GNRC Greater Nashville Regional Council 501 Union Street, 6 th Floor Nashville, Tennessee

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1 Greater Nashville Regional Council 501 Union Street, 6 th Floor Nashville, Tennessee Rescheduled Executive Committee Meeting Thursday, January 28, :00 p.m. Main Nashville Library 615 Church Street Conference Room 1A Nashville, Tennessee Those in Attendance: Megan Barry Howard Bradley Paige Brown Evann Freeman Scott Foster Diane Giddens Gerald Herman Anthony Holt Randall Hutto Gary Jaeckel Jimmy Jobe Rick Johnson Jerry Kirkman Perry Keenan Kim McMillan Star Moore Craig Moreland Drew Nickerson Bill Terry Tom Whitworth Cynthia Balfour Tonya Blades Tauna Blaisdell Bryan Collins Amanda Giner Will Harrison Taylor Hollars Melanie Howell Angie Hutchison Hope Jackson Clara Kelly Jovia King Norma Powell Matt Von Lunen Diane Schlaufman Laylah Smith Marilyn Wade MINUTES Nashville Robertson County Gallatin Senator Alexander s Office Hendersonville Williamson County White House Sumner County Wilson County UT - MTAS Jobe, Hastings & Associates Ashland City Westmoreland Pleasant View Clarksville (via phone) Dickson County Trousdale County Jobe, Hastings & Associates TACIR Ogletree Deakins

2 Page 2 of 5 Call to Order President Randall Hutto called the Executive Committee Meeting to order at approximately 2:03 p.m. on Thursday, January 28, 2016 at the Main Nashville Library, 615 Church Street, Conference Room 1A, Nashville, Tennessee. President Hutto welcomed everyone. ITEMS FOR DISCUSSION Research, Planning and Development Matt Von Lunen, Research, Planning and Development Division Administrator, went over the CDBG Entitlement Community Expenditures and Awarded Grant Funds report. He presented a letter that the Executive Committee asked him to draft. He recommends send the letter to ECD, Rural Development and give ECD an opportunity to comment first. Then move on to our elected officials. The Executive Committee requested for Matt to all of the committee a plan of attack, what each member needs to do and the sample letter. Mayor Randall Hutto suggested that a motion would be needed to send letter as a body. Nashville Mayor Megan Berry made a motion to send letters as a body. Williamson County Alternate Diane Giddens seconded the motion. The motion was unanimously passed. TDDA has lobbied for more funds from the state and use the funds to help our Rural communities. This letter states the amount they suggest to request for our part and explains how would use the funds if rewarded it. Legislative Agenda Update Sam Edwards, Chief Legal Counsel, stated that the filing deadline was January 21 st. Our two bills have been filed. One error and the bill is out because it is a short session. The second week in March the committee closes and the second week in April the session closes. A legislation report will be send out every Friday. Finance & Personnel Committee: Update on Search Team and Timeline Randall Hutto, Wilson County Mayor, stated that the Finance & Personnel Committee met with the Search Team on January 7 th. The Search Team was giving a timeline and their charge including criteria for a new Executive Director. The deadline to apply was January 15 th. A substantial number of people have applied. Hope Jackson categorized the applications. Hope Jackson, Deputy Executive Director, Human Resources & Chief Legal Counsel, stated she sorted through the applications. She put the applications into three separate categories: Group A is the most qualified with the preferred degree and amount of experience; Group B either had the degree but didn t have enough experience or had enough experience but not the degree; Group C didn t qualify at all. Group A went to the Search Team and there were 9 applicants in the group. The search team will let Hope know if they would like to look at Group B. She asked the Search Team if they wanted the names attached or not. She gave them two sealed envelopes, one with the names on the applications and one with the names redacted. By majority vote, they decided to look at the envelope with the names attached. The first meeting will be Friday, January 29 th. ACTION ITEMS Approval of Minutes President Randall Hutto called for corrections or additions to the minutes of the December 29, 2015 Executive Committee meeting.

3 Robertson County Mayor Howard Bradley made a motion to approve the minutes as presented. Nashville Mayor Megan Barry seconded the motion. There being no discussion, a vote was taken and the minutes were unanimously approved. Page 3 of 5 Update on Report on Tax Discrepancies and Audit Jimmy Jobe, Jobe, Hastings & Associates, passed out a document stating the findings about payroll. The document lists each error by calendar year. The main error was the health, vision and dental insurance was not handled as pre-taxed. As result of that, and employees over paid on Social Security and Medicare taxes on payroll. The years 2010 and 2011has passed the statute of limitations so the funds are unrecoverable from the IRS. From 2012 to 2015, the overpayment can be recovered. From , the W-2 s need to be amended. The employees will receive an amended W-2 for each year. This will reduce their wages. They will have to amend their own returns for the federal taxes. The agency will write checks to each employee for Jimmy states that so far they have amended all the W-2 s, and amended all the 941 s or federal tax returns. They will file with the IRS to get the refund. Those are ready to file for The IRS required them to have a statement signed by each employee stating that they won t try on their own to recover these funds and they understand they are getting a refund. All but two employees have signed and returned the form. They are required to get all signed before filing for the refund. The W-2 s will go out to the employees in the next few days so they will have an opportunity to amend those returns. The only urgent is the 2012 need to be amended by April 15, The employee is not required to amend their returns. He has provided a list of refunds due to the employees to. The law states that the plan came into being and agencies were able to participate in Tauna Blaisdell is getting him the information for 2008 and 2009 to make a calculation. He feels like it will be similar to $66,870 is recoverable from the IRS. He stated that Jobe, Hastings & Associates would be willing to amend the returns for the employees for a discounted rate of $150 for each return since they have all the information. It won t be an imposition on the employees. It is up to this committee whether they see it as a responsibility of or the employees themselves. The employee has to prepare a 1040x to amend their return. Mayor Randall Hutto, Wilson County Mayor, recapped that the $66,870 that can be recovered will be filed by Jobe, Hastings & Associates. Jobe, Hastings & Associates offered to do each return for $150 a piece if felt like this error was the fault of the agency. Mayor Hutto requested Jimmy to give the next steps in the process. Jimmy stated that they would calculate the refund from Mayor Hutto asked who prepares the W-2 s to give to the employees. Jimmy stated that they had already prepared them. Mayor Megan Barry, Nashville Mayor, asked about how the employees get refunded for Mayor Hutto stated that will look at the numbers, figure out what the employees deserve and find the money to give back to the employees. Jimmy pointed out the amount in employee column is all Social Security and Medicare taxes that is the agencies amount to refund. The $47, will come from checks from to the employees. A separate issue is the employees federal income tax. That is why the employees have to file an amended return. Tauna Blaisdell, Deputy Executive Director of Administration & Operations and Chief Fiscal Officer, stated that these were pre-federal wages. She asked that why would the employees have to renew their returns. Jimmy stated that in all years they were not treated as pre-tax for federal. Tauna stated they were in because she double checked. Jimmy stated that there is also some retirement issues that weren t treated. Tauna stated it was on their W-2 s. Jimmy stated that for those years it was not pre-taxed for federal. Tauna stated that Jimmy said it was on their W-2 s so when they did their tax returns it would have been right. Jimmy stated it was not treated as pre-taxed on their federal wages. Mayor Paige Brown, Gallatin Mayor, stated that while she appreciates the offer that employees may want to keep their taxes with their tax preparer. Maybe should consider an allowance for amending. Mayor Hutto stated that needs to figure out what they can afford and how to be justifiable to our employees because we have to take care of them. Mayor Barry asked that a time line be established since employees need to amend their 2012 return by April 15, Mayor Hutto

4 Page 4 of 5 stated they would make a decision at the next meeting. Jimmy stated that it might not be worth it to some employees to amend their return. It is not required that they amend their returns. Mayor Hutto asked Jimmy if there was a way to see at a glance which employees it would be beneficial to amend and which ones it wouldn t. Jimmy stated that he was only thinking of 2012 since we have plenty of time for He was thinking he would come to the office and give each employee an idea before they make a decision. Executive Committee requests Jimmy Jobe at the next meeting as well. Jimmy Jobe presented the draft audit report. The audit has been completed. On page 1 and 2 of the Draft Audit Report, is a standard report that states the auditor opinion. On page 9 and 10, this is the Statement of Net Position which is basically a balance sheet. This is presented on a government wide approach which means all the assets of the agency are included (including fixed assets, building, equipment, etc.). It is not on a budget approach because you can t spend equipment. On page 9, the Net Pension Asset represents how the agency has funded their pension plan. It is funded over and above the actuarial value that it is supposed to be there so it represents an over funding at the end of the year. Net Position represents how much the assets exceed the liability of the agency. On page 10, it shows the ongoing programs and the three columns under Program Revenues show how the program was funded. On page 11, this only includes assets for the budget. Page 13 is more of a budget approach. One reason why there is excess of expenses over revenues for the year, is that the building was paid off. The last two pages, there is a summary of audit results and findings. There were two findings; the first one was completeness and accuracy of account balances and the second one involves the payroll tax issue. Mayor Hutto asked for clarification on the first finding. Jimmy stated that anytime their doing an audit, the assumption is that the agency is responsible for their own books and getting those to a point that they are accurately presented. This is a common finding, because it is hard to know everything and the auditor is coming in behind with an advantage. In this case, they had some entries that exceed the materiality limit. In other words, they had to adjust the books to get them accurate and it was more than our material amount. It is not something that we are overly concerned about. Tauna Blaisdell stated that it did particularly deal with the equipment lease. The auditors felt it was a capital lease and she did not have it reported as a capital lease because she didn t think it was. Also, there was a CD in the Guardianship program that had not been reported. Mayor Hutto asked Jimmy if they go over the detailed list with the Financial Director and Executive Director. Jimmy stated he had been over it with Tauna the Chief Fiscal Officer. Mayor Hutto suggested he also go over it with the Executive Director as well. Mayor Hutto stated that in our situation where we are dealing with some issues that are not good for us publicly and we are in transition of an Executive Director, we want to make sure that the new Executive Director is educated as well. It s better for two people to know instead of one. Alternate Diane Giddens asked if she was the only one missing pages 3 8. Jimmy stated that is called a Management s Discussion and Analysis. Tauna has that ready. It comes from management. It is an overview describing what is going on at the agency. Tauna stated that it needs to be seen by Norma Powell and Matt Von Lunen and then it can be inserted. Nashville Mayor Megan Barry made a motion to approve the audit as submitted. Sumner County Executive Anthony Holt seconded the motion. The motion was unanimously passed. Financial Report Tauna Blaisdell, Deputy Executive Director of Administration/Operations and Chief Fiscal Officer, presented the financial report for the month ending December 30, The total expenditures for the month of December were $458, with $17.10 in pass through. The year-to-date expenditures were $3,944, The total revenues were $3,607, The total pass through were $1,532, The bank balances for the end of December is also listed (Simmons Bank is the regular bank account and LGIP is the investment account). Nashville Mayor Megan Barry made a motion to approve the finance report as presented. Westmoreland Mayor Jerry Kirkman seconded the motion. The motion was unanimously passed.

5 Page 5 of 5 Other Business Tauna Blaisdell stated that she let the contract with the realtor expire because we weren t having any progress. The condo association had a meeting last night. They have decided to proceed with analysis of the buildings worth and what each separate space could be worth so they can sell the building as a whole which might be the best option for us to sell our building. Most of the residents are interested in selling the building as a whole and take advantage of the real estate boom that is currently taking place. So far, they are just looking into things. She will keep the Executive Committee updated. There being no other business, the meeting was adjourned. Respectfully submitted, Angie Hutchison Recording Secretary Administrative Support Specialist NLP/adh & hj Adminwrk\ \Board Meetings\ Minutes\ Minutes.doc