, COULD NOT FALL REPETITION.
I THINK WE SPEND, AND REALLY YOUR, YOUR TEAM MEMBERS HERE COULD, I'M SURE HAVE OBSERVED THAT.
WE SPEND AS MUCH TIME ON THE INTERNAL CONTROL PHASE AS WE DO ON THE TRANSACTION DETAILED TESTING PHASE, BECAUSE WE FEEL LIKE IF WE CAN GET COMFORTABLE WITH YOUR SYSTEMS AND YOUR INTERNAL CONTROLS, THEN THAT SHOULD HELP US GET MORE COMFORTABLE WITH A LIABILITY AND THE BALANCE.
AND THEN WE MIGHT BE ABLE TO PARE BACK SOME OF THE SCOPE OF OUR SUBSTANTIVE AND OUR DETAILED TESTING.
AND THAT'S KIND OF HOW WE CONNECT THE TWO.
UH, I THINK YOU MENTIONED YOU'VE BEEN IN CONSTANT CONTACT WITH OUR FOLKS AS WE GET THESE NEW GOVERNMENT PROGRAMS AND COME OUT OF NOWHERE.
AND THEN WE HAVE TO FIGURE OUT, TRY AND MAKE SURE THAT WE'RE INBOUNDS IN THE GUARD RAILS ALL ALONG THE WAY, EVERY STEP OF THE WAY TO MAKE SURE THAT WHEN WE GET TO THIS POINT, THAT WE THOUGHT THINGS ALONG THE WAY IN THE RIGHT WAY, THAT'S, IT KEEPS ON LOOKING AT ME BECAUSE THE SCHOOL COMPLIANCE REQUIREMENTS ARE JUST INCREDIBLY COMPLICATED COMPARED TO THE COUNTY.
AND SO WE'VE GONE BACK AND FORTH, YOU KNOW, TRYING TO MAKE SURE THAT WE DO UNDERSTAND THAT WE'RE ALL UNDERSTANDING THIS THE SAME WAY.
APPRECIATE YOUR ANSWERING THE PHONE THREE TIMES A DAY.
WELL, WE DID BACK IN THE FALL WINTER, AND WE WOULD WELCOME THAT.
WE TRIED TO USE THAT MONEY QUICKLY AS WELL.
AND YOU KNOW, THE RULES JUST WEREN'T OUT THERE YET.
SO WE WERE HAVING TO DO A LOT OF RESEARCH.
AND EVEN IF THERE'S AN UNUSUAL TRANSACTION THAT YOU JUST DON'T ENCOUNTER FREQUENTLY, AND YOU'RE, YOU HAVE QUESTIONS ABOUT THE ACCOUNTING OF IT.
WE LIKE TO SEE THAT DURING THE YEAR AND, YOU KNOW, MAKE SURE THAT WE AGREE ON IT.
AND THEN THAT WAY THERE AREN'T SURPRISES LATER, WE TRY TO AVOID SURPRISES WHEN WE GET TO THE FINAL STAGE AND WE CAN WORK THROUGH THAT TOGETHER AND COLLABORATE ON THAT.
WE DID EXPAND OUR BIDDING BY HALF AN HOUR BECAUSE THE SEAMS, WE HAVE SO MUCH TO COVER.
WE NEVER SEEM TO GET AROUND ALL OF IT, BUT THAT SAID, WE NEED TO KIND OF STAY ON SCHEDULE HERE.
WHAT WOULD BE THE NEXT STEPS THEN IN THE AUDIT PROCESS, YOU DID YOUR PRELIMINARY WORK IN THE SPRING.
THIS MEETING IS A CHECK THE BOX AND THEN GOING FORWARD, I'LL BE THE NEXT STEPS.
WE WILL BE ONSITE IN SEPTEMBER TOO.
AND THAT'S WHEN WE'LL REALLY BE DOING A LOT OF OUR DETAILED TESTING AND UNLESS THE COMPOSITE SUPPLEMENT COMES OUT AND THEN WE CAN COORDINATE SINGLE AUDIT AND GET THAT FIT IN BETWEEN NOW AND FINAL.
AND THEN I THINK IN NOVEMBER, WE USED TO LAST COMPANY CALLED A SPECIAL MEETING BECAUSE THE PORTS WERE DUE TO THE STATE WITHIN A COUPLE OF DAYS, WALKED THE ASTERISK AND SAID, YOU DID IT, BUT YOU GOT IT IN A WEEK LATE.
SO WE DID A SPECIAL, DID THEY CHANGE THAT NOW AT THE STATE LEVEL TO WHERE? SO LAST YEAR UP UNTIL LAST YEAR, THE AUDIT REPORTS WERE ALWAYS DUE TO THE STATE ON NOVEMBER 30TH, BUT WITH THE PANDEMIC, THEY DELAYED THE REPORTING DEADLINE TWO WEEKS TO DECEMBER 15TH.
AND THEY ACTUALLY KEPT THAT FOR THIS YEAR.
SO THE ACTUAL DAY WE JUST GOT THE AUDIT SPECS LAST WEEK.
WAS IT LAST WEEK? I BELIEVE IT WAS LAST WEEK.
UM, AND THEY SAY, THE HONOR REPORTS ARE ACTUALLY DUE DECEMBER 15TH, BUT WE HAVE SOME CLIENTS THAT WANT TO STAY ON
[00:30:01]
TRACK WITH NOVEMBER 3RD.WE WILL LET YOU ALL BE THE ONES TO DIRECT US AND WHAT YOU WANT.
UM, BECAUSE IT'S FINE WITH US.
IF WE STAY ON THE SAME SCHEDULE, IT'S FINE WITH US.
IF YOU WANT A LITTLE MORE CUSHION.
OUR BOARD DOES MEET THE FIRST TUESDAY OF THE MONTH.
SO THE CHOICE WAS EITHER TO ASK YOU TO FINISH UP BEFORE THE FIRST WEEK OF NOVEMBER OR OUR NEXT NORMAL BOARD WOULD BE THE FIRST WEEK OF DECEMBER.
SO WE'VE TYPICALLY HAD A SPECIAL IN BETWEEN AS SOON AS YOU GET APPROVED TO GET TO THE STATE.
BUT NOW IT SOUNDS LIKE THE FIRST WEEK OF DECEMBER, WE'LL BE ABLE TO HAVE OUR NORMAL BOARD GAME TO APPROVE THE AUDIT AND STILL GET IT IN ON TIME.
IF WE CHOOSE TO USE THE DECEMBER 17TH EXTENSION, IF WE WANTED TO DO A 30TH AND THEN SOME TASKS, WE HAVE TO CALL A SPECIAL MEETING.
I THINK THIS YEAR WE DECIDED TO KEEP IT THE SAME AND THEN WE'LL, WE'LL CHANGE THINGS FOR NEXT YEAR, BUT THAT DECEMBER 15 CHANGES PERMANENT.
SO YEAH, WE WERE GOING TO HAVE THE SPECIAL MEETING THIS YEAR AND THEN NEXT YEAR GO TO DOING IT DECEMBER.
SO UNLESS YOU CAN COMPLETE YOUR WORK BEFORE THE FIRST WEEK.
WELL, THANK YOU SO MUCH AGAIN FOR GOOD BEHAVIOR.
YOU'D LIKE TO GO OUT AS WELL WHILE WE FINISH UP.
THANK YOU SO MUCH FOR COMING IN.
WE APPRECIATE IT WELL, AND WE CERTAINLY APPRECIATE THE OPPORTUNITY TO SERVE THE COUNTY AND JUST KNOW IF EITHER OF YOU EVER HAVE ANY ISSUES OR CONCERNS, JUST PHONE CALLS AND LET US KNOW.
[IV. FY2021 4TH QUARTER PROJECTED RESULTS, FUND BALANCE AND]
OKAY.ALL RIGHT, THEN WE'LL MOVE ON TO THE NEXT ITEM ON THE AGENDA.
NUMBER FOUR, JUST FOR THE YEAR 20, 21 FOURTH QUARTER PROJECTED RESULTS, ESTIMATED PROJECTED RESULTS.
UH, SINCE THAT DATE 2021 VERSUS SOMETHING YOU'RE GOING TO WALK US THROUGH.
SO, UM, THE WAY WE'RE DOING THINGS TODAY IS WE'RE KIND OF BREAKING IT INTO BECAUSE OF BUDGET.
APPROPRIATIONS WILL BE HANDLED IN THE EVENING MEETING AND A SEPARATE ITEM ON THIS AGENDA AS WELL.
SO FIRST WE'LL START WITH A PRESENTATION ON THE FOURTH QUARTER PROJECTIONS ESTIMATE.
UM, WE ONLY CALL THEM PROJECTIONS OR ESTIMATES AT THIS POINT BECAUSE WE'RE STILL ACCRUING REVENUE THROUGH THE MIDDLE OF AUGUST.
UM, AND ACTUALLY SOMETIMES TILL THE END OF AUGUST, UM, THE BOAT SO FAR, WE LOOK LIKE WE'LL BE, UM, 5.5 MILLION AHEAD OF BUDGET ON REVENUES.
NOW, REMEMBER, AGAIN, THIS WAS THE COVID BUDGET, SO WE'VE KEPT THE REVENUE ESTIMATE LOW.
THE, UM, EXPENSES ARE COMING IN BELOW BUDGET ABOUT 3 MILLION BELOW BUDGET.
SO WHEN THE 5 MILLION ABOVE ON REVENUE AND THE THREE BELOW ON, UM, EXPENDITURES THAT GIVES YOU ABOUT AN $8 MILLION OPERATING SURPLUS, AND THEN AFTER YOU TRANSFER OR CASH SPEND, UM, ABOUT $7 MILLION ON YOURS, UH, CIP AND, UM, OTHER TRANSFER BEING THE OPPOSITE CHILDREN'S SERVICES.
THE NET CHANGE IN FUND BALANCE FOR THE YEAR IS ESTIMATED TO BE ABOUT A MILLION DOLLAR INCREASE.
SO OVERALL THE BUDGET WOULD, UM, FOOT BALANCE WOULD GO FROM ABOUT 38 MILLION TO ABOUT 39 MILLION, UM, THAT'S TOTAL FUND BALANCE.
AND THEN OF COURSE YOU HAVE YOU BREAK IT DOWN INTO INDIVIDUAL CATEGORIES, THE FIVE CATEGORIES, UM, THAT ARE REQUIRED A AND, UM, THE, THESE ARE ALL WELL WITHIN OUR, UM, POLICIES, FINANCIAL BALLSY COMPLIANCE ON DEATH.
UM, EXPENDITURES IS, UM, WELL BELOW NOW WE SPEND ABOUT 3% ON DEBT AT THIS POINT, UM, WHICH IS WELL BELOW OUR TARGET OF 10 AND, UM, UNASSIGNED FUND BALANCE AT THIS POINT.
AND AGAIN, I WANT TO EMPHASIZE AT THIS POINT, UM, IS ABOUT 27.5, WHICH OUR TARGET IS 25 STILL AHEAD ON THAT.
AND THEN OUR REVENUE STABILIZATION, WE ALWAYS MAKE ADJUSTMENTS TO, UM, TO KEEP THAT AT 3% OF THE SUBSEQUENT YEARS BUDGET.
AND THEN I WANT TO TALK ABOUT THE FUND BALANCE AND THEN, AND THEN I'LL TAKE SOME QUESTIONS.
SO IF YOU PUT TO THE NEXT PAGE, UM, THE FUND BALANCE THERE, UM, IS THE PROPOSED LISTING OF ASSIGN OR OF, UM, DESIGNATION OF FUND BALANCE.
AND I KEPT IT IN THE SAME ORDER WITH NON
[00:35:01]
SPENDABLE, MEANING THINGS LIKE INVENTORY, UM, RESTRICTED, MEANING YOU CAN'T SPEND IT ON WHATEVER YOU WANT COMMITTED, UM, MEANS THAT THE BOARD HAS TO TAKE ACTION TO UNASSIGN THAT, UM, AND UNDER THAT CATEGORY, WE HAVE THE REVENUE STABILIZATION FUND.I HAD THAT HIGHLIGHTED JUST BECAUSE I WANT YOU TO KNOW THAT THAT NUMBER CHANGED, UH, AND BECAUSE WE ALWAYS CHANGE IT EVERY YEAR TO BE THREE, MAKE SURE IT'S 3% OF THE SUBSEQUENT YEARS BUDGET.
THE RESERVE FOR FUTURE SCHOOL DEBT ALSO IS A CHANGE NUMBER.
UM, IT'S ABOUT 900,000 MORE THAN IT WAS IN THE LAST YEAR, BECAUSE WE'RE BUILDING UP THAT OR FUTURE DEBT.
ALL THE DESIGNATIONS IN BETWEEN ARE PRETTY MUCH THE SAME OR REQUIRED FOR NEXT YEAR'S BUDGET.
UH, AND THEN YOU GET DOWN NEAR THE BOTTOM.
AND AGAIN, SOME OF THOSE ARE HIGHLIGHTED.
THOSE ARE HIGHLIGHTED BECAUSE THOSE ARE NEW ASSIGNMENTS.
UM, THESE ARE JUST ASSIGNMENTS AT THIS POINT.
UM, $2.1 MILLION IS THE PROPOSED, UH, INVESTMENT CASH INVESTMENT IN SCHOOL PROJECTS.
WE, WE LIKE TO PUT 10% INTO OUR PROJECTS, 10% CASH.
UH, SO RIGHT NOW WE'RE JUST SETTING ASIDE THAT CASH FOR, UH, FUTURE USE ON THE SCHOOL PROJECT.
UM, WE'RE SETTING ASIDE A MILLION DOLLARS IN CASH FOR, UM, PAYGO INVESTMENT IN THE COURTHOUSE, SAME SORT OF, UM, REASONING.
THE, UM, THE ONE THAT, UH, UH, THAT I WILL ASK TO APPROPRIATE IS THE, UM, 343,000 THAT'S, UM, FOR A VEHICLE FOR PARKS AND REC SECURITY IMPROVEMENTS AND CONVENIENCE CENTER IMPROVEMENTS.
THAT IS THE ONLY THING THAT WE WILL ASK TO BE APPROPRIATED AT TONIGHT'S MEETING.
UH, AND THEN WE'RE ALSO ASSIGNING FUTURE TRANSPORTATION PROJECTS, 500,000 AND FUTURE CIP PROJECTS, 2.2 MILLION.
AND AGAIN, I SAY THIS IS PRELIMINARY ROOM GOING TO BRING THE FINAL.
SO ONCE I HAVE THE FINAL YEAR END RESULTS, I'LL BRING BACK TO YOU THE FINAL ASSIGNMENTS, UM, IN THE, AT THE OCTOBER MEETING, WE JUST LIKE TO KIND OF GIVE YOU AN IDEA OF WHERE WE'RE LANDING AND, UM, GET THIS STARTED, UM, MAKE SURE WE'VE GOT FUNDS FOR NEXT YEAR.
SEE IF ANYBODY'S GOT ANY SPECIAL PROJECTS THEY NEED TO GET GOING RIGHT NOW.
AND, UM, SO THIS IS, IS WHERE WE THINK WE'LL LAND AT THIS POINT.
AND AGAIN, A FINAL NUMBERS IN OCTOBER.
SO I THINK AT THIS POINT, UM, I WOULD TAKE QUESTIONS ON IT AND THEN WE WOULD VOTE ON WHETHER TO RECOMMEND APPROVAL OF THESE ASSIGNMENTS TO THE BOARD.
UM, COUPLE OF THINGS REAL QUICK HERE, UH, ITEMS NUMBER FOUR AND FIVE, UM, YOU MENTIONED WE'VE GOT A COUPLE OF THINGS GOING ON HERE.
WHAT IS LEGIT ASSIGNMENTS? TRUE-UPS WITH ASSIGNMENTS MENTIONED THE 300 THAT'S FOR F1 21 AS WELL, OR IS THAT IT'S ACTUALLY A 22.
SO THAT'S WHEN YOU TAKE THE YEAR END BOUNCE, THAT'S SITTING THERE AT THE END OF
SO THE FIRST MOTION IS JUST THE ASSIGNMENTS, JUST THE ASSIGNMENTS.
AND THAT'S ALL YOU'LL BE DOING AT THE DAY, MEANING AND NOT THE APPROPRIATION, THE APPROPRIATION WILL BE TONIGHT.
AND THAT'S THE NEXT ITEM ON THIS AGENDA AS WELL? PUBLIC HEARING, BOTH OF THOSE APPROPRIATIONS OF 300.
AND SO THE FIRST MOTION IS SIMPLY ON THE ASSIGNMENTS.
YOU READ 21 ASSIGNMENT
NO, YOU HAVEN'T, IT'S A LITTLE CONFUSING THIS TIME BECAUSE OF SEPARATING THE PUBLIC.
SO FOR INSTANCE, IN NUMBER FOUR, WHERE WE TALK ABOUT THE FOURTH QUARTER ESTIMATE RESULTS AND APPROPRIATIONS APPROPRIATIONS, SHOULDN'T BE, THERE WOULD BE ANOTHER PLACE THAT'S AS PART OF NUMBER FIVE, THE BUDGET AMENDMENTS, THE QUESTION WAS FOR
[00:40:03]
PARKS AND REC IT'S.UM, ACTUALLY THE NUMBER IS INCORRECT.
UM, AND BECAUSE I PUT AN EXTRA 25,000 IN THERE, BUT AGAIN, THAT'S WHY I SAY THESE ARE PRELIMINARY ASSIGNMENTS AND WE'LL CORRECT THAT IN THE FINAL, BUT THE, UM, IT'S 40,000 FOR A PARKS AND REC TRUCK FOR MOVING LARGE ITEMS. OKAY.
FOR 11 AND, UM, 125,000 PER SECURITY IMPROVEMENTS AND 153% OR CONVENIENCE CENTER IMPROVEMENTS.
THE CENTRAL CONVENIENCE CENTER IMPROVEMENTS ARE A NEW PAD FOR BINS OR NEW, YOU KNOW, CLEANING UP THE BRUSH AREA AND PUTTING SOME MORE AND THEN ADDING ANOTHER HOUSEHOLD WASTE BIN.
UM, AND SCOTT IS ACTUALLY DOING SCOTT FOSTER IS ACTUALLY DOING HIS GENERAL SERVICES PRESENTATION TODAY.
SO IF YOU HAVE ANY MORE QUESTIONS ABOUT THE OPERATIONS, YOU CAN ASK HIM AS WELL.
I JUST KNOW THE MONEY PART OF IT.
AND WE'VE DISCUSSED THE REVENUE DIFFERENTIAL.
THIS ISN'T MEANT TO BE A TRICK QUESTION, BUT YOU HAPPEN TO KNOW LAST APRIL, WE APPROVED APRIL 20, WE APPROVED THE FYI 21 BUDGET.
AND THEN WHEN IT BECAME APPARENT THAT THERE WAS TO BE ACADEMIC SHUTDOWNS CHANGED OUR BUDGET AND LOWERED IT BY, I THINK IT WAS ALMOST 8%.
DO YOU HAPPEN TO REMEMBER WHAT THE ORIGINAL REVENUE ESTIMATE BEFORE WE WENT TO SEE THE POSITIVE VARIANCE ON THE REVENUES HERE AGAINST THAT PRODUCED 8% HIGHER? SO WE MAY HAVE COME IN PRETTY MUCH CLOSE TO THAT SPOT ON MOST OF THE DAY ON OUR ORIGINAL REVENUE PROJECTION, WE PROBABLY DID.
UM, I DON'T KNOW IF I CAN REMEMBER, I DON'T REMEMBER THAT NUMBER OFF THE TOP OF MY HEAD, BUT IF WE COME IN AT, UM, 64.7 MILLION IN REVENUE, THAT'S, THAT'S STILL OUR HIGHEST REVENUE NUMBER, SLIGHTLY HIGHER, BUT IT'S NOT, THIS DOESN'T REALLY NECESSARILY GET US THE RIGHT IMPRESSION OF OUR SURPLUS VERSUS WHERE WE FOUGHT.
SO AS FAR AS, YOU KNOW, PROBABLY FORWARD BUILDING EXPECTATIONS, SO THOSE KIND OF THINGS WE'RE BASICALLY GETTING BACK TO WHERE WE WERE, THOSE SURPLUSES MAY OR MAY NOT BE MAY OR MAY NOT BE ONGOING.
I JUST WANTED TO PUT THAT UP THERE, CONCEPTUALLY.
AND THEN THE OTHER THING WE'LL GET TO THIS LATER AS WELL, THE FISH FLIPPING THROUGH THE BOOK, UM, ONE OF THE THINGS THAT WE'RE LOOKING AT IS OUR FUND BALANCE, WHICH IS THERE AS A PERCENTAGE OF OUR BUDGET, RIGHT? IF THE FUND BALANCE IS NOT GROWING AS QUICKLY AS THE BUDGET, WHICH GROWING FROM 57 TO 64 IS A PRETTY GOOD GROWTH BUDGET, OUR FUND BALANCE, ISN'T KEEPING PACE THAT IS SHRINKING AS A PERCENT OF OUR BUDGET, UH, HIGHLIGHTED IN THE LAST COUPLE OF YEARS WHILE IT'S IN A NOVEL SENSE, IT'S A NOMINAL SENSE IT'S GROWING, CORRECT, BUT NOT ALWAYS AS A PERCENTAGE OF THE BUDGET, RIGHT? IT'S THE RIGHT SIZE AND IT'S GAME.
BUT IF IT'S NOT KEEPING PACE WITH THE BUDGET IS TRENDING AS A PERCENTAGE.
SO THE MAGNITUDE OF THE BACKSTOP IN RELATION TO THE SIZE OF THE COUNTY BUDGET IS SOMETHING ELSE.
WE'LL LOOK AT IT, RIGHT? AND IT'S ACTUALLY SOMETHING WE CAN STILL LOOK AT THIS YEAR.
WE CAN LOOK AT IT IN OCTOBER OR PRIOR TO OCTOBER TOO.
SO THAT'S WHY I SAY IT'S STILL JUST AN ESTIMATE OR OF WHERE WE'LL BE.
WE WANT TO ADD MORE TO THE UNASSIGNED.
UM, AT THAT POINT, JUST SOMETHING TO BE AWARE OF AS WELL.
THAT'S NOT THE ISSUE AS WE GO FORWARD, BUT WE HAVE THE 3% GROSS WITH THE BUDGET OF THE OVERALL FUND BOUNDS.
IF YOU JUST LOOK AT IT IN VERY GROSS NUMBERS AND YOU SAY, WE HAVE ABOUT A $40 MILLION FUND BALANCE AND WE HAVE ABOUT A $60 MILLION BUDGET, THAT'S TWO THIRDS OF YOUR BUDGET.
SO, AND THAT THOSE ARE VERY GROSS NUMBERS, BUT YOU KNOW, LIKE VERY ROUGH NUMBERS, YOU KNOW, I MEAN, WHEN YOU LOOK AT IT THAT WAY.
[00:45:01]
YES.UM, QUESTIONS, THOUGHTS ON HOW WE'RE GOING TO FINISH 21 OR IT WON'T BE TOO LONG.
WE'LL START DOING THAT FOUR AND 23.
SO, UH, ANY OTHER QUESTIONS AT THIS POINT, WE'LL NEED A MOTION TO, TO RECOMMEND THE FUND BALANCE ASSIGNMENTS, PRELIMINARY PHONE BOOK.
SO THIS WOULD COME FORWARD TO THE PATIENT.
SO AT THIS POINT, I'LL ENTERTAIN A MOTION TO RECOMMEND TO THE BOARD OF SUPERVISORS TO APPROVE OR NOT THE FOURTH QUARTER ESTIMATED RESULTS AND CURRENT BALANCE, CHECKING IT ALL IN FAVOR, SIGNIFY BY SAYING, AYE.
[V. FY2022 BUDGET AMENDMENTS (PAGE 8-22)]
NEXT ITEM WILL BE FOR THIS Q AND A SESSION THIS EVENING OR THE APPROPRIATIONS.UM, AND ACTUALLY I'VE PRETTY MUCH GONE OVER THE COUNTY ONES AND THE SOURCE OF THE REVENUE OR THE SOURCE OF THE FUNDS FOR THESE, UM, APPROPRIATIONS WOULD BE THOSE THAT ASSIGNED FUND BALANCE THAT I JUST MENTIONED TO YOU, UM, THE, THE BALL GO OF IT.
AND THE REASON WE HAVE TO HAVE A PUBLIC HEARING IS BECAUSE OF THE SCHOOLS AND THE SCHOOLS WOULD LIKE TO, UM, APPROPRIATE, UM, THIS, THESE FEDERAL FUNDS INTO THEIR GRANT FUND.
AND ONCE THEY'RE APPROPRIATED, THEY'RE AVAILABLE FOR THE SCHOOLS TO SUSPEND FOR THE NEXT SEVERAL YEARS.
SO THIS DOESN'T MEAN THAT THEY INTEND TO SPEND ALL OF THIS IN ONE YEAR, UM, BECAUSE THEY PUT IT IN A GRANT FUNDS THAT KIND OF ROLLS FORWARD LIKE RCIP FUND DOES.
UM, THEY, THEY, AND THEY HAVE DONE A VERY GOOD JOB OF DELINEATING EVERYTHING THEY PLAN TO SPEND AND HOW THEY PLAN TO SPEND IT.
BUT I IMAGINE THAT YOU MIGHT HAVE A FEW QUESTIONS.
BAILEY IS HERE TO, UM, PROVIDE ANY ANSWERS YOU MAY HAVE ON, UM, VARIOUS GRANTS THAT THEY WILL BE ASKING YOU TO APPROPRIATE ON PAGE 11 THROUGH 22 IN YOUR 10 PAGES EXPLANATION, I GUESS, PAGES 10 AND 11.
11 IS THE SUMMARY OF THE NUMBERS.
UM, UH, 10 IS THE RESOLUTION AND THEN THE SCHOOLS HAS ATTACHED BACKUP, UM, FROM 12 TO 22.
UM, AND I DON'T KNOW, DEBBIE, IF YOU JUST WANT TO GIVE AN INTERVIEW, UH, AN OVERVIEW OF SOME OF THOSE THINGS OR DR.
SO, UM, THE 2.4 MILLION AS A RESULT OF FOUR DIFFERENT GRANTS THAT WE WERE GIVEN, HOW OF, UM, THREE OF THEM OUT OF THE AMERICAN RESCUE PLAN ACT.
UM, SO THE TWO IDA GRANTS ARE ON TOP OF OUR NORMAL SPECIAL ED FUNDING.
AND, UM, WE ARE STILL WORKING ON HOW WE WANT TO USE THAT BECAUSE THAT IS IN ADDITION TO OUR NORMAL PROGRAM.
SO WE HAVE TO HELP, YOU KNOW, THESE ARE SPECIAL INITIATIVES THAT WE'LL BE DOING OVER THE NEXT FEW YEARS WITH NEW SPECIALISTS.
UM, THE OTHER AMERICAN RESCUE PLAN FUNDING, YOU HAVE ALREADY APPROPRIATED A MILLION DOLLARS.
WE WERE BUILDING A PSALM LAST SPRING.
SO WE ARE NOW JUST FINISHING THAT APPROPRIATION.
UM, AND THIS REQUEST, UM, FROM YOU GUYS, AND THEN WE WERE ALLOWED TO COMPETITIVELY APPLY FOR SOME ADDITIONAL, UM, WHAT WAS CALLED C R S S A, WHICH HAS BROUGHT A VIRUS RELIEF, SOMETHING THIS SUMMER.
SO THAT WAS THAT DECEMBER MONEY AND THE SCHOOLS GOT, UM, AN ALLOCATION OF ABOUT A MILLION DOLLARS DIRECTLY ALLOCATED TO THEM.
AND THEN THE STATE GOT SOME MONEY OF THE VIRGINIA DEPARTMENT OF EDUCATION.
SO THEY HAD SOME COMPETITIVE PROCESSES.
AND SO WE HAD BEEN AWARDED THIS ADDITIONAL $880,000 THROUGH THAT COMPETITIVE PROCESS.
AND, UM, 278,000 IS PER ACADEMIC RECOVERY.
[00:50:01]
YOU KNOW, WE, WE ASKED OUR STAFF, UM, WHAT THEY NEED TO GET THE KIDS BACK ON TRACK.UM, SPECIFICALLY FOR, AS WE START UP SCHOOL, UM, WELLNESS CLUBS, UM, SOME ACADEMIC TUTORING, UM, WE'VE HAD REQUESTS FOR SEVERAL YEARS FOR AN ACTIVITY BUS, MAKE SURE THAT KIDS CAN GET HOME.
SO A LOT OF KIDS DON'T WANT TO STAY AT SCHOOL BECAUSE THEY DIDN'T HAVE A WAY TO GET HOME.
SO WE'RE GOING TO BE RUNNING ACTIVITY BUSES FOR THE NEXT FEW YEARS TO TRY TO MAKE ALL THESE AFTER SCHOOL PROGRAMS SUCCESSFUL.
UM, SO THAT'S IN THAT ACADEMIC RECOVERY AND THEN THE BALANCE CALENDAR, UM, IS AN INITIATIVE THAT HAS NOT BEEN APPROVED, GUARDED WORK YET, BUT IT IS AN ADDING 30 EXTRA DAYS OF INSTRUCTION INSTRUCTION TO THE CALENDAR YEAR, REDUCE THE GAP THAT OCCURS FOR STUDENTS DURING THE SUMMER.
AND SO WE'RE GOING TO REDUCE THAT DOWN BY FOUR TO SIX WEEKS TO TRY TO GET THE KIDS THAT ARE ABLE TO PROGRESS.
THEY DON'T HAVE A LEARNING LOSS, RIGHT? IT DOESN'T QUALIFY AS YOU'RE OUT OF SCHOOL YET.
NO, THE TERMINOLOGY OUR SCHOOL IS USING AS BALANCED CALENDAR.
WHAT WE'RE TRYING TO DO IS REBALANCE THOSE DAYS ACROSS 365 DAYS, THERE'S A CORE 190 DAYS, AND WE'RE JUST REDISTRIBUTING THOSE DAYS.
PLUS ADDING OPTIONAL INTERCESSION DAYS, THE TUNE OF UPWARDS OF 30 ADDITIONAL DAYS.
AND OF COURSE, THIS IS CONCEPTUAL IN NATURE AT THIS POINT IN TIME, ULTIMATELY THE BOARD WOULD HAVE TO TAKE ACTION, BUT THAT'S THE THOUGHT PROCESS CONCEPT? IS THIS ADDING ADDITIONAL SUBJECT MATTER, ADDITIONAL LEARNING OR SAY BALANCING HOW THE CURRENT LEVEL OF SUBJECT MATTER, OR IS THERE NEW INITIATIVES OR NEW LEARNING? SO THE 180 DAYS IS THE CORE.
AND SO THAT WOULD BE MIRRORING MUCH LIKE YOU DO NOW.
AND THEN THE 30 ADDITIONAL DAYS ARE OPPORTUNITIES FOR REMEDIATION FOR STUDENTS WHO NEED IT AND ENRICHMENT FOR OTHER STUDENTS, A VARIETY OF THINGS THAT COULD EXTEND THE LEARNING EXPERIENCES BEYOND THE TRADITIONAL CLASSROOM, HONESTLY.
AND SO THEY WOULD BE OPTIONAL IN NATURE.
SO FAMILIES MAY CHOOSE TO PARTICIPATE OR NOT.
SO IT WOULD BE 30 ADDITIONAL DAYS FOR LEARNING TO TAKE PLACE ACROSS THE SCHOOL.
SO THAT'S REALLY GEARED MORE TOWARD WHAT I'VE HEARD YOU SAY BEFORE, WHICH IS TO TRY TO BRING OUT THE BEST IN THEM.
YES, THEY NEED THIS AND THEY NEED THAT.
OR THEY HAVE THE BEST OF EVERY STUDENT MAXIMIZE THE POTENTIAL OF EVERY GARMENT.
SO THESE NUMBERS COULD BE, UM, I'M GOING TO ASK YOU A QUESTION IT'S PROBABLY MOSTLY COUNTY SIDE TO FIND ANYWAY, WHICH IS GRANT GRANT, GRANT GRANT.
THAT'S A LOT LIKE ONE TIME THESE EXPENSES, DO THEY SOUND A LOT, LIKE ONE TIME EXPENSES, THE MAJORITY OF THOSE EXPENSES ARE ONE-TIME EXPENSES.
I MEAN, THE BALANCE CALENDAR, IF IN FACT THAT'S ADOPTED AND THE DIRECTION OF SCHOOL DIVISION GOES IN, THE FUTURE WOULD TRANSITION TO OPERATIONAL FUNDS IN THE FUTURE.
AND THEN ANY SORT OF APPROPRIATION GIVEN TO THE SCHOOL DIVISION BY THE COUNTY WOULD NEED TO ACCOMMODATE THIS OPERATIONAL COSTS, WHATEVER THEY MAY BE.
WE DO ANTICIPATE THAT THE INITIAL STARTUP COSTS WOULD BE MUCH HIGHER THAN THE OPERATIONAL COST, AND WE WOULD BE ABLE TO FINE TUNE THE TRUE COST.
AND SO YOU SEE IN THE BUDGET, A LOT OF STARTUP COST, SHE DID NOT ANTICIPATE IT BEING $600,000 PER YEAR, ONGOING OPERATIONAL.
OR THE 2.4 BILLION OR WHATEVER.
SO THE, THE FINAL PAGE IN THE PACKET IS A THREE-YEAR PLAN, UM, THAT USES THAT 2.4 MILLION AND 11 MILLION.
YOU KNOW, WHAT PEOPLE ALREADY APPROPRIATED TO US, UM, IN THIS YEAR'S BUDGET.
SO WE'VE SPREAD, UM, AND, AND WE'VE INDICATED WHAT, WHAT WE HAVE WE PLAN, UM, IN THE NEXT BUDGET YEAR AS EITHER OPERATIONALIZE STUFF.
IN OTHER WORDS, WE, WITH THIS GRANT FUNDING, WE WERE ABLE TO BRING IN A SOCIAL WORKER EARLIER THAN WE THOUGHT.
SO IT WAS IN OUR PLANS TO TRY TO BRING A SOCIAL WORKER INTO THIS LITTLE VISION.
AND SO WE HAVE BEEN ABLE NOW TO BRING THAT TO YOU AS A HEAD OF OPERATIONALLY, WHAT WE THOUGHT WE DO.
SO, UM, BUT THERE ARE OTHER EXPENSES HERE THAT, UM, DOES UNFINISHED LEARNING INITIATIVES ARE OUR TWO YEAR PLAN.
UM, UM, WE HOPE OUR KIDS ARE BACK ON TRACK.
UM, AND SO, UM, THAT'S WHAT WE'VE DONE THERE.
UM, YOU KNOW, UH, AND ANYWAYS, THAT, THAT IS OUR PLAN AND
[00:55:01]
WE ARE WELL AWARE OF WHAT HAPPENS AS THIS FUNDING DISAPPEARS HERE IN YOUR BEING.UM, WE ARE VERY MUCH APPRECIATING, UM, THE FUNDING THAT IS COMING FROM THE FEDERAL GOVERNMENT BECAUSE IT'S VERY, VERY EXPENSIVE, VERY EXPENSIVE.
AND SO, UM, WE HAVE TREMENDOUS AMOUNT OF ADDITIONAL COSTS WE'VE INCURRED THIS YEAR AND EXPECTING FOR AGAIN NEXT YEAR.
UM, SOME OF THIS IS, UH, VERY CLEARLY ONE TIME, YOU KNOW, INDOOR AIR QUALITY IMPROVEMENTS.
WE'VE GOT SEVERAL NOW, WHICH BACK UP RIGHT GRADES.
AND SO THOSE ARE, YOU KNOW, WE'RE PARTICULARLY SAVING THE COUNTIES IN CAPITAL INVESTMENT BECAUSE WE'RE ABLE TO GET THESE THINGS DONE PROACTIVELY AS OPPOSED TO YEAH, WE'RE VERY WELL, MR. PETERSON OF THE FUNDING CLIFF, WHAT MAKES WISE DECISIONS USING THESE DOLLARS FOR AS MANY ONE-TIME EXPENSES AS POSSIBLE, RECOGNIZING THAT WE MAY NOT BE ABLE TO FUND THIS IN THE FUTURE.
I JUST, UH, IN, IN, IN RECOMMENDING HER APPROVAL IS APPROPRIATIONS.
UH, OTHER QUESTIONS, UH, TRYING TO KEEP THINGS ON TRACK HERE A LITTLE BIT, UH, QUESTIONS IS JUST A QUICK ONE.
I SEE THAT, UM, WE HAVE AN ESTIMATED 10 FAMILIES THAT LOOK LIKE THEY'RE NOT GOING TO BE SENDING THEIR KIDS TO SCHOOL IN ORDER TO BE USED IN THE VIRTUAL VIRGINIA AND AS A THIRD PARTY, WHERE'S THE COST FOR THAT? IS THERE A COST ASSOCIATED WITH THAT AND WHO'S PAYING FOR IT? YEAH.
THERE IS A COST ASSOCIATED WITH THAT.
WE'RE ESTIMATING TODAY, THE 99.5% OF OUR STUDENTS ARE GOING TO ATTEND SCHOOL IN PERSON.
WE HAVE PROVIDED VERY FEW EXEMPTIONS FOR INDIVIDUALS BASED ON EXTENUATING CIRCUMSTANCES, MEANING SITUATIONS, THOSE COSTS ARE INCLUDED IN SOME OF THESE FINGERS THAT YOU SEE HERE PAYING TWO VENDORS, NUMBER ONE, VIRTUAL VIRGINIA, NUMBER TWO, APEX IS ANOTHER VENDOR.
SO A SCHOOL DIVISION IS PAYING.
AND SO IT SOUNDS LIKE THERE'S A PROFIT.
IT'S NOT JUST, HEY, I WANT IT.
THERE'S A PROCESS TO GET APPROVED FOR IT.
THERE HAVE BEEN, IT HAS BEEN AN INDIVIDUAL CONVERSATION WITH FAMILIES AND THERE HAVE BEEN MANY WHO REQUESTED THAT HAVE NOT BEEN APPROVED.
SO IT WAS ONCE IT'S BEEN APPROVED OR DO YOU KNOW BALLPARK TO BALLPARK WITH THAT NUMBER? OH GOSH.
I WOULD SAY OVERALL, UH, WE PROBABLY HAD NEARLY 100 QUESTS.
THE NUMBER OF THE COSTS FOR THESE TIMES, UH, 10 TO $12,000 A PIECE OR TOTAL.
THE VIRTUAL VIRGINIA OPTION, MR. SMITH POWERS, THE MOST EXPENSIVE OPTION.
APEX OPTION IS MORE REASONABLE.
I KNOW SOME STATES, IF YOU SIGN UP FOR THAT AND THE PENNSYLVANIA, MY PARENTS, PENNSYLVANIA, AND MY NIECE SIGNED UP FOR THAT AND IT'S COVERED, WHAT'S THE OTHER SORT OF PASSWORD REQUIREMENTS THAT THIS STUDENT WANTS TO DO VIRTUAL THE STATE PAYS FOR OR FAMILY.
THE SCHOOL DIVISION IS UNDER NO OBLIGATION TO PROVIDE A VIRTUAL OPTION.
AND SO, UM, AS A PART OF FREE AND APPROPRIATE PUBLIC EDUCATION, WE'VE DECIDED TO PAY THE COST OF THAT SUBSCRIPTION FOR THE FAMILY.
WE GET THEM TO EVALUATE THIS ON A YEARLY BASIS MAY NOT BE AN OPTION NEXT YEAR, BUT THAT WAS THE DECISION MADE.
LET'S DO THE COMMODITY WELFARE OR, YOU KNOW, SOME, SOME OTHER, THANK YOU.
UM, GOT A COUPLE MORE THINGS TO DO HERE TODAY.
SO AT THIS POINT, MOST BUDGET AMENDMENTS, I'LL ENTERTAIN A MOTION 22 BUDGET AS PRESENTED ALL IN FAVOR, SIGNIFY BY SAYING, AYE, AYE, APPROPRIATIONS, WE'VE GOT 15, 20 MINUTES LEFT.
MAYBE WE MAY GO THROUGH THE RECOMMENDER PROCESS AND THE PITCH
[VI. OVERVIEW OF REFERENDUM PROCESS]
PRESENTATION.[01:00:01]
RIGHT.AND I'M GOING TO GO PRETTY QUICKLY.
IN FACT, I DON'T EVEN KNOW THAT I'LL SPEND MUCH TIME AT ALL ON THIS OVERVIEW OF THE REFERENDUM PROCESS.
I'M GOING TO GIVE A PRESENTATION AT THE BOARD MEETING.
AND I JUST WANT TO SHOW YOU A FEW OF THE BELLS AND WHISTLES WE'VE STARTED TO DEVELOP IN OUR, UM, BOND REFERENDUM WEBSITE IS LIVE TODAY.
SO, UM, I'M GONNA HAVE YOU, UH, I'LL HAVE SOMEONE COME UP AND SHOW YOU AROUND THAT A LITTLE BIT.
UM, AS WE, AS WE GET MORE INFORMATION TO PUT OUT THERE AS WE GET QUESTIONS THAT WE NEED TO ANSWER.
UM, SO, SO WE CAN ALWAYS HOPEFULLY KEEP IT FLUID AND REACT TO WHAT, YOU KNOW, WHAT PEOPLE ARE ASKING AND WHAT WHAT'S GOING ON.
SO, UM, I'LL DO THAT PRESENTATION THIS AFTERNOON.
[VII. UPDATE ON FITCH PRESENTATION]
ON THE FITCH PRESENTATION, I JUST WANT TO KEEP THIS GROUP UP TO DATE THAT, UM, UM, MR. PETERSON KNOWS, BUT WE DO HAVE AN APPOINTMENT SEPTEMBER 15TH, UM, WITH THE PEOPLE FROM FITCH, THEY'RE GOING TO ACTUALLY COME HERE TO GOOCHLAND.THEY'RE GOING TO MEET US, UM, AT THE, UM, RESIDENTS IN WE'LL, WE'LL HAVE A CONFERENCE ROOM RESERVED THERE AND, UM, WE'LL SPEND SOME TIME THERE GOING, WE'RE GOING TO SHOW THEM THAT ECONOMIC DEVELOPMENT, UM, VIDEO, AND THEN WE'LL HAVE A PRESENTATION.
UM, THE, UM, FINANCIAL ADVISOR IS HELPING US GET THAT PRESENTATION TOGETHER.
UM, AND, UM, SO, AND, AND THEY ARE IN A MUCH BETTER FRAME OF MIND THAN THEY WERE THE SPRING.
I DON'T KNOW IF YOU REMEMBER, BUT WE TALKED TO THEM THE SPRING AND THEY SAID, YOU KNOW, WE'RE NOT IN THE MOOD TO BE, TO BE GIVING GROUP.
SO, BECAUSE THE OUTLOOK OF THE ECONOMY IS BETTER THAN IT WAS THE SPRING.
THERE WERE TOO MANY UNKNOWNS OF SPRING, SO THEY'RE IN A BETTER MOOD.
SO, UM, THEY HAPPENED TO BE COMING TO RICHMOND ANYWAY, BECAUSE THAT'S WHEN WE, THERE'S A CONFERENCE THAT WEEK IN RICHMOND, THE BGF AWAY, UM, AND THEY ALMOST COME AND PRESENT.
SO, UM, THEN WE'LL DO OUR PRESENTATION AND THEN WE PLAN TO, UH, COME UP WITH SOME SORT OF LOOP TO, UM, DRIVE THEM AROUND THAT AREA.
UM, BECAUSE THAT'S THE BEST RATHER THAN TRY TO TAKE THEM, YOU KNOW, ON A TWO HOUR TOUR WE'LL, UM, PROBABLY TAKE THEM ON MAYBE LIKE A 45 MINUTE TOUR OF THAT AREA OF THE COUNTY, JUST TO SHOW THEM EVERYTHING THAT'S POPPING UP, COMING UP, JUST COME UP, ALL OF THOSE KINDS OF THINGS.
UM, ASSESSOR JUST TOLD ME YESTERDAY, I THINK IT WAS, SHE JUST ADDED, UM, $22 MILLION TO, UH, INVALUE TO THE TAX ROLLS BECAUSE I'M TALKING THE WHOLE TIME.
SO, YOU KNOW, SO SHOW THEM THOSE KINDS OF THINGS THAT ARE COMING UP AND GOING, UM, VERTICALS.
SO THAT'S THE, UM, THAT'S SEPTEMBER 15TH.
SO LEGISLATIVE LAUNCH IN SEPTEMBER 14TH.
SO WE GOT A FEW ITEMS ON OUR, UM, ON OUR PLATES COMING UP.
SO THEY AREN'T NECESSARILY COMING ALL THE WAY DOWN HERE AT JUSTICE.
AS YOU'VE MENTIONED, THEY'RE HERE FOR A CONFERENCE IN RICHMOND, SO, WELL, WE'VE WANTED TO GET THEM DOWN THERE.
I MEAN, WE'VE BEEN TO NEW YORK, WE'VE SHOWED THEM VIDEOS, THAT KIND OF THING, BUT WE WANT TO ACTUALLY GET THEM DOWN THERE, DOWN HERE AND SEE, YOU KNOW, WHAT WE'VE GOT.
UM, I THINK ONE OF THE THINGS THAT HOLDS US BACK IN SOME WAYS IS, UM, IS OUR SIZE, YOU KNOW, WE'RE SMALL.
SO, SO, UM, THE FACT THAT WE'RE SMALL DOESN'T MEAN WE'RE NOT MIGHTY THOUGH.
AND SO ACTUALLY SHOWING THEM THAT, UM, I THINK THERE'LL BE VERY IMPRESSED.
SO YEAH, IN THE PAST WHITE FISH, ISN'T THERE.
ONE OF THE THINGS WE LOOKED AT AS A 10 YEAR BLOCK WHERE THEY WENT FROM 20 2007 TO 2017, IT LOOKED PRETTY FLAT BECAUSE YOU'RE GOING TO PEAK, THEY, THE UP DOWN FROM 2011, IT'S A DIFFERENT BOOK.
THE OTHER THING IS LAST SPRING, WE HAD OFFICIALLY APPROACHED THEM A LITTLE BIT.
THEY SAID, WE'RE NOT SURE WHAT COMPANIES AND BUSINESSES ARE BEING ARTIFICIALLY KEPT AFLOAT BY THE STIMULUS AND THE SUPPORT AND WHAT HAPPENS WHEN YOU CAN KICK THOSE CRUTCHES OUT THERE, WHO FALLS ON THE GROUND AND WHO'S STRONG ENOUGH TO SURVIVE.
AND IT JUST DIDN'T HAVE THE VISIBILITY IN EACH OF THE JURISDICTIONS TO EVEN KNOW, NOW THAT A LOT OF THOSE FUNDS ARE RUNNING OFF AND YOU'RE HAVING TO BE SELF-SUSTAINING AND THEY DON'T LOOK AT OUR PERFORMANCE THROUGH 20, 20 AND 2021 THROUGH THE WHOLE PANDEMIC AND SEE WHAT HAPPENED TO OUR TAX BASE AND WHAT HAPPENED DID THEY COULD DERIVE SOME COMFORT THAT THE NUMBERS NOW OR ACCURATELY REFLECT OUR GOING CONCERNED AGENT, AS OPPOSED TO KIND OF STOP ME, IT'S WALKING AROUND AND THEN GO, UH,
[01:05:01]
CAUSE THERE ARE SOME OF THOSE THINGS OUT THERE.AND, UH, SO, SO THAT'S SOME OF THE REASONS WHY FITCH AND WHY DOWN THERE, DOWN THERE ANYWAY, IT'S AN OPPORTUNITY TO GET TOGETHER AND SHOW UP.
AND SO THAT'S, THAT'S WHY THEY HAVE, SO SEPTEMBER 15TH FINGERS CROSSED.
SO WAS THAT THE OFFICIAL MEETING WHERE THEY'RE LIKE, WE'RE GOING TO GIVE ME INFORMATION TO MAKE THE DECISION.
AND THEN WHAT'S THE TYPICAL TURN ON CONFERENCE.
WHAT THEY'LL DO IS THEY'LL TAKE ALL THE INFORMATION ABOUT IT.
WE PROVIDE A LOT OF VIDEOS AND ALL THAT, AND THEN WE MAKE A PRESENTATION AND THERE'S A, IT CAN BE A TWO OR THREE HOUR QA WHERE THEY ASK EVERY QUESTION, THEY NEED TO KNOCK IT DOWN.
THEY'LL GET ANSWERS TO ALL THEIR QUESTIONS AND THEN WE'LL BACK AND HOW TO LOVE FOR THEIR TEAM AND COMPARE US TO BENCHMARK AND COMPARE TO PREVIOUS ACTUAL THERE'S A PROJECTION.
IT CAN TAKE A COUPLE OF WEEKS.
IT TAKES, THEY TAKE IT BACK TO THEIR COMMITTEE.
THEY HAVE THE COMMITTEE THAT ACTUALLY MAKES THE DECISION.
SO, BUT, BUT WHAT YOU WANT IS YOUR, WHAT DO THEY CALL THAT PERSON? I DUNNO YOU A REPRESENTATIVE, SO TO SPEAK, YOU WANT THEM IN YOUR, ON YOUR TEAM.
SO WHEN THEY GO INTO THE CREDIT COMMITTEE MEETING, THEY'RE GOING, YAY, GOOCHLAND, YOU KNOW, GET THE, YOU KNOW, GIVE, YOU KNOW, WE'VE GOT ALL THESE REASONS TO GET THEM OVER THE TOP, YOU KNOW, AND THEN, BUT THE CREDIT COMMITTEE ACTUALLY MAKES A DECISION AND I DON'T KNOW HOW OFTEN THEIR COSTS TO US.
UM, IT'S ABOUT, I THINK IT'S ABOUT $5,000, BUT WE ACTUALLY PAY THEM TO DO, I MEAN, THEY'RE DOING THIS WORK.
HEY, I WAS ON THE TEAM THAT GOT CAPITAL ONE, SOME SHOOTING, POWER CERTIFICATIONS, AND IT'S A LOT MORE THAN FIVE HOURS.
NORMALLY WHAT THEY'LL DO IS THEY'LL READ A ISSUE WITH OFFERING A BIBLE BECAUSE IT COULD BE A SENIOR BOND OR SUBORDINATE ABOUT A JUNIOR BOND, LIKE A VERBAL BUDDY.
IT COULD BE DIFFERENT PRIORITIES IN THE CAPITAL STRUCTURE AND THE AMOUNT OF BANKRUPTCY.
AND SO YOU COULD BE A FIRST LOSS OR THE FIRST GAME IN BANKRUPTCY.
AND SO TEND TO ABLE TO RATE THAT ISSUE.
SO THE ISSUE OF HER MIGHT HAVE A CERTAIN RATING, BUT THEIR JUNIOR SUPPORTED THAT MAY HAVE A DIFFERENT RATING THAN THE ISSUER BECAUSE OF HIS RELEVANT POSITION, THE CAP STRUCTURE, WHAT WE'RE DOING IS GOING OUT AND SAYING, WHAT DO YOU THINK BRUCE AND COUNTY GENERAL OBLIGATION DEBT WOULD LOOK LIKE TODAY, KNOWING THAT WE'RE GOING TO GO THROUGH THE REFERENDUM.
AND IF WE DO GO OUT FOR THE BOND, WE WANT TO KNOW HOW WOULD IT BE WRITTEN? AND THIS'LL TELL US HOW, GIVE US A GOOD INDICATION THAT IF IT'S GENERAL OBLIGATION, YOU KNOW, SO THERE'S NO SUBORDINATION OR NO, UH, CARVING OUT OF ASSETS THAT THIS IS GENERALLY WHERE THEY WOULD BE.
THEN AT THAT POINT, YOU'D ACTUALLY HAVE TO PAY WHOEVER BRINGS THAT ISSUE UP A PIECE OF THAT SAVINGS THAT YOU'RE GOING TO GET FROM HAVING A RATE.
IF YOU BROUGHT IN A NON-GRADED PATIENT, THAT THEY HAD A LOT BAR THAT YOU HAVE THESE RATINGS ON IT, AND THEY KNOW THAT THEY CHARGED A FEE FOR THAT RATING.
SO THEY'LL BREAK DATA INTO A LIVE ISSUE IF, AND WHEN IT COMES THROUGH.
SO WITH THE TRIPLE AAA LOWEST INTEREST RATE AT THE BOTTOM, YOU KNOW, THIS HAS GOT AN ADVANCE OF BUDGE HIMSELF IN THE AMBULANCE.
IT COMES OUT, IT'S NOT GONNA BE, IT'S NOT GONNA BE A DECISION MAKER IS GOING TO BE THE ONE THAT HAS THE WATER BACK CREDIT COMMITTEE MAKE A RECOMMENDATION, DEFENDED PRODUCT COMMITTEE.
THEY'LL ASK THEM QUESTIONS JUST THE WAY HE'S ASKED US.
UM, SO THAT WAS BOTH THE REFERENDUM PROCESS.
ANY QUESTIONS, THOUGHTS, OR ROUGHLY I'M GOING TO BE ON THE BALLOT IN NOVEMBER AND THERE'LL BE AN EDUCATION PROCESS AROUND THAT.
AND WE'LL TALK ABOUT THAT BECAUSE WE ASKED CITIZENS TO GO PULL A LEVER.
WE WANT THEM TO BE INFORMED, RESTRICTING INFORMATION AND ADVOCACY.
THE COUNTY WON'T BE ADVOCATING AND JUST SHARING INFORMATION TO CITIZENS.
ANY OTHER COMMENTS, QUESTIONS ON REFERENDUM ON THE PRESENTATION ON THAT IN A FEW MINUTES WITH A FISH? I DON'T BELIEVE THERE'LL BE ANY UPDATES.
I JUST WANT TO UPDATE THOSE GROUPS.
[VIII. OTHER BUSINESS]
BEFORE THIS FOCUS GROUP.THANK YOU EVERYONE FOR TAKING THE TIME TO INTRODUCE OUR NEW TEAM.
I REMEMBER, UH, IN THE, IN YES.
[01:10:01]
ANNA TWIZ DALE, AND SHE IS OUR NEW DIRECTOR OF FINANCIAL SERVICES.AND SHE STARTED YESTERDAY AND UM, CAME BACK TODAY.
SO, UM, SHE'S GETTING INDOCTRINATED VERY WELL ON HER SECOND DAY, WE DO HAVE A PUBLIC COMMENT, WHATEVER YOUR
[IX. PUBLIC COMMENT]
MEMBERS OF THE PUBLIC LIKE TO WEIGH IN ON ANYTHING THEY'VE HEARD OR ANY OTHER ITEMS OF COUNTY BUSINESS, WE'VE DONE A GREAT JOB, ANSWERING ALL THE QUESTIONS IN ADVANCE.[X. ADJOURNMENT TO 12:30 PM NOVEMBER 23, 2020]
COME BEFORE THIS GROUP? IF NOT, IT LOOKS LIKE A GOOD THING TO WORK WITH THE HOUR AND A HALF MEETING.IT'S GOING TO BE OUR, IF WE WENT OVER AN HOUR, OUR NEXT MEETING WILL BE SCHEDULED FOR 1230 ON NOVEMBER 23RD, 2020 1, 20 20.
UM, SO JUST WANNA LET YOU KNOW, I READ THESE THINGS.
UH, SO WE'LL LOOK FORWARD TO SEEING EVERYBODY THEN, UM, WITHOUT FURTHER ADO, THANK YOU VERY MUCH.