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Page 1 AUDIT AND FINANCE COMMITTEE County of Alpine Telephone: [PHONE REDACTED] P.O. Box 266 Fax: [PHONE REDACTED] Markleeville, CA 96120 MINUTES October 29, 2015 1. CALL TO ORDER REGULAR MEETING The Finance Committee Meeting was called to order at 2 p.m. with Supervisor Don Jardine, Supervisor Mary Rawson, CAO/Director of Finance Carol McElroy, and Assistant CAO to Budget/Finance Janet Dutcher present. Also present were Sheriff/Coroner Rick Stephens, Management Analyst Kitty DeSocio, and Chief Deputy Auditor Delana Lindsey. ORAL COMMUNICATION There was no oral communication 2. OLD BUSINESS None 3. NEW BUSINESS a. Review and discuss scheduling of the County’s external fiscal and compliance audit for the fiscal year ended June 30, 2015 Assistant CAO to Budget/Finance advised that she has been in contact with the external audit team. The audit is expected to be conducted the week of January 25. She believes they will be able to conduct the entire field audit in one week and hopes for a quick turnaround for the issued opinion. Assistant CAO to Budget/Finance advised the group that fraud questionnaires may have been sent out and to please respond as they are a required piece of the audit. b. Review and discuss impact of Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions and results of CalPERS GASB 68 Accounting Valuation Reports for Alpine County. A memo was handed out regarding some of the changes on the accounting for public pensions. Assistant CAO to Budget/Finance defined the unfunded liability that Alpine County is facing and how there is not enough money on hand. Investments and additional contributions will be needed in the future. She explained this liability will now need to be included as a liability on the balance sheet. She also stated that the dollar amount equates to 18% of total ---PAGE BREAK--- Page 2 assets. Assistant CAO to Budget/Finance explained that the county will not be able to start saving for this future liability until we close the structural deficit. 4. County GF Budget 101: Review and discuss County General Fund budget development including a. Identification of GF revenues (one-time, on-going, discretionary, nondiscretionary) and Assistant CAO to Budget/Finance explained the gap between revenues and expenditures and how Alpine County can use priority based budgeting to achieve fiscal health. Assistant CAO to Budget/Finance handed out an outline called “Achieving Fiscal Health” and the group discussed some of the key concepts of this new way of looking at the budget. The key concepts have been broken down into five major categories which serve as a recipe for fiscal health. It is up to the board and the county’s management team to be a leader in implementation. The group agreed to tackle the budget to actual variance analysis at the next meeting. Assistant CAO to Budget/Finance passed out a 10 year trend of the six major sources of discretionary revenue which the group reviewed and discussed. The revenues showed a gradual upward trend indicating signs of economic recovery. b. Cataloging of GF activities (mandated, non-mandated, critical, core, discretionary) Assistant CAO to Budget/Finance distributed a handout identifying four questions for departments to identify programs and resources. The questions involve taking inventory of what we do, why we do it, and how much it costs? The group discussed impact to Alpine County. c. Schedule next meeting The next meeting will be back at the Administration Building in Markleeville on December 14, 2015 at 2:00pm. In the next meeting the agenda will be to discuss the fiscal health strategy with emphasis on understanding the variances in the budget vs. actual and tightening up the gap. 5. ADJOURNMENT MOTION Jardine/SECOND McElroy to adjourn meeting at 3:17pm. .