City of Manassas, Virginia. Finance Committee Meeting AGENDA. Finance Committee Meeting

Transcription

1 City of Manassas, Virginia Finance Committee Meeting AGENDA Finance Committee Meeting 9027 Center Street Manassas, VA Second Floor Conference Room Wednesday, September 13, 2017 Call to Order - 5:30 p.m. 1. Action Items 1.1 Minutes: July 12, 2017 Finance Committee Meeting Minutes: July 12, Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating a $57,222 State Grant and $14,306 from Airport Fund Fund Balance for the Airfield Regulators Capital Project (Rivera) Agenda Statement R : Grant for Airfield Regulators Resolution R R: Backup for Airfield Regulators Grant 1.3 Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating $39,590 from Water Fund Fund Balance and $49,441 from Electric Fund Fund Balance to Replace Two Aging Vehicles (Simpson) Agenda Statement: R: Replacement of UT Vehicles Resolution R City Manager's Time Annual Letter from Auditors Annual Letter from Auditors Adjournment Finance Committee Finance Committee Meeting September 13, 2017 Page 1 1

2 MINUTES OF THE CITY COUNCIL FINANCE COMMITTEE WEDNESDAY, JULY 12, 2017 SECOND FLOOR CONFERENCE ROOM CITY HALL - MANASSAS, VA COMMITTEE MEMBERS PRESENT: Council Member Sheryl L. Bass, Chair Vice Mayor Marc T. Aveni Council Member Pamela J. Sebesky (Alternate) COMMITTEE MEMBERS ABSENT: Council Member Ken D. Elston OTHERS PRESENT: City Manager W. Patrick Pate, City Clerk/Assistant to the City Manager Andrea Madden, Acting Finance and Administration Director Diane Bergeron, Stormwater Management Manager Jacob Renaud, Utilities Director Tony Dawood, Utilities Finance Manager Glenn Simpson, Human Resources Manager Darla Hicks, Risk Manager Brenda Cogdell, Members from Upper Occoquan Service Authority (UOSA): Executive Director Charles Boepple, Deputy Executive Director of Finance Paulette Myers, Controller Kevin Wolf and John Weber UOSA Board of Directors Chairman representing City of Manassas Jurisdiction The meeting was called to order at 5:32 p.m. by Council Member Sheryl L. Bass, Chair. AGENDA ITEM #1 Approve Minutes of the June 14, 2017 Finance Committee Meeting A motion was made and seconded to approve the Minutes of the June 14, 2017, Finance Committee meeting. The Committee approved (3/0). AGENDA ITEM #2 Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating $180,663 of State Grant Revenue in the Stormwater Capital Projects Fund for the Hospital Pond Capital Project Jacob Renaud presented Staff s recommendation to amend the FY 2018 budget by budgeting and appropriating $180,663 of State Grant Revenue in the Stormwater Capital Projects Fund for the Hospital Pond Capital Project. The Committee approved (2/0). This item will be forwarded to the July 24, 2017, City Council meeting for consideration. 2 July 12, 2017 Page 1 7/12/2017

3 AGENDA ITEM #3 Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating $3,317,339 from Sewer Fund Fund Balance and $166,383 in Cost Recovery Revenue in the Sewer Fund to Pay the Upper Occoquan Service Authority (UOSA) Debt Service True Up Tony Dawood presented Staff s recommendation to amend the FY 2018 budget by budgeting and appropriating $3,317,339 from Sewer Fund Fund Balance and $166,383 in Cost Recovery Revenue in the Sewer Fund to Pay the Upper Occoquan Service Authority (UOSA) Debt Service True Up. The Committee approved (3/0). This item will be forwarded to the July 24, 2017, City Council meeting for consideration. City Manager s Time Risk Manager Brenda Cogdell explained the insurance process for the City of Manassas. At the upcoming City Council meeting on July 24, 2017 City Council will be asked to approve an application to VDOT for additional funds for Manassas transportation projects. The meeting was adjourned at 6:09 p.m. by Chair Sheryl L. Bass. 3 July 12, 2017 Page 2 7/12/2017

4 City of Manassas Finance Committee 9027 Center Street Manassas, VA Meeting Date: September 13, 2017 Time Estimate: Agenda Title: Recommendation: Date Last Considered by City Council: Summary and/or Comments: 2 Minutes Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating a $57,222 State Grant and $14,306 from Airport Fund Fund Balance for the Airfield Regulators Capital Project Approve Resolution R N/A This project will replace three airfield regulators for Taxiway B, Runway 16R-34L and Runway 16L-34R PAPI s that have reached their useful life The project results in $71,527 in total construction costs. A State Grant of $57,222 (80% of the project) has been awarded and a required 20% match of $14,306 will come from the Airport Fund s Fund Balance. This resolution will budget and appropriate $57,222 of State Grant Revenue and $14,306 of Airport Fund Fund Balance for the Airfield Regulators Capital Project. Board Committee or Commission Reviewed: N/A Fiscal Impact: $57,222 State Grant $14,306 Airport Fund Fund Balance $71,528 Airfield Regulators Capital Project Staff Contact: Juan Rivera, Airport Director jrivera@manassasva.gov (703)

5 RESOLUTION R Adopted: BE IT RESOLVED by the Council of the City of Manassas meeting in regular session this 25 th day of September, 2017, that the following funds be budgeted and appropriated as shown. ACCOUNT NO. AMOUNT WATER FUND Water Fund Fund Balance $ 39, Mid-Year Vehicle Maintenance Purchase $ 39,590 ELECTRIC FUND Electric Fund Fund Balance $ 49, Mid-Year Vehicle Maintenance Purchase $ 49,441 VEHICLE MAINTENANCE FUND Mid-Year Purchases Revenue $ 89, Motor Vehicle Purchases $ 89,031 For: Replacement of Utility Vehicles 5

6 Resolution R September 25, 2017 Page 2 AIRPORT FUND Airport Fund Fund Balance $ 14, Transfer to Airport Fund $ 14,306 AIRPORT CAPITAL PROJECTS FUND C3785 State Grant $ 57, C3785 Transfer from Airport Fund $ 14,306 $ 71, C3785 Airfield Regulators Project $ 71,528 For: State Grant for Airfield Regulators Capital Project This resolution shall take effect upon its passage. ATTEST: Harry J. Parrish II MAYOR On Behalf of the City Council of Manassas, Virginia Andrea P. Madden City Clerk 6 9/7/2017

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9 City of Manassas Finance Committee 9027 Center Street Manassas, VA Meeting Date: September 13, 2017 Time Estimate: Agenda Title: Recommendation: Date Last Considered by City Council: Summary and/or Comments: Board Committee or Commission Reviewed: 5 Minutes Consideration of Resolution R Amending the FY 2018 Budget by Budgeting and Appropriating $39,590 from Water Fund Fund Balance and $49,441 from Electric Fund Fund Balance to Replace Two Aging Vehicles Approve Resolution R N/A In August, the skid steer loader used at the Water Plant broke down and is now out of service. The skid steer loader is over 20 years old and has become uneconomical to repair. The skid steer loader is primarily used to move chemicals at the Water Plant and perform other associated operation and maintenance functions, e.g. snow removal at the facility. The Water Fund is requesting the budget and appropriation of $39,590 of fund balance to immediately replace the skid steer loader. Electric Vehicle E-8 is a mid-sized dump truck that is over 20 years old and has recently rusted out in places that make it uneconomical to repair. This truck is primarily used to move transformers as well as brush and other debris. It is also used in other operation and maintenance functions as needed. The Electric Fund is requesting the budget and appropriation of $49,441 of fund balance to immediately replace the dump truck. This resolution will budget and appropriate $39,590 of Water Fund Fund Balance and $49,441 of Electric Fund Fund Balance for the purchase of these replacement vehicles. N/A Fiscal Impact: $39,590 Water Fund Fund Balance $49,441 Electric Fund Fund Balance $89,031 Total Transfer to Vehicle Maintenance Fund Staff Contact: Glenn Simpson, Utilities Finance Manager gsimpson@manassasva.gov (703)

10 RESOLUTION R Adopted: BE IT RESOLVED by the Council of the City of Manassas meeting in regular session this 25 th day of September, 2017, that the following funds be budgeted and appropriated as shown. ACCOUNT NO. AMOUNT WATER FUND Water Fund Fund Balance $ 39, Mid-Year Vehicle Maintenance Purchase $ 39,590 ELECTRIC FUND Electric Fund Fund Balance $ 49, Mid-Year Vehicle Maintenance Purchase $ 49,441 VEHICLE MAINTENANCE FUND Mid-Year Purchases Revenue $ 89, Motor Vehicle Purchases $ 89,031 For: Replacement of Utility Vehicles 10

11 Resolution R September 25, 2017 Page 2 AIRPORT FUND Airport Fund Fund Balance $ 14, Transfer to Airport Fund $ 14,306 AIRPORT CAPITAL PROJECTS FUND C3785 State Grant $ 57, C3785 Transfer from Airport Fund $ 14,306 $ 71, C3785 Airfield Regulators Project $ 71,528 For: State Grant for Airfield Regulators Capital Project This resolution shall take effect upon its passage. ATTEST: Harry J. Parrish II MAYOR On Behalf of the City Council of Manassas, Virginia Andrea P. Madden City Clerk 11 9/7/2017

12 July 10, 2017 To the City Council, School Board, and EDA Board City of Manassas, Virginia We are engaged to audit the financial statements of the governmental activities, the businesstype activities, the discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Manassas, Virginia (the City ) for the year ended June 30, Professional standards require that we provide you with the following information related to our audit. We would also appreciate the opportunity to meet with you at your request to discuss this information further since a two-way dialogue can provide valuable information for the audit process. Our Responsibilities under U.S. Generally Accepted Auditing Standards, Government Auditing Standards, and the Uniform Guidance As stated in our engagement letter dated July 10, 2017, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. In planning and performing our audit, we will consider the City s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We will also consider internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance. As part of obtaining reasonable assurance about whether the City s financial statements are free of material misstatement, we will perform tests of its compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with the Uniform Guidance, we will examine, on a test basis, evidence about the City s compliance with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the City s compliance with those requirements. While our audit will provide a reasonable basis for our opinion, it will not provide a legal determination on the City s compliance with those requirements. Generally accepted accounting principles provide for certain required supplementary information (RSI) to supplement the basic financial statements. Our responsibility with respect to Management s Discussion and Analysis, the Schedules of Funding Progress OPEB, and Applicable Pension Schedules, which supplement the basic financial statements, is to apply certain limited procedures in accordance with generally accepted auditing standards. However, the RSI will not be audited and, because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance, we will not express an opinion or provide any assurance on the RSI. 12 Your Success is Our Focus 124 Newman Avenue Harrisonburg, VA Fax:

13 City of Manassas, Virginia July 10, 2017 Page 2 Our Responsibilities under U.S. Generally Accepted Auditing Standards, Government Auditing Standards, and the Uniform Guidance (Continued) We have been engaged to report on the combining and individual non-major fund financial statements, discretely presented component unit fund financial statements, and the schedule of expenditures of federal awards, which accompany the financial statements but are not RSI. Our responsibility for this supplementary information, as described by professional standards, is to evaluate the presentation of the supplementary information in relation to the financial statements as a whole and to report on whether the supplementary information is fairly stated, in all material respects, in relation to the financial statements as a whole. We have not been engaged to report on the introductory and statistical sections, which accompany the financial statements but are not RSI. Our responsibility with respect to this other information in documents containing the audited financial statements and auditor s report does not extend beyond the financial information identified in the report. We have no responsibility for determining whether this other information is properly stated. This other information will not be audited and we will not express an opinion or provide any assurance on it. Planned Scope and Timing of the Audit An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; therefore, our audit will involve judgment about the number of transactions to be examined and the areas to be tested. Our audit will include obtaining an understanding of the entity and its environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements and to design the nature, timing, and extent of further audit procedures. Material misstatements may result from (1) errors, (2) fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental regulations that are attributable to the entity or to acts by management or employees acting on behalf of the entity. We will generally communicate our significant findings at the conclusion of the audit. However, some matters could be communicated sooner, particularly if significant difficulties are encountered during the audit where assistance is needed to overcome the difficulties or if the difficulties may lead to a modified opinion. We will also communicate any internal control related matters that are required to be communicated under professional standards. We expect to begin our audit in May 2017 and issue our report in November Billy Robinson is the engagement partner and is responsible for supervising the engagement and signing the report or authorizing another individual to sign it. The Concept of Materiality in Planning and Executing the Audit In planning the audit, the materiality limit is viewed as the maximum aggregate amount of misstatements, which if detected and not corrected, would not cause us to modify our opinion on the financial statements. The materiality limit is an allowance not only for misstatements that will be detected and not corrected but also for misstatements that may not be detected by the audit. Our assessment of materiality throughout the audit will be based on quantitative and qualitative considerations. Because of the interaction of quantitative and qualitative considerations, misstatements of a relatively small amount could have a material effect on the current financial statements as well as financial statements of future periods. At the end of the audit, we will inform you of all individual unrecorded misstatements aggregated by us unless clearly inconsequential in connection with your evaluation or our audit test results. 13

14 City of Manassas, Virginia July 10, 2017 Page 3 Inquiries Concerning Fraud As part of the planning process, we assess the risk of misstatements in the financial statements, whether from fraud or error. Your consideration of the following questions is valuable in planning our engagement. Are you aware of any fraud, suspected fraud, or allegations of fraud? Are there departments or processes where you think fraud could easily occur and remain undetected? Are you comfortable with the integrity of management? Are you aware of any illegal acts or noncompliance with laws or grant agreements? Are you confident that personnel possess appropriate skill sets, and are committed to providing high quality financial information? Are there particular areas in the financial statements where you have concern that misstatements could occur? Are there any circumstances that you believe should be of interest to your auditors, but of which management is unaware or might have reason to not fully disclose to us? Are you satisfied that those charged with governance are actively involved in the Organization s assessment of the risks of fraud and the programs and controls established to mitigate those risks? If your consideration of these questions yields no concerns, we do not require that you respond to us. However, if you have any concerns or would like to simply discuss these (or any other) issues relating to the audit, please contact us at: Independence Matthew Heatwole, Director (540) mheatwole@becpas.com Our independence policies and procedures are designed to provide reasonable assurance that our firm and its personnel comply with applicable professional independence standards. Our policies address financial interests, business and family relationships, and non-audit services that may be thought to bear on independence. We are not aware of any circumstances that have impaired our independence with respect to our engagement as described in our engagement letter. This information is intended solely for the use of those charged with governance and management and is not intended to be and should not be used by anyone other than these specified parties. Very truly yours, CERTIFIED PUBLIC ACCOUNTANTS 14