Apr 19, 2021 Finance Committee

[00:00:02]

LET'S GO AHEAD AND START THE FINANCE COMMITTEE MEETING HERE ON APRIL 19TH AND FOLLOWING THE, UH, PUBLIC FACILITIES MEETING.

[1. CALL TO ORDER]

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA AND TO THE REPUBLIC FOR WHICH IT STANDS ONE NATION UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR ALL RIGHT.

AND, UM, PUBLIC NOTIFICATION HAS BEEN SENT OUT TO MEET ALL, UM, UH, THAT THE

[4. APPROVAL OF AGENDA]

UH, SO LET'S MOVE ON THEN, UM, FOR THE APPROVAL OF THE AGENDA, I CAN HAVE SOMEONE MAKE A MOTION TO APPROVE THE AGENDA, PLEASE.

SO MOST THANK YOU, MR. PASSMAN AT A SECOND.

WAS THAT BRIAN? I'LL TAKE IT.

SHERIFF BRYAN.

ALL RIGHT, WE'LL MOVE ON THEN TO APPROVAL OF THE MINUTES FROM FEBRUARY 25TH, 2021, IS THERE A MOTION TO APPROVE THOSE MINUTES OR IS THERE ANY, UH, AMENDMENTS TO THOSE MINUTES? POINT OF ORDER, MR. CHAIRMAN, YOU NEED TO EITHER CALL THE VOTE OR SAY THAT IT'S BY.

OH, I'M SORRY.

UM, I APPRECIATE THAT.

THANK YOU, BRIAN.

I TRY TO MOVE ON TOO QUICK HERE.

UM, AND, UH, REGARDING THE APPROVAL OF THE AGENDA, IS THERE ANY OBJECTION TO THE AGENDA SEEING OBJECTIONS, THE AGENDA? WE APPROVE IT WITHOUT OBJECTION, AND THEN WE'LL MOVE ON TO, UH, APPROVAL

[5. APPROVAL OF MINUTES- FEBRUARY 25, 2021]

SO MOVE MS. CHAIRMAN SECOND.

THANK YOU, MR. , MR. UH, PASSMAN.

AND, UM, IS THERE ANY OBJECTION IF THERE IS NO OBJECTION, WE ALSO WILL APPROVE THAT WITHOUT OBJECTION.

AND THAT'S THE APPROVAL OF THE MINUTES.

WE'LL NOW MOVE ON TO CITIZENS COMMENT.

UM, IS THERE ANY CITIZENS COMMENTS THAT WE HAVE HERE THIS AFTERNOON? NO, SIR.

OKAY.

ALRIGHT.

NO CITIZENS COMMENTS.

UH, SO THEN WE WILL MOVE

[7. UPDATE FROM CHIEF FINANCIAL OFFICER, WHITNEY RICHLAND REGARDING YEAR TO DATE FINANCIAL STATEMENTS FOR THE FISCAL YEAR 2021]

SO, UH, THE FLOOR IS YOURS, MS. RICHLAND.

OH, THERE WE GO.

OKAY.

ALL RIGHT.

SO GOOD AFTERNOON, EVERYBODY.

IF YOU'RE HAVING A GREAT WEEK SO FAR ON THIS MONDAY, UH, YOU HAVE A FORT YOU THE MARCH, 2021 FINANCIAL REPORT FOR THE GENERAL FUND, UM, SAME FORMAT AND APPEARANCE THAT YOU WERE ACCUSTOMED TO SEEING.

UM, I'M GOING TO HIT THE HIGH POINTS TODAY, SINCE WE DO HAVE, UH, DAVID URMAN ERWIN, EXCUSE ME, ONLINE WITH US TODAY.

HE WAS OUR MANAGING PARTNER WITH MODERN JENKINS.

UM, THE FIRM THAT CONDUCTS OUR ANNUAL EXTERNAL AUDIT AND HE IS PREPARED TO DO A LOVELY PRESENTATION THIS AFTERNOON ON THE RESULTS OF THE 2020 AUDIT.

SO I'M GOING TO KIND OF GIVE YOU A BRIEF OVERVIEW, UM, UH, DOLPHIN AS IT STANDS AS AT THE END OF MARCH.

AND THEN I WILL PASS THE BALL OVER TO HIM.

OF COURSE, IF YOU HAVE ANY QUESTIONS, PLEASE FEEL FREE TO ASK.

UM, ALL RIGHT, SO OVERALL, UM, YOU WILL NOTICE WE HAVE QUITE A NICE JUMP IN OUR REVENUES THIS MONTH, AND PRIMARILY THAT IS ATTRIBUTING TO THE TAX COLLECTIONS.

UM, THE DUE DATE WAS MARCH 31ST, AS YOU GUYS KNOW, AND, UM, I KNOW THAT MS. WALLS IS PRESENT.

SO I WANT HER TO HEAR FIRSTHAND THAT HER DEPARTMENT HAS DONE AN EXCELLENT JOB COLLECTING THOSE TAXES AS WE ARE NOW AT 95.3% COLLECTED OF OUR TOTAL BUDGET FOR THE YEAR, WHICH WAS 106 MILLION, $217,968.

AND OF THAT WE'VE COLLECTED, COLLECTED JUST OVER $101 MILLION.

SO WE ARE TRULY APPRECIATIVE TO THEIR DEPARTMENT AND ALL THE HARD WORK THAT THEY NEED TO, UM, BRING THOSE TAX MONIES INTO THE COUNTY.

UM, BUT BEFORE I GET AHEAD OF MYSELF, LET ME, LET ME JUMP BACK HERE AT THE TOP.

SO OUR TOTAL BUDGET WAS 130 MILLION, $300,431.

AND TODAY WE HAVE COLLECTED $121,273,756.

SO THAT LEAVES US CHEST OVER $9 MILLION TO BE COLLECTED FOR THE REST OF THE YEAR.

UH, AND AGAIN, BELOW THAT, EVEN THOUGH WE WERE ONLY 75% OF OUR YEAR COMPLETED, WE ARE AT 93% COLLECTIONS FOR TITLE REMEDIES.

UM, I'M GOING TO KIND OF HIT THE HIGH POINTS, AS I SAID, UM, ISIS AND SOME PERMITS ARE RIGHT IN LINE AT 75%.

INTER-GOVERNMENTAL, ALTHOUGH IT LOOKS LOW, BUT AT 52.9 THAT, UM, YOU KNOW, HAS BEEN BASED ON QUARTERLY PAYMENTS.

SO WE RECEIVED THE FIRST AND SECOND QUARTERS.

UH, WE SHOULD BE RECEIVING THE THIRD QUARTER PROBABLY IN THE NEXT WEEK OR TWO.

SO THAT WILL THEN JUMP BACK UP TO 75 AND IT WILL BE WHERE WE WOULD EXPECT IT TO BE CHARGES FOR SERVICES.

AGAIN IS QUITE HIGH THIS MONTH.

THEN WE KNOW THAT HAS A LOT TO DO WITH THE REAL ESTATE MARKET AND THE TRANSACTIONS FOR THAT ARE BEING RECORDED BY THE REGISTER OF DEEDS.

[00:05:01]

AND LET ME TELL YOU A LITTLE BIT WHY WHEN, UM, WHEN THE REVENUES ARE SENT OVER TO HIS OFFICE, THE REVENUES ARE RECORDED IN GROSS.

THE COUNTY DOES NOT KEEP EVERY SINGLE DOLLAR THAT COMES IN FOR RECORDING OF DATE.

SO WE KEEP A PORTION OF IT, THE STATE GETS SUPPORT OF IT.

UM, AND SO WHAT WILL HAPPEN NEXT MONTH IS AS WE REMIT THE PORTION BACK TO THEM, THAT REVENUE WILL DROP JUST A BIT.

UM, SO I WANT YOU TO KNOW THAT BEFORE I BREEZE PAST THAT, AND YOU SEE THAT THAT NUMBER CHANGED A LITTLE NEXT MONTH, CAUSE THAT'S IMPORTANT.

UM, FINALLY FOR PITCHERS ARE THEY ARE SOLE TRADING A LITTLE BIT LOW.

UM, YOU KNOW, I WAS REALLY HAPPY THAT WE STARTED TO SEE THOSE COME UP, UM, A LITTLE MORE AND KEEPING PACE WITH THE REMAINING OF THE YEAR, BUT WE'VE YET TO SEE THAT.

SO, UM, WE MAY BE, UM, NATIVE REACHING OUT TO SOME OF THOSE DEPARTMENTS FOR KIND OF A STATUS UPDATE AND HOPING THAT THEY CAN HELP US FROM OUR PROJECTIONS FOR THE MAJOR OF THIS YEAR INTERESTS.

UM, I'M NOT TERRIBLY CONCERNED THAT WE'RE ONLY GONNA COLLECT CLOSE TO $80,000, NO DATA OVERALL ENTRY AT THE END OF YEAR, BUT I DO HAVE A CONCERN THAT WE WILL NOT REACH OUR FULL BUDGETED AMOUNT.

I THINK I'VE COMMENTED ON THAT DURING THE LAST MONTH THAT BECAUSE WE WERE UNABLE TO INVEST AS MUCH OF OUR FUNDS AS WE TYPICALLY WOULD HAVE DURING THE DELAY OF TEXTS COLLECTIONS, UH, WE WILL SEE A DROP IN THAT AMOUNT FOR THE YEAR.

AND IN ADDITIONALLY IT'S NOT JUST THE CASH AMOUNT THAT WE'RE ABLE TO INVEST.

IT'S THE, THE, THE MARKET ITSELF INTEREST RATES.

I THINK YOU GUYS ARE AWARE, HAVE FALLEN SUBSTANTIALLY AND WE'RE SIMPLY NOT EARNING AT THE SAME RATE THAT WE ONCE WERE.

SO I WANT TO POINT THAT OUT TEAM.

UM, AND THEN LASTLY, THE MISCELLANEOUS IS TRENDING A LITTLE BIT HIGH, BUT THAT'S BECAUSE WE'VE HAD GREATER, UM, SALES OF COUNTY PROPERTY AND RECYCLABLES THAN WHAT WE ANTICIPATED.

SO I KNOW I BREEZED THROUGH THAT, BUT DOES ANYBODY HAVE ANY QUESTIONS THEY MIGHT LIKE TO ASK BEFORE I MOVE ON? UH, SINCE WE, SINCE WE'VE COMPLETED 75% OF OUR YEAR AND WE'RE IN WE'RE AT 95%, CAN YOU PUT THAT IN PERSPECTIVE A LITTLE BIT? IF WE WERE AT 75% LAST YEAR OR THE YEAR BEFORE, WHAT WOULD WE, WHAT WOULD WE HAVE EXPECTED TO RECEIVE ABOUT THE SAME PERCENTAGE? YES, SIR.

I CAN BRING UP OR ADD FOR AVALARA EMILY.

SO IF YOU'LL LOOK AT THE GRAPH JUST BELOW, UM, WELL, RATHER THAN BLOOD IN THE MIDDLE OF THAT PAGE LAST YEAR, THIS THE VERY FIRST COLUMN, UM, LAST YEAR, GO, GO.

AND BRENDA, TO THE FIRST PAGE, THERE YOU GO.

UH, THE VERY FIRST COLUMN THERE SAYS ED ALARM TAXES.

SO FISCAL 20 IS THE GREEN AND FISCAL 21 IS BLUE.

UM, AND YOU CAN SEE THAT WE ARE REALLY NECK TO NECK, RIGHT, WHERE WE NEED TO BE THERE.

UH, AND YOU ALSO NOTICE AS YOU LOOK AT THE REST OF THAT GRAPH FOR MANY OF THEM, UM, 20 WAS JUST A SLIGHT, UM, BIT AHEAD OF WHERE 2021 IS, UH, THIS TIME OF YEAR LICENSES AND PERMITS FOR EXAMPLE, ARE DOWN ABOUT MAYBE FIVE OR SO PERCENT.

UH, THE INTER-GOVERNMENTAL SEEMS TO BE LAGGING ABOUT 10%.

UM, AND THEN YOU'VE GOT THE CHARGES FOR SERVICES, WHICH IS KIND OF THE ANOMALY FOR THE YEAR, UH, FINES AND FORFEITURES.

WE, WE SEE THAT SLAGGING QUITE A BIT.

IT LOOKS LIKE LAST YEAR, THEY COLLECTED AROUND A HUNDRED PERCENT OF THEIR BUDGET BY THIS TIME.

WHEREAS IN OUR CURRENT FISCAL YEAR, WE HAVE 50.

UM, SO THERE'S, THERE'S SOME DEFINITE DEVIATIONS THERE IN TERMS OF YOUR SPECIFIC REVENUE CATEGORIES, BUT ON THE VERY LAST PAGE, UM, RENT, IF YOU WANT TO GO AHEAD AND JUMP TO THE VERY LAST PAGE, THE OVERALL GRAPH OF REVENUES KIND OF MONTH, EVERY MONTH AS IT BUILDS IN.

SO OVERALL IT'S THE TOP ONE, RIGHT? TOP ONE, RIGHT? YEP.

RIGHT THERE.

OVERALL, YOU'LL SEE THAT BY MARCH OF 2021 COMPARISON TO MARCH OF 2020, WE ACTUALLY ARE, EVEN THOUGH THERE'S FLUCTUATIONS IN EACH OF THOSE INDIVIDUAL REVENUE CATEGORIES, WE'RE NEXT TO NET WITH WHERE WE WERE THIS TIME LAST YEAR.

UM, AND AS YOU LOOK BACK AT THE GRAPH ON THE FIRST PAGE, YOU'LL SEE THAT THE BIG DIFFERENCE THERE, UM, IS COMING IN FROM CHARGES FOR SERVICES AND THE MISCELLANEOUS CATEGORY, THAT'S SORT OF CARRYING THE OTHER REVENUE TYPES THAT ARE, ARE LAGGING BEHIND.

UM, THAT'S A GREAT QUESTION.

ARE THERE ANY OTHERS? I'M NOT SEEING ANYBODY.

ALL RIGHT.

I'M GOING TO MOVE ON THEN TO THE SECOND PAGE, UM, WHICH WILL BE THE EXPENDITURE PIECE.

OKAY, PERFECT.

OKAY.

ALL RIGHT.

AGAIN, WE'VE GOT OUR INITIAL BUDGET, WHICH WAS BALANCED TO OUR REVENUES THERE AT THE TOP.

THEN WE HAVE A LITTLE BIT OF A CARRY OVER JUST BELOW THAT OF 1.3 MILLION FOR A TOTAL BUDGET OF 131,000,650, $2,878.

AND THEN BELOW THAT

[00:10:01]

AND THAT AMOUNT IS $94,902,774, WHICH IS APPROXIMATELY 72%.

SO OUR EXPENDITURES AS OF MARCH ARE, YOU KNOW, A LITTLE BIT LESS THAN THE PERCENT OF THE YEAR COMPLETED.

SO, UM, THAT'S, UH, I FEEL LIKE A PRETTY GOOD SUN OF OUR DEPARTMENT'S ABILITY TO REALLY STEWARD THEIR BUDGETS AND ACT WITH FISCAL RESPONSIBILITY.

SO I WANT TO GIVE A BIG SHOUT OUT TO EVERYBODY FOR THAT AS WELL.

ALL RIGHT.

WE'LL HIT THE HOT POINTS HERE AGAIN SO THAT WE CAN GET TO OUR AUDIT PRESENTATION.

UM, MOST OF THEM, IF YOU LOOK AT THAT GRAPH, THERE, THEY ARE ALL NECK TO NECK, RIGHT AROUND WHERE THEY WOULD HAVE BEEN IN THE PRIOR YEAR, WHICH WE LIKE TO SEE SOME CONSISTENCY THERE.

THAT'S HELPFUL TO US WHEN WE'RE DOING BUDGET PROJECTIONS AND FORECASTING.

UM, THE TWO THAT ARE KIND OF OUR ANOMALIES HERE IN THE CURRENT FISCAL YEAR ARE THE OTHER CATEGORY AND THE, UH, CAPITAL PROJECTS.

AND WE'VE TALKED A LITTLE BIT ABOUT THESE BEFORE.

UM, IN THE OTHER CATEGORY, WE HAVE, UM, A BIT OF FUND BALANCE THAT WAS USED FOR THE BEAUFORT COUNTY ECONOMIC DEVELOPMENT CORPORATION FROM ESCROW FUND.

SO THAT'S NOTHING NEW HERE THIS MONTH.

UM, AND THEN CAPITAL PROJECTS, WE'VE TALKED ABOUT THIS A LITTLE BIT.

WE'VE GOT, UM, AN AMBULANCE THAT'S BEING PURCHASED FROM INSURANCE PROCEEDS.

THAT WAS NOT IN OUR EXPENDITURE AMOUNT FOR THE YEAR.

SO THAT WAS, UM, AN ADDITION THAT'S CAUSING IT TO GO OVER, BUT WE ALSO HAVE ENCUMBERED, UM, $698,582, THEREFORE THE CAPITAL PROJECTS.

AND WE'VE TALKED A LITTLE BIT ABOUT THIS BEFORE AND THAT THEY DON'T, UM, ALWAYS FOLLOW A, UM, EQUAL DISTRIBUTION IN TERMS OF EXPENDITURE, BUT, UM, THEY ARE A BIT OVER AND WE HAVE THAT HAS GIVEN YOU A PRETTY GOOD ON, ON WHY WE HAVE EXCEEDED OUR $906,000 BUDGET.

AND WE WERE AT 1,062,000, AND I'LL BE HAPPY TO ANSWER ANY QUESTIONS YOU MAY HAVE ABOUT THAT CATEGORY AS WELL, IF THERE ARE ANY, ALL RIGHT.

NOT SEEING OR HEARING ANYONE.

SO BRENNA, IF YOU'LL JUST GO TO THAT LAST PAGE, ONE MORE TIME WITH THE GRAPHS THERE AT THE BOTTOM OF THE EXPENDITURE COMPARISON, THEY'LL PULL IT UP JUST TO TICK THAT MORE, A LITTLE BIT MORE.

PERFECT.

OKAY.

SO AGAIN, WE'VE GOT 2020 IN GREEN IN 2021 IN BLUE.

UM, 20, 21 IS STILL A LITTLE BIT LOWER THAN 2021.

SO AGAIN, THANK YOU TO OUR DEPARTMENT HEADS FOR REALLY STEWARDING THEIR BUDGETS THIS YEAR, ESPECIALLY SINCE THEY WERE QUITE A BIT LOWER THAN THEY WERE IN THE PREVIOUS YEAR.

UM, I, I DO STILL THINK THAT BY THE TIME THAT IN THE YEAR APPROACHES THAT THE, THE GAP WHERE THE SPREAD BETWEEN THOSE TWO LINES WILL DECREASE A BIT AND THEY'LL GET CLOSER TOGETHER THAN THEY ARE NOW.

UM, BUT ALL IN ALL, I'M VERY PLEASED WITH THE GENERAL GENERAL FUNDS PERFORMANCE YEAR TO DATE.

SO I AM HAPPY TO ANSWER ANY QUESTIONS ANYONE HAS, BUT IF YOU DON'T HAVE ANY, I'M GOING TO PASS IT TO, UM, BRENDA ACTUALLY IS HASTE DOING THE CARRIER, A BUDGET UPDATE NEXT.

WHERE IS MR. ERWIN NEXT? MR. LINGO? UH, WHITNEY, IF, UH, IF CHAIRMAN LAWSON AGREES.

YES, I AGREED.

AND I THINK THAT'S, WE TALKED ABOUT BEFORE THE MEETING, SO I KNOW HE'S ON A TIMESCALE.

LET'S GO AHEAD AND LET MR. AARON IRWIN GO AHEAD.

PERFECT.

THANK YOU GUYS.

I SORT OF APPRECIATE, CAN YOU ALL HEAR ME OKAY? YES, SIR.

WE NEED A FINE, THANK YOU.

OKAY.

I HAVE TO TALK TO MAKE SURE.

[9. DISCUSSION AND PRESENTATION OF THE COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR 2020 BY EXTERNAL AUDITOR'S MAULDIN & JENKINS CPA'S AND ADIVSORS]

WELL, WELL, GOOD AFTERNOON, LADIES AND GENTLEMEN, UH, HOPE YOU ALL ARE DOING WELL.

UH, AGAIN, MY NAME IS DAVID IRWIN.

I'M WITH MOLDEN JENKINS.

I WAS THE PARTNER WHO OVERSOLD THIS YEAR'S AUDIT OF THE COUNTY'S FINANCIAL STATEMENTS AND, UH, SORT OF APPRECIATE THE OPPORTUNITY TO, UH, TO, TO BE HERE, TO DISCUSS THE AUDIT.

I BELIEVE YOU ALL HAVE ALREADY RECEIVED A COPY OF THE FINANCIAL STATEMENTS.

UM, SO FOR THE PURPOSE OF TODAY'S PRESENTATION IS JUST TO PROVIDE YOU ALL AN OVERVIEW OF OUR INDEPENDENT AUDIT REPORT.

UM, HE DID A FEW OF THE FINANCIAL STATEMENT HIGHLIGHTS, TALK ABOUT, UH, THE RESULTS OF THE COMPLIANCE AUDITS THAT WE ISSUE IS PART OF THE AUDIT, UH, DISCUSS SOME INFORMATION THAT THE AUDITING STANDARDS REQUIRES THAT WE COMMUNICATE TO YOU ALL.

UM, AND OBVIOUSLY THE ANSWER TO ANY QUESTIONS THAT YOU ALL MAY HAVE NOW, THE FINANCIAL LIVES OF SALES, THEY ARE THE RESPONSIBILITY OF COUNTIES MANAGEMENT AND MEMBERS OF THE COUNCIL HAS YOUR INDEPENDENT AUDITORS.

UH, OUR RESPONSIBILITY IS TO ISSUE AN OPINION ON THESE STATES.

UH, WE CONDUCT OUR AUDIT IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AND GOVERNMENTAL AUDITING STANDARDS.

AND I'M HAPPY TO SAY THAT WE ARE ISSUING A CLEAN

[00:15:01]

UH, THIS IS WHAT YOU WANT.

THIS IS THE HIGHEST LEVEL OF ASSURANCE THAT WE CAN PROVIDE YOU AS YOUR EXTERNAL AUDITOR.

UH, WHAT THIS MEANS IS THAT IN OUR OPINION, THE FINANCIAL STATEMENTS ARE FAIRLY STATED IN ALL MATERIAL RESPECTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING STANDARDS OR GENERAL ACCEPTED ACCOUNTING PRINCIPLES.

UM, BEFORE I GET THE FINANCIAL STATEMENTS, I DO WANT TO TAKE A MOMENT TO THANK YOUR STAFF FOR THEIR HARD WORK THIS YEAR.

UM, YOU KNOW, I BELIEVE I MENTIONED THIS TO YOU ALL BACK IN FEBRUARY WHEN, UH, WHEN WE MET, UH, BUT YOU KNOW, OBVIOUSLY THIS YEAR'S AUDIT CERTAINLY CAME WITH ITS, UH, ITS OWN UNIQUE SET OF CHALLENGES.

UH, YOU KNOW, WHITNEY ARRIVED AT THE COUNTY, I BELIEVE IN OCTOBER.

SO WE WERE ALL IN A FISCAL YEAR, UH, THAT ENDED THREE MONTHS BEFORE SHE WAS EVEN HIRED.

SO, UM, WHEN YOU CONSIDER THAT, WHEN YOU ALSO FACTOR IN THE, OBVIOUSLY THE PANDEMIC AND THE, UH, THE NUMEROUS STAFF DEPARTURES THAT OCCURRED DURING THE YEAR AND AS WELL AS THE INSTITUTIONAL KNOWLEDGE, UH, THAT LEFT WITH THOSE DEPARTURES, UM, YOU KNOW, WINDY WHITNEY HAYES AND THEIR, THEIR STAFF, THEY REALLY DID A, AN EXCELLENT JOB UNDER SOME, UH, AGAINST SOME VERY UNIQUE AND UNUSUAL CIRCUMSTANCES.

THEY WERE VERY ACCOMMODATED OUR AUDIT TEAM.

UM, THEY WORKED HARD TO ADDRESS ALL OF OUR QUESTIONS AND, UH, AND GET US EVERYTHING THAT WE NEEDED IN ORDER TO MEET, UH, THE STATE'S EXTENDED DEADLINE THAT THEY HAD.

SO, UM, AGAIN, JUST A SPECIAL THANK YOU TO THEM.

WE, WE CERTAINLY HAVE APPRECIATED THEIR WHOLE WORK THIS YEAR NOW FOR A BRIEF OVERVIEW, UH, YOU KNOW, THE COUNTY PREPARES WHAT IS CALLED A COMPREHENSIVE ANNUAL FINANCIAL REPORT, OTHERWISE KNOWN AS A CAFFER AND, UM, UH, CAFFER REQUIRES THE INCLUSION OF ADDITIONAL INFORMATION THAT, UH, THAT GOES ABOVE AND BEYOND THE BASIC FINANCIAL REPORTING REQUIREMENTS.

UM, THIS DOCUMENT IS SUBMITTED ANNUALLY TO THE GOVERNMENTAL FINANCE OFFICER'S ASSOCIATION OR THE WESTLANDS THE GFL WAY, UH, WHERE THEY PUT IT THROUGH A PRETTY STRINGENT REVIEW PROCESS.

THEY HAVE THEIR PROFESSIONAL STAFF, UH, HIS WILL IS A SPECIAL REVIEW COMMITTEE THAT LOOKS AT THE COUNTY'S FINANCIAL LIGHTNESS.

AND WHEN THEY LOOK AT YOUR CALF OR, UH, YOU KNOW, THEIR GOAL WAS NOT TO ASSESS THE FINANCIAL HEALTH OF THE COUNTY, UH, BUT RATHER THEY WANT TO MAKE SURE THAT, UH, THE READERS OF YOUR FINANCIAL STATEMENTS HAVE THE NECESSARY INFORMATION IN THIS DOCUMENT, SO THEY CAN DO SO THEMSELVES.

AND THROUGH THIS REVIEW, THE GFR WAY HAS ONCE AGAIN, AWARD THE COUNTY, THE CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING.

AND, UM, I BELIEVE THIS IS THE 11TH YEAR IN A ROW THAT YOU ALL HAVE RECEIVED A CERTIFICATE.

SO, UH, AGAIN, CONGRATULATIONS ON THAT, YOU KNOW, THIS IS, UH, THIS IS AN IMPRESSIVE DOCUMENT AND ONE THAT YOU OUGHT TO BE PROUD OF.

ONE SECTION I ALWAYS LIKE TO POINT OUT IS THE MANAGEMENT DISCUSSION ANALYSIS, OTHERWISE KNOWN AS THE NDNA, UH, THIS BEGINS.

SO PAGE FOUR, IT'S BRIGHT AFTER OUR ALL OPINION.

UM, I WOULD STRONGLY YOU ALL TO READ THE SECTION, IF YOU CAN, YOU KNOW, IT'S ONLY 15 OR SO PAGES LONG IT'S WRITTEN BY MANAGEMENT.

IT DOES A REALLY GOOD JOB OF INTRODUCING A SUMMARIZING THE BASIC FINANCIAL STATEMENTS, UM, AS WELL AS PROVIDING AN ANALYTICAL OVERVIEW OF THE FINANCIAL ACTIVITIES THAT OCCUR THROUGHOUT THE YEAR.

THERE'S ALSO QUITE A BIT OF COMPARATIVE INFORMATION IN THIS SECTION, MEANING THE FINANCIAL ACTIVITY FOR FISCAL YEAR 20 AND FISCAL YEARS 19 ARE DISCLOSED.

AND, UM, AGAIN, TO ME, THIS ADDS A LOT OF VALUE TO THE READER.

YOU KNOW, IT GIVES YOU A MUCH BETTER UNDERSTANDING OF THE, THE GOOD, THE BAD, THE UGLY OF THE, UH, OF THE CURRENT YEAR ACTIVITY.

WHEN YOU, WHEN YOU HAD THE PRIOR YEAR ACTIVITY RIGHT-SIDE TO COMPARE IT TO.

SO, UM, AGAIN, I, I CAN CERTAINLY UNDERSTAND YOU NOT WANTING TO READ THIS, UH, THIS 200 PAGE DOCUMENT COVER TO COVER.

UM, BUT, BUT IF YOU CAN PLEASE TAKE THE TIME TO READ THROUGH THE D NOW THE COUNTY'S BASIC FINANCIAL STATEMENTS, THEY ARE BROKEN UP IN THREE COMPONENTS.

UH, THE FIRST OF WHICH BEING YOUR GOVERNMENT WIDE FINANCIAL STATEMENTS, NOW, THE GOVERNMENT WATCH STATEMENTS, UH, THEY PROVIDE A BROAD VIEW OF THE COUNTY'S OPERATIONS IN A MANNER SIMILAR TO WHAT YOU WOULD SEE IN A PRIVATE SECTOR BUSINESS.

ALL THE COUNTIES FUNDS ARE COMBINED UNDER EITHER A GOVERNMENT ACTIVITIES OR BUSINESS TYPE ACTIVITIES COLUMN.

HOW DID YOU DO THIS? UM, YOU KNOW, THE COUNTY END OF THE YEAR WITH ASSETS AND DEFERRED OUTFLOWS OF RESOURCES AROUND 845 MILLION AROUND 573 MILLION OF THAT, OR YOUR CAPITAL ASSETS, AND THEN HAVE A QA DEPRECIATION YOU ALL HAD AROUND $366 MILLION IN LIABILITIES AND DEFERRED INFLOWS OF RESOURCES, UH, WHICH RESULTED IN AN ENDING NET POSITION OF A $478 MILLION FOR THE YEAR.

UM, THAT'S AN INCREASE OF ABOUT $66.6 MILLION COMPARED TO PRIOR YEAR.

UM, YOU KNOW, WHEN LOOKING AT YOUR REVENUES, THERE WERE AROUND $262 MILLION THIS YEAR, UH, THAT'S AROUND $47 MILLION HIGHER THAN PRIOR YEAR.

THAT IS THE RESULT OF THE MAJORITY OF THAT IS THE RESULT OF THE, UH, THE $45 MILLION IN SALES TAX REVENUE THAT YOU'VE ALL RECEIVED.

AND IN FISCAL YEAR 20, UH, LOOKING AT YOUR EXPENSES THERE, THEY'RE PRETTY MUCH RIGHT IN LINE WITH PRIOR YEAR, SLIGHT INCREASED ABOUT $5 MILLION, UH, TO A TOTAL OF $195 MILLION FOR THE YEAR.

UM, ONE THING TO KEEP IN MIND, WE'RE TALKING ABOUT NET POSITION.

THAT IS NOT WHAT YOU ALL HAVE IN THE FORM OF CASH TO SPEND,

[00:20:01]

UH, NET POSITION IS MERELY THE DIFFERENCE BETWEEN TOTAL ASSETS AND TOTAL LIABILITIES, ONLY A PORTION OF WHICH IT IS CASH ON HAND.

SO, UM, AGAIN, THIS IS THE FINANCIAL HIGHLIGHTS OF THE GOVERNMENT WIDE STATEMENTS THAT BEING SAID, THIS IS REALLY THE ONLY TIME YOU'LL SEE THE COUNTY'S FINANCIAL ACTIVITIES REPORT IN THIS MANNER, UM, IN, IN THE DAY-TO-DAY OPERATIONS OF THE COUNTY, UH, THE FOCUS IS MORE SO ON THE INDIVIDUAL FUNDS THEMSELVES, WHICH BRINGS ME TO THE SECOND COMPONENT OF YOUR FINANCIAL STATEMENTS, WHICH AGAIN ARE THE FUND LEVEL STATEMENTS.

UM, AGAIN, THIS IS WHAT YOU TYPICALLY SEE THROUGHOUT THE YEAR.

THIS COMPONENT FOCUSES ON INDIVIDUAL PARTS OF THE GOVERNMENT, AND IT'S A, IT REPORTS THE COUNTY'S OPERATIONS IN MORE DETAIL THAN THAT, OF THE GOVERNMENT WIDE STATEMENTS.

AND, YOU KNOW, WHEN YOU TALK ABOUT ALL THE DIFFERENT FUNDS OF THE, A PRIMARY INTEREST TO YOU ALL IS THE GENERAL FUND.

UM, IT'S THE MAIN OPERATING FRONT OF THE COUNTY, AND THEREFORE THE COUNCIL, THE MAJORITY OF YOUR REVENUES RECEIVED AND FUNDS EXPENDED.

UH, WE HAVE A COUPLE OF CHARTS IN THE NEXT FEW SLIDES, UH, THAT BREAKS DOWN THE GENERAL FUNDS REVENUES AND EXPENDITURES FOR THE YEAR.

UH, TOTAL REVENUES AT GENERAL FUND WERE AROUND $137.9 MILLION.

THAT'S AROUND A $2.2 BILLION INCREASE COMPARED TO PRIOR YEAR.

OBVIOUSLY LOOKING AT THIS CHART, UH, YOU KNOW, THE VAST MAJORITY OF YOUR REVENUES ARE DERIVED FROM PROPERTY TAXES, UH, WHICH WAS AROUND $107 MILLION THIS YEAR.

AND THAT REPRESENTS ABOUT 78% OF YOUR TOTAL REVENUES FOR THE GENERAL FUND, A COUPLE OTHER SIGNIFICANT SOURCES OF REVENUES WORTH MENTIONING.

UH, YOU ALL HAD CHARGES FOR SERVICES OF RENT 14.2 MILLION, AND INTER-GOVERNMENTAL REVENUE AROUND MATH, $5 MILLION.

SURE.

UH, THE, UH, EXPENDITURES FOR THE YEAR BY A MAJOR FUNCTION, UH, YOUR EXPENDITURES TOTAL ABOUT $123 MILLION THIS YEAR.

THAT'S AN INCREASE AROUND $3.6 BILLION COMPARED TO PRIOR YEAR, UH, HAS YOU WOULD EXPECT, YOU KNOW, PUBLIC SAFETY, PUBLIC WORKS AND GENERAL GOVERNMENTAL EXPENDITURES, UH, REPRESENT THE MAJORITY OF THESE EXPENDITURES, PUBLIC SAFETY THAT WAS AROUND $49 MILLION THIS YEAR.

AND, UH, THAT ACCOUNTED FOR APPROXIMATELY 40% OF THE GENERAL FUNDS TOTAL EXPENDITURES.

AND THAT PERCENTAGE IS ACTUALLY ON THE LOWER END OF WHAT WE TYPICALLY SEE WITH OTHER LOCAL GOVERNMENTS OF YOUR SIZE TO TYPICAL PUBLIC.

SAFETY'S AT LEAST 50%, SOMETIMES AS HIGH AS 60, 65%.

SO, UH, PUBLIC WORKS EXPENDITURES WERE JUST OVER 16 MILLION FOR THE YEAR AND YOUR GENERAL GOVERNMENT EXPENDITURES.

WE'RE RIGHT AT 37.2 FOR THE YEAR.

UM, BOTH OF WHICH WERE CONSISTENT WITH, WITH FISCAL YEAR.

THIS SLIDE SHOWS THE FUND BALANCE HISTORY OF THE GENERAL FUND OF THE PAST FIVE YEARS.

UM, YOU KNOW, IT'S ALWAYS INTERESTING, UH, TO ME TO KIND OF SEE WHERE YOU WERE AND, AND COMPARE TO WHERE THINGS CURRENTLY STAND.

AND, UH, YOU KNOW, AS YOU CAN SEE IN THIS CHART, YOU ALL HAD A RELATIVELY GOOD YEAR FOR THE GENERAL FUND FUND BALANCE INCREASED, UM, AROUND 10 AND A HALF MILLION DOLLARS FOR THE YEAR BEFORE ANY BALANCE OF 53.8 MILLION.

AND AGAIN, AS I MENTIONED EARLIER WITH NET POSITION, UM, YOU KNOW, FUND BALANCE, THAT'S NOT WHAT YOU ALL HAVE IN THE FORM OF CASH TO SPEND, AS YOU SEE FIT FUND BALANCE IS MERELY THE DIFFERENCE BETWEEN ASSETS AND LIABILITIES.

UM, ONLY A PORTION OF WHICH IS AVAILABLE CASH.

SO, UM, YOU KNOW, ANOTHER THING TO KEEP IN MIND, THE GENERAL FUNDING CURVES EXPENDITURES OF A LITTLE OVER $10 MILLION PER MONTH.

SO YOU ALL ENDED THE YEAR WITH UNASSIGNED FUND BALANCE EQUAL TO A PROFIT OF FOUR AND A HALF MONTHS WORTH OF OPERATING EXPENDITURES.

YOU KNOW, WHEN YOU ALL HAD AN A JUNE 30 YEAR IN A STRONG FUND BALANCE IS NECESSARY TO KIND OF COVER YOUR EXPENDITURES, UM, THROUGH THE MONTHS OF JULY THROUGH NOVEMBER, WHEN YOUR, WHEN YOUR REVENUES ARE TYPICALLY DOWN, UH, THE GFA AGAIN, THAT'S WHO YOU ALSO MET YOUR CAFETERIA FOR CERTIFICATION, UM, YOU KNOW, DEPENDING ON WHEN YOU'RE HERE IN, THEY, THEY RECOMMEND THAT ENTITIES MAINTAIN, UM, A FUND BALANCE SOMEWHERE BETWEEN THREE TO SIX MONTHS WORTH OF GENERAL FUND OPERATING EXPENDITURE.

SO, YOU KNOW, YOU ALL ARE RIGHT IN LINE WITH, WITH GFS RECOMMENDATIONS AND, UM, YOU KNOW, AGAIN, LOOKING AT THIS CHART, YOU ALL HAVE DONE A REALLY GOOD JOB, ESPECIALLY THE PAST COUPLE OF YEARS, UM, UH, OF GETTING YOUR FUND BALANCE UP TO THAT RECOMMENDED LEVEL.

SO, CONGRATULATIONS, YOU'VE ALL MET COUPLE OF OTHER FUNDS.

I WANT TO BRIEFLY MENTION, UM, ARE THE THREE ENTERPRISE FUNDS OF THE COUNTY, UM, WHICH ARE THE STORM WATER FUND AND THE TWO AIRPORTS NOW, AGAIN, ENTERPRISE FUNDS, THEY ARE USED TO ACCOUNT FOR OPERATIONS IN A MANNER SIMILAR TO THAT OF A PRIVATE SECTOR BUSINESS.

UM, YOU KNOW, THE INTENT OF THESE FUNDS IS TO BE SELF-SUFFICIENT AND TO GENERATE SUFFICIENT OPERATING REVENUES, UH, TO COVER YOUR OPERATING EXPENSES.

AND, UM, THE CHART ON THIS SLIDE SHOWS YOUR OPERATING REVENUES AND EXPENSES FOR EACH OF THESE PHONES.

UH, YOU KNOW, AS YOU CAN SEE THE STORM WATER UTILITY FUND, THEY HAD A GOOD YEAR IN THE YEAR WITH OPERATING INCOME OF 2.1 MILLION.

UM, LADIES, LADIES ISLAND AIRPORT WAS FLAT.

I MEAN, IT HAD A SLIGHT OPERATING LOSS OF AROUND $8,000 AND THE HILTON HEAD AIRPORT, UH, HAD OPERATING INCOME OF A LITTLE OVER A MILLION DOLLARS FOR THE YEAR.

[00:25:02]

AND, UM, AGAIN, AS I MENTIONED EARLIER, THE LADY'S OUT ON AIRPORT, IT WAS FLAT FOR THE YEAR WHILE THE, UH, THE STORMWATER UTILITY HAD AN INCREASE IN NET POSITION AT 2.1 MILLION.

AND THE HILTON HEAD ON AIRPORTS, NET POSITION INCREASED A LITTLE OVER $4 MILLION FOR THE YEAR.

BUT AGAIN, ONE THING TO KEEP IN MIND WITH A $4.1 BILLION INCREASE IN DEBT POSITION FOR THE, FOR THE HILTON HEAD ISLAND AIRPORT AROUND 3.1 MILLION OF THAT CAME FROM, FROM FEDERAL GRANTS AND NOT OPERATING REVENUES, THE THIRD AND FINAL COMPONENT OF THE COUNTY'S FINANCIAL STATUS.

THEY ARE THE FOOTNOTES, AND AGAIN, THE FOOTNOTES PHOTOS DISCLOSED THE COUNTY'S, UH, ACCOUNTING METHODS, AND IT PROVIDES AN EXPANDED EXPLANATION, UM, OF YOUR OPERATIONAL FINANCIAL RESULTS.

THERE REALLY WEREN'T ANY SIGNIFICANT CHANGES IN THOSE THIS YEAR.

UH, SO UNLESS ANYBODY HAS ANY QUESTIONS ON THOSE, I WON'T GO INTO THOSE IN DETAIL, BUT, UM, AS PART OF THE AUDIT, THERE WERE TWO COMPLIANCE REPORTS THAT WE ALSO ISSUE THE FIRST WISH IS YOUR SINGLE AUDIT REPORT.

UM, AGAIN, THE SINGLE AUDIT, THAT'S THE COMPLIANCE REPORT, A COMPLIANCE AUDIT, UM, THAT IS REQUIRED WHEN AN ENTITY HAS OVER $750,000 IN FEDERAL EXPENDITURES FOR THE YEAR.

AND YOU ALL HAD A LITTLE OVER $5 MILLION, UM, UH, FEDERAL EXPENDITURES DURING FISCAL YEAR 20 HAS, WAS THE CASE FOR THE FINANCIAL AUDIT.

UM, WE ARE ISSUING A CLEAN OR UNMODIFIED OPINION ON THE SINGLE AUDIT AS WELL.

UH, THE SECOND COMPLIANCE REPORT IS A YELLOW BOOK REPORT AND A, THAT IS REPORTS ON THE COUNTY'S INTERNAL CONTROLS AND COMPLIANCE WITH LAWS AND REGULATIONS.

UM, WE DID HAVE FOUR AUDIT FINDINGS REPORT TO YOU ALL THIS YEAR.

UM, YOU KNOW, IF ANY OF YOU WOULD LIKE TO READ THOSE IN DETAIL, UH, THEY BEGIN ON PAGE ONE 89 OF THE CITY'S FINANCIAL STATEMENTS.

UM, YOU KNOW, AGAIN, AS I MENTIONED, THE BEGINNING OF MY PRESENTATION, THIS WAS A UNIQUE YEAR.

AND, UH, IN MY MIND, THESE FINDINGS ARE SIMPLY A REFLECTION OF THOSE CIRCUMSTANCES AND, UH, YOU KNOW, THE TURNOVER IN STAFF THAT YOU ALL HAD DURING THE YEAR, UM, WHITNEY AND I HAVE SPOKEN AT LENGTH, UH, REGARDING THESE FINDINGS AND SHE IS ALREADY IN THE PROCESS OF CORRECTING THESE ISSUES GOING FORWARD.

SO, UM, YOU KNOW, AGAIN, IF I'M IN YOUR SHOES, I WOULDN'T BE OVERLY CONCERNED.

I SEE THESE FINDINGS AS BEING A ONE-TIME ISSUE.

AND, UM, I DO NOT ANTICIPATE ANY OF THESE RECURRING IN FUTURE YEARS.

UH, ONE FINAL ON DISCUSS WITH YOU ALL.

IT'S JUST CERTAIN INFORMATION THAT THE AUDITING STANDARDS REQUIRED.

SO WE COMMUNICATE, UM, AGAIN, AS I MENTIONED EARLIER, THAT THE COUNTY IS RECEIVING A PLANE OR A MODIFIED OPINION.

WE HAD NO DIFFICULTIES IN DEALING WITH MANAGEMENT.

UH, WE HAD TO HAVE DISAGREES WITH MANAGEMENT AND WE HAD NO UNCORRECTED MISSTATEMENTS.

AND AGAIN, WE ARE INDEPENDENT OF THE COUNTY HAS REQUIRED, UH, BY GOVERNMENT LAW AND STANDARDS.

UH, THAT CONCLUDES MY PRESENTATION.

UM, AGAIN, AS I MENTIONED EARLIER, THAT THERE'S QUITE A BIT OF INFORMATION IN THIS REPORT.

WHAT I'VE TRIED TO DO IS JUST HIT THE HIGHLIGHTS OF WHAT I THINK IS OF MOST IMPORTANCE TO YOU ALL.

UM, HOWEVER, THERE'S ANYTHING IN HERE THAT I DID NOT TOUCH ON THAT YOU HAVE QUESTIONS ABOUT, UH, PLEASE DON'T HESITATE TO ASK, BUT, UM, AGAIN, JUST WANT TO THANK YOUR STAFF AGAIN FOR THEIR HARD WORK THIS YEAR.

UM, WE CERTAINLY APPRECIATE THE OPPORTUNITY TO BE A SERVICE TO YOU ALL AND LOOK FORWARD TO WORKING WITH, THANK YOU, MR. IRWIN.

UM, AND AS MR. ERWIN HAS MENTIONED, IT HAS BEEN A CRAZY YEAR WITH COVID AND THEN, UH, OBVIOUSLY MS. HOLLAND LEAVING IN MAY AND, AND, UM, MR. WILLIAMS HAD JUST COME ON, UH, AND THEN, UH, WHITNEY AND, UM, UH, MS. HARRIET DIDN'T COME ON UNTIL LATER ON THAT FALL.

SO OBVIOUSLY, UH, HAZE, WE WANT TO THANK YOU FOR A GREAT JOB YOU DID, AND, AND, AND EVEN, UM, UH, CHAIRMAN PASS SUMMIT, UM, AND WHO WAS THE PREVIOUS, UH, UH, FINANCE CHAIR AND ALSO, UH, COUNCILMAN SHAW, WHO WAS THE CURRENT CHAIR FROM LAST YEAR THAT ALL THE WORK THEY PUT IN TO MAKE SURE THAT WE WERE ABLE TO MOVE FORWARD.

SO, UM, IS THERE ANY QUESTIONS THAT WE HAVE FOR MR. IRWIN AT THIS POINT, CHRIS, GO AHEAD.

THE CHAIRMAN, UM, BY ANY CHANCE, COULD YOU JUST GIVE US A HIGH LEVEL OVERVIEW OF THE FOUR AUDIT FINDINGS AND SOME INFORMATION AS TO WHETHER OR NOT THOSE EXISTED IN PRIOR YEARS, OR THOSE REALLY ARE JUST ONE-OFF ONE-TIME THINGS.

SURE.

WE, UH, WE, WE HAVE NOT HAD ANY AUDIT FINDINGS FOR YOU ALL, UH, FOR THE PAST SEVERAL YEARS.

UM, THE, BEFORE FINDS THAT WE HAVE, UH, NUMBER ONE IS JUST GENERAL ACCOUNTING MAN MATTERS.

UH, YOU KNOW, THERE WAS, THERE WERE DELAYS IN THE CLOSE OUT OF THE AUDIT, UM, WHICH AGAIN, RESULTED IN THE AUDIT NOT BEING ISSUED UNTIL MARCH, YOU KNOW, TYPICALLY THE STATE NGF AWAY REQUIRES, UH, THAT THESE AUDITS BE COMPLETED WITHIN A SIX MONTH TIMEFRAME.

UH, THE, THE STATE, UH, GRADES YOU ALL THREE MONTH EXTENSION.

SO WE DID MEET THE STATE'S EXTENDED,

[00:30:01]

SO WE'RE NOT, WE DID NOT HAVE A PROBLEM THERE.

UM, BUT AGAIN, JUST, JUST A, A DELAY IN GETTING THINGS RECONCILED AND CLOSED OUT IN TIME, UH, WHICH AGAIN, RESULTED IN A DELAY OF THE AUDIT BEING COMPLETED.

UM, IT'S LIKE A FINALLY HAD TO DO WITH BANK RECONCILIATIONS AND WHITNEY, UH, CAN PROBABLY ATTEST TO THIS.

I THINK THERE WAS SOME ISSUES IN GETTING BANK RECONCILIATIONS, UM, YOU KNOW, RECONCILED AND TIED DOWN TO THEIR GENERAL LEDGER.

UM, AND, AND AGAIN, THAT WAS AN ONGOING ISSUE THAT, UH, THAT LASTED WELL INTO WELL INTO, UM, THESE PAST SEVERAL MONTHS.

I THINK IT WAS, IT WASN'T UNTIL JANUARY, FEBRUARY BEFORE WE FINALLY GOT EVERYTHING TIED DOWN AND CORRECTED.

SO WE JUST RECOMMEND FROM THAT STANDPOINT THAT, UH, THAT BANK RECONCILIATIONS ARE, ARE DONE ON A MONTHLY BASIS AND ANY, UH, ISSUES, CONCERNS, UM, DISCREPANCIES ARE INVESTIGATED AND, UH, AND ADDRESSED IN A TIMELY MANNER.

UM, THE THIRD FINDING WAS YOUR TIMELINESS OF FEDERAL DRAWDOWNS.

UM, WE NOTED THAT THERE WERE GRANT REIMBURSEMENTS, UH, WERE NOT SENT IN A TIMELY MANNER.

SO THEREFORE, UM, FEDERAL REVENUE THAT YOUR, YOUR REVENUES AND YOUR RECEIVABLE, UM, WERE NOT PROPERLY RECORDED IN YOUR SCHEDULE OF EXPENDITURES OF A FEDERAL WARDS.

SO WE HAD TO, UH, ISSUE, UH, AND POST SOME, SOME SIGNIFICANT ADJUSTMENTS TO GET THAT CORRECTED.

SO WE JUST, UH, WE RECOMMEND THERE THAT, YOU KNOW, MANAGEMENT JUST FOLLOW PROCEDURES TO ENSURE THAT THE REIMBURSEMENT PROCESS IS DONE IN A TIMELY MANNER.

AND, UH, THE FOURTH ONE IS JUST THE SUBMISSION OF, UM, THE FEDERAL FINANCIAL REPORT FORM, UH, SF FOUR 25, UM, THAT WAS NOT SUBMITTED TO THE FAA HAS REQUIRED BY THE AIRPORT IMPROVEMENT PROGRAM.

AGAIN, I THINK THIS IS SOMETHING THAT SLIPPED THROUGH THE CRACKS.

I THINK THAT'S SOMETHING THAT AT LEAST YOU PROBABLY DID.

UM, AND UPON HER DEPARTURE, IT WAS, UH, AGAIN, IT WAS JUST SOMETHING TO SLIP THROUGH THE CRACKS.

SO, UH, WE JUST RECOMMEND THE PROCEDURES WERE PUT IN PLACE TO MAKE SURE THAT THOSE REPORTS ARE FILED WITH THE FAA IN A TIMELY MANNER.

SO AGAIN, UM, AS I STATED EARLIER, I THINK THESE ARE ONE TIME ISSUES.

UM, WE'VE TALKED WITH WHITNEY EXTENSIVELY ABOUT IT, AND, UM, AGAIN, SHE'S ALREADY IN THE PROCESS OF MAKING SURE, UM, THESE ARE CORRECT GOING FORWARD AND COUNSEL AND HERBERT SEAN, IF I COULD ADD I'VE PREPARED, UM, A LITTLE BIT MORE OF A DETAILED CORRECTIVE ACTION SUMMARY THAT I PROVIDED TO MS. BRENNA.

SO AT THE CONCLUSION OF THIS MEETING, I'VE ASKED THAT SHE SHARED THAT WITH YOU GUYS, SO W AND WITH ALL OF COUNCIL, UM, SO THAT YOU'LL HAVE A MORE DETAILED OUTLINE OF WHAT STEPS WE INTEND TO TAKE ON REMEDYING, THESE AND THE, THE STAFF INVOLVED IN THOSE PROCESSES.

SO I HOPE YOU'LL FIND THAT HELPFUL IF YOU HAVE ANY QUESTIONS WHATSOEVER, PLEASE FEEL FREE TO CALL ME OR EMAIL ME.

UM, I'M HAPPY TO DISCUSS IT.

AND ONE POINT OF CLARIFICATION, UM, DAVID, YOU MENTIONED THAT WE HAD GOTTEN THE GFA AWARD FOR EXCELLENCE IN FINANCIAL REPORTING.

I JUST WANT COUNCIL TO, OR THOSE THAT ARE PRESENT ON THE FINANCE COMMITTEE TO KNOW THAT THAT WAS FOR FISCAL 2000 NINETEENS ANNUAL AUDIT THAT WE DON'T GET UNTIL FISCAL 20.

AND IT HAS TO GO IN THE FRONT OF FISCAL TWENTIES, UM, AUDIT REPORT.

WE HAVE NOT YET BEEN RENDERED AN OPINION BY GFF FOR THE FISCAL 20 DOCUMENT THAT WAS JUST COMPLETED, UM, AT THE END OF MARCH.

SO JUST A QUICK POINT OF CLARIFICATION THERE, ALTHOUGH WE ARE HOPEFUL THAT WE WILL GET IT, UH, WE HAVE NOT OFFICIALLY HEARD WORD FROM GFA AND, AND PROBABLY WILL NOT FOR SEVERAL MONTHS, BUT AS SOON AS WE HEAR BACK FROM THEM ONE WAY OR ANOTHER, I'LL DEFINITELY LET YOU GUYS KNOW.

SO THANK YOU, MR. ERWIN.

I APPRECIATE IT.

THAT'S A GOOD POINT.

THAT WAS FOR FISCAL YEAR 19, BUT IT'S WHEN YOU STATED WE HAVE SUBMITTED THE CAFETERIA FOR WAY THIS YEAR AND, UH, WHAT WE FULLY ANTICIPATE.

YOU ALL GET IN THE WARD FOR THE, WHAT WILL BE THE 12TH CONSECUTIVE YEAR.

SO IS THERE, UH, ANY OTHER QUESTIONS FOR MR. EARL BEFORE WE LET HIM GO SEEING NO QUESTIONS, MR. HERMAN, THANK YOU.

THAT WAS ACTUALLY A VERY DETAILED AND TO THE POINT, UH, PRESENTATION.

WE APPRECIATE THAT.

UM, AND AGAIN, IT'S EASY TO, UH, TO DECIPHER, UM, OBVIOUSLY WE'LL HAVE TO GO BACK AND READ THE 200 PAGE DOCUMENT TO BACK THAT UP.

SO, UM, BUT THANK YOU VERY MUCH.

WE APPRECIATE YOU BEING HERE TODAY.

ABSOLUTELY.

AND I THINK, UM, IS, IS MR. ERWIN PLAN ON COMING BACK WHEN WE PRESENT THIS TO COUNCIL? WAS THAT THE, IS THAT THE PLAN? SO THAT IS CORRECT.

OKAY.

ALL RIGHT.

GREAT.

SO THERE'S ANY MORE QUESTIONS MR. RULE? WE, WE WITH US AT, UM, EITHER THE NEXT COUNCIL MEETING OR THE ONE AFTER THAT, WHENEVER WE, IT IS PRESENTED TO THE COUNCIL, RIGHT.

THANK YOU, MR. CHAIRMAN.

THANK YOU.

APPRECIATE IT.

CHAIRMAN, CHAIRMAN LAWSON.

MAY I SAY ONE THING TO COUNCIL AND JUST SO THEY'RE AWARE THAT THE, UH, AUDIT THE ANNUAL AUDIT HAS BEEN UPLOADED AND THERE IS A LINK ON OUR HOME PAGE JUST BELOW THE, UH, DEPARTMENTS AND, UH, VARIOUS TABS THERE.

IT'S KIND OF EASY TO SEE ABOUT MIDDLE WAYS ON THE HOME PAGE SO THAT THE PUBLIC CAN HAVE ACCESS TO THAT.

THANK YOU VERY MUCH.

ALL RIGHT, GREAT.

AND HIT AGAIN.

UM, MS. RICHLAND, THANK YOU FOR ALL YOUR HARD WORK, MS. HARRIET,

[00:35:01]

WE KNOW HOW MUCH TIME YOU'VE PUT IN AND, AND, UM, YOU KNOW, OBVIOUSLY, UH, UM, OUR PAST, UH, UH, CHAIRMAN, UH, PATTY, UH, COUNCILMAN PASSMAN AND, UH, UM, CHAIRMAN OR CHAIRMAN, UM, BARBERSHOP AS WELL.

SO THANK YOU.

UM, IF THERE'S NOTHING ELSE, THEN LET'S MOVE ON TO THE NEXT AGENDA ITEM

[8. PRESENTATION ON CARRYOVER BUDGET 2020 EXPENDITURES]

I THINK, UH, THIS IS YOU.

THIS IS GOING TO BE REGARDING CARRY OVER FROM LAST YEAR AND GOING IN FROM 20 TO 21.

RIGHT.

THANK YOU.

THANK YOU, CHAIRMAN.

UH, YES.

UH, DO YOU WANT ME TO SHARE MY SCREEN? ARE YOU GOING TO PULL IT UP? I CAN DO IT.

JUST GIVE ME A SECOND.

OKAY.

HERE.

I CAN PULL IT UP IF YOU WANT ME TO.

I GOT IT.

I GOT IT.

ALL RIGHT.

CAN EVERYBODY SEE THAT? UM, SO TH THIS IS A, THIS IS OUR CARRIER BUDGET FROM 2021.

I ALWAYS SPLIT IT OUT INTO A LITTLE, UH, DIFFERENT BUCKETS THIS YEAR, OR THIS YEAR, TH THIS, THIS FINANCE COMMITTEE MEETING, YOU HAVE THE CARRY OVER MOUNTAIN, WHICH WAS ORIGINALLY AWARDED.

UH, WE WANTED TO SEE HOW MUCH HAS ACTUALLY BEEN EXPENDED, HOW MUCH WAS ENCUMBERED AND HOW MUCH WAS OUR REMAINING BALANCE.

AND SO I WENT THROUGH ALL OF THESE PROJECTS AND WENT THROUGH AND SAW WHICH ONES WERE COMPLETE, UH, WHICH ONES WERE NOT, UM, YOU KNOW, W WHICH WERE ENCUMBERED.

UM, SOME OF THEM HAVE, UH, HAVE, UH, ABOUT SMALL BALANCES.

SOME OF THEM HAVEN'T BEEN TACKLED YET.

THEY'RE GOING TO GET BACK OVER THE NEXT SEVERAL MONTHS.

UM, THE, THE, THE DNA LAB INSPECTIONS, THE SHERIFF'S OFFICE HAS ABOUT $347,000 IN THERE, UH, IN THE AMOUNT ENCUMBERED.

UH, I CONTACTED, UH, SUZANNE COOK AT THE SHERIFF'S OFFICE AND, AND, UH, UH, WEST CHAPEL.

THEY PLANNED TO HAVE THE CA THE, THE CEO ON THAT BUILDING BY MAY 30TH.

SO THAT SHOULD BE COMPLETED HERE SHORTLY.

LOOK AT THE REST OF THEM.

THEY'RE, THEY'RE, UH, WHERE THEY'RE EXPENDED IN THIS COLUMN.

UH, YOU GET DOWN TO, UH, UH, EVERYBODY'S FAVORITE TOPIC.

I PICKLE BALL COURTS.

I, WE GOT A LITTLE BIT MORE MONEY IN THERE THAT WE'RE PLANNING ON SPENDING HEAVILY UPGRADING SOME OF THE COURSE BY YEAR END.

UM, YEAH, W WE HAVE A LOT OF, A LOT FACILITIES MAINTENANCE.

UM, A LOT OF US WRAP UP A LOT OF IT'S ENCUMBERED, ALREADY, A VERY FEW THINGS THAT HAVEN'T BEEN, UH, DONE DONE YET.

I DIDN'T WANT TO KNOW ON THE DETENTION CENTER GENERATOR, UH, THERE'S $157,000 CARRY OVER.

UH, THEY'VE ACTUALLY COMPLETED THE PROJECT THEY'RE IN THE PROCESS OF TYING UP LOOSE ENDS, BUT THEY HAVEN'T ACTUALLY, UH, WE HAVEN'T ACTUALLY PAID THAT MONEY OUT, BUT WE EXPECT TO DO THAT IN THE NEXT WEEK OR TWO AND ROLL THAT REVENUE FUND AND TREASURE HAD A CAM DATE.

AND, UH, THAT'S, THAT'S BEEN OUT, THAT'S FINISHED, YOU'VE BEEN PAID OFF, EXCUSE ME.

AND THEN WE GET DOWN TO THE STORM WATER, UH, PROPRIETARY FUND.

WE HAVE W WE BOUGHT OUR DUMP TRUCKS.

WE HAVE A COUPLE OF THINGS THAT ARE STILL OUT THERE.

I DON'T SEE ANY FOR A TOTAL OF 120, BUT SO FAR.

SO OVER $2.1 MILLION BUDGET, WE'VE SPENT A 1.2 OF THAT WHEN WE HAVE ABOUT $585,000.

SO WE'RE HOPING TO HAVE ALL OF IT DONE BY THE END OF THE YEAR.

UH, BUT WE WANT TO GIVE YOU ALL AN UPDATE ON THAT.

SO IF ANYBODY HAS ANY QUESTIONS, I'LL BE HAPPY TO ANSWER THEM.

ARE THERE ANY QUESTIONS FOR MR. WILLIAMS? ALL RIGHT, I'LL SEE ME IF I CAN'T SEE IF THERE WAS A QUESTION, PLEASE SPEAK UP.

DON'T SEE ANY HANDS.

ALL RIGHT.

I'M SORRY.

I'LL STILL GO AHEAD.

YEAH.

I MAY BE IN A MINORITY OPINION, BUT IT'S ALWAYS SEEMED TO ME THAT UNEXPENDED CERTAINLY UNENCUMBERED SHOULD STAY AS THEY ARE, BUT THEN UNEXPENDED NOT MOUNTS SHOULD BASICALLY ACCRUE TO THE GENERAL FUND AND THEN BE REAPPROPRIATED IN THE NEXT BUDGET BECAUSE OF THOSE THINGS MAY NOT RISE TO THE SAME HIGH PROBABILITY OR HIGH PRIORITY AS SOME OF THE OTHER THINGS.

SO I'M PROBABLY IN THE MINORITY, BUT THAT'S JUST MY OPINION.

ALL RIGHT.

THANK YOU, COUNCILMAN RODMAN.

UM, ANY OTHER COMMENTS OR QUESTIONS? OKAY, GREAT.

UM, THANK YOU, MR. WILLIAMS. WE APPRECIATE ALL YOUR HARD WORK.

LET'S MOVE ON THEN TO, UM, ACTION ITEM, NUMBER

[10. FY 22 TREASURER'S BUDGET PRESENTATION]

UH, WE'VE

[00:40:01]

SO, UM, WE ARE LOOKING NOW, UH, FOR, UH, MS. WALLS, UM, WHO IS OUR TREASURER, UM, FOR HER PRESENT HER BUDGET PRESENTATION FOR FISCAL YEAR 2022.

UM, SO MS. WALLS, UH, THE FLOOR IS YOURS.

THANK YOU.

THANK YOU SO MUCH, EVERYONE FOR HAVING ME HERE TODAY.

IT'S NICE TO BE IN PERSON WITH SOME OF YOU AT LEAST.

AND TO HAVE THOSE OF YOU ATTENDING VIRTUALLY TO HEAR A LITTLE BIT ABOUT THE, THIS OFFICE, WHAT WE HAVE GOING ON AND WHAT WE'RE LOOKING FOR AS WE WALK INTO FISCAL YEAR 2022, WHICH IS GOING TO BE HERE BEFORE WE GO.

SO GOING TO THE FIRST SLIDE, I JUST WANTED TO GIVE YOU AN OVERVIEW OF HOW WE'VE APPROACHED THE BUDGET FOR THIS YEAR, BECAUSE I THINK THE CURRENT FISCAL YEAR WE THRILL AGREE IS, UM, HAS BEEN NEAT AND GREAT IN SOME WAYS, AND IN CHALLENGING AND OTHERS ON THE RISK BURDEN.

YOU JUST WANT TO PROGRESS THROUGH THIS SLIDE.

SO IT'S ALL, THANK YOU SO MUCH.

I THINK IT'S NOT GOING TO SURPRISE ANYBODY TO KNOW THAT BEAVER COUNTY IS GROWING IN EVERY WAY POSSIBLE RIGHT NOW.

UM, OUR BILLS, THE NUMBER OF BILLS AND THE NUMBER OF ACCOUNTS THAT ARE THAT WE'RE COLLECTING ON IS INCREASING.

AND ANYTIME YOU SAY MORE BILLS, GUESS WHAT? YOU'RE GOING TO HAVE MORE QUESTIONS AND MORE CONCERNS, MORE INQUIRIES, WHICH OF COURSE HAS TAKEN TIME FROM PEOPLE.

SO WE'RE GOING TO COME BACK TO THAT TRANSACTION VOLUME.

YOU HAVE MORE BILLS.

YOU HOPE YOUR TRANSACTION VOLUME IS INCREASING, AND THAT'S EXACTLY WHAT WE'VE EXPERIENCED.

OUR CONVECTION RATES ARE EXTREMELY HEALTHY.

WE ARE PAST WHERE WE WERE LAST YEAR AS OF THE SECOND PENALTY DAY, SOUTH STANDING, AND ALMOST TO WHERE WE WERE APRIL 15TH LAST YEAR.

SO EVEN THOUGH THE BILLS WERE LATE, WE'RE ALMOST BACK TO WHERE WE WOULD HAVE BEEN ANYWAY.

AND LAST BUT NOT LEAST THE DOLLARS UNDER MANAGEMENT, YOU KNOW, QUARTERLY MANAGED BY OUR OFFICE IS INCREASING AS WELL.

SO GROWING, GROWING, GROWING, I WOULDN'T LOOK AT THE CHALLENGES AND THE OPPORTUNITIES THAT THAT PROVIDES.

WE SEE TWO AREAS OF FOCUS FOR FISCAL YEAR 2022, THAT IS GOING TO MAKE SURE THAT WE CONTINUE THE SUCCESS THAT WE'VE HAD IN FISCAL YEAR 21.

AND THOSE TWO AREAS ARE IN PEOPLE AND TECHNOLOGY.

SO FIRST I WANTED TO GO OVER THE COLLECTION.

SO YOU ALL HAVE RECEIVED THIS REPORT PREVIOUSLY, AS YOU CAN SEE, WE ARE AHEAD OF THE FIRST PENALTY GATE AS OF MARCH 31ST.

I WANT TO THINK, UM, MR. GREENWAY FOR BEING A GREAT SPORT AND HELPING US IN DOING A REMINDER MAILING, I THINK THAT REALLY HELPED PEOPLE REMEMBER THE DEADLINE AND JUST NOT LET THE UNIQUENESS OF THE YEAR, MAKE THEM LATE.