* This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting. BOARD OF SUPERVISORS, [00:00:01] FINANCE AND AUDIT COMMITTEE TO ORDER. UM, WE WILL BE, UH, WITHOUT MR. WINFREY TODAY, BUT WE DO HAVE A QUORUM. UM, SO WE WILL KICK OFF THIS MEETING WITH AN AUDIT, UH, KICKOFF PRESENTATION BY PB MES. GREAT. SO RIGHT INTO THIS IS ANDREA NICHOLS, OUR MAIN AUDITOR. YES, ANDREA NICHOLS. HI, I'M ANDREA NICHOLS. I'M OUT OF OUR HARRISONBURG OFFICE WITH PB MAYORS. I HAVE ABOUT, UM, 20 YEARS OF EXPERIENCE DOING GOVERNMENT AUDITING, AND SO I'M SO PLEASED TO BE HERE WITH YOU THIS MORNING. I PROMISE I'LL BE BRIEF. UM, I KNOW THAT'S, UH, ONE OF MAIN CONSIDERATIONS HERE, BUT SO AS WE MOVE THROUGH THE POWERPOINT, YOU'LL SEE A LOT OF THE INFORMATION CONTAINED IN THE POWERPOINT. THERE ARE THINGS THAT YOU'VE HEARD BEFORE. UM, SO I WON'T GO OVER EVERY SINGLE WORD IN THE POWERPOINT, BUT ON THE COMMITMENT SLIDE, THE ONE THAT I TRULY DO WANT TO POINT OUT TO YOU IS THE DIRECT ACCESS TO THE ENGAGEMENT PARTNERS. I'LL GO OVER THE LIST OF, UM, PARTNERS INVOLVED WITH THE AUDIT HERE IN JUST A MOMENT. BUT MIKE AND BETSY ARE JUST A PHONE CALL AWAY IF YOU NEED THEM. YOU HAVE ACCESS TO THEM FOR ANY QUESTIONS THAT ARISE DURING THE YEAR. AND SO, UM, THEY WOULDN'T BE HERE TODAY, BUT THEY WANTED ME TO COMMUNICATE THEIR COMMITMENT TO YOU, UM, THEIR ACCESS, IF YOU SHOULD HAPPEN TO MEET THEM. OUR CLIENT SERVICES TEAM, WE HAVE MIKE GARBER. HE'S THE PRIMARY PARTNER ON THE AUDIT. UH, BETSY HEDRICK IS THE, UM, ENGAGEMENT PARTNER FOR COUNTY SCHOOLS AND THEN ALSO GLAND PALTON COMMUNITY SERVICE. AGAIN, I'M ANDREA. I'M AS CARLOS AS YOUR MAIN AUDITOR. THAT MEANS I'M THE IN CHARGE, THE SENIOR MANAGER ON THE AUDIT. AND SO I AM THE PERSON HANDLING THE DAY-TO-DAY LOGISTICS, COORDINATING WITH ALL THE DEPARTMENT'S, UM, HANDLING THE FLOW OF INFORMATION AS WE MOVE THROUGH THE PROCESS. WE ALSO HAVE MICHAEL CORRAL. HE'S THE IN CHARGE FOR THE GLAND PALIN COMMUNITY SERVICES BOARD. AND THEN WE ALSO HAVE ANTONINA MCAVOY. SHE IS A PARTNER WITH US AS WELL. SHE HAS EXTENSIVE CYBERSECURITY EXPERIENCE. SO AS WE MOVE FORWARD, UM, AND CYBERSECURITY BECOMES AN EVER INCREASING RISK, WE HAVE HER ON DECK SO THAT IF THERE ARE ANY, UM, RISKS OR CONCERNS THAT ARE ABOVE THE ABILITY, UM, DUE TO TECHNICAL CONCERNS OR THINGS LIKE THAT, UM, SHE IS ON DECK FOR THOSE TYPES OF QUESTIONS. AUDIT CAN BE OVERSIGHT. WE HAVE CERTAIN PROFESSIONAL STANDARDS THAT REQUIRE US TO COMMUNICATE CERTAIN THINGS TO YOU. YOU'LL SEE A LOT OF LEGALESE IN THIS LANGUAGE, BUT ESSENTIALLY IT BOILS DOWN TO THE FACT THAT WE NEED TO COMMUNICATE CLEARLY WITH THOSE CHARGE WITH GOVERNANCE. WHAT IS THE RESPONSIBILITY OF THE AUDITOR REGARDING THE FINANCIAL STATEMENT AUDIT, AND THEN THE PLANNED SCOPE AND TIMING OF THE AUDIT. WE HAVE ALREADY DONE A LITTLE BIT OF PRELIMINARY FIELD WORK BACK IN THE SPRING. THE BULK OF OUR FINAL FIELD WORK WILL OCCUR IN THE FALL. AND THE QUESTION THAT'S ON EVERYONE'S MINDS THAT YOU ALWAYS WANT ME TO REPORT IS HOW IS IT GOING? DO YOU HAVE ANY ISSUES? IS EVERYONE BEING COOPERATIVE? I AM. PLEASE REPORT. WE DON'T HAVE ANY ISSUES THAT WE HAVE IDENTIFIED, UM, THUS FAR. IF WE DID, WE WOULD COMMUNICATE THAT TO YOU IMMEDIATELY AS WE MOVE THROUGH THE FINAL PHASE OF THE AUDIT. IF WE DO HAVE ANYTHING THAT ARISES, WE DON'T LIKE SURPRISES. I KNOW YOU DON'T LIKE SURPRISES, WE WOULD LET YOU KNOW BEFORE WE GET TO THAT FINAL ISSUANCE STAGE. AND THEN I'M, YES, DO HAVE A QUESTION? YEP. SORRY. UM, AND THEN I'M VERY PLEASED TO REPORT THAT ALL DEPARTMENTS THAT WE'RE WORKING WITH, AND WE'RE WORKING WITH A LOT OF THEM, THEY'RE ALL VERY COOPERATIVE AND ORGANIZED, AND THE AUDIT IS ON PACE, UM, FOR TIMELY COMPLETION. WE, UM, ALSO NEED TO OBTAIN FROM THOSE CHARGE WITH GOVERNANCE INFORMATION RELEVANT TO THE AUDIT. SO IF YOU HAVE INFORMATION THAT YOU NEED TO SHARE WITH ME THAT'S IMPORTANT AS WE BUILD OUR AUDIT PLAN, PLEASE FEEL FREE TO COMMUNICATE ANY OF THOSE ITEMS. AND THEN WE ALSO, UM, PROVIDE THOSE CHARGED WITH GOVERNANCE WITH TIMELY OBSERVATIONS ARISING FROM THE AUDIT THAT ARE SIGNIFICANT AND RELEVANT TO YOUR RESPONSIBILITY TO OVERSEE THE FINANCIAL REPORTING PROCESS. SO, AGAIN, NOTHING TO COMMUNICATE AS OF YET, BUT IF WE DID, WE WOULD LET YOU KNOW AS SOON AS POSSIBLE, UH, PROMOTE EFFECTIVE TWO-WAY COMMUNICATION BETWEEN THE AUDITOR AND THOSE CHARGED WITH GOVERNANCE. UM, IT'S IMPORTANT THAT, UH, YOU KNOW, MY FACE, I KNOW YOUR FACE. YOU, UM, HAVE AN AVENUE TO GET IN TOUCH WITH US. UH, CARLA KNOWS HOW TO GET IN TOUCH WITH THE ENTIRE AUDIT TEAM. UM, AND LIKE I SAID, WE'RE JUST A PHONE OR AN EMAIL MAY, AND THEN ALSO, UM, TO EVALUATE INDEPENDENCE AND ASSERT TO YOU THAT WE ARE INDEPENDENT TO PERFORM THE AUDIT. UM, CONTINUING, WE HAVE THE SCOPE OF SERVICES. SO THIS IS JUST A DESCRIPTION OF WHEN WE TALK ABOUT THE AUDIT, WHAT ARE WE TALKING ABOUT? SO WE'RE TALKING ABOUT THE YEAR ENDED OF JUNE 30TH, 2025. AND IT'S THE FINANCIAL STATEMENTS OF GLAND COUNTY, THE FINANCIAL STATEMENTS OF GLAND COUNTY PUBLIC SCHOOLS, AND THOSE COMBINED FORM THE, WHAT WE CALL THE ACT FOR THE ANNUAL [00:05:01] COMPREHENSIVE FINANCIAL REPORT. AND THEN WE ALSO HAVE THE FINANCIAL STATEMENTS OF THE GLAND PEAN COMMUNITY SERVICES BOARD, UM, AS OF JUNE 30TH, 2025. AND THAT IS ISSUED IN A SEPARATE REPORT. WE ALSO HAVE WHAT WE CALL THE SINGLE AUDIT. UM, YOU MIGHT BE MORE FAMILIAR WITH HEARING FEDERAL COMPLIANCE, FEDERAL GRANTS, THINGS LIKE THAT. UM, THAT'S IN ACCORDANCE WITH, UM, CODE SECTION, UH, TWO CFR 200. UM, AND THIS IS YOUR, YOUR FEDERAL AWARD TESTING FOR ALL THE FEDERAL GRANTS THAT YOU GET. SO OUR PLANNED DELIVERABLES, AFTER WE MOVE THROUGH THE AUDIT, WE'LL PRODUCE A NUMBER OF DOCUMENTS AND REPORTS THAT WILL COME TO YOU AT THE END OF THE PROCESS. WE'LL HAVE THE AUDIT REPORTS FOR THE COUNTY. WE'LL HAVE THE SINGLE AUDIT REPORT TO THE AUDIT REPORT AND REQUIRED COMPLIANCE REPORTS. UM, AS OF THIS YEAR, YOU'RE WHAT WE CALL A LOW RISK ODDITY, MEANING THAT YOU DON'T HAVE ANY HIGH RISK CONSIDERATIONS IN TERMS OF YOUR FEDERAL GRANTS. THAT WOULD RAISE THE, THE LEVEL OF TESTING THAT WE WOULD HAVE TO DO. AND THEN WE ALSO HAVE A NUMBER OF AGREED UPON PROCEDURES REPORTS. THESE ARE REQUIRED BY THE AUDITOR OF PUBLIC ACCOUNTS, AND IT'S YOUR SHERIFF'S INTERNAL CONTROL REPORT, YOUR LANDFILL CERTIFICATION, THE A PA TRANSMITTAL AGREED UPON PROCEDURES REPORT, AND THE DATA COLLECTION FORM RELATED TO THE SINGLE AUDIT. WE ALSO HAVE AN EXAMINATION REPORT REQUIRED BY THE AUDITOR OF PUBLIC ACCOUNTS OVER YOUR BRS INFORMATION. AND THEN WE WOULD ALSO COMMUNICATE TO YOU A CONTROL DEFICIENCY OR MANAGEMENT RECOMMENDATIONS LETTER IF WE DO HAVE THOSE TYPES OF RECOMMENDATIONS. THIS WOULD BE MORE ALONG THE LINES OF THINGS THAT DON'T RISE TO THE LEVEL OF SERIOUSNESS TO BE REPORT REPORTED IN THE ACTUAL REPORT. BUT THESE WOULD JUST BE THINGS THAT WE WOULD WANNA COMMUNICATE TO YOU 'CAUSE WE FEEL LIKE THEY'RE BEST PRACTICES OR IT'S, IT'S SOMETHING WORTH YOU KNOWING. OUR AUDIT APPROACH, UM, WE PRIDE OURSELVES ON HAVING A VERY ORGANIZED APPROACH. AND SO WE COMMUNICATE, UM, AUDIT REQUESTS IN ADVANCE. UM, WE OBTAIN AN UNDERSTANDING OF THE COUNTY AND SCHOOLS, VARIOUS DEPARTMENTS. WE DO A RISK ASSESSMENT SO THAT WE TAKE THE INFORMATION THAT WE GATHER AS WE FIND OUT HOW DO THINGS WORK, AND WE SEE IS WHAT YOU'RE SAYING SHOULD BE IN PLACE, ACTUALLY IN PLACE WHEN WE TAKE ALL OF THAT INFORMATION AND WE BUILD OUR AUDIT PLAN. AND I DO WANNA STRESS HERE THAT IT'S NOT A COOKIE CUTTER AUDIT PLAN. WE ACTUALLY TAILOR IT BASED ON THE UNIQUE FACTS AND CIRCUMSTANCES AND RISKS THAT WE SEE, UM, AT YOUR LOCALITY. AND THEN BASED ON THAT RISK ASSESSMENT, WE APPLY FOR THEIR AUDIT PROCEDURES. WE DO VARIOUS FORMS OF TESTING. WE EVALUATE OUR RESULTS, AND THEN OF COURSE, WE DELIVER THAT TO YOU. UM, ALONG WITH OUR AUDIT APPROACH, CONTROLS ARE A VERY KEY PART OF THAT PROCESS. SO PART OF WHAT WE DO IS THAT WE, UM, REVIEW AND UNDERSTAND THE COUNTY SYSTEM OF INTERNAL CONTROL. HOWEVER, IT'S, UM, WE NEED TO STRESS THAT IT'S NOT UNDERTAKEN FOR THE PURPOSE OF EXPRESSING AN OPINION ON THE EFFECTIVENESS OF THE INTERNAL CONTROL. UM, BUT WE ARE REQUIRED TO OBTAIN THAT UNDERSTANDING. UM, WE ALSO ARE REQUIRED BY GOVERNMENT AUDITING STANDARDS TO GAIN AN UNDERSTANDING AND TEST INTERNAL CONTROL OVER FINANCIAL REPORTING COMPLIANCE WITH LAWS, REGULATIONS, AND PROVISIONS OF CONTRACTS OR GRANT AGREEMENTS. AND THEN TWO CFR 200, WHICH AGAIN IS THE FEDERAL CODE REQUIRES THE AUDITOR TO PERFORM PROCEDURES TO OBTAIN AN UNDERSTANDING OF INTERNAL CONTROL OVER FEDERAL PROGRAMS. WE'RE EVALUATING CONTROLS OVER A VARIETY OF DEPARTMENTS AND PROCESSES HERE. I WON'T READ EVERY SINGLE ONE, UM, BUT WE, WE TOUCH VIRTUALLY EVERY AREA OF THE COUNTY, EVERY PROCESS, UM, TO MAKE SURE THAT WE HAVE A COMPLETE PICTURE, THE AUDIT APPROACH AND RISK ASSESSMENT. UM, AS PART OF OUR PROCEDURES, WE IDENTIFY ON A SPECTRUM OF RISK, WHAT IS THE MOST RISKY, AND THEN, UH, THAT'S WHAT WE CALL A SIGNIFICANT RISK. AND THOSE ARE ONES THAT WE HAVE TO COMMUNICATE TO YOU. THE FIRST ONE, MANAGEMENT OVERRIDE OF CONTROLS. THAT'S ONE THAT'S PRESENT EVERY YEAR. AND IT'S, IT'S HARD TO GET AWAY FROM THAT ONE. THAT'S A REQUIRED RISK THAT, THAT WE NEED TO COMMUNICATE TO YOU. AND ESSENTIALLY WHAT THAT IS, IS THAT MANAGEMENT COULD OVERRIDE CONTROLS IN ORDER TO COMMIT FRAUDULENT FINANCIAL REPORTING OR MISAPPROPRIATE ASSETS. AND THEN YOU CAN SEE OUR PLANNED RESPONSE IN THE FAR CORNER OR FAR COLUMN, UM, TALKING ABOUT THE PROCEDURES THAT WE DO TO MITIGATE THAT RISK. THE SECOND RISK YOU'LL SEE IS A NEW ONE. AND I WANT TO STRESS IT'S NOT THROUGH ANYTHING THAT MANAGEMENT DID. THIS IS RELATED TO THE IMPLEMENTATION OF A NEW ACCOUNTING STANDARD. SO ANYTIME WE HAVE A NEW ACCOUNTING STANDARD, THE IMPLEMENTATION CAN BE COMPLEX. AND SO WE NEED TO COMMUNICATE THAT TO YOU THAT THERE IS THIS STANDARD COMING. UM, AND THESE ARE THE PROCEDURES THAT WE HAVE PLANNED TO MITIGATE THAT. UM, I WON'T GO OVER THE DETAILS OF GA SB 1 0 1 COMPENSATED ABSENCES UNLESS, UM, YOU [00:10:01] KNOW, YOU'RE HAVING INSOMNIA ONE NIGHT AND YOU, YOU, YOU NEED, UH, MORE DETAILS. BUT IN, IN A NUTSHELL, UM, IT COULD CHANGE THE COMPOSITION OF THE DOLLARS THAT ARE REPORTED IN YOUR COMPENSATED ABSENCES LIABILITY LINE AND MANAGEMENT, BOTH, UH, SCHOOLS AND COUNTY, THEY ARE ALL OVER IT. UM, THEY HAVE A GOOD PLAN IN PLACE TO IMPLEMENT. SO, UM, NO CONCERNS. WE WE'RE JUST REQUIRED TO COMMUNICATE TO YOU. AND THEN THIS IS, I BELIEVE, THE LAST SLIDE OF SUBSTANCE. UM, PART OF THE PURPOSE FOR TODAY IS ALSO TO, UH, PERFORM FRAUD INQUIRIES. SO WE NEED TO IDENTIFY AND UNDERSTAND FACTORS THAT CAN LEAD TO FRAUDULENT FINANCIAL REPORTING. WE NEED TO ASSESS THE RISK WE NEED TO, UM, DESIGN AND IMPLEMENT CONTROLS FOR PREVENTION OR DETECTION. UM, AND THEN YOU CAN SEE THE A-I-C-P-A STANDARDS HERE TALKING ABOUT THE GUIDANCE OF ASSESSING THAT FINANCIAL STATEMENTS ARE NOT MATERIALLY MISSTATED DUE TO FRAUD. AND THEN COMMUNICATE TO YOU AGAIN THAT MANAGEMENT IS RESPONSIBLE FOR IMPLEMENTING SYSTEMS THAT PREVENT FRAUD. IF YOU HAVE ANY INFORMATION FROM ME REGARDING CONCERNS, UM, AREAS OF KNOWN FRAUD, UH, I'M, I'M HERE TO, TO LISTEN TO ANY OF THOSE. YOU'RE ALSO HAPPY TO, UM, CONTACT ME ANYTIME OUTSIDE THIS SESSION. UH, BUT HAVING SAID THAT, THAT CONCLUDES MY PRESENTATION AND I'M HAPPY TO ANSWER ANY QUESTIONS THAT YOU HAVE. YES, MR. CHAIRMAN? YES. , COULD YOU OUTLINE THE NEXT COUPLE MONTHS YOU DID A SPRING AUDIT, YOU'RE COMING IN SEPTEMBER, CERTAINLY KIND OF WHAT HAPPENS OCTOBER, NOVEMBER, WHEN THE BOARD MAY EXPECT TO TAKE ACTION ON THE AUDIT, WHAT THE AUDIT COMMITTEE MAY BE DOING. JUST IF YOU COULD OUTLINE THAT FOR THE BENEFIT FOR THE PUBLIC. ABSOLUTELY. THAT IS AN EXCELLENT QUESTION, AND I ALWAYS LIKE TO START WITH THE INSTATE AND WORK BACKWARDS. THE INSTATE IS DECEMBER 15TH, 2025, AND THAT IS THE STATE DEADLINE THAT IS PUT OUT BY THE VIRGINIA AUDITOR OF PUBLIC ACCOUNTS. THAT IS THE DROP DEAD DATE WHERE YOUR FINANCIAL STATEMENTS MUST BE ISSUED IN ORDER TO BE CONSIDERED TIMELY. AND THEN A COPY OF THAT NEEDS TO GO TO THE AUDITOR OF PUBLIC ACCOUNTS. UM, REALISTICALLY, WE LIKE TO HAVE A, A GOOD BUFFER IN THERE SO THAT WE'RE NOT RIGHT UP AGAINST THE DEADLINE. SO THE ACT FOR WRITING AND REVIEW PROCESS WILL HAPPEN IN THE MONTH OF NOVEMBER. AND, UM, THE BULK OF THE, UM, TESTING AND ONSITE FIELD WORK WILL HAPPEN IN SEPTEMBER WITH, UM, VARIOUS LAYERS OF REVIEW AND QUALITY CONTROL ON OUR ENDS BACK AT OUR OFFICES, UM, HAPPENING LATE SEPTEMBER, EARLY OCTOBER. AND CARLA, I DON'T KNOW IF THERE'S ANY PART OF THE, UM, PROCESS. I'M, I'M NOT COVERING WHAT YOU WANTED TO HIGHLIGHT, OR DOES THAT NOT HIT IT IN A NUTSHELL? THAT HITS IT. I THINK THEY'RE SCHEDULED TO BE HERE THE 29TH, THE LAST DAY OF SEPTEMBER INTO THE FIRST DAY OF OCTOBER IS WHOLE WEEK. IS THERE ANYTHING, IS THERE ANYTHING REGARDING, UM, BOARD MEETING TIMING THAT I MIGHT NOT BE AWARE OF THAT WE NEED TO COMMUNICATE? NO, WE USUALLY TRY TO PRESENT THE AUDIT AT THE DECEMBER BOARD MEETING, SO VERY, VERY EARLY IN DECEMBER. AND THE, THE PROXIMITY TO THE A PA DEADLINE IS KIND OF THE CONTEXT FOR THAT. RIGHT? SO DOES THAT ANSWER YOUR QUESTION? IT, THANK YOU. BEAUTIFUL. ANDREW, COULD YOU, UM, JUST FOR THE PUBLIC'S BENEFIT, COULD YOU SPEAK TO THE RELATIONSHIP BETWEEN PV MAYORS AND GLAND COUNTY? IT'S BEEN A STRONG HISTORICAL RELATIONSHIP, BUT IF YOU COULD SPEAK TO THAT. ABSOLUTELY. UM, WE ARE SO PLEASED TO HAVE BEEN YOUR AUDITORS FOR, UM, A, A COUPLE CONTRACTS NOW. AND, UH, WE FOUND A VERY STRONG WORKING RELATIONSHIP WITH MANAGEMENT THROUGHOUT ALL OF THE DEPARTMENTS. UM, WE DO HAVE CONTROLS IN PLACE ON OUR SIDE TO MAKE SURE THAT WE'RE ALWAYS GIVING YOU A FRESH SET OF EYES. SO WE HAVE IN CHARGE ROTATION, WE HAVE PARTNER ROTATION, UM, WE HAVE, UH, VARIOUS, UM, ROTATION OF ASSIGNMENTS INTERNALLY. SO EVEN IF THE TEAM IS CONSISTENT FROM ONE YEAR TO THE NEXT, WE'RE NOT HAVING THE SAME PERSON ALWAYS DOING THE SAME THING. SO WE FIND THAT, UM, VERY BENEFICIAL TO, UM, MAKE SURE THAT WE'RE GIVING YOU THE HIGHEST QUALITY AUDIT POSSIBLE, BUT THEN ALSO RETAINING THAT RELATIONSHIP SO THAT WE'RE NOT COMING IN COLD WITH NO KNOWLEDGE, WE'RE ABLE TO BUILD OFF OF, UM, INFORMATION THAT WE'VE LEARNED IN PREVIOUS YEARS AND THEN TAKE THE AUDIT PROCEDURES TO THE NEXT LEVEL. THANK YOU. SCORING WELL ON, ON THESE AUDITS YEAR AFTER YEAR. DOES THAT HELP US GAIN GRANTS FROM THE STATE AND FEDERAL GOVERNMENT? IT, UM, IT CERTAINLY PUTS YOU IN A BETTER POSITION THAN IF YOU HAD A LOT OF CONCERNS. UM, SPEAKING SPECIFICALLY TO FEDERAL GRANTS, THE UNIFORM GUIDANCE HAD A MAJOR CHANGE LAST YEAR, WHERE NOW THE FEDERAL ENTITIES AS PART OF THE APPLICATION EVALUATION PROCESS ARE EVALUATING YOUR CONTROL ENVIRONMENTS BEFORE THEY, THEY AWARD YOU GRANTS. UM, AND I, I WOULD ASSUME IF YOU'RE GETTING, UM, PAST FEW GRANTS FROM THE STATE, THAT THEY WOULD ALSO BE GOING THROUGH A SIMILAR PROCESS. SO IF YOU ARE [00:15:01] A LOCALITY AND YOU HAVE A LOT OF ISSUES THAT WILL MAKE THE GRANTING AGENCIES TAKE A SECOND LOOK AT YOU. UM, SO HAVING STRONG INTERNAL CONTROLS PUTS YOU IN THE BEST POSITION IN ORDER TO RECEIVE THOSE. ANYONE ELSE? OKAY, THANK YOU ANDREW. ABSOLUTELY. REALLY APPRECIATE IT. THANK YOU SO MUCH. OKAY. UM, NEXT ON THE AGENDA, WE'LL MOVE TO THE, UH, APPROVAL OF MINUTES FROM THE MAY 6TH, 2025 MEETING. THOSE MINUTES ARE SHOWN ON PAGES TWO AND THREE OF YOUR PACKET. UM, ANY COMMENTS OR QUESTIONS ON THOSE MINUTES? PUT IN A MOTION. I MOVE TO APPROVE THE MINUTES. OKAY. DO WE HAVE A SECOND? SECOND. OKAY. ALL THOSE IN FAVOR OF APPROVING MINUTES SAY AYE. A AYE. OPPOSED? OKAY. THEY'RE APPROVED. UH, NEXT WE'LL MOVE ON TO WHAT IS ON PAGE FOUR OF YOUR PACKET. THE, UH, FISCAL YEAR 2025 FOURTH QUARTER PROJECTIONS AND MS. ESCAPE. ALL RIGHT, NOW THAT JUNE 30 HAS COME AND GONE, UM, WE HAVE A GOOD LOOK AT WHERE WE WILL PROBABLY END UP. UM, WE ALSO WORK UNDER A 45 DAY ACCRUAL PERIOD. SO THESE AREN'T THE FINAL, FINAL NUMBERS. WE'RE GONNA STILL ACCRUE BACK, UM, SOME TAX REVENUE, UM, SOME INVOICES THAT ARE STILL COMING IN TO BE PAID TO BE CHARGED AGAINST FY 25, BUT THESE ARE VERY CLOSE. SO WE ARE LOOKING AT COMING IN ABOUT $5 MILLION HIGHER AND WELL, $4.8 MILLION HIGHER THAN OUR BUDGETED REVENUE. UM, A LOT OF THAT IS DUE TO AMAZON. WE HAD A, YOU KNOW, $4 MILLION SPIKE IN PERMIT FEES, WHICH WAS GREAT. UM, IN PRIOR REPORTING, WE HAD THOUGHT THIS MIGHT BE EVEN HIGHER, BUT I THINK, UH, WELL, I KNOW THAT I WAS OVERESTIMATING MY PERSONAL PROPERTY TAXES COMING IN. UM, I HAVE LEARNED SINCE WITH THE HELP OF PAM, THAT OUR BUSINESS PERSONAL PROPERTY IS ONLY COLLECTED IN DECEMBER. SO I NEED TO REMEMBER THAT FOR MY PROJECTIONS FOR NEXT YEAR. BUT ALL IN ALL, UM, WE'RE LOOKING GREAT ON REVENUE AND ON EXPENDITURES, VERY SIMILAR TO WHAT WAS REPORTED LAST YEAR. DEPARTMENTS ARE, UM, TURNING IN DECENT SIZED AMOUNTS, MOSTLY DUE TO VACANCIES, BUT ALSO DUE TO, UM, WHERE THERE'S VERY VARIETY OF REASONS FOR THESE TURNBACKS. BUT ABOUT $4 MILLION BEING TURNED BACK THERE. SO AN OPERATING SURPLUS OF 13.8 MILLION. AND THEN ONCE WE FULLY FUND OUR SCHOOL CAPITAL PROJECTS, WELL, I'M SORRY, OUR CAPITAL PROJECTS THROUGH COUNTIES AND SCHOOLS AND OUR CSA FUND. UM, AND HERE'S THE NEW LINE. I THINK WE ARE GETTING A RETURN FROM THE BUILDING OF THE NEW GES. THE SCHOOLS DID NOT NEED ALL THE MONEY THAT WE TRANSFERRED TO THEM ORIGINALLY, SO THEY'LL BE GIVING US BACK 1.25 MILLION. SO WE'RE LOOKING TO PUT ABOUT $7.6 MILLION BACK INTO OUR FUND BALANCE AT THE END OF THE YEAR WHEN ALL IS SAID AND DONE. ANY QUESTIONS, SIR? MS. GOOD. I WOULD JUST NOTE THAT WE DO HAVE CONSIDERABLE CIP YES, UM, PROJECTS AND THAT ON THE HORIZON. SO WHILE WE ALWAYS APPRECIATE A RETURN TO THE FUND BALANCE, UM, UM, WE DO HAVE, UH, MANY PROJECTS TO FUND IN THE FORESEEABLE FUTURE WITH THOSE SURPLUSES THAT WE DO SEE. YES. UM, OKAY. THANK YOU. MM-HMM . UM, NEXT WE'LL MOVE ON TO REVIEW POSSIBLE UPDATES TO THE FINANCIAL POLICIES. UM, WE DID A REVIEW OF THE FINANCIAL POLICIES, AND I THINK ONE CONSISTENT COMMENT WAS, UM, YOU KNOW, THERE WAS A DESIRE TO MAKE IT EASIER TO READ AND INTERPRET A NUMBER OF THESE, UH, DEFINITIONS IN THE POLICY. UM, MR. LYLE, UH, GRACIOUSLY OFFERED TO PROVIDE, UM, A NUMBER OF COMMENTS, MOST SPECIFICALLY, UH, EXAMPLES OF HOW THESE CALCULATIONS ARE DONE. UM, WE HAVE COMMUNICATED, UH, AND MR. OIL, PLEASE FEEL FREE TO, UH, OBJECT TO ANYTHING I SAY. UH, WE'VE COMMUNICATED AND I THINK WE ARE GOING TO HIGHLIGHT THAT WE HAVE EXAMPLES OF THESE, UM, IN THE, UH, AS AN ADDENDUM TO THE POLICY, UM, WHILE STILL KEEPING THE POLICY FAIRLY STREAMLINED, EASY TO, UH, LEAF THROUGH AND, UM, NOT HAVING THE, I THINK SOME PEOPLE ARE POLICY READERS, SOME PEOPLE DIGEST IT BETTER WITH THE NUMBERS. AND SO, UM, NOW YOU HAVE BOTH OPTIONS. [00:20:01] IT'S THE GOAL AND AS MUCH TRANSPARENCY INTO THOSE CALCULATIONS AS WE CAN PROVIDE. BUT, UM, I, I WOULD NOTE, I I DON'T NOTE ANY OF THE CHANGES AS, UM, DRAMATIC. I WOULD SAY THEY ARE BEING MADE FOR EASE OF DIGESTION BY CONSTITUENTS AND ANYONE ELSE WHO, UH, IS TO REVIEW CHILDREN'S POLICIES. UM, MR. LYLE, ANYTHING YOU WOULD ADD? YEAH, I, I JUST LIKE ENGLISH . UNFORTUNATELY, I'VE SPENT A FAIR AMOUNT IN THE PRIVATE SECTOR WHERE BOTH ACCOUNTANTS AND ATTORNEYS WRITE FOR NON-ENGLISH SPEAKING AUDIENCES. USUALLY OTHER ACCOUNTANTS AND OTHER ATTORNEYS. SO, UM, THIS IS IT JUST GETTING RID OF SOME OF THE COMMONWEALTH WORD SALAD. I MEAN, IT'S REPETITIVE AND NONSENSICAL, BUT JUST DECLARATIVE, UH, THE FEWER WORDS USED, THE EASIER USUALLY JUST TO UNDERSTAND. SO THAT WAS MY GOAL. YEP. AND IN NUMBERS, UH, I THINK MR. S SPAU LAST YEAR WHEN WE CHANGED OUR RESERVE LEVELS FROM 60 TO, YOU KNOW, WE CHANGED THE BAND. YES. AND HIS QUESTION WAS, WELL, HOW MUCH ARE WE MISSING IT BY? AND WE COULDN'T ANSWER THE QUESTION. WE DIDN'T KNOW. AND, AND SO I THOUGHT, WELL, WE'RE MISSING IT BY A DOLLAR, OR I THINK IT WAS CLOSE TO 5 MILLION. SO THAT WAS MY THOUGHT. IF YOU GO BACK AND AGAIN, SOME OF THE UH, UM, NOMENCLATURE, WHICH IS WHAT IS 2.5 OF ASSESSED VALUE REAL ESTATE WITH GLAND'S CURRENT NET DEBT. AND SO WHAT'S THAT WORK OUT TO AND WORK OUT 147 MILLION, 124,000, 147 MILLION, 124,452 BUCKS. SO THERE'S A NUMBER. SO THAT'S, THAT WAS MY GOAL, UM, WHERE IT IS REPOSITORY IN AN APPENDIX IN THE MIDDLE OF THE DOCUMENT, JUST AS LONG AS IT'S THERE. ABSOLUTELY. AND IT CAN BE SEEN. UM, I'M, I'M A FUNCTION OVER FORMAT PERSON ANYWAY, SO THANK YOU FOR THE OPPORTUNITY TO SPEAK TO IT. I JUST, I JUST LIKE IT SIMPLE 'CAUSE IT'S EASIER FOR ME. SO IT'S ALL ABOUT ME. UM, IF WE DO MAKE THAT ONE LAST CHANGE IN FORMATTING, OF COURSE, YOU KNOW, WE MIGHT, IT'S ALL, WE'RE ALWAYS OPEN TO THE SUGGESTIONS, UH, FURTHER SUGGESTIONS. BUT IF WE DO, WOULD YOU SUBMIT IT BACK TO THE YES. FINANCE? I MEAN, IT'LL BE TEMPORARILY ADOPTED, I WOULD GUESS, AS A REVISED POLICY? OR DO WE HAVE TO WAIT UNTIL WE FORMALIZE THAT POLICY AT THE NEXT? SO IF Y'ALL WANNA SEE THE FINAL VERSION OF WHAT WE'RE DESCRIBING, I CAN BRING IT BACK IN DECEMBER. UHHUH IS WHAT WE NORMALLY DO, OR WE CAN MAKE A MOTION TODAY TO, UM, ADOPT IT AS PRESENTED WITH. UM, I RUN A MOTION TO BE MADE TODAY IF WE'D RATHER DO IT THIS WAY. UM, CAN I MAKE A MOTION AND THEN WE CAN TALK ABOUT IT? LET'S DO THIS SO WE DON'T HAVE THE MOTION AND THEN GET CONFUSED. GET CONFUSED. UH, CAN YOU JUST DESCRIBE HOW YOU BOARDED THE MOTION? YEAH, I WAS JUST GONNA MAKE A MOTION TO ADOPT IT AS PRESENTED, BUT, UM, DELETE THE TABLES THAT REFERENCE ACTUAL DOLLARS WITHIN THE POLICY. UM, INSTEAD ADD A FOOTER TO EVERY PAGE THAT CURRENTLY HAS A TABLE SAYING, UM, EXAMPLES OF THE REFERENCE POLICY CAN BE FOUND IN THE ADDENDUM ATTACHED THAT WAY. THE GOAL WOULD BE, I ALSO WAS GONNA, UM, REMOVE ANY REFERENCES TO THE COUNTY'S REVENUE REGULATIONS. WE JUST HAVE A FEE SCHEDULE, BUT I DON'T KNOW OF ANY REVENUE REGULATIONS. BUT, UM, THE GOAL WOULD BE TO NOT HAVE TO, WE COULD KEEP THE ADDENDUM UPDATED WITH FIGURES EACH YEAR, BUT NOT HAVE TO READ, ADOPT THE POLICY EVERY TIME WE CHANGE THE NUMBERS. GOOD POINT. SO THE POLICY WON'T HAVE TO BE READOPTED UNTIL WE CHANGE THE CONTENT. AND THOSE WILL BE, UM, THOSE HISTORICAL NUMBERS WILL BE UPDATED, I ASSUME, WITH, YOU KNOW, SHORTLY AFTER WE GET AUDITED FINANCIALS EVERY YEAR. YEP. OKAY. WONDERFUL. MR. MR. CHAIRMAN, I, I, I JUST WANT TO DEFEND MYSELF. I WOULD NOT HAVE INVENTED THE PHRASE, WOULD YOU CALL 'EM RISKFUL REGULATIONS OR REVENUE REVENUE REGULATIONS? I PICKED THAT UP FROM SOMEBODY ELSE. I, THAT'S NOT SOMETHING I'D HAVE INVENTED, SO. OKAY. I DON'T KNOW WHAT A REVENUE REGULATION IS. OKAY. BUT IT MUST HAVE BEEN IN THE ORIGINAL DOCUMENT, SO, OKAY. SOUNDS GOOD. SO, ANY OTHER QUESTIONS, COMMENTS? YEAH, JUST, JUST A POINT OF CLARIFICATION. ANYTHING THAT THE AUDIT COMMITTEE WOULD DO TODAY WOULD ULTIMATELY BE REVIEWED BY THE FULL BOARD AT A FUTURE BOARD MEETING. IS THAT CORRECT? CORRECT. EVERY TIME WE UPDATE THESE, IT USUALLY GOES TO BOARD. OKAY. OKAY. ALL WELL, UH, SHOULD WE ENTERTAIN A MOTION? WE WILL ENTERTAIN A MOTION. MS. COVE. OKAY. I WOULD LIKE TO MAKE A MOTION TO APPROVE THE UPDATED POLICY AS PRESENTED WITH A CHANGE TO ADD A FOOTER TO EVERY PAGE REFERENCING ACTUAL DOLLARS. CURRENTLY, THE FOOTER TO STATE CALCULATIONS FROM THE MOST RECENT FIVE YEARS ARE INCLUDED IN ADDENDUM ONE TO THIS POLICY AND ALSO TO REMOVE REFERENCES [00:25:01] TO THE COUNTY'S REVENUE REGULATIONS. SECOND. OKAY. HAVING A MOTION AND A SECOND. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? OKAY. THANK YOU MS. GOOD. NO. UM, IS THERE ANY OTHER BUSINESS FROM OTHER, UH, BOARD MEMBERS OR OTHER COMMITTEE MEMBERS TO DISCUSS AWARE OF ANY, UM, DO WE HAVE ANY PUBLIC COMMENT? OKAY. UH, SEEING ALL THAT, I WILL MOVE, UH, TO ADJOURN THE MEETING TO OUR DECEMBER 2ND, 2025 FINANCE AND AUDIT COMMITTEE MEETING TIME. TBD DO I HAVE SECOND? SECOND. ALL THOSE IN FAVOR SAY AYE. AYE. OPPOSED? OKAY. WE ARE ADJOURNED. THANK YOU, MS. THIS. OOPS. * This transcript was created by voice-to-text technology. The transcript has not been edited for errors or omissions, it is for reference only and is not the official minutes of the meeting.