[* A portion of this meeting is without audio *]
[Items 1 & 3A]
[00:09:13]
WELL. EVERY DEFINITION OF TWO SETS OF BOOKS. I MEAN, AS YOU DEFINE IT, BUT IF YOU'RE CLEARLY
[00:09:22]
LOOK BACK AT YOUR MEETING IN 12 21, YOU WILL SEE WE CAME TO YOU AND WE TALKED ABOUT THE DIFFERENCES IN WHAT WAS IN A SPREADSHEET. THAT WAS PRESENTED TO COUNCIL. AND WHAT WAS IN THE GENERAL LEDGER. AND WHAT WAS ALSO REPORTED IN THE FINANCIAL REPORT.[00:10:01]
AS YOU SEE IT THERE. YES, OF COURSE I DID. IF YOU SEE MY NAME THERE, I WROTE THE STAFF REPORT.YOU'RE REPEATING A TERM THAT I HAVE NOT USED. OKAY? SO WHEN PEOPLE. WHEN PEOPLE TALK ABOUT TWO SETS OF BOOKS, I CAN ONLY GO BACK AND REPEAT WHAT I'VE LEARNED IN MY CAREER WHEN THIS HAS BEEN SAID, AND SO, BASICALLY WHAT I DID SAY WHAT I DID SAY IN THAT MEETING. CAN I FINISH? THANK YOU. WHAT I DID SAY IS THAT THERE WAS A SEPARATE SPREADSHEET USED TWO. DEPICT A COUNCIL WHAT THE FUND BALANCE OF DIFFERENT FUNDS. WHAT'S THAT'S A WHOLE SEPARATE SPREADSHEET THAT THE AUDITORS NEVER SAW. AND IN THE GENERAL LEDGER, THOSE BALANCES WERE NOT IN THE GENERAL LEDGER AND IN MY RESEARCH AND IN MY INVESTIGATION AND RECONCILIATION. THEY WERE NOT IN THE KAFFIR THERE OR LET'S SAY THE NEW TERM IS ACT FOR WAS NOT IN THAT REPORT, AND I PRESENTED A REPORT TO YOU GUYS. SO BASICALLY, IF YOU LOOK AT THE REPORT THAT WE HANDED OUT TO COUNSEL FROM GRADIENT SOLUTIONS THAT DID A DETAILED DEEP DIVE INTO WHAT EXACTLY WAS MEANT BY THAT WHAT, EXACTLY WHAT WE FOUND. THEN YOU WILL GET YOUR ANSWER. THE TERMINOLOGY. YOU ASKING ME? DID I SAY I'VE NEVER SAID THAT? BUT I'M EXPLAINING TO YOU WHAT IT MAY MEAN TO SOME PEOPLE AND WHAT IT CAN MEAN IS THAT WE DID HAVE DOCUMENTS THAT WE WERE USING FOR ONE PURPOSE AND ANOTHER DOCUMENT FOR ANOTHER PURPOSE. NOW YOU CAN INTERPRET THAT AS YOU FEEL, BUT I'M NOT GONNA CHOOSE TO INTERPRET. FOR THAT TERM. I'M GONNA TELL YOU WHAT I ACTUALLY SAID, IS THAT THERE WERE TWO DIFFERENT DOCUMENTS THAT WERE DISPLAYED. ONE WAS PRESENTED TO COUNCIL AS THE BALANCE IN THE BOOKS, WHICH WAS NOT IN THE BOOKS. OKAY? THAT IS WHAT I'M USING. THAT'S WHAT I'M STICKING TO. AND SO THAT THAT IS HOW I SEE IT SO YOU CAN TALK ABOUT THE SETS OF BOOKS, BUT I CAN ONLY SURMISE. BASICALLY MAYBE THAT IS WHAT IS MEANT BY SETS OF BOOKS. YES. IS A BUDGETED SPREADSHEET. USED AS A SET OF BOOKS FOR THE CITY OF DUNCANVILLE. TODAY SPREADSHEETS ARE USED AT COM RIGHT OFF OF THE DATABASE. BASICALLY I USED A SOFTWARE CALLED CUBES IN UNITS THAT PULLS THAT'S A TEMPLATE THAT I PULLED OUT. I TELL IT WHAT NUMBERS I WANT TO PULL, AND IT PULLS IT DIRECTLY FROM THE DATABASE. THERE IS NO TRYING TO KEEP UP WITH WHAT IT IS. IT'S COMING DIRECTLY OUT OF THE SYSTEM SO I DON'T HAVE TO GO BACK AND HAND CODE THOSE NUMBERS INTO THE SPREADSHEET. IT TAKES IT FROM THE DATABASE AS IT IS UPDATED WITH THE DATA THAT IS IN, PUT IT ON A DAILY BASIS. SO THE STAFF REPORTS INDICATE THAT THE BUDGET IS SPREAD. SHE DID NOT AGREE WITH THE BOOKS. THAT IS CORRECT. THE FUN BALANCE DID NOT AGREE. WITH THE BOTH. OKAY, SO. DOES THEN. THE PHRASE TWO SETS OF BOOKS, IN YOUR OPINION, ACCURATELY DESCRIBE WHAT YOU EXPLAINING. FOR ME, DESCRIBING IT. THERE'S TWO SETS OF DOCUMENTS AND THIS IS THE WORST . I'M GOING TO USE TWO SETS OF DOCUMENTS AND YOU CAN CALL IT WHAT YOU WANT. ANYBODY CAN CALL IT WHAT THEY WANT. THEY CAN USE THEIR OWN TERMINOLOGY. I'M GOING TO CALL IT DOCUMENTS. DOCUMENTS CAN BE WHATEVER YOU WANT IT TO BE. BUT AS FAR AS MY STANDPOINT , I'M TELLING YOU, THERE WERE TWO SETS OF DOCUMENTS BEING USED IN THIS CITY. NOT ONE TO MY QUESTION IS THAT YOU CONSIDER IT YOUR PROFESSIONAL RESPONSIBILITY WHEN YOU HEAR TERMS BEING MISUSED TO STEP IN AND SAY. OH, NO, THAT'S THAT'S NOT THAT'S NOT THE MEANING OF THAT. THAT'S NOT THE WAY IT WAS USED TO. YOU CONSIDER THAT YOUR PROFESSIONAL RESPONSIBILITY, SIR, I'M GOING TO GO BACK AND I'M GONNA GO BACK TO DECEMBER 21ST WHEN YOU ARE GIVEN THE DOCUMENT THAT STATED WHAT, EXACTLY WHAT WE WANTED TO SAY. AND THAT'S WHAT I'M GOING TO STICK TO. AT THIS POINT IN TIME. THAT'S WHAT I'M GONNA TAKE YOU BACK TO AND WHEN YOU LOOK AT THAT DOCUMENT THAT EVEN THE DETAILED DOCUMENT THAT WAS DONE BY GRADIENT SOLUTIONS WHO SHOWED YOU SPECIFICALLY THE DIFFERENCES EVEN IN SEPARATE YEARS. THAT THE DOCUMENT THAT WAS BEING USED FOR BUDGET PURPOSE THAT GOT SHOWN TO COUNSEL BUT WAS NOT SHOWN TO THE
[00:15:07]
AUDITORS LOOKED AT GRADIENT SUMMARY REPORT AND I LOOKED AT THAT 21 PAGE POWER POINT. THEY DON'T USE THE WORDS TWO SETS OF BOOKS. WERE THEY RIGHT OR WRONG? THAT IS FOR YOU TO DETERMINE I AM NOT GONNA SIT HERE AND TRY TO BE A ENCYCLOPEDIA OR DICTIONARY TO DEFINE BOOKS. ALL I'M GONNA TELL YOU IF I'M USING THE TERM INCORRECTLY, AND YOU KNOW BETTER, YOU WON'T SEE ANYTHING.I AM NOT GOING TO GET INTO A DEBATE WITH YOU ON THAT, SIR. RESPECTFULLY IF YOU'RE GOING TO CONTINUE IN THIS LINE OF QUESTION, I THINK IT IS BEST THAT WE JUST DO NOT GO ANY FURTHER IN THAT LINE OF QUESTION. WOW. HAVE A PROBLEM WITH THAT? SIMPLY BECAUSE, UH, I SURMISE. THAT. IF. YOU HEAR OF TERMS BEING USED INCORRECTLY BY . THE GOVERNING BODY OR CITIZENS, AND YOU NO BETTER. YOU DON'T SEE ANYTHING. UM I'M CONCERNED ABOUT THAT, BECAUSE I WOULD EXPECT THAT UH, FINANCE DIRECTOR HAS. A FIDUCIARY RESPONSIBILITY TO ADVISED TO MOURN. TWO. SAY THINGS THAT MAYBE I'M POPULAR. WITH THE HEROES, BUT THEY NEED TO BE SAID. AND SO I DID SAY THAT IN DECEMBER, 21 I SAID IT IN MY TERMINOLOGY. HOW I WANTED TO PORTRAY TO YOU THE WORDS THAT I CHOOSE TO USE OTHER WORDS THAT I WANTED TO PORTRAY TO YOU IN A MANNER THAT I FELT LIKE I WAS PROFESSIONAL. THIS IS NOT A POLITICAL GAME TO ME. I DID NOT WANT TO EXPRESS ANYTHING POLITICAL, BUT I DID WANT TO GIVE YOU THE PICTURE. ON WHAT WAS BEING DONE IN THE CITY. I DIDN'T SAY IT WAS POLITICAL. I SAY THAT THERE IS A CONCERN. I'M TRYING TO ADDRESS THE CONCERNS. SO NOW. ALL OF THIS CAME UP. DECEMBER THE 21ST OF 2021 SO GRADIENT HAD, UM, RECOMMENDED. SOLUTIONS TO WHAT THEY FOUND. SO . DID YOU IMPLEMENT THOSE SOLUTIONS, AND WHEN WERE THEY IMPLEMENTED? YES SIR. WE DID IMPLEMENT THOSE SOLUTIONS. AND IF YOU WILL LOOK BACK IN THE AUDIT COMMITTEE MEETING IN DECEMBER, THE 14TH I HANDED OUT A WHOLE PACKAGE OF THE PLAN OF ACTION OF YOU GUYS ASKED ME TO COME BACK AND ADDRESS THE ISSUES . SOME OF THE ISSUES THAT WERE IN THE AUDIT AND I ADDRESSED HOW WE PLAN TO GO FORWARD. AND FIX THE THINGS THAT WE FELT LIKE WE WERE NOT APPROPRIATE FOR GOVERNMENTAL ACCOUNTING, AND ONE OF THOSE THINGS IS IN THE FUND BALANCE. WE DETERMINED THAT ON THE DAY THAT GRADIENT SOLUTION GAVE THEIR PRESENTATION WE DETERMINED THAT WE WERE NOT GOING TO USE SPREADSHEETS IN THE ORGANIZATION THAT WE COULDN'T VERIFY THAT WE WOULD MOVE FORWARD WITH A NEW PROCESS WHERE THEY ALL FUND BALANCES IN THE GENERAL LEDGER WOULD BE VERIFIED AGAINST THAT, AND NOT ON A SPREADSHEET THAT IS NOT TRACKED AND ON TOP OF. SO IF I UNDERSTAND YOU CORRECTLY THE PROBLEM. WAS RESOLVED. CERTAINLY. SHORTLY AFTER IT WAS BREATHE. WE CHOSE THE PATH NOT TO USE THE SPREADSHEETS THAT WERE FIRST BEING USED IN THE FIRST BUDGET PROCESS IN 21. WE CHOSE NOT TO USE THAT PROCESS AGAIN AS WE STATED TO YOU IN THE MEETING IN THE AUDIT COMMITTEE MEETING AS WELL AS A COUNCIL MEETING, WE SHARED THAT WITH YOU. OKAY AND YOU AGREED. YOU ARE OKAY WITH THAT? SO I REALLY DON'T KNOW HOW ELSE TO PUT THIS OTHER THAN THIS HAS BEEN EXPLICITLY COMMUNICATED TO COUNCIL AND TO THE AUDIT COMMITTEE OF WHAT WE FOUND. WHAT ARE WHAT WE PROPOSE AS A SOLUTION. GOING FORWARD. WE HAVE EXPLICITLY SAID IT TO YOU. AND IF YOU LOOK AT THE GRADIENT SOLUTION REPORT THE DETAILS ARE THERE THERE'S NOTHING REALLY ELSE TO BE SAID. I MEAN, YOU COULD. WE COULD SIT HERE AND DEBATE ABOUT WORDS ALL DAY LONG , BUT BASICALLY THAT REPORT THAT THEY ISSUED BASICALLY TOLD YOU WHAT THE ISSUE AND WE HAD A DISCUSSION IN THE COUNCIL MEETING REGARDING THE FUND BALANCE AND THE REPORT AND WHAT WE FOUND. LET ME REPHRASE THE QUESTION. IS THAT STILL A PROBLEM? YES. IS THE BUDGET IT? SPREADSHEETS OR WHATEVER. I THOUGHT I HEARD YOU SAY YOU ALL DON'T EVEN DO THAT ANYMORE. SO I'M ASSUMING THAT'S NOT A PROBLEM THAT IS THAT WE DO NOT USE. THOSE BUDGETED SPREAD
[00:20:03]
SHOOTS ANY LONGER. OKAY? SOMEONE THINKS IT'S STILL A PROBLEM. SO I LIKE TO SAY YOU'VE GONE ON RECORD AS SAYING. THIS IS NO LONGER A PROBLEM. I AM SAYING THAT WE NO LONGER AS A FINANCIAL SERVICES DEPARTMENT UTILIZE SPREADSHEETS WITH BALANCES THAT ARE NOT FROM THE SYSTEM. OKAY? VERY GOOD AND LET ME ALSO. ADD THAT I READ IN THE GRADIENT REPORT THAT UH UM. THERE WASN'T ANY. OUTREACH AND COMMUNICATION TO THE FINANCE DIRECTOR OR ASSISTANT FINANCE DIRECTOR AT THAT TIME. CAN YOU REPEAT THAT, PLEASE? I READ IN A GRADIENT REPORT THAT THEY SAY THAT THEY.I DID NOT INTERVIEW THE PREVIOUS FINANCE DIRECTOR OR THE PREVIOUS ASSISTANT. FIND IT. NANCE DIRECTOR WHO MADE THOSE SPREADSHEETS. AND UH, THEY ALSO MENTIONED THAT UM. IF. THEY HAD.
THEN OTHER INFORMATION. MAY HAVE COME TO LIGHT. THAT WOULD HAVE AFFECTED THEIR OPINION. SORRY I BELIEVE YOU MISREAD THAT BECAUSE WHAT I READ AND I HAVE READ IT SEVERAL TIMES IS THAT THEY SAID THAT THEY DID REACH OUT THROUGH PEOPLE IN THE ORGANIZATION. I REACHED OUT TO THE ASSISTANT FINANCE DIRECTOR. ASKED WHAT WE DID REACH OUT TO THE ALSO FINANCE DIRECTOR THROUGH YOU MIS CATEGORIZED WHAT I SAID IT SAYS RIGHT HERE. THE PRIOR DIRECTOR OF FINANCE IS UNAVAILABLE TO HELP RELATING TO THE RESOLUTION OF THE DIFFERENCE. THERE IS NOT A SIGNIFICANT AMOUNT OF HISTORY.
DOCUMENTS TO RELY ON THE PRIOR ASSISTANT DIRECTOR FINANCE HAS ALSO LEFT THE CITY. BUT YOU FAILED TO READ IN THAT IS THAT WE ALSO DID REACH OUT. LUTHOR ASKED TO REACH OUT AND HE TOLD US THAT THE PEOPLE THAT REACHED OUT TO THEM WERE NOT SUCCESSFUL. ENGAGING ANY MORE INSIGHT. INTO THE SPREADSHEETS BASICALLY SAID , I REACHED OUT TO THE ASSISTANT FINANCE DIRECTOR. PERSONALLY. I ASKED THEM TO REACH OUT. TO THE DIRECTOR. IN FACT, THERE WERE I ASKED TWO PEOPLE TO REACH OUT TO THE DIRECTOR. SO THAT WE COULD GET SOME CLARIFICATION ON. MAYBE I MISSED SOMETHING. MAYBE THERE WAS SOMETHING WE MISINTERPRETED , YOU KNOW, BECAUSE WE'RE ALL NOT PERFECT. AND SO WE DID DO THAT DUE DILIGENCE TO REACH OUT AND WE WERE NOT SUCCESSFUL. WE DID NOT GET ANY ANSWERS THAT WILL HELP US WITH ANY INSIGHT INTO THAT. ALL I HAVE IS WHAT IS WRITTEN, AND IT DOESN'T INDICATE THAT I'M SO. ANY QUESTIONS FROM THE REMEMBERS OF THE FINANCE COMMITTEE. OH, THAT'S TRUE.
THANK YOU, MR CHAIRMAN. GO AHEAD SCHOOLS. SO I. I DO WANT TO BE CLEAR. I JUST WANT TO MAKE SURE I UNDERSTAND. THAT I MEAN AT THIS POINT ISAAC. IS IT ARE WE BEYOND? BRINGING BACK INTO THE FORMER FINANCE ADMINISTRATION, TO BE ABLE, SEEMS LIKE SOME OF THIS WILL BE CLARIFIED. SOME OF THOSE INDIVIDUALS WHO ARE PART OF THE PREVIOUS FINANCE ADMINISTRATION. WE'RE HERE. TO WORK WITH YOU AND YOUR STAFF TO FIGURE OUT SOME OF THOSE ISSUES. AH, THERE WE HAVE. DONE. I DO CHALLENGES. I'VE HAD DISCUSSIONS WITH MS TIA PETTIS HAD LUNCH WITH HER AND ASK SPECIFIC QUESTIONS. UM THE BUDGET WAS NOT ONE OF HER THINGS THAT SHE WAS ALLOWED TO DO. OKAY AND SHE SPECIFICALLY SAID THAT HER AREA OF EXPERTISE WAS THE ACTUAL AUDIT. AND WE WEREN'T SUCCESSFUL AND REACHING OUT TO MR SUMMERLAND AND HAVING ANY NO, SIR. AND EVEN WE ASK PEOPLE WHO KNEW HIM WHO KNOW HIM TO REACH OUT BECAUSE SOMETIMES, UM FORMER FINANCE DIRECTORS HAVE ISSUE WITH TALKING TO OTHER FINANCE DIRECTORS ESPECIALLY DEPENDS ON THE CIRCUMSTANCES IN WHICH THEY LEFT. I HAVE WORKED IN CITIES WHERE I COULD REACH OUT TO A FINANCE DIRECTOR AND ASKED MY
[00:25:04]
QUESTIONS, SO IT IS VERY HELPFUL WHEN YOU NEED HISTORY AND WHAT YOU NEED A WAY TO GO FORWARD. SO THAT WAS MY FIRST. UM WAY TO DO IT, BUT I WAS NOT SUCCESSFUL, SO I TRIED OTHER AVENUES AND REACHING OUT TO OTHER PEOPLE TO SEE IF THEY KNEW THEM WHO WERE CLOSER. TO HIM. AND THAT WAS NOT MET WITH ANY SUCCESS APPRECIATE YOU MAKING THE ATTEMPT. THAT'S VERY UNFORTUNATE, BECAUSE IT SEEMS LIKE A LOT OF THIS WOULD BE RESOLVED AND CLARIFIED WE COULD WORK TOGETHER WITH THEM.THAT WAS OUR HOPE. SO WITH GRADIENT SOLUTIONS, ARE THEY. ARE THEY CERTIFIED PUBLIC ACCOUNTANTS DO THEY? THEY ARE CERTIFIED AND CERTIFIED PUBLIC ACCOUNTANTS, BUT THEY DO NOT WORK AND ASK IN THEIR CONSULTANT BASIS. THEY ARE NOT AUDITORS. OKAY BUT THEY DO HOLD LICENSES AS CERTIFIED PUBLIC ACCOUNTANTS . THEY HAVE BEEN AUDITORS. THEIR BACKGROUNDS ARE VERY, VERY STRONG AND AUDIT AND PUBLIC ACCOUNTING AND WORKING WITH INTERNAL CONTROLS. AND LOOKING AT ISSUES DOING ANALYSIS AT THE DETAILED LEVELS AS FAR AS WITH SPREADSHEETS WITH PURCHASES, CARS AND THAT TYPE OF THINGS, SO I HAVE USED THEM IN THE PAST FOR VARIOUS ISSUES. WHEN I CAME IN, THERE WERE CONTROL ISSUES AND VARIOUS OTHER CITIES IN DEPARTMENTS AND THEY WERE VERY HELPFUL AND COMING BREAKING SUGGESTIONS. AND PUTTING NEW PROCESSES IN PLACE THAT HELPED US DO THINGS MORE EFFICIENTLY. OKAY I JUST WANTED SO I DON'T HAVE THE REPORT IN FRONT OF ME, BUT I DO REMEMBER ON THE FIRST OR SECOND PAGE. THEY HAD A VERY CLEAR STATEMENT. WE'RE NOT RIGHT . WE'RE NOT. WE DON'T AUDIT. WE DON'T LOOK AT THEIR FINANCIALS. AND IT APPEARED TO ME THAT THEY LOOK AT PROBLEMS PRESENTED AND THEY LOOK AT SOLUTIONS. EXACTLY. THEY WEREN'T UH HUH. AFFIRM THAT WAS HIRED TO COME IN TO FIND A PROBLEM. THE PROBLEM WAS SUGGESTED, ARE PRESENTED TO THEM AND SO THEY'RE LOOKING AT SOLUTIONS OR DO WE ASKED THEM TO FIND A SOLUTION? YES THAT WAS OUR WHAT WE WERE TRYING TO DO IS FIND A SOLUTION. FIND SOMETHING THAT MAYBE WE MISSED, UM, THAT I WAS NOT ABLE TO FIND IN MY INQUIRY, SO THAT IS WHY WE CALL THEM IN TO GET ANOTHER SET OF EYES ON THE BOOKS. TO MAKE SURE THAT NOTHING WAS MISSED, AND WE COULD GET SOME ANSWERS. I APPRECIATE THAT BECAUSE I WAS TRYING TO UNDERSTAND. DID GRADIENT SOLUTIONS. DISCOVER A PROBLEM. TELL US. HEY, YOU GOT A PROBLEM HERE THAT THEY WERE TOLD YES, I DISCOVERED THE PROBLEM. I DISCOVERED MY PART OF MY JOB AS A DIRECTOR COMING INTO ANY CITY IS TO LOOK AT ALL OF THE BALANCES THE FUND BALANCES AND EVERY FUN OF THE CITY BECAUSE IF YOU KNOW OF A CITY, THEY HAVE NUMEROUS AMOUNT OF FUNDS AND THE BALANCES IN THOSE FUNDS HAVE IS VERY CRITICAL THAT THEY BE ON TARGET. THE AUDITORS. LOOK AT THOSE BALANCES. UM AND COMPARE THEM AS WELL. SO THAT IS PART OF YES, MY ROLE TO COME IN AND LOOK AT THOSE OKAY? AND JUST WANT ONE MORE STATEMENT. AND I WANTED TO MAKE SURE THAT WE EXPLAIN GO BEF THIS. COMMISSION LET ME KNOW, BUT I DO REMEMBER. UH, THAT THAT MEETING BACK IN DECEMBER. AND I DO REMEMBER VERY CLEARLY. EXPLAINING TO US THAT THERE WERE SOME CONFLICTING SETS OF DOCUMENTS. I DO REMEMBER THAT. AND I REMEMBER THAT IT WAS A PUBLIC MEETING. AND THAT WAS IT WAS AN OPEN MATTER OF FACT, I BELIEVE IT WAS. I DON'T KNOW IF IT WAS ONE OF THOSE MEETINGS WAS A BRIEFING. BUT THIS WAS ALSO THIS WAS ALL PUBLIC. THIS WASN'T CLOSED SESSION MEETING WHERE WE WERE TOLD SOMETHING, AND THEN WE DECIDED WHAT TO DO WITH IT. THIS WAS JUST THIS IS AN OPEN MEETING. REMEMBER THAT BEING EXPLAINED TO US AND THE WAY THAT I WALKED AWAY FROM THAT, AND I FEEL LIKE EVERYBODY IN THAT ROOM BECAUSE THERE ARE A LOT OF PEOPLE IN THE ROOM AT THE TIME. UM, WAS THAT OKAY? FIRST OF ALL , THIS ISN'T ANYTHING ILLEGAL.
THAT'S HAPPENING, BUT THERE IS A PROBLEM THAT NEEDS TO BE RESOLVED. BUT I DIDN'T TAKE AWAY FROM THAT. BUT THERE WAS SOMETHING LEGAL, ILLEGAL TAKING PLACE AND EVERYBODY ELSE IN THAT ROOM. WE WENT ON TO THE NEXT TOPIC. AND SO, UM THIS IS WHY, WHEN. OTHER TERMINOLOGY WAS STARTING TO BE USED. AH! THAT WAS SUGGESTING ILLEGAL ACTIVITY. THAT YOU KNOW, I HAD TO GO BACK AND WATCH THAT MEETING AND MAKE SURE THAT I MISSED SOMETHING. AND I APPRECIATE YOU BRINGING THAT BACK TO OUR ATTENTION THAT THAT WAS PRESENTED. THANK YOU. OKAY? MR TAYLOR. YES, SIR. THE CHAIRMAN. I JUST WANT TO, UH, ASKED OUR AUDITORS, MR MR WILLIAMS. DOING THE TIME OF YOUR FIELD WORK. DID YOU COME ACROSS ANYTHING LIKE THAT? THE SPREAD CHEESE AND BUT SHE'S REFERRING
[00:30:06]
TO. NO UM THERE ARE SPREADSHEETS THAT THEY USE THAT ARE OFFSITE OFF THE ACTUAL MAINFRAME COMPUTER, THE RP SYSTEM THAT'S BEING USED AS A COMMON PRACTICE FOR A LOT OF ENTITIES TO UTILIZE SPREADSHEETS BECAUSE YOU HAVE THE INFORMATION COMES DIRECTLY FROM THE SYSTEM. AND THERE'S A WAY TO MR WILLIAMS PRESENT FOR JUST THIS MOMENT, MR WILLIAMS, CAN YOU TELL WHO YOU ARE IN YOUR BACKGROUND PLACE NAMES? MARLON WILLIAMS. I'M THE AUDIT PARTNER, MCCONNELL JONES, UM BEING KIND OF INVOLVED WITH THIS AUDIENCES. IN NUMEROUS STOPS ALONG THE WAY , AND THE CITY'S SINCE PROBABLY 1996 ON AND OFF, DEPENDING ON WHICH WHERE I WAS AND HOW MANY YEARS HAVE YOU BEEN INVOLVED IN OUR AUDIT? WITH CURRENT AND HIS CURRENT STITCH FOUR YEARS AT 33 YEARS AT M AT M. J MCCONNELL JONES, FORMER EMPLOYER, I WAS 10 YEARS. BUT YOU'VE BEEN INVOLVED WITH THE CITY OF DUNCANVILLE AUDIT. HOW LONG NOW FOR AT LEAST 15 YEARS. ON AND OFF, DEPENDING ON WHERE I WAS ON THE STREET, THIS LAST LAST SESSIONS FOR THREE YEARS, THREE YEARS, OKAY, SO YOU HAVE ISSUED AUDIT REPORTS BEFORE FOR THE CITY. CORRECT OKAY. HOW MANY TIMES BEFORE? BEFORE THAT I WAS SIGNING PARTNER ON IT FIVE YEARS BEFORE THAT, AND THEN I STARTED SCHOOL . ONE OF MY FIRST AUDITS WAS THE CITY OF DUNCANVILLE. OKAY, THANK YOU. GO AHEAD CONTINUE. SO IT'S NOT. UNUSUAL FOR ANY OF THESE TO UTILIZE SPREADSHEETS. IT'S A COMMON I THINK IT'S A SPREADSHEET IS A ACCOUNTANTS, BEST FRIEND. BASICALLY, IT HELPS THEM PRESENT THE INFORMATION BECAUSE THE DATA THAT'S INCLUDED IN THE SYSTEM IS DETAIL ORIENTED . YOU DON'T WANT TO SEE EVERY LINE ITEM THAT COMES OUT OF THE SYSTEM BECOMES VERY DIFFICULT. UM THE TERM THAT'S USED THAT AND I LOOKED AT THE REPORT AND I'VE KNOWN CALVIN AND WEB WATCH BEFORE THEY BECAME GRADIENT FOR MANY, MANY YEARS AS WELL. UM, SPREADSHEETS. ARE USEFUL. BUT THEY'RE DANGEROUS, SOME OF THE BIGGEST PROBLEMS THAT HAVE EVER HAPPENED IN AUDIT. ERRORS OR BECAUSE OF A MISS FORMULA AND YOU MAKE A DECISION BASED OFF OF THIS FORMULA. SO ONE OF THE STEPS WHEN WE'RE PRESENTED SPREADSHEETS IS WHERE DID THAT INFORMATION COME FROM? SO GOOD DUE DILIGENCE WHEN I COME IN IF I WAS A FINANCE DIRECTOR COMING INTO AN ORGANIZATION IS I'M LOOKING AT WHAT'S BEING PRESENTED TO THE AUDIT COMMITTEE OR TO THE BOARD OR TO THE COUNCIL, DEPENDING ON WHAT TYPE OF ORGANIZATION IS AND ENSURE THAT INFORMATION TIES BACK TO THE SYSTEM OF RECORD. IS THIS NEW RECORD RIGHT NOW IS MENA'S MUNIS IS REALLY THE BE ALL AND ALL. THAT'S WHAT WE AUDIT OUR JOB AS EXTERNAL AUDITORS ENSURE THAT THE INFORMATION THAT IS THERE HAS SUPPORT AND THAT SUPPORT IS WHAT ENDS UP ON THE A. C. F R AT THE END OF THE PERIOD. THE BUDGET PROCESS, I WOULD SAY FOR 95% OF THE CITY'S IS DONE IN EXCEL. AND THEN ROLL ROLLED UP INTO THE INTO THE SYSTEM. SO AS AN AUDITOR. WHAT WE DO WHAT WE END UP LOOKING AT IS THAT PUBLIC DOCUMENT WHICH IS KIND OF BEFORE THE SCREEN RIGHT NOW, THE ACTUAL PUBLIC BUDGET IS TIED BACK INTO THE RP SYSTEM, SO ALL OF THOSE ITEMS ARE TIED BACK IN WHEN YOU TALK ABOUT UTILITY FUNDS, WHICH IS WHAT THE AREA THAT SEEMED TO HAVE THE BIGGEST PROBLEM IN THIS AREA. BEFORE YOUR LEGAL GO THERE. COULD I JUST LET ME ASK THIS QUESTION? BACK ON YOUR ON YOUR TENURE HERE AT THE CITY. UNDER THE CURRENT ADMINISTRATION, THE FINANCIAL ADMINISTRATION. HOW MANY YEARS HAVE YOU BEEN? THE AUDITOR TO AUDIT THE WORK THAT MS ATMORE HAS BEEN. THIS IS OUR SECOND YEAR. SECOND YEAR SECONDS. SECONDS WAS LIKE HALF YES, X SECOND YEAR. THAT YOU WERE THE CHARGE AUDITORS THAT CORRECT CORRECT. WERE YOU THE IN CHARGE AUDITOR FOR THE PREVIOUS ADMINISTRATION? YES. DID THEY USE SPREADSHEETS? YES. DID YOU HAVE ANY PROBLEMS WITH THEM? USING SPREADSHEETS TO TIE BACK TO THE TO THE TO THE FINANCIAL STATE TO THE GENERAL LEDGER? THE PROBLEMS WOULD HAPPEN OCCASIONALLY, WHEN WE LOOK AT EXCEL SPREADSHEETS THAT WERE PROVIDED THEY WOULD NOT ALWAYS TIE BACK TO THE GENERAL LEDGER AND ADJUSTMENTS IN SPREADSHEETS THAT WAS COMMON. BUT WHEN YOU RENTED YOUR OPINION ON THE FINANCIAL STATEMENTS YOU WERE SATISFIED. AND WE RENDER OUR OPINION ON THE FINANCIAL STATEMENTS OR IN CODE OR WHATEVER SYSTEM THEY WERE USING BEFORE. WE DON'T RENT OR OPINION ON THE SPREADSHEETS DON'T UNDERSTAND THAT. BUT YOU USED THEY DID USE THE SPREADSHEET TO TIE BACK TO THE TO THE FINANCIAL STATEMENTS TO THE GENERAL LEDGER. IS THAT CORRECT? CORRECT OKAY, AND YOU DIDN'T HAVE ANY PROBLEMS YOU HAD THERE WERE OCCASIONAL ADJUSTMENTS TO THE SPREADSHEETS TO ENSURE THAT THEY TIED TO THE TO THE TO THE FINAL. IN YOUR OPINION, YOU WERE SATISFIED THAT EVERYTHING WAS FINE. FAIRLY STATED IS THAT CORRECT? CORRECT. OKAY. THANK YOU. YOU HAVE A QUESTION? THANK YOU, MR CHAIRMAN. UM MR WILLIAMS SINCE YOU BROUGHT IT UP. IS[00:35:15]
THERE ONE PARTICULAR AREA? THAT WAS THE PROBLEM BEFORE? WHAT I HEARD WAS POTENTIALLY THAT IT WAS JUST LIKE A UTILITY FUND. SO. SO THE UTILITY FUND IS ALWAYS A PROBLEM WHEN YOU DEAL WITH BUDGETS BECAUSE YOU HAVE TO FORM C OKAY. I DON'T HOW SPECIFIC TO DIRECT. SOME WILL TRY TO KIND OF EXPLAIN THE UNIQUENESS OF GOVERNMENTAL ACCOUNTING. SO THE TERM THAT'S USED IS THAT YOU HAVE MODIFIED ACCOUNTING AND YOU HAVE FULL ACCRUAL ACCOUNTING GATSBY 34 CREATIVE DECISION. SO YOU IN TURN, HAVE A CASH BASIS MODIFIED CASH BASIS OF ACCOUNTING VERSUS A FULL CREW UTILITY FUNDS ARE ENTERPRISE FUNDS AS SUCH ITEMS THAT ARE CONSIDERED FOR BUDGET PURPOSES. EXPENDITURES ARE NOT CONSIDERED THAT UNDER GAP. SO AS A RESULT YOU HAVE ONE SET OF FINANCIAL STATEMENTS FOR ZERO R P SYSTEM. THERE'S NO WAY TO TELL THE RP SYSTEM UNLESS YOU CREATE A BUNCH OF DUMMY ACCOUNTS WITHIN THE SYSTEM. THAT YOU WANT TO KEEP SOMETHING TRACKED INTO THE BOOK BASED UNDER THE FOOT UNDER THE FULL ACCRUAL BASIS. THE REASON WHY YOU USED THE MODIFIED ACCRUAL BASIS IS IT TELLS YOU ABOUT YOUR CASH CASH EXPENDITURES. SO YOUR BUDGET BALANCE IN AN EXCEL SPREADSHEET FOR BUDGETARY PURPOSES. NORMALLY ESPECIALLY WHEN TALKING ABOUT ENTERPRISE FUNDS DOESN'T NECESSARILY AGREE TO THE FULL ACCRUAL BASIS, SO THERE ARE GOING TO BE NATURAL DIFFERENCES THE BIGGEST DIFFERENCES BECAUSE OF FIXED ASSETS. FIXED ASSETS IS CONSIDERED EXPENDITURE COST, SO LET'S TRY TO BREAK IT DOWN. LET'S SAY I HAD A MILLION DOLLARS OF FIXED ASSETS THAT WERE PURCHASED IN A FUN AND THAT FUN WAS AND I HAD A MILLION DOLLARS OF REVENUES. IN A GOVERNMENTAL FUND. YOUR NET FUND POSITION, YOUR FUN BALANCE AND GOVERNMENTAL FUND WOULD BE ZERO BECAUSE THOSE EXPENDITURES ARE ALL CONSIDERED EXPENSES. NOT BENEFICIAL TO THE ORGANIZATION ON A FULL ACCRUAL BASIS. YOUR FUND BALANCE WOULD BE A MILLION DOLLARS BECAUSE THOSE EXPENDITURES GET MOVED UP TO THE BALANCE SHEET AND YOU HAVE ASSETS REFLECTED ON YOUR FINANCIAL STATEMENTS. SO YOU WILL ALWAYS HAVE A DIFFERENCE ON THE BUDGETARY BASIS RELATED TO THE UTILITY FUNDS OR ENTERPRISE FUNDS THAT ARE JUST JUST NATURAL BECAUSE OF THE NATURE OF THE DIFFERENCE OF THE TIPS OF FUNDS. AND IT'S POSSIBLE. YEAH, I HAVE NOT LOOKED AT THE SPREADSHEETS, BUT IT'S VERY POSSIBLE THAT THAT COULD BE CAUSING SOME OF THE DIFFERENCE. I THINK IT'S GOOD PRACTICE, AND THIS IS WHERE WE'VE GOTTEN AN ARGUMENTS WITH MANY AND IT'S THE WAY THAT EVERY ENTITY WANTS TO RUN THEIR SYSTEM. IT'S GOOD PRACTICE, IN MY OPINION TO HAVE SOME SORT OF RECONCILIATION. THAT EXPLAINS THE DIFFERENCE IN ONE BALANCE.BUT WHEN YOU LOOK AT THE FINANCIALS, AND YOU LOOK AT WHAT'S ON THE BUDGET BECAUSE THE BUDGET BOOK WAS CREATED VIA THOSE SPREADSHEETS, IT WASN'T CREATED VIA AND IT'S CREATED VIA THE SPREADSHEETS AND THAT INFORMATION IS UPLOADED INTO THE SYSTEM. SO WHEN YOU LOOK AT THE BUDGET, YOU CAN SEE THAT ALL OF THE REVENUES EXPENSES TIED BACK TO WHAT'S IN THE SYSTEM, SHOWING THAT THE PROCESS TO MOVE IT FROM THE SPREADSHEETS TO THE SYSTEM IS CORRECT. THE FUND BALANCE DOESN'T AGREE. AND FOR OUR PURPOSES AND FOR OTHER PERSONS IS WE'RE JUST GOING THE FUN, BALANCED VIEW. WHAT'S IN THE SYSTEM? SO WE DON'T REALLY WORRY ABOUT WHAT'S ON THIS. WHAT'S IN THEY EXCEL SPREADSHEETS BECAUSE IT DOESN'T HAVE AN EFFECT ON OUR OUT OF OPINION, BECAUSE WE'RE OUT OF OPINION IS BASED OFF OF THE GAP FUND BALANCE OR GET NET POSITION THAT'S REFLECTED IN THE FINANCIALS. I HOPE THAT DIDN'T GET TOO EARLY. BUT OKAY, YEAH. SO MR MS ATMORE WAS THE ISSUE LARGELY IN THE UTILITY FUND. THAT WAS THE FUN WITH THE BIGGEST DIFFERENCE. UM BUT LET ME LET ME TELL YOU FIRST, SOMEBODY WHO'S BEEN IN THIS A LONG TIME AND LEARNING HOW TO DO CASH BASIS. UNRESTRICTED FUND BALANCE. UNRESERVED FUND BALANCE . WE KNOW HOW TO CALCULATE WITH ASSETS IN THE FUN. AND THIS PARTICULAR FUND UTILITY FUND THE ASSETS. MOST OF THE ASSETS HAVE BEEN MOVED OUT TO THE C I P FUND. SO WHEN I LOOKED AT THAT I HAVE TO LOOK AT ALL THE FUN BALANCES. ACCOUNTS THAT MAKE UP FUN BALANCE AND THEN TAKE OUT THOSE THAT ARE NOT CAPITAL ASSETS, AND THAT'S HOW IN MY SPREADSHEET CALCULATED THE FUND BALANCE AND THAT CAME BACK TIED BACK TO HIS NUMBER IN THE ACT FOR THAT HE HAD IT DID TIE BACK TYPE THAT OKAY? YES, IT DID.
THEMSELVES SO THAT SPREADSHEET IS AVAILABLE, AND THAT IS WHAT CALVIN WEB USED WHEN HE WAS LOOKING AT THE OTHER SPREADSHEETS. OKAY BUT NOTHING WAS MATERIAL IN THE DIFFERENCE.
ALRIGHT MATERIAL DIFFERENCE. $7 MILLION DEPENDS ON MATERIAL DIFFERENCE. UH 7.8 16 MILLION VERSUS 16 IS A MATERIAL DIFFERENCE. OKAY IS THAT BECAUSE OF THE DIFFERENCE IN THE WAY IT
[00:40:03]
WAS USED CASH VERSUS MODIFIED ACCRUAL? NO SIR, THAT WAS STRICTLY UNRESTRICTED FUND BALANCE. OKAY SO, MR WILLIAMS BACK TO YOU. DO YOU FEEL THAT SINCE YOU WORE THE AH! AUDITOR RECORD. DO YOU FEEL THAT EVERYTHING FELL WITHIN GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ON THE FINANCIAL STATEMENTS AGAIN, THE EXCEL SPREADSHEETS AREN'T REQUIRED TO FOLLOW.GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. IT'S BEST PRACTICES FOR THEM TO DO THAT. BUT A LOT OF TIMES MANY SITUATIONS HAVE OCCURRED WITH THOSE SPREADSHEETS ARE NOT ONE OF THE STANDARDS CAME AS A BYPRODUCT OF THESE REPORTS THAT ARE SENT TO COUNCILS. DON'T NECESSARILY AGREE TO WHAT SHOWS UP ON THE AUDIT. SO THE STANDARDS CAME AND SAID, EVERY JOURNAL ENTRY THAT WE MAKE THAT CAUSES SOME DIFFERENCES. WE NEED TO BRING IT TO THEIR ATTENTION THAT OUR MATERIAL BECAUSE YOU CAN BE MAKING DECISIONS BASED OFF OF SPREADSHEETS THAT AREN'T THE SAME ITEMS THAT SHOWS UP WITHIN THE ACTUAL AUDIT, AND THAT CAUSES CONFUSION. YOU KNOW? LOOKING AT CALVIN'S REPORT. THE BIGGEST CONCERN AGAIN IS IF YOU THINK YOU'RE IN THIS POSITION OF NET ASSETS, AND YOU'RE MAKING DECISIONS, YOU MIGHT HAVE A FUN BALANCED POLICY MIGHT HAVE A CERTAIN AMOUNT THAT YOU'RE SUPPOSED TO MAINTAIN, AND THAT DOESN'T RECONCILE BACK TO WHAT'S ON THE ACT FOR YOU COULD BE MAKING WRONG DECISIONS. OKAY SO WAS THE BALANCE IN THE EFFORT.
CORRECT. BOUNCING AFROS CORRECT. BECAUSE THAT'S THE ONE YOU YOU GIVE YOUR OPINION ON. WHAT WE GIVE OUR OPINION ON. OKAY IN GENERALLY UH, THE FUND BALANCE THAT THEY GIVE THEIR OPINION ON BASICALLY REPRESENTS THE STARTING POINT TO BUILD THE BUDGET FOR THE UPCOMING YEAR. IS THAT CORRECT? YES, OKAY. SO. SO AS I UNDERSTAND IT. UH UM. THE EXCEL SPREADSHEET, WHICH IS A DOCUMENT DID NOT AGREE WITH THE BOOKS, WHICH IS MUNIS. AND GRADIENT CAME IN. AND LOOKED AT THE PROBLEM FOUND ISSUES WITH THE SPREADSHEETS. AND BASICALLY . AS I UNDERSTAND IT. SAY IT, UM . DON'T TRASH THIS SPREADSHEET. IT'S NOT RELIABLE. AND DO ANOTHER SPREADSHEET. UH, THAT YOU CAN TIE BACK TO BUT. AS YOU JUST STATED A FEW MOMENTS AGO. YOU ARE DON'T EVEN DO THAT ANYMORE. SO YOU YOU'VE CHANGED. YOU'VE MOVED AWAY. FROM DOING THIS SPREADSHEETS AND YOU WORKED THROUGH MUNIS. YES, WE DO. ALRIGHT AS IF YOU REALLY WANT TO KNOW WHAT WAS REPORTED TO YOU.
THERE ARE CLIPS FROM MEETINGS. WHERE FINANCIAL REPORTS WERE PRESENTED TO COUNCIL THAT SHOWED THAT UTILITY FUND BALANCE AT SEVEN MILLION I HAVE COPIES OF THOSE IF YOU WANT TO SEE THOSE, BUT THERE ARE CLIPS THAT WERE BASICALLY SHOWN TO YOU BY THE FORMER MINISTER. UM, DIRECTOR.
REGARDING WHAT? THE FUND BALANCE. ISN'T THAT FUN, AND IT WAS SEVEN MILLION AS REPORTED, BUT AT THAT SAME TIME, SO I LOOKED IN THE LEDGER IN 21. IT WAS 16. IF YOU WANT TO SEE THOSE I HAVE THOSE HERE WITH ME SO THAT YOU CAN VIEW THOSE NO, I DEFINITELY ACKNOWLEDGE THE FACT THAT, UH THERE WAS A DIFFERENCE BETWEEN THAT DOCUMENT. AND THE BOOKS AND, UM. AND GRADIENT IN THEIR PRESENTATION. UH, WENT THROUGH IT. AND PINPOINTED. THE ERRORS. IN THE EXCEL SPREADSHEET THAT DOCUMENT. UH UM. THAT WERE PROBLEMATIC. SO MR CHAIRMAN. EXCUSE ME. AND WHO PREPARED THE SPREADSHEET THAT YOU'RE REFERRING TO? I MEAN, I DON'T KNOW WHO WHO PREPARED THIS SPREADSHEET THAT YOU HAD A PROBLEM WITH UM, IT WAS IT WAS PREPARED BY THE FORMER FINANCE DIRECTOR. OKAY AND THAT WAS BEING USED. IT WAS BEING HANDED DOWN YEAR TO YEAR AND WHEN I CAME INTO THE ORGANIZATION, UM, THE BUDGET ADMINISTRATOR WAS UTILIZING THAT SAME DOCUMENT, AS WAS INSTRUCTED. ANY OTHER QUESTIONS. OKAY? UM. SO THAT THAT TAKES CARE OF I THINK
[00:45:08]
YOU'RE A BIT YEAH. YEAH. SO NOW WE'RE ON A OKAY? AND SO, UM, AT THIS TIME, I'D LIKE FOR MR WILLIAMS TO TALK ABOUT UH, THE CURRENT MR HORI, I'M I'M SORRY. SO I DO WANT TO MAKE A COMMENT BECAUSE I THINK IT REALLY CLEARLY DISPLAYS OR 12 SETS OF BOOKS. THIS WAS WAS ALLEGED, AND I DO WANT TO MAKE THAT COMMENT. OKAY? UM. OKAY MR. WILLIAMS. UM, TELL US ABOUT THE FISCAL YEAR 22 AUDIT. UM BEFORE YOU START, MR WILLIAMS. THE REPORT THAT YOU'RE GONNA GIVE US NOW. THIS IS THE 22 AUDIT, WHICH WAS THE YEAR IN IS WHAT YEAR WHAT'S THE YEAR END? SEPTEMBER 30 20 SEPTEMBER 30TH. OKAY AND IT HAS NOT BEEN COMPLETED YET. OR HAS IT BEEN COMPLETED YET? OKAY, ALRIGHT. GO AHEAD, SO UM. WHEN WE ENGAGED IN SONIA ENGAGED, ALTHOUGH THAT OUR TIME FRAME THAT WE ANTICIPATED COMPLETING THE WORK. UM, THIS IS A TIGHT LABOR MARKET, SO IF WE DON'T FALL WITHIN THE PERIOD THAT WE'RE ABLE TO COMPLETE THE WORK OUR STAFF MOVES ON. THAT'S KIND OF THE WAY IT ACTUALLY IS, BECAUSE WE HAVE A SET PERIOD OF WHEN THE WORK CAN BE DONE TO MAKE IT OFFICIAL AND EFFICIENT.UM THERE WERE SOME UNIS ISSUES THAT HAS BEEN ONGOING THROUGHOUT THE PERIOD, AND IT MAKES NO SENSE TO BE AUDITING. AND THEN THE NUMBERS CHANGE BECAUSE MUNIS IS STILL BEING WORKED THROUGH UNTIL MUNIS. AND ALL OF THE ISSUES WERE SORTED OUT. WE WEREN'T ABLE TO IN GOOD, EARNEST PUT PUT A GREAT EFFORT TOWARDS COMPLETING THE AUDIT. WE SPENT SOME TIME ON THE ATTIC GOING THROUGH SOME OF THE CONTROLS, COMPLETING SOME OF OUR PLANNING DOCUMENTS, ETCETERA, ETCETERA.
UM, BUT WE'RE NOT ABLE TO GET SUFFICIENTLY IN MY OPINION ON THE SUBSTANTIVE FILE. UM MY LAST DAY AT MY CURRENT EMPLOYER IS SUPPOSED TO BE APRIL 30TH. SO IT CAUSES A LITTLE BIT OF A DIFFICULTY ASSOCIATED WITH THAT . SO, YOU KNOW, UM, I CHANGED MY SCHEDULE IN ORDER TO ENSURE THAT THE FOLLOW UP PARTNER THAT WE GET THROUGH THE SUBSTANTIVE PERIOD THAT'S NECESSARY BEFORE I LEAVE, AND I CHANGED MY NEW HIRE. BECAUSE I WANT THIS TO BE A SUCCESS IS SOMETHING THAT YOU KNOW, I DON'T THINK IT'S FAIR TO PUT ONTO A NEW PARTNER COMING IN. I THINK IT'S IMPORTANT TO GET THIS COMPLETED. ARE YOU SAYING THAT YOUR YOUR TIME IS ALMOST UP MY TIME OF MCCONNELL MY TUNNEL. MCCONNELL JONES IS UP. YEAH, I'M MOVING TO ANOTHER FIRM, OKAY? ALL RIGHT. WELL, YOU WERE THERE. YES OKAY. HOW ABOUT YOU? WERE YOU WERE THERE RELATIVELY, WAS JUST RECENTLY MADE AWARE OF THAT BECAUSE IT WAS A RECENT RECENT CHANGE. AND I KNOW HE TALKED WITH MR HARVEY AND STATED THAT OKAY? SO NOW ARE YOU SAYING MAYBE SUMMARIZE IT REAL QUICK. ARE YOU SAYING YOU COULD NOT COMPLETE THE AUDIT? WE DID NOT CORRECT. AND TO SUMMARIZE THAT WHAT WILL BE THE REASON WHY YOU COULD NOT COMPLETE THE AUDIT. THE PRIMARY REASON IS CASH. THAT'S THE MAJOR ISSUE OVER EVERYTHING. CASH RUNS EVERYTHING UNTIL CASH IS FULLY RECONCILED. YOU CAN'T COMPLETE AN AUDIT. THE CASH ACCOUNT WAS NOT RECONCILED CASH ACCOUNT WAS NOT RECONCILED TO THE GENERAL LEDGER. HAS THE CASH ACCOUNT BEING OUT OF BALANCE. FOR A WHILE. IT'S BEEN OUT OF BOUNDS FOR A WHILE. MR CHAIRMAN CANNOT ADDRESS THIS TO. UH OKAY. MISS MISS. ADD MORE COULD YOU GO TO THE MIC, PLEASE. I NOTICED THAT YOU PRESENTED TO US EVEN THIS EVENING. THIS FINANCIAL MONTHLY FINANCIAL REPORT. YES, SIR. I FLIPPED THROUGH THE REPORT. I SAW THE ACTIVITY. AS A FEBRUARY . 20 YEARS. YES, I DID NOT SEE CASH BALANCE. HAS THE CASH BATTLES BEEN RECONCILED THROUGH THIS PERIOD OF TIME THAT YOU'VE GIVEN US THESE REPORTS. FEBRUARY OR 22. 2020. I'M SORRY. 23. NO NO. WE ARE IN THE PROCESS. NOW YOU WANT MORE ELABORATION? LET ME JUST SHARE THIS WITH YOU. AS I SAID IN THE LAST AUDIT AND FINANCE COMMITTEE, OKAY, UH AND I GAVE YOU A PLAN OF ACTION.
BECAUSE IN THE 21 AUDIT, WE DISCOVERED SOME DISCREPANCIES IN CASH. WE DISCOVERED THEY WERE MANUALLY RECONCILE IN CASH. THEY WERE MAKING HUGE MATCHES OF ADJUSTMENTS TO MATCH TO THE BANK STATEMENTS, CLARIFY WHO THEY IS. THE PRIOR, UM STAFF. ONE TEAM WAS RECONCILING MANUALLY, AND THAT IS WHAT HAD BEEN THEY HAD BEEN DOING FOR YEARS. WE HAVE MUNIS. MUNIS E R P SYSTEM IS
[00:50:05]
CAPABLE OF DOING BANK RECONCILIATIONS THROUGH THE SOFTWARE, HOWEVER, THAT WAS NOT IMPLEMENTED. THEY CHOSE NOT TO IMPLEMENT THAT. AND BECAUSE OF THAT CHOICE WHEN WE ENGAGE IN MUNIS TO SAY, CAN YOU GET US BACK UP AND RUNNING SO WE CAN FIGURE OUT HOW TO MAKE ALL OF THIS RECONCILED AND START 22 OFF THE RECONCILIATION. WE SPENT MASSIVE AMOUNT OF TIME IN MUNIS CASES, WHICH I HANDED TO YOU GUYS IN THAT AUDIT MEETING IN DECEMBER AND SHOWED YOU THE NUMBER OF CASES THAT WE HAD HAD MORE OR REMIND YOU THAT MISS CLARK, MR KOONTZ AND I WARRANT PART OF THAT AUDIT COMMITTEE AT THAT TIME. YES, SIR. YOU WERE AND MR HARVEY. I'D LIKE YOU TO TELL ME POTENTIALLY WHO WAS PART OF THAT COMMITTEE AT THAT TIME? THAT THAT TIME BEING DECEMBER 2021. UM. IT WAS ME AND MR TALLY. AND I BELIEVE STEVE, RATHER FOR I THINK, YES. AH! MORE COOKS. I THINK JOE ALSO WAS ON JOE CRUZ. YES HE WAS SITTING IN THE BACK. OKAY OKAY. THAT'S WHO WAS ON THE COMMITTEE. SO IF YOU REMEMBER, AND MAYBE I NEED TO REFRESH YOUR MEMORY THAT WE ACTUALLY TALKED ABOUT THAT AUDIT AND CASH IN 22. WE MET SEVERAL TIMES IN 22, INCLUDING MAY 10TH AUGUST. SEPTEMBER AND THEN IN DECEMBER. AND IN DECEMBER, YOU HAD ASKED ME TO COME BACK WITH A PLAN OF ACTION AND HOW TO ADDRESS THE ISSUES THAT WE'RE IN THE 21 AUDIT. AND THAT'S WHAT I DID. I PREPARED A DOCUMENT THAT I WAS NOT ABLE TO GO ALL THE WAY THROUGH THAT SAID HERE ARE THE NUMEROUS ISSUES THAT WE'RE HAVING WITH RECONCILING WITH THE AUDIT ISSUES WITH INTERNAL CONTROLS AND ALL OF THE THINGS WE HAD AN AUDIT. I GAVE YOU A DOCUMENT THAT HAD DEPENDENCIES EXHIBITS ATTACHED THAT GAVE YOU ALL THE INFORMATION AND ASKED IF YOU HAD ANY QUESTIONS. OKAY? AND THAT INCLUDED. I DIDN'T JUST SAY HERE THE PROBLEMS I SAID, HERE'S OUR WAY TO ADDRESS IT. SO YOU HAVE BEEN AWARE OF THIS SINCE THAT TIME, AND I REALIZED THAT WAS BACK IN 21, BUT THE AUDIT DIDN'T CONCLUDE FOR 21 UNTIL MAY OF 22. AS I REMEMBER WE, MR MR. ADD MORE. WE ACCEPTED YOUR RECOMMENDATION TO GO FORWARD TO DO THAT. WITH THE UNDERSTANDING THAT WE'RE GOING TO GO AHEAD AND RECONCILE THE CASH ACCOUNTS. NOW. TO MY REGULATION IN MY 40 YEARS OF BEING IN A IN A ACCOUNTANT OR CPA MYSELF. I THAT'S A THAT'S AN AREA. CASH LIQUID. THAT YOU WANT TO MAKE SURE YOU RECONCILE FOR INTERNAL CONTROL PURPOSES. SO EVEN THOUGH THE ACCOUNTING SYSTEM THAT WAS THERE DID NOT UM DO WHAT YOU WANTED TO DO. WOULD HAVE BEEN WISE TO GO AHEAD AND DO IT EVEN MANUALLY, WHATEVER IT WOULD TAKE TO GET THOSE UP THOSE BALANCES THERE TO RECONCILE THAT THAT AREA. WE HAVE BEEN DOING THAT, SIR. WE HAVE BEEN DOING THAT AND IF YOU REALIZE THE MASSIVE NUMBER OF TRANSACTIONS THAT ARE RUNNING THROUGH THE CITY EACH DAY, UM AND THE TURNOVER IN STAFF, WHICH I SHOWED YOU IN THAT PLAN OF ACTION, THE NUMBER OF TURNOVER CUTTING YOU OFF THERE. JUST JUST YOU SAID YOU'VE BEEN DOING THAT, BUT WHAT YOU JUST SAID TO BE A FEW MINUTES AGO THAT YOU DID NOT RECONCILE THE CASH BALANCES. NO I DID NOT SAY THAT. I SAID, YOU ASKED ME A SPECIFIC QUESTION ABOUT 23 FROM THAT REPORT. WE'RE TALKING ABOUT TWO DIFFERENT THINGS. YOU'RE TALKING ABOUT THE FINANCIAL REPORT FOR FEBRUARY OF 23. YOU'RE ASKING ME ABOUT CASH? I'M I'M TALKING ABOUT CASH RIGHT NOW. I'M TALKING ABOUT CASH. OKAY, SO LET'S TALK ABOUT CASH.IN WHERE THE AUDIT AND FINANCE COMMITTEE LAST LEFT OFF. IS WE EXPLAIN TO THEM OR REGARDING THE CASH, RECONCILIATION AND THE THINGS THAT WE HAD AND IMPLEMENTED IN ORDER TO GET IT RECONCILED. UM THE OTHER THINGS THAT YOU GUYS DO NOT RECOGNIZE. AND I WAS TRYING TO PORTRAY THAT IN THE DOCUMENT, AND I WAS HOPING THAT YOU WOULD READ THROUGH IT IS THAT MUNIS? HAS CHOSEN HOW IT WAS SET UP DOES NOT A JOURNAL ENTRY TO THE CASH FUN THAT I CAN RECONCILE DIRECTLY TO THE BANK. I KNOW YOU THINK YOU COULD WOULD, BECAUSE I HAVE A SEPARATE FUND TO DO THAT, AND THAT'S THE PURPOSE. BUT WHEN OUR STAFF TOOK A LOOK AT THE ENTRIES COMING OUT OF THE G L
[00:55:01]
FOR THE CASH RECONCILIATION TO RECONCILE THE BANK. IT DOESN'T HAPPEN THE SAME. SO GUESS WHAT? I GOTTA DO IT MANUALLY. I GOT TO PUSH IT THROUGH MANUALLY. SO WE EMPLOYED WE WENT OUT AND GOT A CONSULTANT. UM BUT MINDS FEAR LLC THAT WORKED WITH OTHER CITIES TO HELP US WITH THIS BECAUSE WE THOUGHT MAYBE THIS ANOMALY WITH MUNIS. BECAUSE I HAD NOT HAD THIS PROBLEM IN ANOTHER CITY THAT I USE MUNIS WITH THAT MAYBE WE COULD GET SOME EXPERTISE TO RECONCILE IT FASTER. AND THERE WERE ISSUES THAT THEY HAD THIS. THEY HAD THE SAME PROBLEM ASKING US. WHY DID WE SET THIS SYSTEM UP THIS WAY? AND IF YOU WANT TO TALK TO THEM, WE HAVE THE NUMBERS. IN FACT, WE'VE ENGAGED THREE CONSULTANTS . WE HAVE A CONSULTANT FROM THE CITY OF FORT WORTH. WHO IS AN EXPERT IN MUNIS. SO WHEN I'M SHARING WITH YOU THAT WE ARE WORKING ON CASH RIGHT NOW, WE ARE AS FAR AS 22 IS CONCERNED. WE'RE ABOUT DONE, OKAY? AND WE ARE GENERATING. YOU'RE TARGETING CASH CASH. I KNOW FROM MY YEARS OF EXPERIENCE IS CASH IS KING. THAT'S WHEN I CAME IN HERE. I SAID CASH IS KING WHEN I CAME INTO THIS ORGANIZATION WHEN I SAW THE SPREADSHEETS WHEN I SAW THE SPREADSHEETS, I SAID THIS IS NOT ACCURATE. BUT BUT IT IS, BUT IT'S NOT HAD BEEN RECONCILED.WELL TRY RECONCILING WHEN YOU'RE COMING FROM 12 MONTHS BEHIND 12, PLUS MONTHS BEHIND. AND I HAVE OVER 350 JOURNAL ENTRIES HITTING THE GENERAL LEDGER. A MONTH. IN ADDITION TO ALL THE AP INVOICES THAT I'M PAYING A MONTH IN ADDITION TO ALL THE OTHER STUFF THAT'S HITTING THE BANK STATEMENT A MONTH THAT I HAVE TO GET INTO THE G L MINE WERE THERE WERE ONLY THREE OF US FOR A WHILE ENTERING THE DATA WHEN STAFF TURNED OVER AND THEY WENT SEPARATE WAYS, AND WE RECOGNIZE THAT THEY HADN'T BEEN THEY HAD NOT ENTERED THE JOURNAL ENTRIES FOR DEPOSITS FOR ALMOST THREE MONTHS. THE OTHER ISSUE WITH MUNIS IS THAT THEY DID NOT GIVE ME THE FORMER I T DIRECTOR DID NOT GIVE ME ACCESS. TO REVIEW JOURNAL ENTRIES. I HAD WE HARDLY HAD ANY ACCESS. SO WITH THIS NEW ADMINISTRATION OF THE NEW C I O IS COMING IN. IT HAS BEEN A LOT BETTER I HAVE. I'M BEING ABLE TO SEE AND POST AND REVIEW JOURNAL ENTRIES ON A DAILY BASIS, AND THAT IS WHAT WE'RE DOING. THAT IS WHY WE'RE ABLE TO KEEP UP WITH THE CURRENT YEAR AS WELL AS THE PRIOR YEAR. ORGAN ON THE AUDIT, MR WILLIAMS DRIZZLE WOULD YOU ADDRESS THIS FOR ME, PLEASE? YOUR PREVIOUS 10. YOU HEAR WHEN YOU UH, UNDER THE PREVIOUS ADMINISTRATION. DID YOU? STILL AT THE CASH WAS RECONCILED. CASH WAS RECONCILED. THE CASH. PROBLEM AGAIN. IS THAT WORD RECONCILIATION? UM, I THINK AFTER THEY LEFT THE PARTIES THAT WE'RE ACTUALLY DOING THE RECONCILIATION. WE'RE WORKING THROUGH AND GETTING NUMBERS, BUT THEY WEREN'T RECONCILE NG. RECONCILING ESPECIALLY IF YOU HAVE TO DO IT MANUALLY. YOU HAVE TO GO IN AND LOOK AT EACH ITEM AND MAKE SURE THAT THESE TRANSACTIONS ARE SUPPORTED BY WHAT GOES THROUGH THE SYSTEM. I'VE BEEN DOING THIS FOR 30 YEARS AND I LOOKED AT THE G S. J AND I'VE NEVER SEEN SOMETHING SO MUCH. IT'S NOT AN ACCOUNTING WORD FOR IT. OTHER THAN UP IS PROBABLY THE RIGHT WORD TO EXPLAIN. KEEP IT REAL.
UNFORTUNATELY, HOW WHITE HAWK YOU KNOW, SO WHEN YOU HAVE A SYSTEM THAT'S MAKING ENTRIES PUSHED OUT BY THE SYSTEM IF YOU DON'T UNDERSTAND WHAT'S CAUSING IT. YOU'RE GOING AROUND, AND THAT'S WHY WE HAD THREE CONSULTANTS GO THROUGH AND LOOK AT ALL THE ACTIVITY THAT'S GONE THROUGH BECAUSE I THINK, EVEN IN YEAR ONE WHEN THEY IMPLEMENTED MUNIS IF THERE WAS DONE ON A BUDGETARY BASIS. YOU KNOW, AND SOMETIMES THERE'S A STATE AND YOU KNOW IF YOU DON'T PAY FOR WHAT YOU GET WHAT YOU PAY FOR. I THINK THE AMERICAN STAND AND STAY WITH IT, YOU KNOW, AND I THINK THAT'S IF YOU HAVE GONE THROUGH SO MANY ER, TRANSITIONS . AND IF YOU DON'T DO IT PROPERLY, IF YOU DON'T LOOK AT ALL THE HOT BUTTONS ASSOCIATED WITH IT. PROBLEMS OCCUR. LET ME MAKE SURE I UNDERSTAND WHAT YOU'RE SAYING. I USED YOU TELLING ME THAT THE PREVIOUS ADMINISTRATION DID RECONCILED AND YOU GAVE YOUR OPINION. PREVIOUS MISSIONS. DID RECONCILE. YES. YOU SATISFIED? YOU? YES. BUT THE PREVIOUS OPINION PREVIOUS PERIOD. THEY HAD AN INDIVIDUAL IN THERE THAT KNEW WHAT RECONCILIATIONS WERE. SO WHAT HAPPENED? THEY DISAPPEARED. SO YOU POOF! THEY'RE GONE. AND THEN ALL THE ACTIVITY CONTINUES GOING THROUGH. YOU HAVE PEOPLE SAYING THEN THAT BECAUSE THAT PERSON LEFT NO ONE WAS KNOWLEDGEABLE
[01:00:02]
ENOUGH TO GO IN AND COMPETE AND CONTINUE THAT PARTY THAT WAS DOING THE RECONCILIATIONS WAS NOT KNOWLEDGEABLE ENOUGH. THEY DIDN'T UNDERSTAND WHAT RECONCILIATION MEANT THEY WERE JUST GOING THROUGH A ROPE PROCESS. IN MY OPINION OF JUST KIND OF LOOKING THROUGH THIS IS UNDER THE NEW ADMINISTRATION. IS THAT CORRECT? CORRECT? SO CAN I ASK A FOLLOW UP QUESTION. SO THIS PERSON. THAT DID ALL OF THESE RECONCILIATIONS LEFT WHEN . HE WON 21. OKAY? AND SHORTLY.OKAY SO SINCE THEN, WE DON'T HAVE ANYONE THAT CAN DO THAT, AND WE'VE BEEN UNABLE TO FIND A PERSON THAT CAN DO THAT. UM. REST ASSURED, I KNOW HOW TO RECONCILE. BASED BUT WHEN YOU'RE COMING FROM BEHIND AND HAVE SO MANY TRANSACTIONS AND SEE THE GENERAL LEDGER LIKE WE SHOW IT UM I WOULD INVITE YOU GUYS TO COME IN AND TRY TO RECONCILE. COME ON, PLEASE DO ALL RIGHT.
I'VE HAD AN EXPERT THAT HAS BEEN DOING THIS FOR YEARS WITH HIS SYSTEM, AND HE'S TRYING TO CREATE RULES TO MAKE THE G L AND THE BANK MATCH. GUESS WHAT HE'S HIS HEAD IS JUST SPINNING.
BECAUSE HE'S SAYING, WHAT DID Y'ALL DO? WHAT IS MUNIS DOING? AND SO ONE OF THE THINGS THAT WE HAVE TO DO IS WORK WITH MUNIS TO FIGURE OUT CHANGE THE CONFIGURATION ON THIS SYSTEM SO THAT MY JOURNAL ENTRIES COME OUT RIGHT? AND ONE OF THE THINGS YOU KNOW WHEN YOU'RE GOING IN AS A FINANCE DIRECTOR ON BANK RECONCILIATIONS, JOURNAL INJURIES, YOU GOTTA YOU GOTTA GET THE JOURNAL ENTRIES AND STRATEGICALLY GET THEM TO MATCH THE BANK. IF YOU CAN GET THAT YOUR OPERATION WILL BE SMOOTH AND YOU'LL GET A SMALL WHAT YOU'RE SAYING TO US NOW, IS THAT THE CITY OF DUNCANVILLE DOES NOT HAVE A RECONCILED MAKE ACCOUNT. IS THAT WHAT YOU'RE TELLING ME? NOT TO THE G L ADD UP TO THIS DAY IT IS UP TO 22. WE ARE WIDE OPEN. THIS IS THIS. THIS IS IT'S UNACCEPTABLE. WELL, IT'S UNSETTLED IN ANY UNLESS YOU ARE WILLING TO GIVE THE RESOURCES TO GET THIS CAUGHT UP LIKE ASAP. THEN. YOU GOT WHAT YOU GOT, AND ANYBODY ELSE COMING IN HERE? WE'RE NOT GONNA SELL IT FOR NOT RECONCILED, NOT BANK ACCOUNTS WERE NOT SETTLING. WE ARE NOT SETTLING, SIR. I'M SORRY THAT NUMBER OF HOURS THAT THIS TEAM WORKS. THEY ARE NOT SETTLING.
NOW IF YOU WANT TO COME IN AND SEE THE HOURS WE PUT IN THAT NOT ON YOUR BOOKS, OKAY, BUT THERE ARE A NUMBER OF HOURS THAT THE STAFF HAS PUT IN. THAT I'M NOT GONNA SIT HERE AND TELL YOU TELL YOU THAT THEY ARE NOT PUTTING IN THE TIME TO RECONCILE THE ISSUES THAT WE HAVE RUN INTO OUR PART OF IT IS COMPUTER THE MUNIS SYSTEM IS CAUSING US SIGNIFICANT ISSUES. AND BECAUSE IT WAS IMPLEMENTED IN SUCH A WAY. WE ARE HAVING A VERY DIFFICULT TIME RECONCILING IT IF EXPERTS FROM THE OUTSIDE WHO ARE USED TO MUNICH COME IN AND TELL ME THAT WHAT DID THEY DO? SO. IN MUNIS AND I'VE WORKED WITH MUNIS BEFORE. AND WHAT MAKES YOUR RECONCILIATION PROSECUTING MR WILLIAMS. WHAT WHAT SHE JUST SAID. AND WHAT I UNDERSTAND HER TO SAY. BECAUSE YOUR FIRM OR THE FIRM THAT YOU JUST LEFT, WILL YOU BE ABLE TO GIVE US AN AUDIT. NOT UNTIL CASH IS RECONCILED. SO . THE CASH NOT RECONCILED. WE WERE JUST OUT THERE. YOU'RE TELLING ME YEAH. SO LET ME ASK A FOLLOW UP QUESTION. SO CAN YOU CAN YOU PROVIDE US AN APPROXIMATE DATE. IT DOESN'T HAVE TO BE MONTH. WE THEY HOUR MINUTE, JUST APPROXIMATELY UH, WHEN YOU THINK THE AUDIT WILL BE MR. CHAIRMAN CAN I MAKE THAT PREDICTION TO HOLD ON FOR YOU? MR CHAIRMAN, THE LAST TIME WE MET OR THE TIME BEFORE LAST WE MET. TIME WAS GIVING US A TIMEFRAME WAS GIVEN TO US. AND THAT THAT PERIOD IS SINCE PAST AGREE. OKAY, GO AHEAD. SO UH, BACK TO MY QUESTION. SO, UM WHEN
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DO YOU THINK. WHEN DO YOU THINK THAT THE AUDIT WILL BE FINISHED THIS TIME AROUND? BECAUSE OF AUDIT. THE LAST TIME AROUND, WAS FINISHED. ACCORDING TO THE DATE OF THE LETTER. THE REPRESENTATION THAT IT WAS MADE THE 10TH. 2022 SO MAY JUNE. IT WAS THAT I CAN'T ANSWER THAT QUESTION TO ANYONE. CASH IS RECONCILED. UM, THAT'S REALLY THAT'S THAT'S A QUESTION FOR THE FINANCE DIRECTOR. SORRY. RIGHT NOW. I BELIEVE WE ARE AT. HE HAS THE RECONCILIATION. WE SENT THAT TO YOU, AND THAT IS ALL OF THE ACCOUNTS ARE RECONCILED. THE OPERATING IS UP UNTIL IS THAT UP UNTIL SEPTEMBER. SO WE HAVE A WE HAVE THE RECONCILIATION UP TO SEPTEMBER THAT WE WERE ABLE TO, UH, COMPLETE WITH THE CONSULTANTS HEALTH SO CASH IS RECONCILED SO THAT WHEN I TALKED TO MR WILLIAMS, HE SAID THAT HE WOULD BE BACK IN BY THE END OF NEXT WEEK. AND SO WE HAVE ALREADY RECONCILED. THREE OF THE COUNCIL'S OPERATING COUNTY IS THE BIGGEST ACCOUNT AND THAT ONE IS AS SHE SAID. SEPTEMBER IS BEING RECONCILED. RIGHT NOW. NOW WHAT THAT MEANS, UM TO YOU GUYS, BECAUSE I MEAN, YOU LOOK AT IN YOUR HEAD. IT PROBABLY LOOKS AT OKAY IS RECONCILED ALL TOGETHER AS ONE. UM WE HAVE MULTIPLE PEOPLE PUTTING INJURIES INTO THE BANK. WHICH WE RECOGNIZE THAT WE'RE GOING TO HAVE TO CEASE AND DESIST. OKAY? BECAUSE WITHOUT KNOWING WHERE. WHO WHO'S MAKING THE DEBITS AND THE ACCOUNT AND WHO'S MAKING THE ENTRIES. WE DON'T HAVE CONTROL. BUT THIS WAS THE OPERATION OF THE PRIOR ADMINISTRATION, AND WE DECIDED WE CAN NO LONGER DO THAT. SO THESE ARE THINGS ALONG THE OPERATIONAL WAYS THAT WE'VE COME IN IN ORDER TO RECONCILE THAT WE'RE GONNA HAVE TO CHANGE AND CHANGE IN THIS ORGANIZATION IS MANY TIMES RESISTED. UM. GO AHEAD, MR HARVEY. UM SEE MANAGER BROWN. ACTING IS THAT. THIS NEEDS OBVIOUSLY BE SOME PRIORITY NEEDS TO BE GIVEN TO THIS ISSUE. AND SO I'D LIKE THAT TO BE PART OF THE ASSIGNMENT. THAT THAT THIS IS DONE AND TAKEN CARE OF IN A REASONABLE FASHION. UH ABSOLUTELY, SIR. WE RECOGNIZE THAT THIS IS A VERY THE IMPORTANT ISSUE AND WE'RE COMMITTED TO DETERMINING WHAT THOSE ISSUES ARE. AND WE ARE COMMITTED TO CORRECTING THOSE ISSUES. OKAY, SO, UM. EVERYONE STAY TUNED. AT SOME POINT. WE'LL KNOW WHEN THE 22 ARTICLE BE FINISHED. MR HARVEY, I HAVE ANOTHER QUESTION AS WELL. EXCUSE ME, MR TALLY. OKAY, UM. MY QUESTION IS WHEN SHOULD THEY BE DONE? AH! COME. GLAD YOU HANG ON, JUST GOING TO SAY TO OKAY SOMETHING IT'S ALMOST TIME FOR THE NEXT START TO START. MARCH 31ST IS THE IS THE DEADLINE IS SIX MONTHS AFTER THE END OF YOUR FISCAL YEAR. UM YEAH, MONTHS. I'M SORRY. NINE MONTHS. I'M SORRY. NINE MONTHS AFTER THE END OF YOUR FISCAL YEAR, TIME IS FLYING FOR ME. UM BUT YES SO WE'RE IN THAT IN THAT TIME FRAME RIGHT NOW, THIS IS MARCH. 31ST IS SIX MONTHS SO SIX MONTHS, SIX MONTHS FOR THE CFR. 99 MONTHS FOR THE SINGLE AUDIT. YES. ABOUT THAT. I FORGOT ABOUT THAT. SO TRYING YOU GUYS HAVE BEEN CONSISTENT ON WINNING THE AWARD. THAT'S ALWAYS A SIX MONTH PROCESS. SO YOU BECAUSE THEY WANT TO BE IN TIME. EXACTLY. THEY'VE ALREADY, UM APPROVED AN EXTENSION. WHAT YOU KNOW THAT THE D F I AWARD IS JUST A POLICY DOCUMENT APPROVAL OF THE POLICY THAT YOU HAVE IT IN THE STATE THAT THEY WANTED. UM LOCAL GOVERNMENT CODE TITLE FOR FINANCES, SUBTITLED A MUNICIPAL FINANCES. CHAPTER ONE. OH THREE AUDITOR MUNICIPAL FINANCES. SECTION ONE. OH, 3.3 FILING PUBLIC RECORD. THE ANNUAL FINANCIAL STATEMENT, INCLUDING THE AUDITOR'S OPINION ON THE[01:10:06]
STATEMENT. SHALL BE FILED. IN THE OFFICE OF THE MUNICIPAL SECRETARY OR CLERK. WITHIN 100 AND 80 DAYS AFTER THE LAST DAY. OF THE MUNICIPALITIES, FISCAL YEAH. FROM THE LOCAL GOVERNMENT CODES. GERMAN WHAT DAY IS THAT? THAT WOULD BE MARCH. 31ST. SO WE'VE ALL OFFER ALREADY, OKAY? SECOND YEAR IN A ROW. AND I'VE ASKED AROUND. AND I'VE BEEN. HAVE BEEN TOLD FROM RELIABLE SOURCES THAT NEVER IN THE HISTORY OF DUNCANVILLE. AS DUNCANVILLE BEING TWO CONSECUTIVE YEARS LATE. THAT'S MY UNDERSTANDING ALSO. SO. WE'VE BEEN ON TIME FOR THE LAST LONG AS I'VE BEEN, UH A CITIZEN HERE IN DUNCANVILLE. AND THE LAST COUPLE OF YEARS. WE CAN'T GET IT DONE. AND SO YOU KNOW, WE'VE BEEN TALKING ABOUT AT LEAST WE'VE BEEN HEARING CONCERNS FROM THE COMMUNITY. AND I WOULD SAY THEY ARE CONCERNS JUST NOT WHAT YOU'VE BEEN TOLD. I HAVE UNTIL NOW. NOT HAVING AN AUDIT DONE ON TIME. YOU SEE. DEFINITELY CONCERN AND TWO YEARS IN A ROW.IS. THE HOUSE IS ON FIRE AND NOT HAVING THE BANKS RECONCILED. UH, WITHIN. 30 DAYS AFTER THE CLOSE OF THE MONTH. IS NOT SOMETHING THAT WELL RUN ORGANIZATIONS DO. I JUST WANT TO SAY, MISS MISS ATMORE? THE FINANCIAL INFORMATION THAT YOU GAVE US IT LOOKS REAL PRETTY. LOT OF NUMBERS. BUT UNLESS THE CASH IS RECONCILED, WE DON'T KNOW THESE NUMBERS ARE CORRECT OR NOT. IS THAT TRUE? I CAN TELL YOU THAT THE CASH IS IN THE BANKS OR DO THEM UNTIL YOU RECONCILE TO MAKE SURE EVERYTHING IS IN THE PROPER PLACE. CAN YOU SAY THESE NUMBERS IS MAKING SURE THAT EVERY EVERY RECEIPT. AND EVERY. DEBIT OUT OF THE ACCOUNT. EVERY EXPENSE OUT OF THE ACCOUNT IS ACCOUNTED FOR IN THE GENERAL LEDGER. MY QUESTION TO YOU IS AS OF FEBRUARY, 28 2023 THE NUMBERS THAT YOU GAVE US HERE IN THIS REPORT. IF THE CASH IS NOT RECONCILED THROUGH THAT DAY, YOU CANNOT SAY THAT THESE NUMBERS ARE CORRECT. IS THAT NOT TRUE? I CAN SAY THAT THOSE NUMBERS ARE IN YOUR FINANCIAL SYSTEM FROM THE DOCUMENTS FROM THE INPUT. THEY'RE NOT RECONCILED. CASH MONEY. THE MONIES ARE HITTING THE BANKS ARE IN THE EXPENDITURE . RECONCILING CASH, YOU CANNOT SAY RECONCILING CASH. YOU CAN'T SAY ISSUE THAT WE NEED TO LOOK AT IT IS A PRIORITY. WE ARE TAKING THAT AS A PRIORITY AND WE ARE LOOKING AT THE BANK STATEMENT EVERY DAY. UNTIL WE CAN GET TO THE POINT WHERE THE SYSTEM IS ABLE TO MATCH UP THE ENTRIES AND I'LL KEEP EXPLAINING THIS TO YOU GUYS IS THAT THE ENTRIES IN THE GENERAL LEDGER MAKE IT VERY DIFFICULT TO THE MATCH. THE BALANCE IS SO WE HAVE BEEN TRYING DIFFERENT THINGS TO GET THAT AMOUNT TO MATCH SO THAT WE DON'T HAVE TO. I DON'T HAVE FIVE PEOPLE TO RECONCILE. YES, MA'AM. I UNDERSTAND THAT. BUT WHAT I'M SAYING TO YOU IS THESE NUMBERS THAT YOU GAVE US IN THIS REPORT. CASH IS NOT RECONCILED.
WE DON'T KNOW WHAT THESE NUMBERS INCORRECTLY PRETTY CONFIDENT THAT THOSE NUMBERS, SIR. WELL YOU GOT PRETTY CONFIDENT. CAN'T COME. BE CONFIDENT UNTIL YOU HAVE CASH RECONCILED. I'M PRETTY CONFIDENT THERE WILL BE DEBITED AND CREDITED. COME THROUGH THERE. THAT WE DON'T KNOW IF YOU'RE IN THE RIGHT CONFIDENT THAT THE IN THOSE NUMBERS, SIR. BASS BASED ON MAX. HOLD ON, HOLD ON. LET ME LET ME STOKING FOR MINUTES. GO AHEAD. AS A CERTIFIED PUBLIC ACCOUNTANT. YOU ARE. I AM. MR MULLEN IS ALSO WE KNOW THAT WE HAVE TO RECONCILE CASH THAT MAKES YOU ALL THE TRANSACTIONS ARE PROPERLY COATED. AND PUT INTO THE ACCOUNT TO EACH ACCOUNT. NOW THAT'S BASIC, FUNDAMENTAL. SO LET ME SHARE WITH YOU AND I'M GONNA JUST DO THIS AS KINDLY AS I CAN.
BUT IF YOUR PRIOR ADMINISTRATION AND WHAT WE'RE FINDING AND WHAT WE'RE HAVING TO DO, A DAILY IS THAT THE EXPENDITURES WERE NOT CODED CORRECTLY. THEY WERE NOT MATCHED CORRECTLY. THEY WERE NOT THE ACCOUNTS THAT WE FIND STUFF IN. WE'RE HAVING TO MAKE JOURNAL INTEREST TO ADJUST THEM. THEY DON'T BELONG THERE. SO WHAT YOU'RE SAYING? SOUNDS GOOD, BUT IN REALITY WHAT WE'RE
[01:15:05]
EXPERIENCING IN OUR DAY TO DAY INTERACTION WITH THE BANK AND THE JAIL AND YOUR DEPARTMENT, THE USERS THAT ARE ACTUALLY DEPOSITED MONEY INTO THE ACCOUNT IS THAT WERE THINGS GOT DEPOSITED. AND I'M GONNA SAY WE'RE NOT TALKING ABOUT THE PREVIOUS ADMINISTRATION WERE TALKING ABOUT THIS ADMINISTRATION DID BRING UP THE PREVIOUS HE SAID THAT BUT I KNOW THAT THEY'VE RECONCILED AND THEY DID THEIR AUDIT ON TIME, AND THE AUDITORS ARE GATEWAY FOR UP CLEAN OPINION. TWO YEARS AGO. WELL I KNOW A LOT OF CITIES HAVE GOTTEN THE SAME THING HAVE BEEN DELAYED IN THEIR AUDIT, AND THEY'VE GOTTEN TO CLEAN OPINION. JUST AS WE DID LAST YEAR. SO THAT THEORY JUST DOESN'T HOLD. AND I'VE BEEN IN CITIES AND I CAN TELL YOU SOME. SOME OTHER PEOPLE ON THIS COUNCIL HAVE BEEN IN THE SAME CITIES WHERE THE AUDITS WERE LATE, AND WE GOT TO CLEAN OPINION. I'VE BEEN IN SOME CITIES WHERE THEY HAVE NOT RECONCILED IN A FEW MONTHS. IN FACT, I CAME FROM A CITY WHERE I CAME INTO IN THE BOOKS WHEN I CAME IN, THERE WERE MANUALLY RECONCILE. IT IS TAKEN THREE MONTHS TO RECONCILE ONE MONTH. DOES THAT MAKE SENSE TO YOU? SO IT'S POSSIBLE. AND IT CAN YOU SAYING THAT YOU CAN GET MY OPINION? WITHOUT THE SO. YOU HAVE MATERIALITY. SO LAST YEAR, CASH WASN'T FULLY RECONCILED, AND WE SAID THAT IN OUR REPORT, BUT WE HAD IT TO WITHIN THE MATERIAL NUMBER THAT MET THE SIZE OF THE MATERIALITY, BUT AS AN ORGANIZATION IT'S IMPORTANT, IT'S IMPERATIVE. CASH GETS RECONCILED. THANK YOU. BECAUSE MATERIALITY IS ONE THING OR THE FINANCIALS MATERIALLY PROPERLY STATED YES. IS IT GOING TO AFFECT THE INDIVIDUAL DECISION BASED OFF OF WHERE THEY WERE AT THE END OF LAST YEAR THAT SINCE THEY'RE CORRECT, SAME SORT OF SITUATION, PROBABLY THE REPORT. BUT FROM AN ORGANIZATIONAL STANDPOINT. YOU WANT TO MAKE SURE THAT CAT CASH IS TO THE PENNY AND THE ISSUE IS TO GET IT TO THE PENNY BASED OFF OF WHAT'S GOING ON TALKING ABOUT INTERNAL CONTROL HERE. WE WANT TO MAKE SURE THAT THINGS ARE RIGHT. BINGO. MR CHAIRMAN, THAT WAS A AND B. I THINK I KNOW THAT THERE'S. CANDIDATES FORM YOU'VE GOT A CANDIDATE ON YOUR BOARD. I DON'T KNOW IF YOU WANT TO CONTINUE THIS CND TO ANOTHER MEETING. SO . WHAT THE ATTORNEYS SAY IT IS TRUE. SO. WE DO HAVE MR COONS, WHO. IS DUE FOR A FARM. SO YEAH. I WOULD RECOMMEND THAT WE CONTINUE THIS FOR ANOTHER MEETING. OKAY UH, I UNDERSTAND YOU. YOU YOU, YOU MESSING WITH ME, PATRICK, HOLD ON. WHAT CAN WE CONCLUDE WITH THIS? WHAT CAN WE WHAT CAN WE SAY? WE'VE GOT TO COME UP WITH SOME KIND OF CONCLUSION. DON'T WE TOOK. SIT, SIT SEE IT IN. OKAY. THANK YOU.THANK YOU. I'M KIND OF NEW IT IS. YOU. YOU KEEP INDICATING THE CLOUD YOU KEEPING, INDICATING THAT THE PRIOR ADMINISTRATION. IT WAS A PROBLEM. WHAT ARE WE TALKING ABOUT? I'M NEW ON THIS.
ARE WE DOING THAT? LIKE SIX MONTHS A YEAR. WHAT HOW MANY? HOW MUCH TIME HAVE WE TALKING ABOUT HIS ELAPSED SINCE YOU CAME ON BOARD. I CAME IN JUNE OF 21 IS AN INTERIM JUNE OF 21 JUNE OF 21 IN THAT JUNE OF 21, THE AUDIT WAS JUST ABOUT COMPLETE. SO 22 IS REALLY THE AUDIT. UM THAT IS COMPLETELY MINE. UM WHAT HAPPENED? IN THE PRIOR ADMINISTRATION, AS WE RAN INTO IN THE END OF THE AUDIT IS THAT WE IMPLEMENTED A SYSTEM WE RAN INTO THE RECONCILIATION THAT WAS DONE MANUALLY AND IT WAS OFF. SO WE WERE TRYING TO FIGURE OUT WHY IS IT OFF? AND THAT WAS THE MANUAL ONE THAT WAS DONE BY OUR STAFF. EVEN THOUGH IT WAS A MANUAL ONE. THE ORDER TWOS.
REVIEWED IT. AND THEY GAVE THEIR OPINION THAT IT WAS FAIRLY STATED. IS THAT NOT TRUE? I SAID
[01:20:02]
IT WAS MATERIALLY FAILURE. REALISM OKAY, MATERIALISM. ALTHOUGH YOU WAS IT WASN'T FAIRLY. IT WASN'T. THAT WAS WHY THE AUDIT TOOK SO LONG LAST YEAR. THAT WAS WHAT CAUSED THE DELAY. ARE YOU SAYING MARLON? ARE YOU SAYING THAT YOU CHANGE YOUR MIND DIDN'T CHANGE MY MIND THE AUDIT LAST YEAR AND WE SAID FROM DAY ONE, AND I THINK WAS FOUND NUMEROUS TIMES. WE HAVE COMMUNICATIONS THAT CASH WASN'T RECONCILED. RIGHT BUT BUT YOU KNOW HE WAS SATISFIED ENOUGH. WE GOT IT MATERIALLY STATED CORRECTLY. YES, WE'RE SATISFIED BUT AGAIN. WOULD I BE SATISFIED IF I WAS FINANCE DIRECTOR? NO MY SATISFIED AS AN AUDITOR. YES BECAUSE IT COMES WITHIN THE MATERIAL THRESHOLD OF BEING MATERIALLY CORRECT. NOW THIS WAS THE 21 AUDIT. YES, THAT'S BEEN DONE. CORRECT YEAH, 21 IS DONE HAS BEEN DONE. I THINK THE FOCUS AGAIN FOR THE AUDIT TO GET COMPLETED. RIGHT IS TO GET CASH RECONCILED ON A TIMELY BASIS. FROM FROM THIS POINT FORWARD. MY OUR OUR PROCESS RIGHT NOW IS WE'RE GONNA GO THROUGH ALL THE OTHER ACCOUNTS. THE PROBLEM IS UNTIL CASH GETS RECONCILED. WE'RE IN. WE'RE IN A NO WIN SITUATION. BECAUSE I KNOW YOU GUYS WANT TO DATE. I DON'T FEEL COMFORTABLE MAKING THAT DATE UNTIL I SEE WHERE THE CASH IS.BECAUSE THEN WE CAN BACK DATE FROM THAT POINT, BECAUSE IF THERE'S A LOT OF ITEMS THAT HAVE BEEN CLEARED UP, WE'VE GOT TO GO BACK AND TEST IT TO MAKE SURE THAT WE'RE COMFORTABLE WITH IT, BECAUSE AGAIN IT'S AN AREA NOW OF EXTREME RISK. OKAY SO MISS ADD MORE JUST TOLD US THREE MONTHS AGO, SHE I GUESS YOU TALKED TO ONE OF OUR ASSISTANTS OR SOMETHING THAT IS BEEN RECONCILED THROUGH SEPTEMBER. IS THAT TRUE? IS THAT RIGHT OR NOT? IT'S BEEN RECONCILED THROUGH SEPTEMBER. YES UM, AND AS HE SAID, AS THE FINANCE DIRECTOR, WE'RE NOT SATISFIED WITH JUSTIN MATERIALITY. I AM LOOKING FOR EVERYTHING. UH TO MATCH AND SO THE OTHER PROCESS THAT WE'RE LOOKING AT. IF YOU JUST WANT TO HEAR IF YOU WANT TO HEAR THIS IS BASICALLY WE'RE LOOKING AT A PROCESS THAT WE CAN RECONCILE WITHIN TWO HOURS OF PULLING DOWN THE G L AND SO WORKING WITH THIS CONSULTANT IS GIVING US THE WHEREWITHAL TO DO THAT, BECAUSE HE'S CREATING RULES WERE STRUCTURING THE JOURNAL ENTRIES SO THAT THEY CAN MATCH AUTOMATICALLY GOING THROUGH THE JOURNAL ENTRY, SO THAT'S PART OF THE PROCESS IS TAKING PLACE NOW BECAUSE FROM I CAN SEE IN MY EXPERIENCE TRYING TO RECONCILE A GL THAT'S COMING OUT OF MUNIS LIKE IT IS. IT'S GOING TO BE DIFFICULT FOR ANY STAFF THIS SIZE TO STAY TO BE SUSTAINABLE. AND SO IF YOU WANT TO TRY, MR TALLY OUR I WOULD WELCOME YOU TO COME IN AND LOOK AT THAT. SO THAT YOU CAN GIVE US MAYBE YOU CAN GIVE US UH, SOME OF YOUR EXPERTISE AND HOW WE COULD RECONCILE THAT EVEN FASTER. LET ME ASK YOU THIS. DO YOU HAVE ADEQUATE STAFF RIGHT NOW? TO DO THE WORK. OF COURSE NOT. I DO NOT HAVE ADEQUATE THAT. I DO HAVE STAFF THAT WERE WORKING WITHIN THE CITY'S BUDGET IN ORDER TO GET STUFF DONE. THAT IS WHY I HAVE HIRED CONSULTANTS TO COME IN BECAUSE HIRING STAFF RIGHT NOW IS YOU HAVE TO TAKE THE TIME TO HIRE AND FIND THE RIGHT PERSON. TO COME IN AND DO IT. I WAS FORTUNATE TO PICK UP MISS HICKMAN TO COME IN AND ASSIST ME BECAUSE THE PRIOR ASSISTANCE THAT I HAD WITH SOMEBODY WHO DID NOT KNOW HOW TO RECONCILE BUT TOLD ME THEY DID.
AND SO WHEN I REVIEW THE DOCUMENT AND SAID, THIS IS NOT RECONCILIATION, WHAT ARE YOU DOING? SO THAT WAS A RETRAINING PROCESS HAVING TO GO ON, SO I'M TRAINING AND TRYING TO RUN THE OPERATION. IT IS DIFFICULT AT BEST, BUT WE ARE COMMITTED TO GETTING IT DONE. BECAUSE I DON'T I'M I'M AGREEMENT GREEN WITH YOU THAT CASH IS KEEN. IT HAS TO BE RECONCILED, AND I'M NOT SATISFIED WITH MATERIALITY. I AM I WANT TO MAKE SURE THAT EVERYTHING IS RECONCILED AND ACCOUNTED FOR ON THE GENERAL LEDGER. HOW MANY AIDS ON YOUR STAFF? YOU'RE TALKING ABOUT NUMBERS. HOW MANY PEOPLE FIVE. FIVE HORSES FIVE THAT INCLUDING YOU, INCLUDING ME. AND I AM DOING THE DETAILED WORK AT THIS POINT. I DOWN IN THE NUMBERS. WE MADE JOURNAL ENTRIES WE APPROVE . WE HAVE TO DO A COUNTRY HAVING DUAL CONTROLS IS DIFFICULT BECAUSE THERE'S ONLY SO MANY OF US AS WE TRAIN NEW STAFF THAT JUST CAME IN. AND IN THAT REPORT I GAVE YOU I SHOWED YOU THE TURNOVER, THE EXPERTISE AND EXPERIENCE I HAVE ON STAFF. IS MINIMAL, BUT THEY'RE LEARNING.
AND WE ARE COMMITTED TO TRAINING THEM. HOWEVER YOU KNOW THAT IT TAKES TIME. IT IS NOT GONNA HAPPEN OVERNIGHT. SO MR COONS HAS A QUESTION. YES, SIR. I'M SORRY. YES, SIR. SO. TO BE HONEST, I'M HAVING DEJA VU. NO, I'VE HAD A LOT OF THINGS THAT WE HAVE HEARD. A COUPLE OF TIMES. I KNOW I'VE HEARD MULTIPLE OCCASIONS THAT WE HAVE STAFF SHORTAGES, AND IT'S SOME OF THE STAFF THAT WERE IN PLACE. MAYBE WE'RE NOT QUALIFIED TO DO WHAT THE JOBS THAT THEY WERE ASKED TO
[01:25:07]
DO, AND I'M ALSO UM YOU KNOW THIS? I THINK THIS IS MY THIRD OR FOURTH AUDIT COMMITTEE MEETING AND YES, WE HAVE DISCUSSED ON MULTIPLE OCCASIONS . THE INSUFFICIENCIES OF MUNIS SYSTEM. MY UNDERSTANDING FROM THE VERY BEGINNING WAS THAT WE PAID. FOR A BASE LEVEL SYSTEM WITHOUT ALL THE BELLS AND WHISTLES AND THANK YOU, SIR. WE'RE GETTING WHAT WE'RE PAYING FOR. SO I'M HEARING LOTS OF THINGS THAT I'VE HEARD BEFORE. UM AND, YES, THERE WAS A CANDIDATES FORUM STARTED HALF AN HOUR AGO. BUT I'M NOT HEARING ANY. THING WHERE WE'RE COMING ANY KIND OF CONCLUSION WITH THIS DISCUSSION AND A LOT OF WHAT WE'RE DISCUSSING. I FEEL LIKE MIGHT BE SOMETHING THAT SHOULD BE DISCUSSED BY THE COUNCIL. AND MAYBE NOT, BY THIS COMMISSION.SO, UH, IF YOU KNOW I'M ABOUT TO LEAVE. IF YOU FEEL LIKE THERE'S SOME ACTIONABLE ITEM THAT'S GOING TO BE TAKEN. THIS EVENING. I WILL CERTAINLY STAY. UM BUT LOOKING AT WHAT'S LEFT ON THE AGENDA. THIS IS GOING TO COME TO COUNCIL SOONER OR LATER. ANYWAYS. I AGREE. I AGREE.
[3B. Deliberate and consider to make findings and/or recommendations to the City Council and deliberate concerning allegations made by citizens or others of the finance department arising from the Special City Council Meeting on March 30, 2023 and citizen comments on Regular Meeting on April 4, 2023.]
COUNCILOR. THERE WAS YOU HAVE TO AGENDA ITEMS ONE A. AND B WHAT YOU'VE ADDRESSED. AND SO I THINK . IT WOULD BE APPROPRIATE IF YOU MADE A MOTION THAT WE NEED. ASSUMING WE HAVE A BALANCED.THAT'S WHY I'M A LIAR NOT ENCOUNTER. THERE'S BEEN A RECONCILIATION. TO THE END OF THE YEAR, 2022 AND THAT NEEDS TO GET OVER TO MR WILLIAMS SO THAT HE CAN DO HIS WORK. WE DON'T HAVE A DATE, BUT AT THIS POINT, SOMEONE MIGHT NEED TO GIVE THE COUNCIL A DAY YOU SAY? I THINK THE ONLY THING YOU CAN DO IS WE DON'T HAVE A DATE, MR TALLY. THAT WE CAN GIVE THE COUNCIL AND WE NEED TO LET THEM KNOW THAT THAT'S WHY YOU MEET. BECAUSE ONE OF YOUR PRIMARY FUNCTIONS UNDER THE ORDINANCES. IS TO REVIEW THE AUDIT. AND ASK QUESTIONS AND LIKE YOU HAVE BEEN DOING TONIGHT , SO THAT, UH, WHEN THAT DOCUMENT IS DONE, YOU YOU YOU FEEL AS THE RECOMMENDING BODY COMFORTABLE THAT THINGS ARE AS THEY ARE PRESENTED. OKAY SO THIS POINT I DON'T KNOW THAT YOU ARE ALL COMFORTABLE AT THIS POINT. YEAH I WOULD AGREE. I DON'T THINK WE'RE ALL COMFORTABLE AT THIS POINT. SO I SAY, UM WHAT WE HAVE. LEARN. SO FAR, AT LEAST WHAT I'VE LEARNED SO FAR IS THAT THERE WAS, UH PROBLEM WITH A BUDGET DOCUMENT, WHICH WAS RESOLVED. WAS RECOMMENDED TO BE RESOLVED BY GRADIENT AND IT WAS DONE. THE AUDIT. IS STILL IN PROCESS. AND WE'LL JUST LET THE COE THE AUDIT FROM THAT POINT FORWARD. OKAY SO YOU KNOW, UM, WE'LL PUT RESOURCES BECAUSE WE WANT TO ADD LOVE TO GET IT. I'D LIKE TO GET A LOT OF THOSE MAN HOURS DONE. BEFORE THE 12TH OF MAY. SO THAT BASICALLY WILL HAVE AT LEAST ONE OF MY THOUGHT PROCESS BASICALLY IS I'M GOING TO START PREPARING THE DRAFT ON THE NUMBERS THAT WE ALREADY HAVE, BECAUSE IT'S LINKED UP. AND THEN WE'LL WAIT TO SEE WHAT HAPPENS AS A BYPRODUCT. I THINK THEY SENT ANOTHER TRIAL BALANCE TODAY. I THINK I GOT AN EMAIL FROM YESTERDAY. YEAH. SO THAT'S THE ONE I'M GONNA USE FROM A PLANNING STANDPOINT. I CAN TAKE A LOOK AT THAT. PROBABLY IT WILL BE OVER THE WEEKEND OR MONDAY AND THEN AFTER LOOKING AT THAT, I'M GOING TO GO BACK WITH THEM WITH SOME QUESTIONS, AND HOPEFULLY WE CAN KIND OF START MOVING, BECAUSE THE GIRL WHO'S GONNA START WORKING ON IT AND COME OUT HERE, YOU KNOW, AND I'M JUST SAYING WE'RE GOING TO SIT DOWN HERE AND GET IT DONE BECAUSE I'M TRYING TO GET EVERYTHING OFF MY PLATE AND IS FOCUSED ON GETTING THIS IS FAR ALONG THE PROCESS SO THAT CHUCK WHO'S GOING TO BE THE PARTNER IS GOING TO SIGN OFF OF IT. IT'S IN A DECENT RESULT. ALRIGHT, SO, SO LET'S LET'S RECONVENE IN A MONTH. WE CAN GET AN UPDATE. WE CAN MEET THE NEW PARTNER FROM THE FIRM THAT WILL BE HANDLING THE AUDIENCE. AND WE'LL GO FROM THERE. IF YOU WANT MISS CHAIRMAN MAYBE BE APPROPRIATE TO MAKE A MOTION THAT BASICALLY YOUR RESTATED CONCLUSIONS THAT. YOU JUST MADE THAT WE PUT THOSE IN SOME FORM AND COME FROM THE COMMITTEE. AS WHAT YOU DID HERE TODAY. AND OF COURSE, THE RECORD WILL SPEAK FOR ITSELF BECAUSE THE MEETING IS BEING RECORDED. BUT AT LEAST HAVE THOSE FINDINGS COME OUT OF THE COMMITTEE THAT THE AUDITS NOT DONE. CACHES RECENTLY BEEN RECONCILED AND
[01:30:01]
APPROXIMATELY 300 MAN HOURS. I THINK IT WOULD BE INSTRUCTIVE. THEY KNOW SOMETHING. OBVIOUSLY, THERE'S COUNCIL MEMBERS HERE AND LOL, WATCH THE VIDEO. BUT SOMETHING THAT CONCRETE COME OUT OF THE COMMITTEE BECAUSE THAT THAT'S WHY YOU MEET AND THAT'S WHAT YOUR JOB IS TO MAKE RECOMMENDATIONS TO THE OKAY SO CAN YOU DO THAT, MR MCMANUS? I'LL TRY TO STAY FOR YOU THAT, UH, THAT THE AUDIT COMMITTEE MOVES. TO HOW THE CONCLUSIONS AS STATED BY MR HARVEY AT THE CONCLUSION OF THE MEETING REGARDING THE GRANIC, ASUS. SOLUTION. TO THE WATER FUND ISSUE. WHICH IS BEEN EUPHEMISTICALLY REFERRED TO AS TWO SETS OF BOOKS. AND THAT. THE CASH IS BEEN RECONCILED. UH FOR THE CLOSE OF THE 2022. FISCAL YEAR. AND SEPTEMBER 30TH. AND THAT THAT WOULD ALLOW THE AUDIT TO PROCEED. I THINK MR WILLIAMS , AS IDENTIFIED FOR YOU, THAT IS APPROXIMATELY 300 MAN HOURS. AND UH, THEY'LL DO THEIR LEVEL BEST TO TRY TO COMPLETE DEBT BY THE 15TH. OF MAY. AS I UNDERSTOOD HIM TO SAY, TAKE A SIP. AS MUCH AS HE CAN BUY THE FELL WELL STATED CORRECTLY BECAUSE I DON'T WANT TO WRITE A CHECK FOR SOMEONE CAN'T CASH SO YEAH, I DO KNOW THAT'S THE ONLY ACCOUNTING I KNOW, BY THE WAY. UH AND THEN WE'LL MAKE THAT QUOTE A RECOMMENDATION FROM THE COMMITTEE. AND I'LL ASSIST YOU IN TRYING TO WRITE JUST WHAT I SAID. OKAY. THANK YOU, CITY ATTORNEY WITH THAT SAID, I'LL SAY SO MOVED SECOND ALL RIGHT, UH, MOVED BY UH, MEMBER MCBURNETT AND SECONDED BY MEMBER TALLY, AND SO LET'S UH. SINCE WE DON'T HAVE THE LIGHTS WILL JUST RAISE OUR HANDS, ALL IN FAVOR OF THE MOTION RAISED. OKAY PASSES UNANIMOUSLY. AND SO WITH THAT WE ARE DONE. TIME ADJOURNED. 70404. THANK YOU.* This transcript was compiled from uncorrected Closed Captioning.