Finance Advisory and Audit Committee

City of Columbia, Missouri Meeting Minutes Finance Advisory and Audit Committee Friday, August 19, 2016 Conference Room 5A Regular Columbia City Hall 2:00 PM 701 E. Broadway I. CALL TO ORDER Present: 5- Kristian Bloom, John Clark, Maria Oropallo, Edward Scavone and Michele Nix Absent: 1- Victor Arnold II. APPROVAL OF AGENDA Mr. Clark moved to approve the agenda for the August 19th, 2016 meeting. Ms. Oropallo seconded the motion and the agenda was approved unanimously. III. APPROVAL OF MINUTES Approval of the Feb. 19th, 2016 Meeting Minutes Mr. Clark moved to approve the minutes from the February 19th, 2016 meeting. Mr. Bloom seconded the motion and the minutes were approved unanimously. IV. SPECIAL ITEMS Presentation of Audit Scope by RSM Mr. Smith reviewed the letter from RSM that was shared with the Committee prior to the meeting. Subjects asked and discussed by members of the Committee included questions and concerns of the Committee members about the audit, such as system changes, the time frame of the audit, and private purpose trust funds. Ms. Hughes added that the City had one private purpose trust fund. V. REPORTS Update by Greg Slinkard, Internal Auditor Mr. Slinkard updated the Committee on the projects he had been working on since the last meeting, including the City’s landfill, the Red Flags Rule and his reconciliations of Petty Cash funds in the City’s different departments. Committee members posed questions to Mr. Slinkard that were answered and discussed. Mr. Slinkard also mentioned the projects that he plans to work on in the future, including the Sunshine Law as it relates to City Boards & Commissions, additional Petty Cash reconciliations and a review of the City-owned cell phone policy. Ms. Oropallo asked Mr. Slinkard for an update on a prior project regarding an inventory of the City’s vehicle fleet and Mr. Slinkard provided an update to the Committee. Mr. Clark asked Mr. Slinkard for an City of Columbia, Missouri Page 1 Printed on 10/25/2016 Finance Advisory and Audit Meeting Minutes August 19, 2016 Committee update on a prior project regarding utility accounts, and Mr. Slinkard and Mrs. Cannon each provided an update to the Committee. Finance and Budget Updates by Michele Nix Ms. Nix reviewed the current financial standing and budget status of the City. She said the City hoped to go live on the COFERS project on October 1st, and currently had the payroll module working in the new system. Ms. Nix also notified the committee that Ron Barrett had given his retirement notice, and Randy Wyatt would be the new project manager for the COFERS project. Ms. Nix then said the City had refinanced some special obligation bonds this past November, saving the City $2.6 million over the next two years as a result. In June, she said the City refinanced the bonds on the Daniel Boone Building (City Hall), saving the City $4.6 million over the next 15 years. She continued saying the City’s bond rating continues to be at AA. Ms. Nix then shared with the Committee news about the decreased sales tax revenues for the 2016 fiscal year. She said the City had estimated a 3% increase in sales tax revenue in the original FY2016 budget, but now it was coming in at just over 1%. Therefore, she said the City would be estimating a 0.74% increase in the FY2017 budget. Ms. Nix said the City expected the FY2016 budget to remain balanced because the City was implementing a hold on supplemental spending and a 45-day hiring delay. Ms. Nix continued her report saying the $5 million payment that was made to the Police and Fire Pension Fund at the end of FY2016 increased the funded percentage to 60%. She added that property taxes remain stable and the rate will remain the same. Ms. Nix said the FY2017 budget was at that time in a proposed status, and two upcoming public hearings and an upcoming work session were scheduled to occur before City Council was to vote on it. Within the proposed budget, Ms. Nix said it included hiring three (3) new police officers, and there was a proposed amendment to the budget to add a fourth officer. She said the City would also continue its 45-day hiring delay for new positions except for public safety and most budgets had been cut. Ms. Nix added that a residential utility rate increase was included in the proposed budget and talked about additional challenges the City would have to overcome in the FY17 budget. VI. NEW BUSINESS Ms. Oropallo began a discussion amongst the Committee and City staff about the role of the Committee as it related to working with the City Council. A copy of the establishing legislation for the Committee containing duties was handed out. Mr. Scavone said typically past involvement by the Committee had resulted from a request by City Council to do so. He added that the Committee had mainly advised in the past on just matters of the City’s annual audit. The Committee also discussed member terms and how they plan to operate going forward. The Committee requested from City staff a list of policies and procedures to help build that knowledge into the workings of the Committee, and talked about when they would like to see that list of policies and procedures from City staff. Mr. Scavone recommended that the staff e-mail the policies and procedures to the Committee Chair, and then the Committee would decide City of Columbia, Missouri Page 2 Printed on 10/25/2016 Finance Advisory and Audit Meeting Minutes August 19, 2016 Committee when they would want to meet again. VII. NEXT MEETING DATE TBD VIII. ADJOURNMENT There being no further business, the meeting was adjourned at 3:32 P.M. Members of the public may attend any open meeting. For requests for accommodations related to disability, please call 573-874-7214. In order to assist staff in making the appropriate arrangements for your accommodation, please make your request as far in advance of the posted meeting date as possible. City of Columbia, Missouri Page 3 Printed on 10/25/2016