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MAKE SURE THAT WE IT WAS THE SO WE'RE GOING TO GO AHEAD AND GET STARTED SINCE IT IS 2:00. CALL THE MEETING TO ORDER. REGULAR MEETING OF THE AUDIT COMMITTEE HAS BEEN CALLED TO ORDER. AS NOW. AND SEE. SECRETARY, DO YOU HAVE ANY PUBLIC COMMENTS? NO PUBLIC, NO. WRITTEN, OBVIOUSLY.
[A. Consider the minutes of July 15, 2025, Audit Committee Meeting]
RIGHT. OKAY. TODAY WE ARE PERSONALLY CONSIDER THE MINUTES OF THE JULY 15TH, 2025 AUDIT COMMITTEE MEETING. MR. AND THAT SHOULD HAVE BEEN SENT WITH THE PACKET AS WELL. SO WITH THAT SAID, DOES ANYBODY WANT TO MAKE A MOTION? I'LL SECOND. ALL RIGHT. AND WE HAVE THIS. ALL IN FAVOR JUST RAISE YOUR HAND OKAY. MOTION PASSES.[B. Review Audit Committee policies, procedures, and/or activities as required annually by the City of Duncanville Audit Committee resolution 2015-111714.]
NEXT ITEM IS ITEM B REVIEW AUDIT COMMITTEE PROCEDURES OR POLICIES.PROCEDURES AND OR ACTIVITIES REQUIRED ANNUALLY BY THE CITY OF DUNCANVILLE AUDIT COMMITTEE RESOLUTION (201) 511-1714. SO I DON'T THINK WE HAVE THOSE RIGHT. IN WRITTEN FORM HERE. RIGHT.
SO IF IF. COUNCIL MEMBER. GOOD. AND MAYOR CONTRERAS IF YOU.
IT'S A IT'S A EMAIL DATED FEBRUARY 26TH FROM WHICH HAS THE HELLO MR. TALLY WELCOME.
YES. NO, NO. THE EMAIL DATED FEBRUARY 26TH. SO, MR. THAI, WHAT WE'RE DOING IS ACTUALLY THE OUR USUAL. REVIEW THE AUDIT COMMITTEE POLICIES, PROCEDURES AND ACTIVITIES REQUIRED ANNUALLY BY THE CITY OF DUNCANVILLE AUDIT COMMITTEE RESOLUTION (201) 511-1714. AND SO BASICALLY WHAT IT SAYS IS THAT THE AUDIT COMMITTEE OF THE CITY OF DUNCANVILLE IS ESTABLISHED BY RESOLUTION 203102109, APPROVED BY THE CITY COUNCIL ON OCTOBER 21ST, 2003, AND AMENDED BY RESOLUTION (201) 511-1714 BY THE CITY COUNCIL ON NOVEMBER 17TH, 2015.
THE COMMITTEE'S OPERATIONAL GUIDELINES ARE SET HEREIN AND MAY BE AMENDED BY MAJORITY VOTE OF THE MEMBERS OF THE AUDIT COMMITTEE, THE AUTHORITY AND RESPONSIBILITY OF THE AUDIT COMMITTEE, AND THE APPOINTMENT AND TERMS OF THE MEMBERS ARE DESIGNATED AND RESOLUTION 2015-111714 ARE INCORPORATED HEREIN BY REFERENCE. MEETINGS. THE AUDIT COMMITTEE IS IS TO MEET AT LEAST TWO TIMES PER YEAR, AS MANY TIMES AS THE COMMITTEE DEEMS NECESSARY. I DON'T THINK ANYBODY HAS ANY ISSUES WITH THAT BECAUSE WE'VE BEEN DOING THAT. ATTENDANCE.
MEMBERS OF AUDIT COMMITTEE ARE PRESENT AT ALL MEETINGS. IT'S NECESSARY. DESIRABLE. THE CHAIRMAN MAY REQUEST MEMBERS OF THE MANAGEMENT AND REPRESENTATIVE OF THE INDEPENDENT AUDITOR TO BE PRESENT AT A MEETING OF THE COMMITTEE. A QUORUM OF MEMBERS MUST BE PRESENT IN ORDER TO CONDUCT A MEETING OF. THE COMMITTEE CONSISTS OF THREE MEMBERS. A QUORUM WOULD BE CONSTITUTED TWO MEMBERS. IF COMMITTEE CONSISTS OF FIVE MEMBERS, AND THREE OUT OF FIVE MEMBERS WILL BE PRESENT TO HAVE A QUORUM. ANY COMMENTS? QUESTIONS? OKAY, THE STANDARD. SPECIFIC DUTIES. FINANCIAL REPORTING. THE AUDIT COMMITTEE IS TO REVIEW WITH MANAGEMENT AND THE INDEPENDENT AUDITOR THE CITY'S POLICIES AND PROCEDURES TO REASONABLY ENSURE THE ADEQUACY OF INTERNAL CONTROLS OVER ACCOUNTING, ADMINISTRATION,
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COMPLIANCE WITHIN LAWS AND REGULATIONS, AND FINANCIAL REPORTING. TO HAVE FAMILIARITY THROUGH THE INDIVIDUAL EFFORTS OF ITS MEMBERS WITH THE ACCOUNTING AND REPORTING PRINCIPLES AND PRACTICES APPLIED BY THE CITY AND PREPARING ITS FINANCIAL STATEMENTS. FURTHER, THE COMMITTEE IS TO MAKE OR CAUSE TO BE MADE ALL NECESSARY INQUIRIES OF MANAGEMENT AND THE INDEPENDENT AUDITOR CONCERNING THE ESTABLISHED STANDARDS OF CONDUCT AND PERFORMANCE AND DEVIATION FROM THEIR WELCOME. MR. FRAZIER. JERRY, WE'RE ON ITEM B, WHICH IS REVIEW AUDIT COMMITTEE PROCEDURES, PROCEDURES AND ACTIVITIES RELATING TO RESOLUTION 201511743. REVIEW PRIOR TO THE START OF THE ANNUAL AUDIT, THE SCOPE AND THE GENERAL EXTENT OF THE INDEPENDENT AUDITORS PLANNED EXAMINATION, INCLUDING ITS ENGAGEMENT LETTER. THE AUDITOR'S FEES ARE TO BE ARRANGED WITH MANAGEMENT AND SUMMARIZED ANNUALLY FOR THE COMMITTEE REVIEW. THE COMMITTEE'S REVIEW SHOULD ENTAIL AN UNDERSTANDING FROM THE INDEPENDENT AUDITOR OF THE FACTORS CONSIDERED BY THE AUDITOR. DETERMINE THE AUDIT SCOPE, INCLUDING RISK CHARACTERISTICS OF THE CITY, EXTERNAL REPORTING REQUIREMENTS, MATERIALITY OF THE VARIOUS SEGMENTS OF THE COMBINED ACTIVITIES. QUALITY OF INTERNAL ACCOUNTING, ADMINISTRATIVE AND COMPLIANCE CONTROLS. EXTENT OF INTERNAL AUDITORS INVOLVEMENT AND AUDIT, EXAMINATION AND OTHER AREAS TO BE COVERED DURING THE AUDIT ENGAGEMENT. NUMBER FOUR AND IF ANYBODY HAS ANY QUESTIONS OR CONCERNS, JUST BRING UP THEN NUMBER FOUR REVIEW WITH MANAGEMENT. TO THE EXTENT THE NON-AUDIT SERVICES PLAN TO BE PROVIDED BY THE INDEPENDENT AUDITOR IN RELATION TO THE OBJECTIVITY AND INDEPENDENCE NEEDED IN AUDIT FIVE REVIEW WITH MANAGEMENT AND INDEPENDENT AUDITOR INSTANCES WHERE MANAGEMENT HAS OBTAINED SECOND OPINIONS ON ACCOUNTING AND FINANCIAL REPORTING POLICIES FROM OTHER ACCOUNTANTS. SIX. REVIEW WITH MANAGEMENT AND INDEPENDENT AUDITOR UPON COMPLETION OF ITS AUDIT. FINANCIAL RESULTS FOR THE YEAR PRIOR TO THE RELEASE TO THE PUBLIC AUDIT COMMITTEE REVIEW IS TO ENCOMPASS THE CITY'S ANNUAL FINANCIAL REPORT, INCLUDING THE FINANCIAL STATEMENTS AND THE FOOTNOTE, DISCLOSURES AND SUPPLEMENTAL DISCLOSURES REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, INCLUDING SIGNIFICANT TRANSACTIONS NOT A NORMAL PART OF THE CITY'S OPERATIONS. B SELECTION OF CHANGES, IF ANY, DURING THE YEAR, AND THE CITY'S ACCOUNTING PRINCIPLES OF THEIR APPLICATIONS. C SIGNIFICANT ADJUSTMENTS PROPOSED BY THE INDEPENDENT AUDITOR. D THE PROCESS USED BY MANAGEMENT IN FORMULATING ACCOUNTING ESTIMATES. THE INDEPENDENT AUDITORS CONCLUSIONS REGARDING THE REASONABLENESS OF THOSE ESTIMATES. E ANY DISAGREEMENTS BETWEEN THE INDEPENDENT AUDITOR AND THE MANAGEMENT ABOUT THE MATTERS THAT COULD BE SIGNIFICANT TO THE CITY'S FINANCIAL STATEMENTS OR THE AUDITOR REPORT. F DIFFICULTIES ENCOUNTERED IN PERFORMANCE OF THE AUDIT G MANAGEMENT CONSULTATION WITH OTHER ACCOUNTANTS WITH RESPECT TO ACCOUNTING POLICIES AND THEIR APPLICATIONS, AND H MAJOR ISSUES DISCUSSED BETWEEN AUDITOR AND MANAGEMENT PRIOR TO THE RETENTION. THE AUDIT COMMITTEE SHALL ALSO ONE. EVALUATE THE CORPORATION RECEIVED BY THE INDEPENDENT AUDITOR DURING ITS AUDIT, INCLUDING THE ACCESS TO ALL REQUESTED RECORDS, DATA AND INFORMATION. ALSO ELICIT THE COMMENTS OF MANAGEMENT REGARDING THE RESPONSIVENESS OF THE INDEPENDENT AUDIT TO THE CITY'S NEEDS. INQUIRE OF THE INDEPENDENCE AUDITOR WHERE THEY HAVE ANY DISAGREEMENTS WITH MANAGEMENT THAT, IF NOT SATISFACTORILY SATISFACTORILY RESOLVED, WOULD BE CAUSED, WOULD HAVE CAUSED THE INDEPENDENT AUDITOR TO ISSUE A NONSTANDARD REPORT ON THE CITY'S FINANCIAL STATEMENTS TO DISCUSS THE INDEPENDENT AUDITOR WITH THE QUALITY OF THE CITY'S FINANCIAL AND ACCOUNTING PROCESS, AND ANY RECOMMENDATIONS THAT THE INDEPENDENT AUDITOR MAY HAVE. TOPICS TO BE CONSIDERED DURING THE DISCUSSION INCLUDE IMPROVING INTERNAL FINANCIAL CONTROLS, CONTROLS OVER COMPLIANCE, COMPLIANCE WITH LAWS AND REGULATIONS, SELECTION OF ACCOUNTING PRINCIPLES AND MANAGEMENT REPORTING SYSTEMS THREE REVIEW WRITTEN RESPONSES. MANAGEMENT TO THE LETTER OF COMMENTS AND RECOMMENDATION FROM THE INDEPENDENT AUDITOR, AND DISCUSS WITH THE MANAGEMENT AND STAFF. IMPLEMENTATION OF PRIOR PERIOD RECOMMENDATION. CORRECTIVE ACTION FOUR. DISCUSS WITH MANAGEMENT THE SCOPE AND QUALITY OF INTERNAL ACCOUNTING, ADMINISTRATIVE COMPLIANCE AND FINANCIAL REPORTING. CONTROLS AND EFFECT FIVE APPRIZE THE CITY COUNCIL THROUGH MINUTES AND SPECIAL PRESENTATIONS AS NECESSARY FOR SIGNIFICANT DEVELOPMENTS IN THE COURSE OF PERFORMING THE ABOVE DUTIES. SIX RECOMMEND THE CITY COUNCIL MAY APPROPRIATE. I'M SORRY.[00:10:03]
RECOMMEND TO THE CITY COUNCIL ANY APPROPRIATE EXTENSIONS OR CHANGES IN THE DUTIES OF THE COMMITTEE. SEVEN RECOMMENDED THE CITY COUNCIL THE RETENTION OF THE INDEPENDENT AUDITOR. A REPORT ANNUALLY TO THE CITY COUNCIL ON THE DISCHARGE OF THESE RESPONSIBILITIES. AND WE'RE ALMOST GETTING THROUGH WITH THIS SYSTEM OF INTERNAL CONTROLS. THE AUDIT COMMITTEE IS TO ONE REVIEW THE CITY'S PROCESS FOR THE ASSESSING SIGNIFICANT RISK OR EXPOSURES, AND THE STEPS MANAGEMENT HAS TAKEN TO MINIMIZE SUCH RISK. TWO CONSIDER AND REVIEW WITH MANAGEMENT AND AUDITORS THE EFFECTIVENESS OF OR WEAKNESS IN THE CITY'S INTERNAL CONTROLS, INCLUDING STATUS AND ADEQUACY OF MANAGEMENT INFORMATION SYSTEMS AND OTHER INFORMATION AND SECURITY AND THE OVERALL CONTROL ENVIRONMENT AND ACCOUNTING AND FINANCIAL CONTROLS. ALSO, ANY RELATED SIGNIFICANT FINDINGS AND RECOMMENDATIONS OF THE INDEPENDENT AUDIT. THE INDEPENDENT ACCOUNTANTS, TOGETHER WITH THE MANAGEMENT'S RESPONSE THERETO, INCLUDING A TIMETABLE FOR IMPLEMENTATION OF RECOMMENDATIONS TO CORRECT THE WEAKNESSES IN INTERNAL CONTROLS. THREE. REVIEW INTERNAL PROCESSES FOR DETERMINING THE MANAGEMENT KEY FINANCIAL RISK AREAS FOUR. REVIEW THE CITY'S PROCESS FOR DETERMINING RISK AND EXPOSURES FROM INSERTED AND INSERTED LITIGATION AND CLAIMS, AND FROM NONCOMPLIANCE WITH LAWS AND REGULATIONS AND ETHICS. AUDIT COMMITTEE SHALL ESTABLISH, REVIEW AND UPDATE PERIODICALLY OF CODE OF ETHICAL CONDUCT AND ENSURE THAT THE MANAGEMENT HAS ESTABLISHED SYSTEM TO ENFORCE THIS CODE TO THE REVIEW. THE MANAGEMENT'S MONITORING OF THE COMPLIANCE INFORMATION DISSEMINATED TO GOVERNMENT ORGANIZATIONS TO PUBLIC TO SATISFY LEGAL AND OR REGULATORY REQUIREMENTS. THREE. REVIEW THE CITY'S LEGAL COUNSEL ANY LEGAL MATTER THAT COULD HAVE SIGNIFICANT IMPACT ON THE CITY'S FINANCIAL REPORTING OR FINANCIAL POLICIES, AND OTHER REGULATORY REQUIREMENTS RELATED TO THE FINANCIAL DISCLOSURES FOR ESTABLISH AND MAINTAIN PROCEDURES FOR THE RECEIPT, RETENTION, AND TREATMENT OF COMPLAINTS REGARDING ACCOUNTING, AUDITING AND REPORTING PRACTICES. AND LASTLY, IN FIVE ESTABLISH AND MAINTAIN PROCEDURES FOR THE CONFIDENTIAL ANONYMOUS SUBMISSION BY EMPLOYEES REGARDING QUESTIONABLE ACCOUNTING, AUDITING OR REPORTING MATTERS. OKAY, THAT WAS A WHOLE LOT OF STUFF. BUT THEN, MR. TAO, YOU HAVE ANY COMMENTS? AMERICAN. MISS GOOD? NO. MR. FRAZIER OKAY.MR. JACKSON OR MISS PETTIS, DO YOU HAVE ANY. THANK YOU, MR. PRUITT. NO. OKAY. ALL RIGHT. WE
[C. Review and discuss the audit of financial statements for the year ending September 30, 2025, with Patillo, Brown & Hill LLC audit firm.]
WILL CONSIDER THAT ITEM DONE. OKAY. ALL RIGHT. SEE, REVIEW AND DISCUSS THE AUDIT OF FINANCIAL STATEMENTS FOR THE YEAR ENDING SEPTEMBER 30TH, 2025 WITH PATTILLO, BROWN AND HILL LLC AUDIT FIRM. SO, MR. JACKSON, I WILL TURN IT OVER TO YOU TO WITH THAT. YES. THANK YOU, MR. CHAIR. MEMBERS OF THE COMMITTEE. GOOD AFTERNOON. RICHARD JACKSON, DIRECTOR OF FISCAL SERVICES. ALONGSIDE ME TO MY IMMEDIATE RIGHT IS MISS TIA PETTIS, ASSISTANT DIRECTOR OF FISCAL SERVICES. AND ALSO, BEFORE I TURN OVER TO MR. PRUITT FROM PATTILLO, BROWN AND HILL, I WANTED TO HAVE PUBLIC ACKNOWLEDGMENT NOT ONLY OF THE WORK ON THIS AUDIT THAT WAS LED THROUGH OUR FISCAL ADMIN TEAM BY MISS PETTIS, BUT OUR FISCAL ADMIN TEAM IS HERE BEHIND ME, SEATED BEHIND ME. AND SO WE JUST WANTED TO HAVE PUBLIC ACKNOWLEDGMENT OF THEM AND ALL OF THEIR WORK TO HELP US GET TO THE POINT OF THIS MEETING. SO I GUESS STARTING IMMEDIATELY BEHIND ME IS MISS TORI STRAND. NEXT TO HER IS MISS YVONNE CULBERSON, NEXT TO YVONNE. NEXT OVER IS MISS CYNTHIA MCGEE THOMPSON. AND FINALLY. TOYA LANDSDALE, WHO IS MY FAR RIGHT.SO AGAIN FOR THIS COMMITTEE, AS WELL AS ANYONE WHO MAY BE LISTENING AGAIN, JUST WANT TO HAVE A PUBLIC ACKNOWLEDGMENT. AND THANK YOU TO THE LADIES BEHIND ME AND ALSO THE LEADERSHIP OF MISS PETTIS THAT ALLOWED US TO BE HERE AT THIS POINT. AND SO WITH THAT, I'D LIKE TO TURN IT OVER TO MR. TODD PRUITT FROM TAYLOR BROWNHILL TO GO OVER NOT ONLY OUR OUR COMPREHENSIVE FINANCIAL REPORT, BUT OUR SINGLE AUDIT REPORT AS WELL. THANK YOU. SO
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I'LL START OFF BY THANKING THE CITY STAFF FOR ALL OF THEIR ASSISTANCE DURING THE COURSE OF THE AUDIT. CERTAINLY NICE TO BE BACK ON SCHEDULE GETTING THIS OUT EVEN IN EARLY MARCH.THERE'S BEEN A LOT OF INCREASED SCRUTINY WITH THE CITY'S WITH THE NEW SENATE BILL THIS YEAR, WITH GETTING YOUR REPORTS OUT WITHIN 180 DAYS, WE'VE ACTUALLY HAVE A SEVERAL CLIENTS THAT USED TO NOT DO THAT. SO IT GOT MOVED UP INTO TRYING TO DO SO, AND I THINK WE'LL BE DRAGGING IN LATER IN MARCH. SO WE CERTAINLY APPRECIATE THE ONES THAT WE CAN GET DONE A LITTLE BIT EARLY. AND THEY DID A FANTASTIC JOB OF GETTING US EVERYTHING THAT WE NEEDED. YOU SHOULD HAVE THREE DOCUMENTS THAT WE WILL GO OVER. YOU'VE GOT BIG 100 PAGE BOUND DOCUMENT, WHICH IS THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT THAT CONTAINS THE FINANCIAL STATEMENTS THAT WE'VE AUDITED. YOU ALSO HAVE A SMALLER BOUND DOCUMENT, THE SINGLE AUDIT REPORT. YOU MIGHT REMEMBER THAT ANY LOCAL GOVERNMENT THAT SPENDS OVER $1 MILLION IN FEDERAL GRANT AWARDS IN A FISCAL YEAR USED TO BE $750,000. THEY'VE RAISED THAT TO $1 MILLION THIS YEAR. THAT TRIGGERS WHAT'S CALLED A SINGLE AUDIT, WHERE YOU'VE GOT A. A FEDERAL COMPLIANCE AUDIT. YOUR AUDITOR PERFORMS IN CONJUNCTION WITH YOUR FINANCIAL STATEMENT AUDIT. AND THEN LASTLY, YOU HAVE A STAPLED LETTER. THIS CONTAINS JUST VARIOUS COMMUNICATIONS THAT ARE REQUIRED TO BE MADE FROM YOUR AUDITOR. TO THE AUDIT COMMITTEE.
ANYTIME YOU UNDERGO AN AUDIT. MANY OF THESE THINGS WERE THE THINGS THAT YOU WERE SPEAKING ABOUT EARLIER. RIGHT BEFORE THE MEETING STARTED. AT THE BEGINNING OF THE MEETING, IF YOU LOOK AT THE CITY'S ANNUAL COMPREHENSIVE FINANCIAL REPORT, KIND OF JUST TAKE A LOOK AT THE TABLE OF CONTENTS. YOU CAN SEE THAT THE REPORT IS SPLIT UP INTO THREE SECTIONS. I ALWAYS LIKE TO POINT THIS OUT BECAUSE ONLY PART OF THE INFORMATION IN YOUR ACFR IS ACTUALLY AUDITED.
YOU'LL NOTE THE FIRST SECTION, THE INTRODUCTORY SECTION, AND THE VERY LAST SECTION, THE STATISTICAL SECTION. THOSE ARE BOTH UNAUDITED SECTIONS. NOW WE DO MAKE SURE YOUR ORDER TO MAKE SURE THAT THAT INFORMATION AGREES TO THE FINANCIAL STATEMENTS, WHERE IT SHOULD MAKE SURE THAT IT CONTAINS ALL OF THE REQUIRED SCHEDULES THAT YOU NEED IN ORDER TO GET THE GFOA AWARD. BUT THOSE ARE ACTUALLY UNAUDITED SECTIONS. THE STATS SECTION IN PARTICULAR, THOUGH, DOES CONTAIN SOME GOOD INFORMATION. I ENCOURAGE YOU TO LOOK AT IT AT YOUR OWN DESIRE.
IT'S GOT SOME TEN YEAR TREND INFORMATION IN THERE THAT'S SOMEWHAT INTERESTING, BUT FOR PURPOSES OF OUR MEETING TODAY, WE'LL FOCUS ON THE FINANCIAL SECTION BECAUSE THAT'S THE SECTION THAT YOUR AUDITOR ACTUALLY AUDITS. INDEPENDENT AUDITORS REPORT ON. THE FINANCIAL SECTION IS ON FIRST PAGE OF THE FINANCIAL SECTION. THE INTRODUCTORY SECTION YOU'LL SEE IS NUMBERED WITH ROMAN NUMERALS. IT'S USUALLY ABOUT TEN PAGES LONG. AND THEN YOU'LL HAVE THE FINANCIAL SECTION. AND PAGE ONE. YOU'LL FIND THE INDEPENDENT AUDITORS REPORT.
AND WHAT THIS REPORT BASICALLY SAYS IS THAT PREPARING THESE FINANCIAL STATEMENTS IS THE RESPONSIBILITY OF THE CITY. YOUR AUDITOR CAN ASSIST IN THE PREPARATION OF THE FINANCIAL STATEMENTS, AND WE DO IN PERFECTLY FINE. IN ORDER TO MAINTAIN INDEPENDENCE, WE PUT CERTAIN SAFEGUARDS IN PLACE AND THOSE WERE PUT IN PLACE. BUT ULTIMATELY IT IS THE CITY'S RESPONSIBILITY TO PREPARE THE FINANCIAL STATEMENTS. YOUR AUDITOR'S RESPONSIBILITY TO EXPRESS AN OPINION ON THE FINANCIAL STATEMENTS. YOU'LL SEE OUR OPINION THERE IN THE FIRST PART OF THIS REPORT. HAPPY TO REPORT YOU RECEIVED WHAT'S CALLED AN UNMODIFIED OPINION. YOU'LL OFTEN HEAR PEOPLE CALL IT A CLEAN OPINION, AND IT'S THE HIGHEST FORM OF OPINION THAT YOU CAN GET. AND ALL IT REALLY MEANS IS THAT THE FINANCIAL SECTION OF THIS REPORT HAS BEEN AUDITED BY OUR FIRM AND, IN OUR OPINION, FREE OF ANY MATERIAL MISSTATEMENTS.
AND THEY'RE ALSO PRESENTED FAIRLY IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. WE SAY MATERIAL MISSTATEMENTS BECAUSE YOUR AUDITOR IS NOT GIVING ABSOLUTE ASSURANCE. IN ORDER TO GIVE ABSOLUTE ASSURANCE, YOU WOULD HAVE TO TEST EVERY TRANSACTION, WHICH WOULD OBVIOUSLY BE COST PROHIBITIVE. BUT YOUR AUDITOR PROVIDES REASONABLE ASSURANCE THAT THEY'RE FREE OF ANY MATERIAL MISSTATEMENTS. AND WHAT THAT REALLY MEANS IS THERE'S NO ITEMS IN THERE THAT WE BELIEVE WOULD WOULD CHANGE ANYONE'S JUDGMENT WHEN WHEN LOOKING AT YOUR FINANCIAL STATEMENTS, YOU ALSO NOTE IN THE VERY LAST PARAGRAPH OF THAT
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REPORT THAT OUR AUDIT WAS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS, AND THOSE STANDARDS REQUIRE YOUR AUDITOR TO DO A NUMBER OF THINGS THAT GO BEYOND JUST GENERALLY ACCEPTED AUDITING STANDARDS, ONE OF WHICH IS TO REPORT ON YOUR INTERNAL CONTROLS AND COMPLIANCE, AND YOU WILL FIND THAT REPORT ON PAGE ONE OF YOUR SINGLE AUDIT REPORT. LOOKING AT THE GOVERNMENT AUDITING STANDARDS REPORT, IT'S REALLY SPLIT UP INTO TWO SECTIONS. FIRST SECTION THEY'RE ON PAGE ONE. WE'RE TALKING ABOUT INTERNAL CONTROLS OVER FINANCIAL REPORT. WHAT WE'RE REALLY TALKING ABOUT HERE IS THE IT'S ALL THE POLICIES AND PROCEDURES THAT YOU HAVE IN PLACE HERE AT THE CITY THAT ULTIMATELY LEAD TO THE PREPARATION OF THESE FINANCIAL STATEMENTS. YOUR AUDITOR, IN ORDER TO PLAN AND PERFORM THEIR AUDIT, HAS TO GAIN AN UNDERSTANDING OF THOSE CONTROLS. AND IF DURING THAT PROCESS, WE IDENTIFY ANY DEFICIENCIES THAT WE THINK ARE SIGNIFICANT, EITHER IN THE WAY THEY WERE DESIGNED OR THE WAY THEY'RE ACTUALLY OPERATING, WE'RE REQUIRED TO INCLUDE THEM IN THIS REPORT. AND YOU CAN SEE IN THE VERY LAST PARAGRAPH ON PAGE ONE THAT THERE WERE NO SIGNIFICANT DEFICIENCIES IDENTIFIED OVER THE FINANCIAL REPORTING PROCESS. MR. PRUITT, YES, I UNDERSTAND THIS IS A DRAFT. IF YOU HAVEN'T DATED FOR TODAY, MARCH THE 5TH. YES. SO THIS IS THE END OF THE FIELD WORK? YES. I MEAN, THIS IS ACTUALLY IT'S A DRAFT JUST BECAUSE IT HASN'T BEEN APPROVED YET. IT ULTIMATELY I GUESS WILL BE DATED WHATEVER DAY WE AGREE, EVERYONE AGREES THAT IT'S OKAY TO BE FINALIZED, BUT THERE ARE NO CHANGES. AS YOU KNOW, THERE'S NOTHING ELSE OUTSTANDING THAT YOU NEED TO DEAL WITH, RIGHT? OKAY. IT REALLY JUST HAS TO BE APPROVED BY THE AUDIT COMMITTEE AND THEN THE FINANCE STAFF, WE DON'T THERE ARE NO MORE CHANGES THAT WE KNOW OF THAT NEED TO BE MADE. THAT'S A GOOD QUESTION. THE SECOND PART OF THAT REPORT, YOUR GOVERNMENT AUDITING STANDARDS REPORT ON PAGE TWO TALKS ABOUT COMPLIANCE. AND HERE WE'RE TALKING ABOUT COMPLIANCE WITH LAWS, REGULATIONS, CONTRACTS AND GRANTS. THERE ARE ITEMS THAT YOUR AUDITOR BELIEVES. IF WE WERE TO FIND NONCOMPLIANCE THAT COULD HAVE AN IMPACT ON YOUR FINANCIAL STATEMENTS. USUALLY THE WAY THAT WOULD HAPPEN IS YOU WOULD HAVE SOME TYPE OF NONCOMPLIANCE THAT WAS IDENTIFIED THAT WOULD CREATE A LIABILITY IN YOUR FINANCIAL STATEMENTS. IF WE WERE TO HAVE FOUND THAT, WE WOULD HAVE INCLUDED THAT IN THIS REPORT. AND YOU CAN SEE THERE IN THE LAST SENTENCE, IN THE FIRST PARAGRAPH, THE RESULTS OF OUR TESTS DISCLOSED NO INSTANCES OF NONCOMPLIANCE, BUT IT REQUIRED TO BE REPORTED. AN EXAMPLE OF THAT WOULD BE IF YOU WERE TO SAY WE WERE TESTING A GRANT THAT HAD TO BE IT HAD RESTRICTIONS ON WHAT IT COULD BE SPENT ON, AND WE IDENTIFIED SOME EXPENDITURES THAT WE QUESTIONED WHETHER OR NOT THEY WERE ALLOWABLE. AND YOU MIGHT HAVE TO PAY THAT MONEY BACK TO THE GRANTING AGENCY. SO THAT WOULD BE A LIABILITY IN YOUR FINANCIAL STATEMENTS. AND WE WOULD HAVE TO REPORT THAT HERE.BUT AS I SAID EARLIER, THERE WERE NO INSTANCES OF NONCOMPLIANCE THAT WERE IDENTIFIED. THE LAST AUDITOR'S REPORT IMMEDIATELY FOLLOWS THAT ONE. THIS IS ON PAGE THREE. AND THIS IS THE REPORT THAT COVERS THE FEDERAL SINGLE AUDIT THAT I SPOKE ABOUT EARLIER. IF YOU TURN TO PAGE SIX OF YOUR SINGLE AUDIT REPORT, YOU'LL SEE A SCHEDULE CALLED THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS. AND YOU CAN SEE THE CITY SPENT JUST OVER $1.2 MILLION IN FISCAL YEAR 25 JUST BARELY CROSSED THAT MILLION DOLLAR THRESHOLD THE YEAR. NOW, THE WAY THE SINGLE AUDIT PROCESS WORKS, YOUR AUDITOR IS NOT TESTING EVERY ONE OF YOUR FEDERAL PROGRAMS. WE PERFORM A RISK ASSESSMENT, AND WE'LL SELECT CERTAIN PROGRAMS FOR TESTING CERTAIN RULES THAT WE HAVE TO FOLLOW. AND ULTIMATELY, IF THE CITY IS DETERMINED TO BE A LOW RISK AUDITEE, IT'S CALLED A LOW RISK AUDITEE. WE HAVE TO GET 20% COVERAGE OF YOUR FEDERAL GRANT AWARDS. AND IF YOU ARE NOT, IF YOU DON'T MEET THE CRITERIA FOR A LOW RISK AUDITEE, WE HAVE TO GET 40%. AND SO WHAT WAS THE PERCENTAGE THAT WE IN THE. IF YOU WERE YOU DID NOT MEET THE CRITERIA FOR LOW RISK AUDIT. YOU CAN SEE ON PAGE EIGHT THERE NEAR THE
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BOTTOM, I BELIEVE THE REASON FOR THAT OFF THE TOP OF MY HEAD, ONE OF THE CRITERIA IS YOU HAVE TO HAVE HAD A SINGLE AUDIT IN EACH OF THE PREVIOUS TWO YEARS, AND YOU WOULD HAVE HAD TO HAVE IT COMPLETED ON TIME. AND I BELIEVE YOUR FISCAL YEAR 23 AUDIT WAS LATE. IS THAT RIGHT? CORRECT. THAT'S CORRECT. SO THAT MADE YOU NOT A LOWEST QUALITY THIS YEAR. SO YOU WOULD BE CONSIDERED A I'M SORRY. GO AHEAD. SO YOU COVERED 40%. YEAH. WE HAD TO GET AT LEAST 40% COVERAGE. AND THAT ALWAYS DOESN'T REALLY MAKE THAT BIG OF A DIFFERENCE. LIKE I'M NOT SURE IF WE'RE THE PROGRAM THAT WE SELECTED FOR TESTING THERE ON PAGE SIX IS THE THE COVID 19, WHICH WAS THE LARGEST GRANT THAT WE HAD, JUST OVER $500,000. AND THAT IS LISTED ON PAGE EIGHT. IF YOU ARE EVER LOOKING AT YOUR SINGLE AUDIT REPORT ON THE SCHEDULE OF FINDINGS IN QUESTION, COSTS USUALLY ABOUT MIDWAY THROUGH, YOU'LL SEE A TITLE THAT SAYS IDENTIFICATION OF MAJOR PROGRAMS. ALL A MAJOR PROGRAM IS IN SINGLE AUDIT TERMINOLOGY IS ONE THAT YOUR AUDITOR SELECTED TO TEST. THAT'S ALL THAT REALLY IS. GOING BACK TO YOUR PREVIOUS STATEMENT. YES. TYPICALLY IF YOU FILE ON TIME AFTER A YEAR, THAT HAS COST YOU SOME ON QUALIFYING AS A RESULT OF NOT FILING ON TIME, HOW LONG DOES IT TAKE TO GET BACK TO WHERE TO THE TOP RATING THERE? YOU WOULD HAVE TO. YOU WOULD HAVE TO MEET ALL OF THE CRITERIA FOR EACH OF THE PREVIOUS TWO YEARS. SO I THINK YOU MET ALL THE CRITERIA IN FISCAL YEAR 24. IT WAS JUST 23 THAT YOU DIDN'T. SO BEGINNING IN 26, YOU WOULD QUALIFY AGAIN FOR LOWEST QUALITY. AND SOME YEARS IT DOES IT DOES REALLY COME INTO PLAY DEPENDING ON THE AMOUNT OF GRANT ACTIVITY THAT YOU HAVE THERE. AND YOU COULD HAVE YOUR AUDITOR COULD HAVE TO TEST, YOU KNOW, SEVERAL PROGRAMS. I MEAN, I'VE HAD THE TEST, I THINK THE MOST I'VE EVER HAD TO TEST IN ONE SINGLE AUDIT WAS 14 AND TESTED 14 DIFFERENT. THEY HAD A FEDERAL AND STATE SINGLE AUDIT, BUT SOMETIMES YOU CAN GET A LOT OF PROGRAMS TO TEST DEPENDING ON HOW EVERYTHING SHAKES OUT.HI, MR. PRUITT, IN THIS CASE, YOU ONLY TESTED ONE PROGRAM. YES. AND BUT THE SYSTEM WORKS FOR ALL OF THEM. IS THAT CORRECT? YES. WELL, YES, BECAUSE IT'S THE SAME SYSTEM, BUT WE'RE ONLY TESTING THAT ONE PROGRAM. AND THE WAY IT WORKS IS THERE'S LIKE 14 DIFFERENT COMPLIANCE REQUIREMENTS THAT THE FEDERAL GOVERNMENT MIGHT HAVE YOU LOOK AT. AND BUT THEY ONLY HAVE YOUR AUDITOR TEST SEVEN, UP TO SEVEN OF THEM. AND THEY'RE DIFFERENT FOR EACH, EACH PROGRAM. SO THERE ARE THINGS LIKE ALLOWABILITY THAT'S ALMOST ALWAYS A COMPLIANCE REQUIREMENT. DID YOU SPEND THE MONEY ON WHAT'S ALLOWABLE AND ALWAYS HAVE REPORTING REQUIREMENTS? YOU HAVE TO FILE CERTAIN REPORTS. WE HAVE TO MAKE SURE THEY WERE FILED ON TIME AND ACCURATELY. A LOT OF GRANT PROGRAMS HAVE MATCHING REQUIREMENTS. SOME HAVE ELIGIBILITY REQUIREMENTS DEPENDING ON THE PARTICULAR PROGRAM. SO THE FEDERAL GOVERNMENT ACTUALLY TELLS YOUR AUDITOR, THEY TELL US WHAT WE HAVE TO TEST FOR EACH SPECIFIC PROGRAM. SO WE USE THAT TO TEST THIS PARTICULAR PROGRAM. IF THERE WERE, SAY, ANOTHER PROGRAM THAT HAD LET'S SAY, ELIGIBILITY REQUIREMENTS, BUT THE ONE WE TESTED DIDN'T, THEN WE CAN'T SAY ANYTHING ABOUT THAT. YOUR PROCEDURES OVER ELIGIBILITY, FOR EXAMPLE, WE'RE ONLY TESTING THE MAJOR PROGRAMS. BUT FOR THAT PROGRAM WE ISSUE THE REPORT ON PAGE THREE. AND WHAT THIS REPORT BASICALLY SAYS IS TWO MAIN THINGS. FIRST THING WE HAVE TO DO IS ACTUALLY EXPRESS AN OPINION AS TO WHETHER OR NOT WE BELIEVE THE CITY COMPLIED IN ALL MATERIAL RESPECTS WITH THE REQUIREMENTS OF THAT PROGRAM. AND AGAIN, HERE WE'VE ISSUED AN UNMODIFIED OR CLEAN OPINION, WHICH BASICALLY SAYS, IN OUR OPINION, YOU DID COMPLY WITH THE REQUIREMENTS OF THAT PROGRAM. THE SECOND PART OF THIS REPORT TALKS ABOUT INTERNAL CONTROLS SIMILAR TO THE GOVERNMENT AUDITING STANDARDS REPORT, WHERE THERE WE WERE TALKING ABOUT INTERNAL CONTROLS OVER PREPARING YOUR FINANCIAL STATEMENTS. HERE. WE'RE TALKING ABOUT INTERNAL CONTROLS OVER MAKING SURE YOU COMPLY WITH THE GRANT THAT WE TESTED COMPLIANCE REQUIREMENTS. IF WE HAD IDENTIFIED ANY SIGNIFICANT DEFICIENCIES IN THOSE CONTROLS OVER COMPLIANCE, THEY WOULD BE LISTED IN THIS REPORT. WERE THERE ANY NONCOMPLIANCE AT ALL, ANY EXCEPTIONS AT ALL? NO EXCEPTIONS. NOT UNLESS. NO COMPLIANCE. THERE'S USUALLY IN
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FINANCIAL STATEMENT TESTING THERE'S THERE'S USUALLY SOME IMMATERIAL DIFFERENCES THAT YOU HAVE IN EVERY AUDIT. BUT THERE WERE NO INSTANCES OF NONCOMPLIANCE EITHER WITH FOR THE GOVERNMENT AUDITING STANDARDS REPORT OR THE SINGLE AUDIT REPORT. WE DON'T HAVE ANY OF THOSE, MR. JACKSON. THAT'S GOOD. SO IT'S A CLEAN AUDIT. YOU KNOW, IF I'M SITTING ON AN AUDIT COMMITTEE, YOU'VE GOT EXACTLY WHAT YOU'RE HOPING FOR. YOU'VE GOT A CLEAN OPINION ON THE FINANCIAL STATEMENTS. YOU DON'T HAVE ANY SIGNIFICANT DEFICIENCIES IN INTERNAL CONTROLS, EITHER OVER PREPARING YOUR FINANCIAL STATEMENTS OR COMPLYING WITH YOUR FEDERAL GRANT PROGRAM THAT WE TESTED. AND THERE WERE NO INSTANCES OF NONCOMPLIANCE THAT WERE MATERIAL, EITHER THROUGH YOUR FINANCIAL STATEMENTS OR TO THAT INDIVIDUAL FEDERAL PROGRAM. SO I'M NOT GOING TO ASK THE QUESTION IF I COULD. SURE. AND IT'S GOING TO BE POINTED TO YOU, MR. JACKSON, I NOTICED THAT. PAGE. THE ORGANIZATION CHART IS WHERE I'M GOING WITH THIS. PAGE EIGHT AT THE. ON THE ORGANIZATION CHART, YOU HAVE DIFFERENT COLORS. THOSE COLORS MEAN ANYTHING. SO FOR THE SO FOR THE PURPOSES OF THIS ROMAN NUMERAL, PAGE EIGHT, MR. TALLEY.SO THE ITEMS OR THE, THE BOXES THAT ARE COLOR CODED IN BLUE ARE THOSE DEPARTMENTS WERE POSITIONS THAT REPORT TO THE TO THE CITY MANAGER, THE ONES THAT YOU SEE IN RED WOULD REPORT UP THROUGH THOSE SPECIFIC ASSISTANT CITY MANAGER POSITIONS. I WAS LOOKING AT. IT WAS JUST YEAH, IT WAS REALLY JUST MORE COLOR CODED IN TERMS OF, YOU KNOW, FROM, I GUESS FROM A HIERARCHICAL STANDPOINT WHERE THOSE DEPARTMENTS OR INDIVIDUALS REPORT. I'LL JUST LOOK AT THE GREEN, THE KELLY GREEN. KELLY GREEN UP THERE AT THE TOP OR THE BOARDS AND COMMISSIONS WOULD BE. AND THEN AS WELL JUDGES GOING UP TO THE TO THE MAYOR AND COUNCIL. BUT YOU HAD THE CITY MANAGER IN BLUE. I WAS JUST WONDERING WHY THAT WAS. OH YEAH. IT WAS IT WAS REALLY FOR THE PURPOSE OF, OF BELOW JUST TO, JUST TO HAVE A CORRELATION TO TO THAT ROLE, IF YOU WILL. THAT IS BELOW THE SHOW. WHAT DIRECTLY REPORTS TO THE CITY MANAGER. OKAY. YES, SIR. I GUESS LASTLY I'LL TOUCH ON THIS. COMMUNICATION LETTER THAT CONTAINS A LOT OF THE ITEMS THAT YOU WERE MENTIONING EARLIER. A LOT OF THESE ITEMS IN THIS LETTER ARE JUST EITHER THINGS THAT WE'VE ALREADY TOUCHED ON, LIKE THE FIRST SECTION TALKS ABOUT OUR RESPONSIBILITY IN THE CITY'S RESPONSIBILITY. I MENTIONED THAT WHEN WE WERE TALKING ABOUT THE OPINION LETTER, AND THEN INDEPENDENCE SPOKE ABOUT THAT AS WELL, THAT THERE'S ALSO A LOT OF NEGATIVE ASSURANCE HERE THAT WE GIVE THAT'S I WON'T SPEND A LOT OF TIME ON THAT.
THINGS LIKE, DID WE HAVE ANY DISAGREEMENTS WITH MANAGEMENT? DID WE HAVE ANY SIGNIFICANT PROBLEMS THAT WE ENCOUNTERED DURING THE COURSE OF THE AUDIT? THERE'S A LIST OF THINGS THAT WE HAVE TO MENTION IF WE DO HAVE THEM, BUT WE DIDN'T HAVE ANY OF THOSE THINGS. THE COUPLE ITEMS THAT I WOULD POINT OUT, THOUGH, IN THIS LETTER, THE FIRST ONE IS ON PAGE TWO UNDER THAT HEADING, SIGNIFICANT RISKS. THIS IS THIS IS SOMEWHAT NEW. IN THE RECENT YEARS, YOUR AUDITORS HAVE ALWAYS HAD THE CONCEPT OF SIGNIFICANT RISKS, BUT WE USED TO NOT HAVE TO PUT THEM IN THIS LETTER. AND THEN WHEN WE WE CAME OUT WITH A NEW STANDARD THAT REQUIRED US TO START LISTING THE SIGNIFICANT RISKS IN THIS LETTER. AND IT CAUSED A LOT OF CONFUSION, AS WITH A LOT OF OUR BOARDS, AS TO WHAT THIS REALLY MEANT, BUT IN PARTICULAR IT'S THE FIRST ONE THERE LISTED THE MANAGEMENT OVERRIDE OF CONTROLS, BUT BACKING UP A LITTLE BIT, ALL THE SIGNIFICANT RISK IS IN THE AUDIT WORLD IS THAT WHEN WE FIRST START THE AUDIT, WE ASSESS YOUR RISKS OF THINGS THAT WE BELIEVE MIGHT CAUSE A MATERIAL MISSTATEMENT, MIGHT BE
[00:35:04]
MORE LIKELY TO CAUSE A MATERIAL MISSTATEMENT. SO THE THINGS THAT WE WANT TO BE AWARE OF AS WE WORK THROUGH THE AUDIT, THE FIRST ONE, MANAGEMENT OVERRIDE OF CONTROLS, THAT'S ACTUALLY IN THE STANDARDS THAT IT HAS TO BE A SIGNIFICANT RISK ON EVERY AUDIT THAT'S PERFORMED. SO THE REASON THERE IS THAT THERE'S A PRESUMPTION IN EVERY AUDIT THAT THERE'S A SIGNIFICANT RISK OF FRAUD ASSOCIATED WITH MANAGEMENT, OVERRIDE OF CONTROLS. AND WHAT I WANTED TO MAKE SURE YOU UNDERSTOOD, THAT'S NOT A RISK THAT'S SPECIFIC TO THE CITY INDIVIDUALLY. THAT'S THAT'S IN EVERY CITY AND EVERY AUDIT, ACTUALLY, THAT MANAGEMENT OVERRIDE OF CONTROLS IS ALWAYS GOING TO BE THERE. THE SECOND ONE, COMPENSATED ABSENCES.THERE WAS A NEW ACCOUNTING STANDARD THIS YEAR, GASB STATEMENT 101 THAT CAME OUT, WHICH CHANGED THE WAY THAT LOCAL GOVERNMENTS HAVE TO ACCOUNT FOR COMPENSATED ABSENCES. BASICALLY, TO BOIL IT DOWN IN THE PAST, YOU WOULD HAVE TO REPORT A LIABILITY FOR.
COMPENSATED ABSENCES THAT HAD BEEN EARNED AS OF YEAR END, BUT ONLY TO THE EXTENT THAT YOU WOULD PAY THEM OUT UPON TERMINATION. SO A LOT OF LOCAL GOVERNMENTS HAD SICK LEAVE AND DIDN'T PAY THAT UPON TERMINATION. AND SO YOU DIDN'T PICK UP A LIABILITY FOR THAT AMOUNT. YOU UNDERSTAND? MISS JACKSON, PROBABLY YOU HAVE TO ADDRESS THIS. MAYBE. IF AN EMPLOYEE DOES NOT TAKE THEIR SICK LEAVE, THEN THERE'S NO RESPONSIBILITY ON THE CITY'S PART TO PAY THEM. IS THAT RIGHT OR NOT? THAT'S WHAT IT IS COMMON ACROSS ACROSS THE BOARD, IN ANY ORGANIZATION. SO WHAT'S THE DIFFERENCE YOU'RE TALKING ABOUT? MR. OKAY. AND UNDER THE OLD RULES, ASSUMING THAT YOU THAT THE CITY DIDN'T PAY SICK LEAVE UPON TERMINATION, MOST LOCAL GOVERNMENTS WOULD PAY VACATION BUT NOT SICK LEAVE. RIGHT. SO YOU DIDN'T HAVE TO RECORD ANY LIABILITY FOR SICK LEAVE. BUT UNDER THE NEW RULES, YOU ACTUALLY HAVE TO. YOUR FINANCE DEPARTMENT HAS TO MAKE AN ESTIMATE OF WHAT SICK LEAVE IS THAT THEY BELIEVE IS GOING TO BE USED IN THE FUTURE AND RECORD THAT AS A LIABILITY. SO TO ME, IT'S IT'S NOT THERE'S ALL KINDS OF DIFFERENT WAYS THAT YOU CAN COME UP SITTING DOWN THERE SMILING. BUT REALLY, I MEAN, ALL I DO IS MAKE SURE THAT THAT THE ESTIMATE IS REASONABLE, HOWEVER THEY'RE USING IT. I MEAN, IT'S NOT GOING TO BE IT SHOULDN'T BE ZERO. IT SHOULDN'T BE 100%. IT SHOULD BE SOMEWHERE IN BETWEEN. I DON'T EVEN THINK OUT HERE, TO THE BEST OF MY MEMORY, THAT IT CAUSED THAT MUCH OF A MATERIAL CHANGE, DID IT? OR IT WAS A PRETTY BIG ONE, A PRETTY LARGE CHANGE. WE DO HAVE SOME PAYOUT FOR SICK FOR OUR PUBLIC SAFETY. AND SO BUT IT DID CREATE QUITE A BIT OF CHANGE. OUR METHOD THAT WE LOOKED AT IS KIND OF HISTORICALLY HOW MUCH SICK LEAVE HAS BEEN USED OVER A PERIOD OF TIME, COME UP WITH AN AVERAGE AND THEN GO FROM THERE BASED ON THEIR PAY RATE. SO THAT'S HOW WE THAT'S OUR APPROACH THAT WE TOOK BASED UPON THAT PAY RATE. YOU MEAN YOU GO TO EACH INDIVIDUAL. WELL DOING AGAIN WE TOOK A SAMPLE AND WENT FROM THERE AND USED THOSE ESTIMATES OVER THE LAST FEW YEARS. AND THEN OF COURSE, IN THAT WITHIN THAT SAMPLE. YES, WE DID. WE DID LOOK AT PAY RATES EVEN DURING THE FINAL CALCULATION. WE ARE ACTUALLY GOING EVERY EMPLOYEE BY THEIR PAY RATE. SO IT'S YOU KNOW, WE WE DO HAVE THE INFORMATION AVAILABLE TO US ABLE TO DOWNLOAD INTO EXCEL. SO IT'S NOT AS CUMBERSOME AS YOU THINK IT WOULD BE. LIKE WE'RE GOING LIKE HOW MUCH YOU MAKE, HOW MUCH DO YOU MAKE. BUT YEAH SO SO YES, IT DID CREATE A GREATER LIABILITY FOR US, I THINK A FEW MILLION MORE THAN WE HAD PREVIOUSLY. IF I REMEMBER WHAT WOULD BE THE ENTRY FOR THAT.
YOU CREATE THE LIABILITY. WHAT DO YOU DEBIT. YOU'RE REALLY IT WOULD BE AN OFFSET TO THE SALARIES TO THEIR NORMAL SALARIES. BUT FOR US WE CREATED NOT TO GET TOO DEEP A CONTRA ACCOUNT. SO WE COULD PUT IT ON A SEPARATE LINE, NOT AFFECTING WHAT WAS ACTUALLY BOOKED ON THE SALARIES. BUT BASICALLY THAT WOULD BE THE OFFSET, BECAUSE INITIALLY, IF WE'RE PAYING OUT WHEN WE'RE PAYING THEM, IT'S GOING TO THEIR SALARIES WHEN WE'RE PAYING THEM TO SALARIES.
BUT IN THIS CASE, WHAT WOULD YOU DO IT AGAIN? CONTRA ACCOUNT. WE DEBITED CONTRA SALARY ACCOUNT JUST TO KEEP IT ON A SEPARATE LINE FOR US. SO IT WAS NOT INCLUDED DIRECTLY IN OUR SALARY LINE. MORE SO FOR THE CASE OF BUDGET PURPOSES. SO WE CAN SEE GOING DOWN INTO THE FUTURE YEAR AFTER YEAR. THESE ARE TRUE SALARY AMOUNTS VERSUS THIS. WAS THAT COMPENSATED ABSENCE ENTRY THAT WE HAD TO DO. SO REALLY FOR BUDGET PURPOSES, CREATED IN A SEPARATE LINE SO
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WE COULD SEE WHAT TRUE SALARIES WERE. PLUS THIS NEW GASB STANDARD THAT THEY CREATED FOR US. PUT THAT ON A SEPARATE LINE SO WE COULD KEEP IT SEPARATE. BUT FOR THIS PURPOSES, AS FAR AS THE AQUIFER, IT'S ALL COMBINED WITHIN THE SALARIES. AND MR. PRUITT, WHAT YOU WOULD DO IS MAKE SURE THAT THAT'S BEEN DONE. IS THAT RIGHT? RIGHT. MAKE SURE THAT IT'S BEEN DONE AND THAT IT DIDN'T CAUSE ANY MATERIAL ERRORS, THAT WE MAKE SURE THAT THE METHODOLOGY THAT THEY'RE USING IS REASONABLE. FIRST OF ALL, THE ESTIMATE IS REASONABLE. AND THEN IT WAS RECORDED PROPERLY AND IT WAS AND I MEAN THE THE NEW STANDARD, I THINK IT, IT, IT DOES IS ACTUALLY PROVIDE YOU MORE INFORMATION I GUESS. SO IN THAT SENSE, IT'S PROBABLY, IT'S PROBABLY AN IMPROVEMENT OVER THE OLD STANDARD I GUESS. BUT AGAIN THERE'S A WIDE SINCE IT'S AN ESTIMATE, THERE'S A WIDE VARIATION. HOW MUCH TIME AND EFFORT I THINK A LOT OF LOCAL GOVERNMENTS PUT INTO THAT, SO I'M NOT SURE HOW USEFUL IT IS IN COMPARING ONE GOVERNMENT TO ANOTHER. BUT A LOT OF THESE STANDARDS, I THINK A LOT OF TIMES DON'T GIVE YOU NECESSARILY BETTER INFORMATION. IT'S JUST DIFFERENT, A DIFFERENT WAY TO DO IT. THANK YOU. AND IF I COULD INTERJECT ON PAGE 42, IT ACTUALLY WAS ABOUT ABOUT A $1.6 MILLION INCREASE FOR US OVERALL. SO SIGNIFICANT BUT MAYBE NOT AS SIGNIFICANT. SO ON PAGE 42 UNDER G. AT THE TOP OF THE PAGE UNDER G, YOU SEE UNDER GOVERNMENTAL ACTIVITIES GO ABOUT FOUR ITEMS DOWN COMPENSATION, STATED ABSENCES. SO FOR THE GENERAL ADDITIONS THERE WAS 1.3. AND THEN UNDER BUSINESS TYPE ACTIVITIES WHICH WOULD BE YOUR UTILITY FUND, YOU SEE ANOTHER LINE DOWN THERE FOR COMPENSATED ABSENCES. SO. FOR ABOUT 272,000. SO IN TOTAL FOR THE CITY, THAT WAS THE IMPACT. AS FAR AS APPLYING. SO THAT DOES HELP OUT FOR BUDGETING PURPOSES. IS THAT CORRECT? IT WILL FOR BUDGETING PURPOSES. THAT POINT I BROUGHT UP WAS THAT AS FAR AS ON OUR GL, WE HAVE IT ON A SEPARATE ACCOUNTING LINE. SO THAT WAY WE CAN TRULY LOOK AT SALARIES FOR EXACTLY WHAT THEY REALLY ARE, WHAT WE TRULY PAID OUT, AS OPPOSED TO THIS NEW PRONOUNCEMENT BEING, OKAY, WE'RE DETERMINING, HEY, HOW MUCH WE'LL ACTUALLY SPEND IN THE FUTURE. AND SO WHILE IT'S NOT A A REAL HARD NUMBER FOR US, AND SO FOR BUDGET PURPOSES, SO WE JUST HAVE IT ON THE GL AS A SEPARATE LINE. SO WE'RE ABLE TO IDENTIFY THAT, HEY, THIS WAS RELATED TO COMPENSATING ABSENCES VERSUS TRUE SALARY AMOUNTS. SO I BROUGHT THAT IN AND I HOPE THAT DIDN'T CONFUSE IT ANY FURTHER. LAST THING I'LL BE DONE. YES I'M A PERCENT THAT BE OF TOTAL SALARIES. OH. OH YEAH THAT IT IS SMALL. IF I CAN SAY THAT 2%. 3%. YES. BUT THAT MEANS REAL QUICK LOOK OVER HERE REAL QUICK. I WAS GOING TO SAY, I KNOW THE GENERAL ANSWER CERTAINLY IS LOW, BUT YES, IT IS LOW. BUT YEAH, BUT BUT AGAIN, JUST TO, JUST TO I GUESS PIGGYBACK ON THAT POINT. THE IDEA IS. SO IF ANYONE WERE TO GO IN AND LOOK AT A BUDGET TO ACTUAL FOR SALARIES, THAT THEY WOULDN'T HAVE TO KNOW THE ENTRY OR FACTOR IN THE ENTRY SPECIFICALLY THAT THAT HAD TO BE DONE HERE FOR FOR AUDITOR, FOR AUDIT PURPOSES, THEY CAN LOOK AND SEE THAT THIS IS ACTUALLY WHAT WAS PAID, WHAT WAS PAID OUT WHEN THEY LOOK AT THE BUDGET TO ACTUAL REPORT. SO THAT'S WHY THE TO MISS PEDERSON'S POINT, WHY THE CONTRA ACCOUNT WAS WAS USED SO WE'D BE ABLE TO HAVE THAT. YEAH.AND HAVE THAT 1 TO 1 COMPARISON. LIKE WHEN WE'RE LOOKING AT A TREND OVER, YOU KNOW, OVER A PERIOD OF YEARS. RIGHT. SO I'M NOT TRYING TO SPEAK FOR MR. TALLEY, BUT LIKE WHEN I SEE IT AND I SEE COMPENSATED, GETTING A BALANCE OF 4.13 AND THEN YOU SEE ADDITIONS OF 1.3, IT'S KIND OF LIKE THAT. THAT LOOKS SIGNIFICANT AS FAR AS THE COMPENSATED ABSENCES WE'VE RECORDED PREVIOUSLY, BUT THAT'S JUST REALLY SMALL. I'M TRYING TO JUST ROUGHLY MAYBE GENERAL FUND IS ABOUT 30 MILLION, 30 MILLION OR 25 MILLION IN TERMS OF SALARIES. JUST GENERAL FUND.
SO IN THAT FROM THAT PERSPECTIVE, JUST LOOKING AT GENERAL FUND, I DON'T KNOW IF JENNIFER, IF YOU KNOW OFF THE TOP A TOTAL DON'T WORRY ABOUT IT. I'M JUST TRYING TO THINK OF QUICKLY. BUT YES, IN TERMS OF OVERALL SALARIES, THAT'S SMALL IN COMPARISON. BUT AS FAR AS WHAT WE CLAIMED FOR COMPENSATED ABSENCES PREVIOUSLY UNDER THE OLD STANDARD GAS GATSBY STANDARD, IT WAS LOWER. WE SAW FOR WHAT US WE FELT LIKE IS A SIGNIFICANT INCREASE TO GO FROM
[00:45:05]
4 MILLION TO 5 MILLION IS A PRETTY SIGNIFICANT INCREASE. BUT WE HAD ALREADY PREVIOUSLY BEEN REPORTING THE COMPENSATED ABSENCES. AND MISS PRUITT, ON YOUR OTHER CLIENTS, IS THIS IN LINE WITH YOUR OTHER CLIENTS, OR DO YOU THINK, AND THE WAY THEY HANDLE IT? YES. I MEAN, THEY HANDLED IT APPROPRIATELY. OKAY. PROBABLY PUT MORE EFFORT TO IT THAN SOME THAT I SEE. OH, REALLY? YEAH, IT JUST DEPENDS. I MEAN, I'VE HAD SOME THAT JUST, YOU KNOW, GO CRAZY WITH TRYING TO GET IT AS EXACT AS AS POSSIBLE, REALLY, FROM A AUDITOR'S STANDPOINT, I ALWAYS APPROACH IT MORE FROM I TRY TO KEEP MATERIALITY IN PLAY. SO IT'S I MEAN, IF YOU'RE GOING TO USE IT FOR OTHER PURPOSES, THAT'S THAT'S ONE THING. IF YOU'RE IF YOU'RE NOT, YOU KNOW, WOULDN'T SPEND A FORTUNE OF TIME TRYING TO MAKE IT. IT'S ALL AN ESTIMATE. AND AS LONG AS IT'S NOT DOESN'T COME UP WITH SOMETHING UNREASONABLE THAT YOU'RE CONSISTENT IN THE WAY YOU DO IT, AND YOU HAVE SOME METHODOLOGY THAT'S REASONABLE, I WOULDN'T I TRIED NOT TO RECOMMEND JUST GOING OVERBOARD WITH IT, BECAUSE ALSO IT'S IT'S A I MEAN, IT SHOWS UP IN YOUR GOVERNMENT WIDE STATEMENTS AND IT WOULD AFFECT THE RATIOS, DIFFERENT RATIOS WOULD IT NOT.IN YOUR GOVERNMENT WIDE STATEMENTS AND YOUR GOVERNMENTAL ACTIVITIES? I DON'T KNOW, WE'LL GET TOO MUCH IN THE DETAILS, BUT LOCAL GOVERNMENTS HAVE ACTUALLY HAVE TWO SETS OF FINANCIAL STATEMENTS THAT THEY HAVE TO PUT IN THEIR REPORTS. AND ONE IS ON THE FULL ACCRUAL BASIS OF ACCOUNTING. THOSE ARE YOUR GOVERNMENT WIDE, WHICH ARE ON PAGES 11 THROUGH 14. AND THE INFORMATION IN THESE STATEMENTS IS MORE AGGREGATED. YOU'VE GOT REALLY EVERYTHING THAT THE CITY IS, IS PUT INTO TWO DIFFERENT COLUMNS, EITHER GOVERNMENTAL ACTIVITIES OR BUSINESS TYPE ACTIVITIES. SO YOU'VE GOT YOU'RE LOOKING AT GOVERNMENTAL ACTIVITIES, EXPENSES OF $57 MILLION. DO YOU HAVE HIGHER MATERIALITY THRESHOLDS IN YOUR GOVERNMENT WIDE THAN YOU DO IN WHAT WE CALL THE FUND FINANCIAL STATEMENTS, WHICH FOLLOW THOSE? AND SO TO ME IT'S A. THAT LOWERS THE MATERIALITY SOMEWHAT. AND IT DOES CREATE AN EXTRA AUDIT RISK THOUGH, BECAUSE YOU'VE NOW YOU'VE GOT A NEW ESTIMATE THAT YOU DIDN'T HAVE BEFORE, BEFORE WE KNEW WHAT THE NUMBER WAS AND WE WERE JUST TYING IT INTO RECORDS AND TESTING IT. NOW IT'S AN ESTIMATE, WHICH IS REALLY THE LAST THING I WANTED TO COVER IN THIS LETTER IS THE ESTIMATES. THAT ADDS REALLY AN EXTRA SIGNIFICANT ESTIMATE THAT WASN'T THERE BEFORE IN YOUR FINANCIAL STATEMENTS, THE MOST FINANCIAL STATEMENTS THAT YOU LOOK AT ARE GOING TO HAVE SOME ESTIMATES. NOW YOU'VE GOT YOU'LL SEE THE EXTRA ONE THERE THAT WE'VE ADDED ON PAGE THREE FOR COMPENSATED ABSENCES THAT WE DIDN'T HAVE THERE BEFORE.
NOW WE'VE GOT A NEW ESTIMATE TO CONSIDER. WITH ALL YOUR ESTIMATES, WE HAVE TO TAKE A LOOK AT AND MAKE SURE THAT THAT THEY'RE REASONABLE, YOUR BIG ONES, YOU'VE GOT COMPENSATED ABSENCES NOW YOUR BIGGEST ONES ARE ALWAYS GOING TO BE YOUR PENSION AND YOUR OPEB LIABILITIES. THOSE ARE REALLY CALCULATED BY ACTUARIES. SO WE'RE JUST WE'RE JUST MAKING SURE THAT THAT YOU'VE USED WHAT THE ACTUARY HAS GIVEN YOU AND THAT THE INFORMATION THAT YOU PROVIDED TO THE ACTUARY FOR THEM TO DO THEIR CALCULATIONS WAS ACCURATE. BUT WE DON'T ACTUALLY COME UP WITH THOSE CALCULATIONS. THE ACTUARY DOES THOSE AND THOSE COULD HAVE A HUGE IMPACT ON YOUR FINANCIAL STATEMENTS. FOR EXAMPLE, YOUR PENSION EXPENSE I WAS LOOKING AT EARLIER WAS THIS YEAR I THINK WAS $12 MILLION. SO THAT'S A BIG THAT'S A BIG CHUNK AND A BIG REASON WHY YOU'RE GOVERNMENTAL ACTIVITIES. DOES THAT COVER THE EMPLOYEES THAT ALREADY HAVE RETIRED. IS THAT WHAT YOU'RE TALKING ABOUT HERE? ON A PENSION, THAT PENSION AMOUNT? WHAT DOES THAT REALLY MEAN. YEAH. WELL IT'S MORE THAN THAT. IT'S YOUR, YOUR THEY'RE MAKING AN ESTIMATE OF ALL OF WHAT YOU'RE GOING TO HAVE TO PAY OUT IN THE FUTURE FOR ALL THE PEOPLE THAT YOU HAVE WORKING NOW TOO. THAT'S WHY IT'S SUCH A BIG ESTIMATE, BECAUSE THERE'S SO MANY DIFFERENT THINGS. WHEN YOU THINK ABOUT LIKE, HOW LONG ARE THEY GOING TO WORK THERE? HOW LONG ARE THEY GOING TO LIVE? I MEAN, WHAT ARE HEALTH CARE COSTS GOING TO BE? I MEAN, THERE'S A LOT OF DIFFERENT ESTIMATES, DIFFERENT NUMBERS GOING INTO THEIR ESTIMATE. SO THEY DON'T USUALLY ACTUARY ACTUALLY ACTUARY DOES THAT. BUT THEY DON'T ALWAYS COME REAL CLOSE ON THOSE ESTIMATES EITHER. SO BUT YOU KNOW THAT'S A BIG THAT'S A BIG NUMBER I MEAN YOU'RE NET CHANGE IN NET POSITION FOR GOVERNMENTAL
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ACTIVITIES IS WAS A DECREASE OF $8 MILLION. YOU KNOW, PENSION EXPENSE I THINK I SAW EARLIER WAS. IT'S 12 MILLION OF IT. AND PAGE 46 AT THE BOTTOM AS THE TOTAL PENSION EXPENSE OF THE OF THE ANNUAL REPORT. PAGE 46. AT THE VERY BOTTOM LAST LINE. OKAY. MR. JACKSON, DO YOU WANT TO ADDRESS WHY THAT'S INCREASED? SURE. WE DID. FOR 2025, THE UPDATED SERVICE CREDITS, THE 50% REPEATING. SO ADDING THOSE BENEFITS THAT IS FOR RELATED DIRECTLY TO EMPLOYEES. AND THEN ALSO WE DID A COLA INCREASE 30% FOR OUR RETIREES. SO MR. TALLEY TO TO KIND OF ANSWER THAT, ONE OF THE THINGS WE'RE DOING IN ORDER TO RETAIN EMPLOYEES AND THAT STUFF, WE MADE DECISIONS TO DO THAT BECAUSE WE WERE ONE OF THE FEW CITIES THAT DIDN'T. AND AND WE WANTED TO MAKE IT AS THAT. SO THAT'S A STEP THAT COUNCIL DIDN'T, DIDN'T MAKE TO TO ATTRACT AND RETAIN AND STUFF.SO THAT'S WHY THAT'S WHY THAT'S WHY YOU'RE SEEING THE JUMP. YEAH. GREG DOESN'T WANT TO COMMENT ON THAT. RIGHT. THANK YOU. YES. WELL YOU GOTTA BE COMPETITIVE. YES. AND THAT'S WHAT IT IS. THANK YOU MR. MR. JACKSON, FOR COVERING THAT. QUESTION. YES, SIR. STUPID QUESTION. BUT HOW DO YOU ESTIMATE WHAT YOUR TARIFF CHARGES ARE GOING TO BE FOR 2025 AND 2026 IN YOUR BUDGET? STUPID QUESTION, ISN'T IT? THAT'S A REAL QUESTION. WELL, YOU'RE GOING TO HAVE TO COME BACK FOR BUDGET. DISCUSSION ON THAT. BUT YEAH, BUDGET WORKS OUT. YES. THAT'S YOU WANT TO ADDRESS THAT. SO DEFINITELY IN TERMS OF OKAY, I WAS GOING TO SAY DEFINITELY IN TERMS OF NEXT YEAR'S BUDGET, I WAS LIKE, IT'S SOMETHING THAT WE'RE GOING TO HAVE TO. FACTOR IN FOR SURE. A LOT OF MONEY, THEY SAY THEY'RE GOING TO GIVE ME A REFUND, BUT I DOUBT IT. THAT'S FAIR, THAT'S FAIR. MR. PRUITT, DID YOU THAT'S ALL I HAD. OKAY, OKAY.
MR. JACKSON? YES, PLEASE. OH, WELL, I GUESS LET ME PAUSE AND SEE IF THERE WERE ANY OTHER QUESTIONS THAT THE COMMITTEE HAD FOR MR. PRUITT. ON THAT. WE'VE HAD YOU GET AN ANSWER. SO WE DID WE DID WANT TO HAVE A DISCUSSION WITH, WITH THIS BODY SPECIFICALLY AS PART OF THE THE AUDIT PROCESS THAT WE HAD SPECIFICALLY AS IT RELATED TO INVESTMENT INCOME THAT THE CITY HAD EARNED. SO INITIALLY, THE DISCUSSION CAME THROUGH AS PART OF THE FINANCE DEPARTMENT, WORKING WITH THE POLICE DEPARTMENT FOR THE RECONCILIATION AND THE FEDERAL REPORTING FOR THE ASSET FORFEITURE FUND SPECIFICALLY. AND SO ONE OF THE QUESTIONS THAT CAME UP WAS IF IN TERMS OF THE ASSET FORFEITURE DOLLARS THAT WE HAD, WAS THERE ANY INTEREST THAT WAS EARNED AND WAS THAT REPORTED AS PART OF THE ASSET FORFEITURE TOTAL? SO IN THAT THE ASSET FORFEITURE DOLLARS ARE PART OF THE CITY'S POOLED ACCOUNT THAT WE PRESENT IN THE GENERAL FUND. AND SINCE. WE WERE GOING THROUGH AND LOOKING AT THE INTEREST THAT WAS EARNED, THE INTEREST WAS APPLIED SPECIFICALLY TO THE GENERAL FUND, WHERE THE ASSET FORFEITURES PORTION OF THE INTEREST SHOULD HAVE BEEN APPLIED TO THE ASSET FORFEITURE FUND. SO IT WAS SOMETHING THAT THAT WE IDENTIFIED INTERNALLY, MADE THE ENTRIES, AND WE DISCUSSED AND REPORTED WITH THE AUDITORS DURING THAT TIME. THEN THE QUESTION THEN BECAME, FROM A BEST PRACTICE STANDPOINT, SHOULD OTHER FUNDS THAT PARTICIPATE IN THE THE POOLED ACCOUNT SHOULD INTEREST BE APPLIED TO THOSE OTHER FUNDS AS WELL? AND SO IN DISCUSSION WITH
[00:55:04]
THE AUDITORS, IT WAS DETERMINED THAT AS A BEST PRACTICE, IT IT SHOULD BE FOR THE CITY TO MOVE FORWARD WITH APPLYING INTEREST TO THE CORRESPONDING ACCOUNT. SO FOR EXAMPLE, IF THERE IS A BALANCE AS PART OF THE POOLED ACCOUNT FOR COURT TECHNOLOGY FUND, THAT ANY OF THE INTEREST THAT'S EARNED THAT'S IN THE GENERAL FUND WOULD BE ENTRY WOULD ALLOCATED TO THE COURT TECHNOLOGY FUND. AND IT'S BASED UPON WHAT ALLOCATION. SO THIS WOULD BE WHEN WE LOOK AT THE OVERALL CASH THAT'S IN THE POOLED ACCOUNT, IN TERMS OF HOW MUCH WOULD BE FOR THE CORRESPONDING ACCOUNT. SO, SO SO IT ALL GOES INTO A SWEEP ACCOUNT. CORRECT. AND THEN IT WAS ALL GOING TO THE GENERAL FUND. AND NOW YOU'RE YOU'RE JUST CLASSIFYING IT BACK TO WHERE IT SHOULD BE. CORRECT. CORRECT. AND I'LL ASK MY QUESTION IS HOW YOU HOW HOW ARE YOU ALLOCATING IT OUT. WHAT PERCENT GOES TO WHAT FUND. SO WE'RE DOING IT MR. TYLER. SO THE CALCULATION WILL BE DONE BASED ON THAT FUNDS PERCENTAGE OF THE OVERALL BALANCE OF THE SWEEP ACCOUNT. SO BASICALLY THE SWEEP ACCOUNT IS A COLLECTION OF OF MORE FUNDS THAN JUST THE GENERAL FUND. SO WHEN TAKING IT AS A PERCENTAGE THEN USING THAT SAME PERCENTAGE AND ALLOCATING THE INTEREST ACCORDING TO THAT SAME, THAT SAME PERCENTAGE. SO AGAIN, IT WAS AS MR. PRUITT HAD ALREADY REPORTED, THERE'S NOTHING THAT WAS MATERIAL OR CAUSED ANY MATERIAL MISSTATEMENT, BUT WAS A RECOMMENDATION FOR A BEST PRACTICE THAT MOVING FORWARD THAT ABOUT HOW MUCH ARE WE TALKING ABOUT HERE. SO THE OVERALL THE THE INTEREST THAT WAS EARNED FOR THAT POOLED ACCOUNT WAS RIGHT AROUND $1 MILLION OF THIS PAST YEAR, FISCAL YEAR 25. SO JUST FOR CLARITY, WE'RE TALKING ABOUT MAKING A CORRECTION MORE OR LESS FOR SOMETHING WE DISCOVERED THAT DIDN'T NECESSARILY HAPPEN UNDER THIS WATCH OR THE PREVIOUS WATCH, BUT SOMEWHERE IN THE BACKGROUND, WE WEREN'T APPROPRIATING THESE FUNDS IN AN APPROPRIATE MANNER. RIGHT. NOT TO THE NOT TO THE RIGHT. SO YEAH, SO, SO SPECIFICALLY FOR ASSET FORFEITURE BECAUSE OF THE FEDERAL GUIDELINES, ASSET FORFEITURE SPECIFICALLY HAD TO LIKE SO IT WAS REQUIRED TO BE DONE BECAUSE IN THEIR THEIR GUIDELINES, THEIR BOOKLET OF GUIDELINES. SO IT HAD IT HAS THAT IT HAS THAT STATEMENT. SO FOR US WHAT WE WERE DOING WAS WE WERE HAVING DISCUSSIONS WITH, WITH OUR AUDIT FIRM TO DETERMINE, OKAY, WHAT'S THE BEST PRACTICE OVERALL. AND SO FROM THE ASSET FORFEITURE, WE WERE REQUIRED TO DO IT FOR THE OTHER FUNDS. IT'S A BEST PRACTICE TO APPLY THAT SAME APPLICATION FOR THE OTHER FUNDS. SO WE SO IN IN SPEAKING WITH THEM WE GOT BASICALLY THE OKAY PARTICULARLY BECAUSE IT WAS NOT A MATERIAL MISSTATEMENT FOR US TO TO MOVE FORWARD AS WE'RE PLANNING OUR PRACTICES NOW, WE WANT TO MAKE SURE THAT WE HAVE ALL OF OUR, YOU KNOW, ALL OF OUR STANDARDS ALIGNED. NUMBER ONE. BUT NUMBER TWO, MOVING FORWARD, BEGINNING IN BUDGET YEAR 27, OUTSIDE OF ASSET FORFEITURE, THIS THIS IS JUST A MOVE TO GET US IN A BETTER PLACE WITH IN TERMS OF BACK BEST PRACTICES, CORRECT IN MAKING SURE AGAIN SO SO TWO THINGS. NUMBER ONE, AGAIN GOING BACK TO THAT BEST PRACTICE THAT IT THE ACCOUNTING FOR IT IS.CORRECT. AND IN ALIGNMENT WITH THAT THAT BEST PRACTICE. AND THEN NUMBER TWO OF COURSE IN THE FACT THAT IT WAS PART OF THIS AUDIT PROCESS THAT WE HAD THIS DISCUSSION AND CONCLUSION THAT WE WANTED TO HAVE THAT DISCUSSION WITH THIS BODY. WOULD YOU MADE A YOU MADE A COMMENT. YOU SAID YOU SAID YOU GET THE APPROVAL. AND I THINK YOU MEANT THROUGH THE AUDITORS.
I'M THINKING CORRECT. BUT SHOULD THAT BE THE CITY COUNCIL WILL GIVE YOU THE APPROVAL TO DO THAT. I'M JUST ASKING. APPROVAL FROM CITY COUNCIL. SO. OH GO AHEAD. SO, YEAH. DO YOU WANT TO ANSWER, MR. JACKSON? DO YOU WANT ME TO. SO I'LL LET. YEAH. OKAY. I MEAN, BASICALLY,
[01:00:01]
YOU KNOW, IT'S OPERATION FUNCTION AND AND STUFF. THEY'VE THEY'VE MADE US AWARE OF THE ISSUE AND THAT LINE. AND SO THERE'S NOT A SPECIFIC VOTE OR ANYTHING THAT HAS TO GO WITH THAT. THERE'S NOT ANY CHANGES IN FINANCIAL POSITION. PER SE. YES. SO IT'S JUST INDIVIDUAL FUND FUNDING WOULD BE DIFFERENT. RIGHT. IS THAT RIGHT. RIGHT. SO BECAUSE YOU ESSENTIALLY ESSENTIALLY GENERAL FUNDS, GENERAL FUNDS, THE ONE THAT'S AFFECTED. RIGHT. SO THE REDUCTION BUT IT'S RECLASSIFIED BACK INTO THE VARIOUS ACCOUNTS. WE HAVE AN APPROXIMATE NUMBER OF HOW THAT REDUCES OUR GENERAL FUND. YEAH. SO AGAIN TO THE TO THE EARLIER QUESTION, THE AMOUNT FOR THE INVESTMENT INCOME FOR 25 WAS AT $1 MILLION. SO SO THAT WOULD ADVERSELY AFFECT GENERAL FUND FOR. OUR BUDGET CALCULATION FOR 27 BY $1 MILLION. AND SO TO THAT POINT, YOU KNOW, WE, WE WE'VE ALREADY IDENTIFIED IT AS PART OF OUR OVERALL. FORECAST FOR, FOR GENERAL FUND SPECIFICALLY. AND WE FEEL THAT WE'VE IDENTIFIED, YOU KNOW, OTHER SAVINGS OR DIFFERENT AREAS IN THE EXPENDITURE TO HELP OFFSET THAT. SO IT'S NOT MONEY THAT THAT WE'VE LOST. IT'S MONEY THAT HAD TO BE IT'S SIMPLY RECLASSIFIED. YEAH. MR. ACTING CITY MANAGER WANTED TO SAY SOMETHING. YEAH. I WAS JUST GOING TO MENTION THE AS PART OF THE UPCOMING FY 2027 BUDGET PROCESS. YEAH. SORRY. THE INTERIM CITY MANAGER IS PART OF THE UPCOMING PROPOSED FY 27 BUDGET. AND AS PART OF THE BUDGET PROCESS, WE'VE ALREADY WORKED WITH OUR DEPARTMENTS TO START LOOKING TO IDENTIFY WHERE WE CAN MAKE UP THAT GAP. AND SO WE'VE ALREADY STARTED THAT PROCESS. AND AGAIN, WE MAY HAVE TO UTILIZE SOME OF THOSE, THOSE OTHER FUNDS TO FOR THEIR APPROPRIATE PURPOSES TO HELP US WITH THAT TOO. BUT NO, WE'VE ALREADY WE'VE ALREADY BEGUN THAT EXERCISE TO A DEAL AND ADDRESS WITH IT. BUT WE KNOW THIS IS A BEST PRACTICE THAT HAS TO HAPPEN MOVING FORWARD NO MATTER WHAT. SO WE'RE PREPARING FOR IT ACCORDINGLY. THAT'S GOOD. THANK YOU. WHEN WAS THE DISCOVERY. SO THIS WAS DONE. THE DISCUSSION WAS AT THE END OF THE TOWARD THE END OF THE CALENDAR YEAR. AS WE WERE HAVING DISCUSSIONS WITH THE POLICE DEPARTMENT. SO NO, NO, NO NOVEMBER, DECEMBER. WAS WHEN WE WERE HAVING DISCUSSIONS AS PART OF THE AGAIN, THE RECONCILIATION THAT REPORTING THAT HAD TO GO OUT FOR ASSET FORFEITURE SPECIFICALLY. SO I KNOW I DON'T KNOW. AND CHAIR, PLEASE TELL ME IF I'M GOING TOO FAR IF I'M GOING TO COUNCIL OR NOT. ASSET FORFEITURE FUNDS. THERE ARE REGULATIONS ABOUT HOW YOU MANAGE THEM, HOW YOU SPEND THEM, WHAT FUNDS ARE AT WHAT POINT WAS ASSET FORFEITURE FUNDS BEING ADDED TO THE GENERAL FUND? SO THEY WEREN'T THEY WEREN'T BEING ADDED TO THE GENERAL FUND. COUNCIL MEMBER GOODEN. SO AGAIN. GOING BACK TO SOMETIME DURING FISCAL YEAR 22. SO THE CITY HAS OPERATED A POOLED CASH ACCOUNT, WHICH IS OUR PART OF OUR MAIN BANK ACCOUNT AT WELLS FARGO. AND SO THAT FUND HAD NOT BEEN COLLECTING ANY INTEREST. AND SO AT SOME POINT, THE BANK, AGAIN, NONE OF US WERE HERE, BUT THE BANK HAD TO HAVE A DISCUSSION TO SAY, HEY, YOU HAVE THESE FUNDS THAT ARE THAT ARE SITTING IN THE ACCOUNT. SO WE'LL DO A NIGHTLY SWEEP, BASICALLY SO THAT THE CITY IS ABLE TO EARN INTEREST ON THE ACCOUNT. SO THE POOLED CASH HAS THE COLLECTION OF FUNDS THAT ARE NOT JUST GENERAL FUNDS. SO IT WOULD BE ASSET FORFEITURE FOR ONE, BUT OTHER FUNDS THAT THEY'RE THEY'RE THEY'RE CASH IN TERMS OF WHAT'S ACTUALLY IN THE BANK AS PART OF A POOLED CASH. THAT THE DISCOVERY WAS MADE. SO WE CAN CORRECT IT. I'M CONCERNED THAT WITH THE FEDERAL REGULATIONS AROUND ASSET FORFEITURE FUNDS, WE WERE NOT MORE CAREFUL WITH HOW WE HANDLE THOSE FUNDS BECAUSE THIS COUNCIL HAS MADE DECISIONS ON HOW WE SPEND THAT MONEY. AND WE WERE PROVIDED A BUDGET LINE THAT THE ASSET FORFEITURE FUNDS WERE SUPPOSED TO BE IN. AND MY UNDERSTANDING AT THAT TIME IS[01:05:04]
THAT THERE WERE SEPARATE AND BEING MANAGED THE WAY THEY WERE REGULATED TO BE MANAGED. AND SO I DON'T KNOW IF THIS IS SOMETHING THAT COULD BE BROUGHT TO COUNCIL FOR FURTHER DISCUSSION, BECAUSE I DON'T WANT TO HOLD PEOPLE UP WITH. BUT THANK YOU THOUGH. OKAY. SO ARE WE TALKING ABOUT ASSET FORFEITURE FUNDS OR ASSET FORFEITURE FUND SHARE OF INTEREST THAT WAS MADE ON THE FUNDS? WE'RE TALKING ABOUT THE THE PORTION OF INTEREST THAT WAS EARNED. JUST THE JUST YEAH. SO JUST SO I WANTED TO OKAY. RIGHT. AND SO I WANTED TO RIGHT.SO YEAH. SO I WANTED TO I WANTED TO ADDRESS THAT. THANK YOU. NO, NO. YEAH. JUST YOU KNOW AGAIN AGAIN THE MAYOR HAD A QUESTION. SO I WAS DEFINITELY COMING BACK TO THAT MISS GOODMAN. BUT WE'RE ON A MONTHLY BASIS DOING THAT FOR ALL THE ONES. AND IT JUST JUST IN TERMS OF CDS AND THINGS THAT YOU REALLY ARE LIKE, TRUE, WE THESE ARE TRUE INVESTMENTS, OUR CDS AND THOSE MONEY MARKETS AND OUR GOVERNMENT POOLS. THIS IS HAPPENING ON A MONTHLY BASIS.
THE SWEEP WAS A LITTLE DIFFERENT BECAUSE IT'S JUST TAKING HEY, HERE'S THE BIG BUCKET OF ALL THE CITY'S CASH. AND EVERY NIGHT WE'RE SWEEPING IT OVER AND YOU'RE EARNING A LITTLE BIT OF EXTRA INTEREST. AND SO THAT LITTLE BIT OF EXTRA INTEREST ENDED UP BEING ENDS UP BEING $1 MILLION. THANK YOU. SO HE HAD NOT ACTUALLY ALLOCATED THAT INTEREST. SO IT HAD NOTHING TO DO WITH THE ACTUAL ASSET FORFEITURE FUNDS THAT WERE COLLECTED. AND THEY'RE BEING SPENT APPROPRIATELY. AND SO YES, WE'RE JUST ADD A LITTLE FURTHER TO COUNCILMEMBER GOODMAN'S. HOW MUCH MONEY WAS RECLASSIFIED TO ASSET FORFEITURE? IT'S $120,000 FOR FOR 2025 FISCAL YEAR 2025. AND SO AGAIN, FOR ACCOUNTING PURPOSES, THE ASSET FORFEITURE HAS ALWAYS BEEN CLASSIFIED NOT ONLY AS ITS OWN FUND FOR THAT, FOR THAT PURPOSE, FOR TRACKING, BUT IN TERMS OF SEEING THE ACTIVITY. THAT WAY YOU CAN SEE THE ACTIVITY IN TERMS OF THE INFLOWS AND OUTFLOWS SPECIFICALLY FOR THAT FUND. AND AGAIN, THAT THAT FUND IS PART OF THE OVERALL AUDIT THAT IS DONE WITH PVH. CAN I ALSO ADD JUST FOR EXTRA AS FAR AS THE ASSET FORFEITURE GOES, ALONG WITH THIS CONVERSATION, WE ALSO HAVE GONE THROUGH AND WE DID A FULL RECONCILIATION OF ASSET FORFEITURES FROM FY 22 ALL THE WAY UP TO CURRENT. AND THEN ALSO WE THE LAST, LAST MANAGEMENT HAD COMBINED ALL ASSET FORFEITURES INTO ONE FUND.
MEANING WE HAVE LOCAL, WE HAVE FEDERAL AND WE HAVE STATE. AND SO WE HAVE STATE REPORTING THAT WE HAVE TO DO SEPARATELY. AND THEN WE ALSO HAVE FEDERAL THAT WE HAVE TO DO SEPARATELY. SO WE WE WENT AHEAD AND ACTUALLY SEPARATED THOSE FUNDS OUT INTO THOSE THAT THOSE THOSE FUNDS INTO SEPARATE ACTUAL ACCOUNTS, ACCOUNT FUNDS WITHIN ORAL. SO FOR SO FURTHER TRANSPARENCY, FURTHER EASE OF BEING ABLE TO DO THE REPORTING. SO WE WORK WITH VERY CLOSELY WITH CHIEF STOGNER AND NATHAN ROACH ON THOSE ITEMS. SO YES. SO EVEN FOR FURTHER TRANSPARENCY WE FIGURED IN THE FUTURE THIS WILL MAKE IT A LOT CLEANER AND A LOT EASIER TO SEE. SO THAT'S ONE OF THE ONE BIG CHANGE THAT WE MADE IN 25. AND I KNOW THEY'RE HAPPIER, RIGHT? THEY ARE SO MUCH HAPPIER. AND I STILL BECAUSE IT'S EASIER TO RECONCILE. IT'S A LOT EASIER TO SEE. SO I AM A LITTLE BIT. CONCERNED. LET ME JUST GET THIS OFF MY CHEST. THIS CAME UP AT THE END OF 2025. THE DISCUSSION, THE AWARENESS. IS THAT CORRECT? CORRECT. OKAY. WHAT WAS THE NATURE OF IT COMING UP. WHO WHO BROUGHT THIS TO THE TABLE? IT IT WAS PART OF THE THE QUESTIONNAIRE. MR. TALLY IN TERMS OF QUESTIONNAIRE. SO AS PART OF THE SUBMISSION ON THE THE CITY'S ACTIVITY FOR ASSET FORFEITURE. SO ONE OF THE THE QUESTIONS THAT WAS ASKED WAS THE QUESTION FROM PPB. NO, NO NO THIS. YEAH, THIS IS SPECIFICALLY AS PART OF THEIR FEDERAL ANNUAL REPORTING FOR THE FEDERAL. RIGHT. SO AS PART SO AS PART OF THAT MR. TALLY, WHEN THEY HAVE THE THE BALANCE, HOW IT BREAKS OUT TO MISS PETTIS'S POINT IN TERMS OF ANYTHING LIKE FEDERAL, ANYTHING STATE, IN TERMS OF THE THE CURRENT BALANCE, ONE OF THE QUESTIONS WAS, WAS THERE ANY INTEREST THAT WAS EARNED DURING FISCAL YEAR 25, AND IF YES, WHAT WAS THE AMOUNT? AND SO THEY AS AS PART OF OUR WORKING WITH POLICE DEPARTMENT AND
[01:10:02]
FILLING THAT OUT, THAT'S THAT'S WHERE THE GENESIS OF THAT QUESTION CAME FROM. AND THAT HADN'T HAPPENED BEFORE. SO TO OUR, TO OUR KNOWLEDGE. WHEN IT WAS PERFORMED AND SIGNED OFF ON, THEY WERE LOOKING SPECIFICALLY AT THE, THE, THE BALANCE OF THE FUND AS IT'S LISTED ON THE BOOKS AND DID NOT SEE AN ENTRY FOR INTEREST INCOME. SO THAT'S MY QUESTION. IS IT IT HAD IT HAPPENED BEFORE. CORRECT? CORRECT. WE'RE GOOD NOW GOING FORWARD. CORRECT? CORRECT. AND THAT WAS THE THAT WAS THE. AND WOULD YOU RELATE IT WELL? WOULD YOU RELATE. SO WOULD YOU RELATE AGAIN HOW FAR BACK YOU WENT TO TO MAKE THE ADJUSTMENT OR YOU IF, IF I MAY, IT, IT CAME UP BEFORE IT HAS COME UP. I CAN'T REMEMBER THE YEAR. SO ONE OF THEIR FEDERAL ANNUAL REPORTS, THEY HAD PUT INTEREST AGAIN FROM A STAFF THAT WAS HERE PREVIOUSLY. SO THERE WAS INTEREST REPORTED ON THAT. ON THAT PARTICULAR, I THINK IT MIGHT HAVE BEEN FY 23 OR 20 2 OR 23. AND ON THE BOOKS WHEN I GO TO GL THERE IS NO AMOUNT FOR INTEREST. SO ALL I CAN RELY ON IS WHAT I HAVE AS FAR AS WHAT'S ON THE BOOKS. SO THERE MAY HAVE BEEN AN ALLOCATION THAT BECAUSE WE DO THE ALLOCATION FOR INTEREST MIGHT HAVE BEEN DONE SOMEWHERE, BUT IT NEVER GOT PUT ON THE GL, SO I COULDN'T IDENTIFY IT. AND SO AT THAT TIME IT SAID, OKAY, I CAN'T IDENTIFY THERE'S NO INTEREST. BUT AT THIS POINT WHEN WE COME YES, LAST YEAR POLICE COMES FORWARD AND IT WAS AN AREA WE HADN'T THOUGHT ABOUT. AGAIN, THE SWEEP IS HAPPENING AND IT'S JUST WITHIN THE GENERAL FUND. WE'VE BEEN BOOKING THIS INTEREST BACK AND FORTH. AND SO IT WAS ONE OF THOSE THINGS WE JUST REALLY OKAY THE INTEREST IS GOING IN THERE. HADN'T THOUGHT ABOUT BUT IN HAVING DISCUSSIONS WITH POLICE IT SAID, WELL WAIT A MINUTE, WE'VE GOT QUITE A BIT OF CASH. WHAT'S HAPPENING WITH OUR CASH? AND IT'S SITTING IN THE CITY'S BANK ACCOUNT. AND THEN WE GO AND WE LOOK, OKAY, WE'RE IN THE CITY'S BANK ACCOUNT. WHAT HAPPENS EVERY DAY TO THE CITY'S BANK ACCOUNT, THE SWEEP. SO WE DO NEED TO ASSOCIATE ASSOCIATE THAT INTEREST WITH. SO IT WAS BEEN A LITTLE BIT OF A PROCESS. SO I'LL SAY YES EVERY YEAR IT'S ON THE FORM. IT SAYS IS THERE ANY INTEREST. AND WE HAD BEEN ADVISING OR ADVISING. WELL NO THERE IS NO INTEREST BECAUSE WE HAVEN'T BEEN ALLOCATING ANY INTEREST. SO IT'S ONE OF THOSE THINGS THAT GOT DISCOVERED IN THAT MANNER. SO IT WAS SOMETHING THAT WAS OVERLOOKED.MORE SO FOR MANY YEARS THE QUESTION HAD COME UP BEFORE, BUT THAT CONNECTION, IT TOOK A MINUTE FOR THAT CONNECTION TO HAPPEN. IF THAT HELPS OR MAKES SENSE, I HOPE. I HOPE THAT HELPS. THAT HELPS. THANK YOU. USUALLY SEE IT COME UP AS WITH GRANTS, BUT IT MAKES SENSE WITH ASSET FORFEITURE. GRANTING AGENCIES WILL NOTICE IF THEY'RE NOT GETTING ALLOCATED THE INVESTMENT INCOME THAT THEY THINK THEY SHOULD BE. I'VE SEEN IT POP UP THERE BEFORE, BUT IT MAKES IT'S THE SAME THING WITH ASSET FORFEITURE. AND I HAVE TO TELL YOU, WHEN I WORKED HERE PREVIOUSLY, WE INTENTIONALLY, I WON'T SAY INTENTIONALLY. A LOT OF TIMES THERE ARE RESTRICTIONS ON THE GRANTS IS HOW YOU CAN USE THE INTEREST. AND SO IT'S NOT ALWAYS CLEAR AS SO WE WOULD WE DID NOT REALLY INVEST DIRECTLY ANY ASSET FORFEITURE MONIES AT THAT TIME PREVIOUSLY.
JUST TRYING TO NOT HAVE TO NAVIGATE THROUGH THAT. AND SO PREVIOUSLY WE DID WHEN I WORKED HERE BEFORE WE DIDN'T HAVE A SWEEP ACCOUNT. SO THAT WAS THE OTHER THING IS LIKE YOU WERE EITHER IN A MONEY MARKET ACCOUNT OR A CD OR AN INVESTMENT POOL, AND IT WAS VERY CLEAR TO US WHERE IT WAS. SO THIS WAS A LITTLE DIFFERENT. NOW, KNOWING THAT THE CITY HAS THE AUTOMATIC SWEEP, WHICH IS A GREAT THING, AND WE ARE COLLECTING INTEREST THAT THAT WE WOULD NOT HAVE BEEN WITH MONEY SENT IN THE COUNTY AND THE BANK ACCOUNT. WHAT WHAT THE BANK. BANK IS WELLS FARGO OKAY. YEAH, YEAH. THAT HELPS. SO, MR. MR. CHAIR, THAT'S THE CONCLUSION FOR ANY COMMENTS FROM. FIRST, I WANT TO THANK YOU AND THE STAFF FOR FOR ONE, FINDING THAT MAKING THE RECLASSIFICATIONS AND MAKING IT A BEST PRACTICE GOING FORWARD.
YEAH. OKAY. ANYTHING ELSE FROM MR. PRUITT? NO, I THINK THAT'S EVERYTHING I HAD. UNLESS YOU HAD ANY OTHER QUESTIONS, I'D BE HAPPY TO ANSWER THOSE. MR. JACKSON, ANY FURTHER COMMENTS? NO, SIR. BUT I DO WANT TO SAY THANK YOU TO THIS COMMITTEE FOR YOUR NOT ONLY THE THE REVIEW
[01:15:01]
AND THE CONSISTENT REVIEW, BUT THE THE DIALOG THAT YOU'RE HAVING WITH WITH US AS A FINANCE TEAM AS WELL AS CITY ADMINISTRATION. SO APPRECIATE WHAT YOU DO AND THE QUESTIONS AND THE COMMENTS THAT YOU HAVE AS PART OF, NOT ONLY FROM A TRANSPARENCY STANDPOINT, BUT JUST JUST CONTINUING TO TO PUSH FORWARD IN A POSITIVE DIRECTION FOR THE CITY AND THE FINANCES SPECIFICALLY. SO THANK YOU. THANK YOU ALL. I APPRECIATE WHAT YOU'VE DONE HERE, AND I APPRECIATE THAT. WE'VE GOTTEN US A GOOD, GOOD, GOOD GRADES AGAIN. AND AND WE GET TO SEE YOUR FACES BACK HERE BECAUSE WE NEVER SEE YOU REALLY JUST PIGGYBACK. JUST THANK YOU.THANK YOU FOR ALL THAT YOU DO, SALLY. YOU'RE NEXT. I THINK I'VE BEEN ON THIS COMMITTEE NOW FOR ABOUT TEN TO 12 OR 15 YEARS AND. I'VE SEEN SOME UPS AND DOWNS, AND I'M SO GRATEFUL AND BLESSED TO KNOW THAT IT'S BACK UP. AND THANK YOU, MISS JACKSON, FOR YOUR JOB AND AND WHAT YOU DO WITH YOUR STAFF AND EVERYTHING. SO. APPRECIATE YOU. COUNCIL MEMBER. GOOD. WELL, YES.
THANK YOU TO EVERYTHING THAT I SAID. I ALSO WANT TO SAY THANK YOU, MR. JACKSON, TO YOUR TEAM, BUT ALSO TO THE LADIES IN WOMEN'S HISTORY MONTH. THANK YOU FOR ACCOMPLISHING THIS EARLY AND GETTING IT DONE. AND YOU'RE ABLE TO MARK IT OFF. IT WOULD TAKE A LADIES TO DO THAT JUST OKAY. THANK YOU, THANK YOU, THANK YOU. YOU'RE WELCOME. MR. FRAZIER, DID YOU HAVE A MR. JACKSON? YES. FOR THIS COMMITTEE. I DID WANT TO MAKE ONE MORE ACKNOWLEDGMENT.
SOMEONE WHO WASN'T HERE AT THE BEGINNING OF THE ACKNOWLEDGMENTS. BUT I DO WANT TO PUBLICLY ACKNOWLEDGE OUR BUDGET ADMINISTRATOR, MISS JENNIFER OTEY, WHO WAS A BIG PART OF THIS, THIS PROCESS AS WELL. AND THEN ALSO PUBLIC ACKNOWLEDGMENT OF OUR INTERIM CITY MANAGER, MR. RICHARD ABERNATHY, AND OUR ASSISTANT CITY MANAGER, MARK RAUSCHER, WHO IS HERE AS WELL. SO JUST WANTED TO ACKNOWLEDGE THEM AS WELL AS THANK YOU TO THEM. AND AND THAT'S BASICALLY MY COMMENT. THANK YOU. I MEAN, I THINK PEOPLE WHO ARE SERVING HERE AND IT'S I DEFINITELY AGREE WITH MR. TALLEY BECAUSE A FEW YEARS AGO THIS WAS NOT THERE. AND I KNOW, I KNOW, YOU ALL HAVE HAD TO DO A LOT OF WORK TO GET US CURRENT, STAY CURRENT AND, AND.
YOU KNOW, HEARD THAT, YOU KNOW, AT LEAST NEXT YEAR WE'LL BE AT ANOTHER IMPROVEMENT AND, AND STANDARDS AND THAT STUFF. SO I WANT TO THANK YOU ALL FOR BEING HERE. WITH THAT SAID AS THAT, YOU KNOW, WE HAVE THIS AS A DRAFT. SO DO WE FEEL COMFORTABLE ENOUGH THAT WE WANT TO HAVE THIS GO FROM DRAFT STATUS TO FINALIZED STATUS AND PRESENTED TO COUNCIL FOR MARCH MOTION? NEED A MOTION? YES, SIR. I'LL MAKE A MOTION TO ACCEPT THE DRAFT AS PRESENTED SECOND.
OKAY. ALL RIGHT. I'LL. ALL IN FAVOR, RAISE YOUR HAND. JUST A REMINDER, THAT DATE WILL BE CHANGED THAT MARCH 5TH STATE WILL BE CHANGED. WELL, YES. AS FAR AS YOU KNOW, THE FIELD WORK IS DONE. WORK IS DONE. SO THE DATE WILL STAY THE SAME AS THE FIELD WORK IS DONE. WELL, AS LONG AS I'M NOT SURE WE HAVE THE REP LETTER YET, DO WE? I DON'T THINK WE DO. YEAH, IT'LL BE THE DATE WE RECEIVE THE REP LETTER. WELL, SINCE YOU MENTIONED THAT, LET ME JUST ADD REAL QUICK. WE CAN VOTE ON THE VOTE ANYWAY. YOU RECEIVED THE ATTORNEY LETTER? OF COURSE. YES.
AND THERE'S NOTHING IN THE WELL, OF COURSE, NOTHING THERE THAT WILL CAUSE US TO HAVE TO DO ANY KIND OF CRUEL OR ANYTHING. EVERYTHING GOOD? OKAY. YOUR LEGAL LETTERS. I THINK THE LAST ITEM WOULD BE THE MANAGEMENT REP LETTER. ONCE WE SEND THAT AND GET IT BACK, THEN WE'LL MAKE THE REPORTS THAT DAY FOR SOME ODDITIES LIKE THE DATE, THE REPORTS, THE DATE OF THEIR THAT IT'S PRESENTED TO THE COUNCIL. OKAY. WE CAN'T DATE IT BEFORE THE DATE WE RECEIVE THE REP LETTER. OKAY. AND WE'LL WELCOME YOU BACK THAT DAY. OKAY. BUT WE DID HAVE A MOTION AND A SECOND. SO ALL IN FAVOR, RAISE YOUR HAND. UNANIMOUS. THANK YOU. AND IT'S NOW 3
* This transcript was compiled from uncorrected Closed Captioning.