Jun 15, 2026 Finance Administration and Economic Development Committee

UM, THEN MOVE ON TO APPROVAL OF MINUTES.

SECONDED.

THANK YOU FOR THE SECOND, UH, ANY DISCUSSION? SEEING NO DISCUSSION? WE WILL APPROVE THAT WITHOUT OBJECTION.

AND THAT IS APPROVED WITHOUT OBJECTION.

UM, LET'S,

[5. APPROVAL OF MINUTES]

AND YOU KNOW WHAT? I'LL MAKE THE MOTION.

THEY APPEAR TO BE OKAY.

SECOND.

I'LL SECOND THAT.

HEY, SARAH, WHAT, WHAT MONTH OR WHAT IS THOSE MINUTES FROM? I KNOW THEY'RE IN THE BACK LAST MEETING.

THE LAST MEETING? YES, SIR.

UM, SO AGAIN, THOSE WILL BE APPROVED WITHOUT OBJECTION AND ANY DISCUSSION? NO DISCUSSION, NO OBJECTION.

THOSE ARE APPROVED.

ALRIGHT, LET'S MOVE ON THEN TO NUMBER SIX IN OUR AGENDA, PUBLIC COMMENT PERIOD.

15 MINUTES TOTAL.

IS THERE ANYONE HERE TODAY THAT WOULD LIKE TO SPEAK DURING OUR PUBLIC COMMENTS? ANYONE SIGNED UP PREVIOUSLY? SARAH? NO SIR.

TO NUMBER SEVEN REPORTS AND, UH, HAVE OUR FINANCIAL FINANCE REPORT.

THEN WE'LL MOVE ON.

UM, AND, UH, NOW DOWN

[7.a. Finance Report (FISCAL IMPACT: N/A) - Sandy Novak, Finance Director]

AND THIS IS FROM MS. SANDY NOVAK, OUR FINANCE DIRECTOR.

MS. NOVAK, THANK YOU FOR BEING HERE TODAY.

GOOD AFTERNOON.

SO DO WE HAVE THIS SLIDE PRESENTATION? CAN'T HEAR YOU.

YOU SHOULD HAVE A SLIDE PRESENTATION SHOWING UP.

THERE IT IS.

THIS IS YOUR, UM, YEAR TO DATE BUDGET REPORTS IN THE GENERAL FUND.

THE NEXT SLIDE PLEASE.

THE GENERAL FUND REVENUES, UM, AVALOR TAXES ARE ABOUT 3% ABOVE BUDGET.

SO THEY'RE TRENDING VERY WELL.

INTERGOVERNMENTAL REVENUE IS ABOUT 70%.

THERE'S ALWAYS A LAG TIME WITH THOSE.

THOSE ARE, YOU KNOW, QUARTERLY AND THEY, A LOT OF THEM COME IN LATER.

SO THOSE ARE TRENDING VERY NICELY.

AND THE $24 MILLION OTHER FINANCING SOURCES, UM, DOWN IN THE REVISED BUDGET, THAT IS THE USE OF FUND BALANCE, WHICH WE HAVE.

THERE'S NO ACTUAL THAT'S GOING TO COME OUT OUT OF THERE.

NOT, UM, EATING INTO FUND BALANCE AS PLANNED.

AND THEN THE GENERAL FUND, THE NEXT SLIDE, GENERAL FUND EXPENDITURES.

WE ARE VERY, VERY NEAR THE END OF THE YEAR.

THERE'S GOING TO BE THREE MORE.

UM, PAYROLLS RUN FROM THE DATE THAT THIS WAS DONE, AND WE'LL END UP BEING ABOUT 96% OF PERSONNEL SERVICES.

ABOUT 115 MILLION OF THE 120 MILLION, UM, BUDGETED.

EVERYTHING ELSE IS IN LINE.

YOU'RE STILL NOT SEEING SOME OF THOSE TRANSFERS OUT.

THOSE WILL BE COMING OUT IN THE NEXT WEEK OR TWO BEFORE WE END THE YEAR.

UM, THE GENERAL FUND, UM, CONTRIBUTION FROM PRIOR YEAR FUND BALANCE WAS ORIGINALLY 17000016.7.

UM, WE'VE ADDED AN ADDITIONAL 18.9 MILLION THAT WAS FOR THOSE, THE 11,570,000 FOR BOND REDEMPTIONS AND ANOTHER 185,000 FOR BOND INTEREST FOR THOSE REDEMPTIONS.

AND THE BRACE AT 5.2 MILLION AND 2 MILLION ON THE HELICOPTER.

UM, THOSE WILL ALL BE TRANSFERRING OUT TO MAKE THOSE PAYMENTS.

ACTUALLY HALF OF THEM HAVE ALREADY BEEN TRANSFERRED, BUT UM, BEFORE THIS, AFTER THIS REPORT WAS CREATED.

WE'RE NOT GOING TO QUITE NEED ALL OF THAT TO BREAK EVEN THIS YEAR.

AND THAT'S THE GENERAL FUND EXPENDITURES.

IF WE MOVE ON TO ENTERPRISE ENTERPRISE REVENUES, AGAIN, UM, SOME OF THE BUDGETED REVENUES ARE CONTRIBUTION FROM PRIOR YEAR FUND BALANCE.

UH, YOU'VE GOT THAT IN STORMWATER AND AIRPORTS BOTH.

SO IT LOOKS LIKE YOU'VE GOT A REALLY LOW PERCENTAGE, BUT THEY'RE

[00:05:01]

AND THEN THE NEXT SLIDE, THE ENTERPRISE EXPENDITURES.

SO STORM WATER, UM, STORM WATER, AGAIN, THEIR EXPENDITURES, THEY WERE PLANNING ON DOING SOME PROJECTS THAT HAVE NOT OCCURRED.

UM, AND WE CAN GET MORE DETAILS ON THAT IF YOU'D LIKE.

UH, THE AIRPORT, THE BOTH OF THE AIRPORTS ARE PRETTY MUCH TRENDING ON, UM, ON SCHEDULE.

ANY QUESTIONS ON ANY OF THOSE? CHAIRMAN, MR. CHAIRMAN? UM, GOING BACK TO COLLECTIONS FOR STORMWATER, IS THAT, UM, REVENUES IS THERE, UH, UH, TH 13 MILLION OF THAT WAS GOING TO BE CONTRIBUTION FROM PRIOR YEAR FUND BALANCE.

GOT IT.

ANY OTHER QUESTIONS ON THAT? AND, UM, WE CAN MOVE ON TO THE BUDGET ADJUSTMENTS.

SO BUDGET ADJUSTMENTS ARE FROM DEPARTMENTS AND THIS LIST DOES NOT INCLUDE BUDGET ADJUSTMENTS MADE BY ORDINANCE.

ALL ADJUSTMENTS WERE REVIEWED AND APPROVED BY THE DESIGNATED BUDGET BUDGET, RESPONSIBLE PERSON IN COMPLIANCE WITH BUDGET ORDINANCE.

ANY TRANSFERS INVOLVING MOVEMENT FROM PERSONNEL SERVICE WERE REVIEWED AND APPROVED BY THE ADMINISTRATION, SUCH AS THE DUSKY ISLAND HVAC REPAIR FROM PAYROLL CONTINGENCY, WHICH I BELIEVE THAT IS ON THE THIRD PAGE.

YOU CAN SEE THAT THERE.

AND THEN YOU ALSO HAVE THE SHERIFF'S OFFICE AND DETENTION CENTER USING SOME PERSONNEL SERVICE FOR THE SHERIFF'S OFFICE FOR PURCHASE OF VEHICLE AND DETENTION FROM PROFESSIONAL SERVICES.

OTHER THAN THAT, THOSE ARE ALL JUST STANDARD BUDGET ADJUSTMENTS THAT ARE MADE BY THE DEPARTMENTS.

UM, HI SANDY.

SO I WAS LOOKING AT ANIMAL SERVICES, UNEXPECTED PRINTING OF FORMS WAS DUE TO INCREASED NUMBER OF ANIMALS SURRENDERED OR PROCESSED IN AND OUT OF OTHER AGENCIES.

THAT KIND OF SURPRISED ME.

I THOUGHT WE LEVELED OUT, BUT THAT CAUGHT MY EYE.

AND THEN A LITTLE FARTHER DOWN, WE HAVE ALL THESE ADJUSTMENTS FROM MOSQUITO CONTROL.

IT SAYS WE 15,000 TO PAY INSURANCE DEDUCTIBLE TO HAVE MOSQUITO CONTROL HELICOPTER REPAIRED.

IN OTHER WORDS, WE FILED AN INSURANCE CLAIM FOR SOME REASON ON THE HE.

WHAT, WHAT HAPPENED WITH THAT, IF I MAY? THE HELICOPTER WAS, WAS DAMAGED DURING, UM, AN EVENT EARLIER THIS YEAR.

UM, AND SO IT HAD TO GO IN FOR SOME REPAIR WORK.

AND SO THAT'S WHERE THE CLAIMS HAVE HAVE COME FROM.

SO WE PAID A $15,000 DEDUCTIBLE AND ALSO MOSQUITO CONTROL.

I HAVE NO IDEA WHAT THIS IS TO PURCHASE A POLE BARN.

WHAT IS THAT? PLEASE, MR. ROBINSON WEIGH IN ON THAT ONE, MR. ROBINSON.

I'M HAPPY TO ADDRESS THAT.

UM, AS MR. MOORE SAID, THE, THE HELICOPTER, UH, THAT WAS, UH, OUR INSURANCE DEDUCTIBLE TO COVER.

RIGHT NOW IT'S AROUND $350,000 OF REPAIR WORK THAT WAS DONE, UH, TO OUR HELICOPTER AT NO COST TO THE COUNTY.

SO OUR INSURANCE COVERED THAT.

HOW OLD IS THAT HELICOPTER? SINCE WE WERE TALKING ABOUT IT? IT IS A MID EIGHTIES, UM, HELICOPTER.

ANYTIME YOU WORK ON AN AIRCRAFT, IT'S EXPENSIVE.

I KNOW.

UH, VERY EXPENSIVE.

UM, AND, UH, THE, UH, POLE BARN, UH, SO THE POLE BARN IS TO, WE HAVE NINE TRUCKS THAT HAVE SPRAY EQUIPMENT IN THE BACK OF THOSE TRUCKS AND THEY HAVE, THEY SIT OUT IN THE SUN.

UH, AND THAT SUN DAMAGES SEVERELY THE EQUIPMENT IN THE BACK OF THE TRUCK AND CAUSES A CONSISTENT REOCCURRING MAINTENANCE.

SO BEING ABLE TO COVER THOSE ASSETS WILL A, ALLOW THEM TO LAST LONGER.

NOT ONLY THE VEHICLES, BUT IN THE VEHICLES IN THE BACK OF THEM.

THAT CIP WELL, THERE'S A CIP REQUEST FOR THE POLE BARN THAT'S ABOUT FOUR YEARS OLD.

SO IT HAS BEEN ONE OF THOSE THINGS THAT HAVE BEEN KICKED DOWN THE CAN FOR QUITE A WHILE.

UH, MOSQUITO CONTROL AND CIP WORKING WITH PUBLIC WORKS CAME TOGETHER WITH A PLAN TO BUILD THIS POLE BARN VERY EFFICIENTLY.

UM, SO THAT'S WHAT YOU SEE THAT TRANSFER FROM.

AT ONE POINT THAT POLE BARN WAS EXCEEDING $400,000 AND THEY'VE DONE IT MUCH, MUCH LESS, LESS THAN A HUNDRED THOUSAND DOLLARS.

THEY PUT THEIR TEAMS TOGETHER TO WORK ON THAT.

IS THAT SO POLE BARN WOULD APPLY, IT JUST HAS THINGS IN A COVER OVER IT.

IT'S NOT A BUILDING.

NO MA'AM.

IT'S A A SHED ROOF MORE OR LESS, YEAH.

IS WHAT WAS JUST TO PROTECT THE EQUIPMENT FROM THE SUN.

BALANCE FOR THE LEASE CAT BACKHOE RENTAL.

THAT WAS MY QUESTION ON THAT.

AND THEN BACK FOR SANDY, UM, UH, THAT WAS THE FUZZ KINDA, I THOUGHT IT WAS A GOOD THING THAT SOLID WASTE AND RECYCLING, THEY'RE PAYING OFF THE REMAINING

[00:10:01]

I THOUGHT THAT WAS GOOD.

KUDOS FOR THAT.

I PUT KUDOS ON MY LITTLE NOTES HERE, SO THANK YOU BRADLEY.

AND I THINK I HAVE ONE MORE FARTHER DOWN.

LET ME SCOOT.

HERE WE GO.

UM, PARKS AND REC.

OH, THIS IS A KUDOS TO PARKS AND REC.

A THEY HAD INCREASED PARTICIPATION, SO THEY HAD TO BUY MORE UNIFORMS. I THINK THAT'S WONDERFUL THAT WE HAD INCREASED PARTICIPATION IN FLAG FOOTBALL AND SUMMER BASKETBALL.

SO THAT'S A GOOD EXPENDITURE.

I WAS A LITTLE SURPRISED.

IT'S $30,000, BUT, OKAY.

UM, I LIKE THAT WE HAVE MORE PE MORE KIDS IN THERE.

AND UM, THE LAST ONE IS ALL THE WAY DOWN ON PAGE 15 OR SCOOT WAY DOWN.

IT'S FROM RISK MANAGEMENT.

IT'S $2,100,000.

CHANGE THE CODE TO 5 0 1 5 OH PER PINKY.

BACK THEN, COULD YOU EXPLAIN BENEFITS WORKERS' COMP TO EMPLOYER WORKERS' COMP? WHAT HAPPENED THERE? YEAH, THAT'S JUST THE CHANGING OF A CODING.

UM, WE WANT ALL EMPLOYER EXPENSES TO BE IN THESE FIVE ZERO, THESE NUMBERS THAT BEGIN WITH FIVE ZERO SO THAT WE KNOW WHAT WE'RE SPENDING ON PERSONNEL SERVICES.

UM, AND THEY WERE CHARGING IT TO A 5 1 5.

AND THAT'S ALL ABOUT HOW IT ROLLS UP.

WHEN WE DO OUR ANNUAL REPORT, WE WERE WANTING IT TO ROLL UP PROPERLY AND SO WE MOVED IT OVER TO A FIVE ZERO NUMBER.

THE OBJECT CODE, THAT LAST FIVE DIGIT NUMBER.

YEAH, THE DIGITS, YEAH.

AND THEN WHEN YOU LOOK AT DETENTION CENTER, 275,000, UM, THAT WILL BE AVOIDED IN 2027.

WE'RE NOT GONNA HAVE THAT ISSUE FOR THAT BIG TRANSFER.

I GUESS THAT'S FOR MR. ROBINSON .

YOU COULD YELL FROM THERE.

STRETCH WHERE IT IS.

IT SAYS WE SHOULD WAIT TILL THE END OF THE BUDGET YEAR AND USE VACANCY LAG TO COVER THE DIFFERENCE.

IT WENT TO PROFESSIONAL SERVICES FROM SALARIES FROM HOURS AND WAGES TO PROFESSIONAL SERVICES.

YES, MA'AM.

SO PART OF, UH, IN PROFESSIONAL SERVICES, THIS IS LIKELY, LET ME SEE IF WHAT I'M GONNA TELL YOU WHAT IT WAS COVERING WAS ADVANCED HEALTHCARE.

YES, MA'AM.

SO WHEN WE ENTERED THE NEW CONTRACT WITH, UH, THE EMERGENCY CONTRACT THAT WE HAD TO ENTER WITH QUIN, UH, YES.

SO WE DID THAT IN AUGUST.

BECAUSE OUR PROVIDER PULLED OUT IN JUNE, RIGHT BEFORE THE END OF THE BUDGET YEAR.

WE KNEW THAT THAT WAS GOING TO EXCEED THE BUDGETED AMOUNT FOR THE PREVIOUS COMPANY.

UM, AND THAT WAS, UH, DURING THE CONVERSATIONS WE HAD THEN, UH, THAT WAS THE CFO'S RECOMMENDATION, WAIT UNTIL THE END OF THE YEAR, SEE WHAT THE BALANCE WOULD BE, AND THEN MAKE THAT TRANSFER.

SO WE WEREN'T HAVING TO DO IT MULTIPLE TIMES.

SO THAT'S WHAT THAT COVERED.

THAT'S WHAT I FIGURED.

ALL RIGHT.

AND, AND, UH, NO, UM, OUR NEW PROVIDER, SO WE DID PUT THAT OUT FOR BID.

I DID THAT THE NEW PROVIDER SHOULD BEGIN THEIR TRANSITION NEXT WEEK.

AND OUR HOPE IS THAT WHAT WE HAVE BUDGETED FOR FY 27 COVERS THE EXPENSE.

UM, THANK YOU.

THAT IS ALWAYS A VARIABLE COST.

I KNOW.

ALRIGHT, THANK YOU SANDY.

YOUR OTHER QUESTIONS FOR MS. NOVAK? ALRIGHT, IF YOU DON'T WANT TO GO AHEAD.

ON OUR, UM, AGENDA AND, UH, CORRECTIVE ACTION FOR MANAGEMENT LETTER.

AND I WILL HANG OUT FOR THE NEXT ITEM AS WELL.

NEXT ITEM IS, UH, B

[7.b. Corrective Action for Management Letter (FISCAL IMPACT: Although difficult audits may result in fees beyond comparable audits, none have been noted and the recent RFP resulted in fairly standard fees from our existing auditors.) - Sandy Novak, Finance Director]

UM, AND, UH, IF YOU WANNA GO AHEAD SANDY AND HANDLE THAT, PLEASE.

SO I BELIEVE THAT YOU ALL HAVE SEEN A MANAGEMENT LETTER FROM OUR AUDITORS AND, UM, AS STATED IN THE CORRECTIVE ACTION, WHICH YOU HAVE IN FRONT OF YOU, THE COMMENTS INCLUDED IN THE MANAGEMENT LETTER PRIMARILY RELATE TO PROCESS IMPROVEMENTS AND OPPORTUNITIES TO ENHANCE THE EFFICIENCY OF THE COUNTY'S YEAR-END FINANCIAL REPORTING PROCEDURES.

NONE OF THE OBSERVATIONS INVOLVED FRAUD, MISAPPROPRIATION OF ASSETS, SIGNIFICANT INTERNAL CONTROL FAILURES OR MATERIAL MISSTATEMENTS IN THE COUNTY AUDIT AT FINANCIAL STATEMENTS.

IF THEY HAD, THERE WOULD'VE BEEN AN AUDIT FINDING.

AUDIT FINDING IS VERY DIFFERENT THAN A MANAGEMENT LETTER.

MANAGEMENT APPRECIATES THE RECOMMENDATION AND HAS EITHER ALREADY IMPLEMENTED CORRECTIVE ACTIONS OR WILL INCORPORATE THE SUGGESTED IMPROVEMENTS AS WE CLOSE THIS YEAR, WHICH WE STARTED DOING A COUPLE OF WEEKS AGO.

AND THE BENEFIT OF MANAGEMENT LETTERS IS REALLY TO COMMUNICATE LIKE WHAT, WHAT PERCEPTIONS THAT THEY HAVE OF THINGS THAT WE CAN IMPROVE AND THINGS THAT WE CAN DO BETTER.

THE AUDITORS ARE ABLE TO PROVIDE FEEDBACK ON SYSTEMS THAT COULD BENEFIT, UM, WITH IMPROVEMENT ON SUGGESTIONS MADE IN PAST MANAGEMENT LETTER.

THE RELATIONSHIP WITH THE AUDITORS BECOME BETTER AS AS THEY SEE THAT WE'RE LISTENING TO THEM AND MAKING, UM, CHANGES.

SO IT'S ALL RELATIONAL BUILDING.

UM, AND THE CORRECTIVE ACTION IS SAYING THIS IS WHAT WE ARE DOING FOR EACH OF THE ITEMS IN THERE.

DID YOU HAVE ANY QUESTIONS ON ANY OF THOSE ITEMS? I DO.

IT'S SO WE NEVER HAD, WE DIDN'T HAVE ONE OF THESE IN THE LAST SEVERAL YEARS, CORRECT?

[00:15:02]

I DON'T KNOW.

I'VE GOT TO LIVE IN THE LA NICE LITTLE LAND OF FINANCE WHERE I WASN'T LOOKING AT THE WHOLE PICTURE.

UM, SO I'M NOT SURE IF THERE HAVE BEEN MANAGEMENT LETTERS IN THE PAST AND I YOU DON'T SEE THEM PUBLIC VERY OFTEN.

THEY'RE USUALLY, YOU KNOW, THAT NICE LITTLE CONVERSATION WITH THE FINANCE TEAM, HEY, YOU GUYS DO THIS.

IT'S NOT USUALLY IT, UM, MADE THIS PUBLIC.

AND SO THERE MAY OR MAY NOT HAVE BEEN SOME IN THE PAST THAT NEVER, UM, THAT YOU JUST DIDN'T SEE.

YEAH, I DON'T RECALL EVER HEARING IT.

UM, AND IN THE, UM, WHAT'D YOU CALL HERE, IT SAYS, ALTHOUGH DIFFICULT ALL AUDITS MAY RESULT IN FEES.

WHY IS THIS A DIFFICULT AUDIT? IS IT BECAUSE OF THE, THE ISSUES THEY HAVE OR I CAN'T USE THE WORD FINDINGS.

YEAH, BUT THE ISSUES, UM, NO, THIS WAS NOT CONSIDERED A DIFFICULT AUDIT AT ALL.

AND WE CAN SEE THAT WITH THE RFP WHEN WE WENT OUT THAT OUR FEES WITH ALL FOUR OF THE AUDIT FIRMS, OUR FEES WERE VERY REASONABLE AND THERE WASN'T, UM, AN ISSUE WITH ESCALATING ENGAGEMENT PRICES AT ALL.

AND WE'LL TALK ABOUT THAT IN THE NEXT ITEM IN A MINUTE.

SO, UM, BUT YES, IF THERE IS SOME DIFFICULTIES THAT TAKE EXTRA TIME, UM, ON THE AUDITORS THAT THAT COULD MAKE OUR, UM, PRICES GO UP.

I GUESS WHEN I READ THIS LETTER, I LOOKED AT NUMBER THREE, MANAGEMENT WILL REVISE YEAR END CLOSING PROCEDURES TO ENSURE ACCRUED PAYROLL OBLIGATIONS ARE RECORDING THE APPROPRIATE LIABILITY ACCOUNTS.

I WAS SURPRISED THAT WAS THERE.

SO I TAKE IT THAT'S LINE FOR THIS YEAR'S CLOSING.

YES, AND ACTUALLY THAT IS SOMETHING THAT, UM, WE'RE HAVING DIFFICULTY WITH THE SYSTEM, HOW THE SYSTEM'S OPERATING.

AND SO WE'VE GOTTEN SOME CONSULTING TIME WITH MUNIS WHO IS, WHO DOES OUR GENERAL LEDGER SYSTEM AND WE ARE, WE'VE BOUGHT A PACKAGE CALLED PACE WHERE THEY COME IN AND CONSULT WITH US AND WE'LL TALK ABOUT THAT A LITTLE BIT FURTHER.

BUT WITH THE ACCRUED, UM, PAYROLL LIABILITY, WE'VE ALREADY HAD THAT MEETING WITH THEM AND THEY CONCUR THAT THE, THAT THE SYSTEM IS NOT OPERATING THE WAY IT'S SUPPOSED TO BE OPERATING AND THEY HAVE TO GO BACK TO AN IMPLEMENTATION TEAM TO FIX THAT.

SO WHAT'S BEEN HAPPENING IN THE PAST IS THEY'VE BEEN MANUALLY FIXING IT AND SO WE WILL CONTINUE TO MANUALLY FIX IT UNLESS WE CAN ACTUALLY CORRECT THE SYSTEM TO DO IT.

BUT AGAIN, THEY'RE GOING TO NEED TO USE AN IMPLEMENTATION TEAM TO MAKE THAT WORK.

UM, AND ALL IT'S DOING IS IT'S ADJUSTING CASH AND SO THE LIABILITY IS HITTING THE RIGHT PERIOD, BUT THE CASH IS GETTING RECORDED AS THOUGH THE CASH WENT OUT ON JUNE 30TH WHEN IT DIDN'T ACTUALLY GO OUT UNTIL JULY 7TH.

AND THAT MAKES ACCOUNTANTS REALLY CRANKY.

WELL, I'M GLAD TO SEE THAT, UH, THE ISSUES THEY RAISED ARE BEING ADDRESSED.

THAT'S REALLY STANDARD OPERATING PROCEDURE.

UM, NUMBER SIX SAID MANAGEMENT WILL IMPLEMENT AN INTERNAL REVIEW PROCESS TO ENSURE SCHEDULES PROVIDED DURING FUTURE AUDITS INCLUDE APPROPRIATE EXPLANATIONS, RECONCILIATIONS, AND SUPPORTING DOCUMENTATION PRIOR TO SUBMISSION.

HOW DID THAT NOT OCCUR? FOR US? I WOULD, I'M SURPRISED BY THAT.

UM, WE ARE INCREDIBLY SHORT STAFFED AND SOME THINGS DID GET PUT UP ON THE PORTAL THAT HAD NOT GONE THROUGH A SECOND SET OF EYES.

AND UM, WE HAD, WE'VE GOT SOMEBODY STARTING TODAY, WE'VE GOT SOMEBODY ELSE STARTING MONDAY.

WE HAVE TWO VACANCIES, BUT WE, WE NEED HUMANS IN THERE WHO KNOW GOVERNMENT ACCOUNTING TO WHERE WE ARE ACTUALLY PUTTING AT LEAST TWO EYES ON EVERYTHING BEFORE IT GOES UP.

AND I'VE GOT A SYSTEM TO BE ABLE TO DO THAT THIS YEAR.

UM, BUT WE ARE STRETCHED VERY THIN.

THANK YOU MR. CHAIR.

ALRIGHT, YOU'RE WELCOME.

AND, AND YOU MENTIONED FEES IN HERE.

SO DID WE PAY ADDITIONAL FEES THIS YEAR? UM, I AM NOT SURE BECAUSE WHAT I SAW LOOKED LIKE THERE WERE SOME ADDITIONAL FEES THAT, UM, I WOULD'VE ARGUED, BUT, UM, I'M NOT SURE WHAT IF THERE WAS A DIFFERENT, UM, ENGAGEMENT.

THERE WERE ADDITIONAL, THERE WERE SOME ADDITIONAL FEES OF OKAY.

ABOUT 15,000 AND MIKE, YOU KNOW, IF WE, WE PAID ANY FEES LAST YEAR, THE PREVIOUS YEAR, I'M NOT AWARE THAT WE PAID ANY OF THE PREVIOUS YEAR.

LOOK AT THINGS THAT WHERE I CAN JUST LOOK AT IT VERY BRIEFLY.

UM, BUT THIS LAST YEAR WAS ABOUT 15,000 ON TOP OF THE NORMAL AUDIT.

AND, AND UH, SANDY, HOW, HOW COMFORTABLE ARE YOU RIGHT NOW WITH, UM, MOVING FORWARD WITH OUR AUDIT COMING UP THIS YEAR? IT'S GOING TO BE A LOT OF WORK BEING SHORT STAFFED, BUT WE'RE, WE'RE GOING TO DO IT.

WE HAVE A PLAN, WE'VE GOT A MAP OF WHO'S GOING TO BE RESPONSIBLE FOR WHAT.

I'VE GOT PEOPLE COMING ON BOARD THAT, YOU KNOW, CAN SPEND SOME TIME ACTUALLY RECONCILING THINGS AND, AND TAKING TIME TO

[00:20:01]

UM, SO WE HAVE, WE HAVE A PLAN.

WE'RE, YEAH.

UM, AND, AND UM, DO YOU REPORT TO NICOLE OR TO MIKE CURRENTLY? MS. WOOD.

UM, ALRIGHT, ANY OTHER ADDITIONAL QUESTIONS? NOT ON THAT ONE.

UM, ALRIGHT.

BUT THEN WE WILL MOVE ON THEN TO OUR AGENDA ITEM, WHICH YOU'RE UP HERE AGAIN FOR.

UM, THANK YOU MS. NOVAK.

[8.a. Audit Firm Engagement Letter (FISCAL IMPACT: FY2026 Audit — $117,500, FY2027 Audit — $120,500, FY2028 Audit — $123,500, FY2029 Audit — $126,500, FY2030 Audit — $129,500. The total for five (5) years Auditing Services is $617,500. Each FY Audit will be funded from the next fiscal year's Council approved budget.) - Sandy Novak, Finance Director]

AND THIS IS OUR AGENDA ITEM EIGHT, A AUDIT FIRM ENGAGEMENT LETTER.

UH, FISCAL IMPACT FISCAL YEAR 2026 AUDIT.

AND AGAIN, THIS IS FOR A TOTAL OF FIVE YEARS.

AUDITING SERVICES OF $617,500.

UH, EACH FISCAL YEAR WILL BE FUNDED FROM THE NEXT FISCAL YEAR'S COUNCIL APPROVED BUDGET.

UH, MS. NOVAK, GO AHEAD PLEASE.

ACTUALLY MOTION YES, MOTION PLEASE.

I WILL DO THAT.

JOE.

IS THERE A SECOND PLEASE? I'LL SECOND THAT.

ALRIGHT, MS. NOVAK, GO AHEAD.

REQUISITION AND PO IN CONJUNCTION WITH THE PROCUREMENT DEPARTMENT, INVOICES, TIMECARD SUBMISSIONS, BUDGET ADJUSTMENTS AND JOURNAL ENTRIES.

SO AN RFP WAS INITIATED ON APRIL 1ST AND WAS CONDUCTED TO PROCURE AUDIT SERVICES IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS AND APPLICABLE FEDERAL REGULATIONS TO EXPRESS THE OPINION ON THE COUNTY'S FINANCIAL STATEMENTS IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

EVALUATE INTERNAL CONTROLS TO CONDUCT, CONDUCT A SINGLE AUDIT OF FEDERAL FUNDS IN ACCORDANCE WITH UNIFORM GUIDANCE, AS WELL AS REPORT ON COMPLIANCE WITH REQUIREMENTS ON THE PASSENGER FACILITY CHARGE PROGRAM AND DISABILITY AND SPECIAL NEEDS AGREED UPON PROCEDURES.

FOUR QUALIFIED CPA FIRMS RESPONDED AND THOSE SUBMISSIONS WERE EVALUATED BY FOUR STAFF MEMBERS AND IT WAS PRETTY UNANIMOUSLY CHOSEN TO GO WITH MALDEN AND JENKINS, WHO WE'VE BEEN USING.

I KNOW SOME PEOPLE ARE, YOU KNOW, OH ROT ROTATE AUDIT.

AND THAT WAS THE STANDARD THINKING, UM, FOR A LOT OF YEARS.

GAS, UH, GOVERNMENT AUDITING, UM, AND ACCOUNTING STANDARDS ARE MOVING AWAY FROM THAT AND MOVING MORE TOWARDS BUILDING THOSE RELATIONSHIPS WITH AUDITORS.

AND RIGHT NOW WITH STAFF TURNOVER AND WHATNOT, UM, I'M ACTUALLY REALLY GLAD THAT WE'RE GOING TO CONTINUE ON WITH SOMEBODY WHO'S VERY FAMILIAR WITH US AND WHAT WE HAVE GOING ON.

SO IN THE ENGAGEMENT LETTER, IF YOU WILL NOTICE, UM, STARTING ON PAGE FIVE, YOU HAVE A LOT OF MANAGEMENT RESPONSIBILITIES THAT THEY OUTLINE IN HERE.

AND AS MR. LAWSON WAS, UM, REFERRING TO EARLIER, YOU KNOW, ARE YOU READY FOR IT? THESE MANAGEMENT RESPONSIBILITIES ARE VERY STANDARD AND WE DO HAVE A PLAN TO PUT THEM IN PLACE.

WE ARE SETTING A PROFESSIONAL TONE WITHIN FINANCE AND TRAINING PEOPLE UP SO THAT WE CAN HAVE GOOD SUCCESSION PLANNING SO THAT WE CAN HAVE PEOPLE WHO ARE VERY SKILLED AT WHAT THEY'RE DOING AND CAN TAKE ON BITE-SIZE THINGS AND MOVE FORWARD AND BE ABLE TO DO WHAT THEY NEED TO DO.

AND IF, IF YOU'LL INDULGE ME, I'D LIKE TO READ SOMETHING THAT I READ AT THE BEGINNING OF EVERY ONE OF OUR STAFF MEETINGS BECAUSE I THINK IT'S IMPORTANT FOR YOU TO KNOW.

SO IT'S A QUOTE BY THEODORE ROOSEVELT WHO ONCE SAID, FAR AND AWAY, THE BEST PRIZE THAT LIFE OFFERS IS THE CHANCE TO WORK HARD AT WORK, WORK WORTH DOING.

WHAT FINANCE IS DOING IS WORK WORTH DOING.

FINANCE IS NOT ABOUT THE NUMBERS, IT'S ABOUT BEING STEWARDS OF PUBLIC RESOURCES.

AND WHAT WE DO ACTUALLY MATTERS.

WE'RE MAKING SURE EVERY EMPLOYEE IS PAID CORRECT AND ON TIME SO THAT THEY ARE ABLE TO SERVE THE COMMUNITY.

IN MANY WAYS, WE'RE MANAGING BUDGET TO ENSURE THAT RESOURCES BEAUFORT COUNTY HAS BEEN ENTRUSTED WITH ARE USED WITH INTEGRITY.

WE'RE ENSURING THAT INTERNAL CONTROLS ARE IN PLACE SO THAT WE CAN DEMONSTRATE INTEGRITY WITH THOSE RESOURCES AND WE'RE RECORDING EVERY TRANSACTION IN A WAY THAT MAKES SURE THAT THE DECISION MAKERS HAVE ACCURATE INFORMATION WITH WHICH TO MAKE THOSE DECISIONS.

AND WE ARE DOING THAT CURRENTLY WITH 12 PEOPLE TOTAL.

WE PROCESS ABOUT, UH, 19,000 EFT AP EFT SO FAR THIS YEAR, ANOTHER 19,000 CHECKS.

UM, WE DO ABOUT 900 TRAVEL RECONCILIATIONS THIS YEAR.

SO FAR WE'VE ISSUED 40 THOU, 43,000 DIRECT DEPOSITS AND OVER 900 PAPER CHECKS TO EMPLOYEES AND PAYROLL VENDORS LIKE THE US TREASURY AND SOUTH CAROLINA DOR FOR TAXES, GARNISHMENTS IN PBA WE DO ABOUT 2320 3000 RECEIVABLE BATCHES OR DEPOSITS.

UM, BUDGET AND INTERNAL CONTROL CHECKS ARE DONE WITH EACH

[00:25:01]

WE ARE CHECKING AUTHORIZATIONS ON ALL OF THEM.

WE RECONCILE 58 SEPARATE BANK ACCOUNTS.

THE CONTROL ENVIRONMENT ESTABLISHED ACROSS OPERATIONS REPORTING AND COMPLIANCE RISK ASSESSMENT IS REVIEWED AND MONITORED AT THE MANAGEMENT LEVEL AND REVIEWED WITH AUDITORS ANNUALLY.

INFORMATION AND COMMUNICATION IS MAKING SURE THAT WE'RE TAKING THE TIME TO MAKE SURE THAT THE BUDGET RESPONSIBLE PERSON IS INFORMED AND NOTHING GETS RECORDED TO THEIR BUDGET WITHOUT THEM KNOWING IT.

AND WE'RE MONITORING ACTIVITIES, REVIEWING BUDGET TO ACTUALS AND PROCESSES RESULTING IN OVER 400 ADJUSTMENTS THAT ARE MADE IN ABOUT 1700 JOURNAL ENTRIES.

SOME OF THOSE JOURNAL ENTRIES OR THINGS THAT WE NEED TO CREATE THE SYSTEM SO THAT THE SYSTEM CAN DO IT FOR US INSTEAD OF IT DOING IT MANUALLY.

UM, 'CAUSE WE ARE DOING SOME OF THOSE MANUAL ADJUSTMENTS LIKE THE CASH AND THE PAYROLL.

UM, ALL IN ALL CONTROL ACTIVITIES ARE ENTITY WIDE DIVISION AND DEPARTMENT LEVEL AS WELL AS FUNCTIONAL.

NEXT FINANCE COMMITTEE MEETING YOU WILL GET THE DEFINITIONS OF WASTE ABUSE AND FRAUD, WHICH WILL BE FORMALLY COMMUNICATED AT EVERY LEVEL OF, UM, IN ORDER TO ESTABLISH A CONTROL ENVIRONMENT THAT'S INDICATED IN THE MANAGEMENT LETTER.

WE'VE ALSO, LIKE I WAS MENTIONING OR DOING THOSE PACE SESSIONS WITH MUNIS TO REVIEW OUR SYSTEMS AND ENSURE THAT WE'RE USING THE SYSTEM TO ITS FULLEST AS DESIGN TIGHTENING UP CONTROLS AS WE GO.

FINANCE IS INDEED UNDERSTAFFED WITH A NEW MEMBER STARTING TODAY, ONE BEGINNING MONDAY AND TWO POST-IT POSITIONS AS WELL AS TWO VACANCIES.

WE'RE CREATING AN ENVIRONMENT WHERE WE'RE NURTURING GOVERNMENT ACCOUNTANTS, IT'S A TEACHING ENVIRONMENT, UM, WHERE OUR BEST PRACTICE, WHERE STANDARDS AND BEST PRACTICES TO PROVIDE FOR SUCCESSION PLANNING AND SUSTAINABLE SYSTEMS. WE GREATLY APPRECIATE THE ASSISTANCE OF THE COUNTY ADMINISTRATION AS WE'VE BEEN WORKING TOWARDS DOING THIS.

DO YOU HAVE ANY QUESTIONS? YEP.

MR. PASSMAN, GO AHEAD.

UM, SANDY, THREE QUESTIONS FOR YOU.

NUMBER ONE, WITH THE LIST YOU'RE GOING TO COMPILE THE JOB RESPONSIBILITIES WITHIN THAT MANAGEMENT SUGGESTED LIST OF THINGS THAT YOUR STAFF SHOULD BE DOING.

WHAT WE HAVE BASED ON JOB, EVERYBODY HAS THEIR JOB DUTIES ALREADY WHEN THEY'RE HIRED.

AND WITHIN THAT WE HAVE FOR THE AUDIT AND THE THE YEAR END CLOSE, WE HAVE A CHECKLIST OF EVERYTHING THAT NEEDS TO BE DONE AND WHO'S ASSIGNED TO IT AND WHO'S REVIEWING THAT.

SO QUESTION NUMBER TWO IS MM-HMM .

ARE PEOPLE CROSSTRAINED? WE ARE GETTING THERE WHERE THERE'S A LOT MORE CROSS TRAINING.

UM, MOST OF THIS YEAR THERE'S ONLY BEEN ONE PERSON WHO HAS BEEN ABLE TO DO TRAVEL, FOR INSTANCE.

UM, SO WE ARE GETTING TO THAT PLACE NOW WITHIN THE NEXT COUPLE OF WEEKS WHERE WE'RE GOING TO START HAVING SOME CROSSTRAINING.

THAT'S ESSENTIAL FOR A VARIETY OF REASONS.

PEOPLE TAKE VACATIONS, PEOPLE ARE ILL, UH, AND LIFE HAS TO GO ON.

AND MY FINAL QUESTION IS WITH THE VACANCIES, THE PEOPLE THAT ARE COMING ON BOARD, OVERALL STAFFING, DO YOU HAVE WHAT YOU NEED OR DO WE HAVE TO HAVE ADDITIONAL STAFFING RIGHT NOW? IF I CAN GET EVERYTHING THAT IS ALREADY IN THE BUDGET, EVERYTHING THAT WE HAVE ASSIGNED TO US, IF WE CAN FIND PEOPLE WITH A LITTLE BIT OF GOVERNMENT EXPERIENCE, UM, WE WOULD HAVE EVERYTHING THAT WE NEEDED.

AND THEN IT'S JUST GONNA TIME TAKE TIME TO GET THEM UP TO SPEED.

ANY OTHER QUESTIONS? YEP.

MR. SO I'M LOOKING AT THE SCHEDULE OF PROFESSIONAL FEES AND EXPENSES.

THIS COMPANY'S IN SAVANNAH, GEORGIA.

THEY'RE MM-HMM .

$3,000 IN TRANSPORTATION.

SO THEY'RE CHARGING US MEALS AND LODGING.

1500.

THEY'RE IN SAVANNAH, GEORGIA.

WHERE, WHY WOULD THEY NEED LODGING? SO HELP ME.

SO IF THEY'RE GOING TO BE HERE FOR MULTIPLE DAYS, POSSIBLY, I DON'T BELIEVE DID, DO YOU KNOW IF WE PAID ANY TRAVEL? I BELIEVE, I'M NOT SURE IF WE DID LAST YEAR.

WE CAN CHECK ON THAT.

I MEAN, IT'S INCLUDED HERE.

THAT'S $4,500.

AND WHAT IS PASSENGER FACILITY CHARGE? AUDIT.

WHAT IS THAT? PASSENGER FACILITY CHARGE AUDIT.

I JUST DON'T EVEN KNOW WHAT THAT IS.

LET'S GET AN EXPERT TO TELL YOU.

I DON'T KNOW HOW THE AIRPORTS GOT RIPPED INTO, OH, I DON'T KNOW EITHER.

BUT YOU'RE THE EXPERT.

SO PASSENGER FACILITY CHARGE, UM, THAT DEALS WITH THE THREE COMMERCIAL AIRLINES THAT WE HAVE AT HILTON HEAD

[00:30:01]

AND EACH PASSENGER IS CHARGED A FACILITY FEE AS THEY COME THROUGH RIGHT NOW I THINK IT'S NOT GONNA PUT A NUMBER OUT THERE, IT'S NO, I UNDERSTAND IT'S NOT VERY MUCH, BUT THERE'S AN EXTRA FEE PUT ON THERE.

SO THIS AUDIT, I ASSUME, WOULD COME IN AND MAKE SURE THAT THOSE FEES ARE APPROPRIATE FEES AND THEY'RE ADDRESSED WHERE THEY SHOULD BE ADDRESSED.

SO IT'S PER PASSENGER THAT COME IN.

I MEAN IT'S $7,500 AND 8,000, THEN 8,500.

I, AGAIN, I HAD, I DON'T, I DIDN'T, I HAVE NO CLUE ABOUT THIS.

I'M JUST TELLING YOU WHAT THAT, THAT WE DO CHARGE THEM.

BUT THIS IS PART OF YOUR ENTERPRISE FUND, I BELIEVE.

SO IT'S NOT PART OF THE GENERAL FUND.

IT'S AN ENTERPRISE FUND, UM, EXPENSE.

WE 100% CHARGE THEM FOR.

THANK YOU .

THANKS FOR TELLING US THOUGH.

ALRIGHT, ANY OTHER QUESTIONS? YEP.

MR. GLOVER? GOOD.

QUICKLY.

UM, THANK YOU MS. NOVAK.

UM, WHEN I, WHEN I KIND OF READ THROUGH, I WOULD TELL YOU I DIDN'T READ EVERYTHING, BUT WHEN I KIND OF READ THROUGH, UM, THE MANAGEMENT LETTER, UM MM-HMM .

A LOT OF THIS IS TO ME JUST STANDARD OPERATION, PROCEDURE THAT SHOULD BE IN PLACE ALREADY.

THAT'S STANDARD OPERATION.

SO, UM, YOU'RE TELLING ME THAT IT IS NOT IN PLACE OR YOU ARE STILL MASSAGING IT TO PUT IT IN PLACE.

UH, 'CAUSE IT, THERE'S, YOU KNOW, JUST SIMPLE RECONCILE RECONCILIATION.

IT'S, AND, AND SO THAT SHOULD BE IN PLACE ALREADY.

UM, AND SO THERE IS, THERE HAS TO BE A STANDARD OPERATION PROCEDURE IN HOUSE, WHAT YOU DO, WHAT WHERE YOU DO AND ET CETERA, ET CETERA.

YEP.

AND I THINK LIKE MR. PASSMAN SAID, UH, ASKED THE QUESTION CROSS, UM, UM, REFERENCE FRUSTRATING AND CROSS TRAINING AND STUFF IS ESSENTIAL IN ANY ORGANIZATION.

PARTICULARLY WHEN YOU'RE HAVING THE SMALL YEAH.

UH, STAFF THAT YOU'RE WORKING WITH.

YEP.

UM, BECAUSE IF I'M LOOKING FOR MY PAYCHECK AND THE PAY THE CLERK IS OUT, UM, YOU KNOW, I'M NOT GONNA BE TOO HAPPY WITH THAT AND STUFF.

SO MY BASIC QUESTION IS, I CAME ON COUNCIL IN 17 AND, UM, THE MAGNITUDE, UM, OF, OF COUNCIL AT THAT TIME WAS, WAS, WAS, WAS, WAS TREMENDOUS.

UM, WHAT'S THE DIFFERENCE BETWEEN THEN AND NOW AS FAR AS STAFF IS CONCERNED? AND YOU MAY NOT HAVE THAT ANSWER, BUT DO WE HAVE TWO PEOPLE IN, IN, IN ACCOUNTING, UH, IN, IN, UH, IN FINANCE HANDLING EVERYTHING FOR THE COUNTY 10 YEARS AGO AND NOW WE HAVE 12.

UH OH, DID WE HAVE 10 BACK THEN AND WE GOT 10 NOW? WELL, WE HAVE, AND I'M JUST, MY QUESTION IS, YOU KNOW, WHY AREN'T WE IN A BETTER POSITION? UH, WE'VE BEEN GETTING GOOD, UM, RATINGS, UH, AT THE STATE LEVEL MM-HMM .

UM, UM, PRIVATE INDUSTRIES RECOGNIZING THIS COUNTY ACCOUNTING PROCEDURE.

BUT YET WHEN I LOOK AT THE MANAGEMENT LETTER, THERE'S A LOT OF CHECKS THAT NEEDS TO BE CHECKLIST THAT NEEDS TO BE DONE.

AND I GUESS THE QUESTION IS, WHY HAS THAT BEEN DONE? WHAT HAS BEEN HAPPENING? AND ARE YOU GONNA FURNISH US THAT CHECKLIST AND THEN PERIODICALLY SAY, HEY, THIS IS DONE, THIS IS DONE, THIS IS DONE.

I THINK TO THAT LAST QUESTION, WE CAN CERTAINLY PROVIDE UPDATES TO THE COMMITTEE AS WE GO THROUGH THE AUDIT PROCESS.

AND I, I DON'T KNOW WHAT IT WOULD MEAN, BUT IF I GOT A CHECKLIST FROM YOU TO SAY, WE ARE SUPPOSED TO HAVE THIS DONE BY A CERTAIN PERIOD OF TIME MM-HMM .

AND YOU GOT IT CHECKED OFF, THEN I CAN ALWAYS SAY, OH, THAT'S CHECKED OFF.

SO WHEN I SEE THE MANAGEMENT LETTER IN THE FUTURE, I SAID THAT STUFF WAS CHECKED OFF.

WHAT HAPPENED? WE, WE HAD SOME REALLY NEW STAFF LAST, THIS TIME LAST YEAR.

I HAD BEEN HERE FOR TWO MONTHS.

UM, AND THE, SO THERE'S A LOT OF THE HISTORY YOU DON'T EVEN KNOW ABOUT.

AND BEFORE THAT, THERE HAD BEEN STAFF WHO HAD BEEN HERE FOR A WHILE AND KNEW OUR SYSTEMS AND KNEW WHAT WE WERE DOING.

YOU KNOW, THIS IS NOT MY, MY FIRST RODEO.

I'VE DONE THIS FOR 10 YEARS, BUT NOT AT BEAUFORT COUNTY.

I HAD LANDED HERE.

UM, I'VE BEEN HERE FOR 14 MONTHS.

I APPRECIATE THAT.

AND THIS MIGHT GO BACK TO YOU, MIKE, BUT, BUT HOW DOES THIS COMPARE TO OUR PREVIOUS, WHAT WE WERE PAYING PREVIOUSLY AND THEN, UM, I THINK THAT IN OUR, UH, PROCUREMENT, EVERYTHING THAT I HAD HEARD, I WAS JUST WAS TRYING TO LOOK FOR, WE'VE ASKED THEM TO ACTUALLY FINISH THE AUDIT EARLIER THAN WHAT WE'VE REQUIRED IN THE PAST AS FAR AS WHAT WE PAID PREVIOUSLY.

I DON'T, I DON'T HAVE THAT RIGHT IN FRONT OF ME.

WE BASICALLY MADE THIS EVALUATION BASED ON QUALIFICATIONS AND WE HAD, I BELIEVE HOW MANY VENDORS? UH, FOUR VENDORS.

SO IT WAS BASED

[00:35:01]

ON THE QUALIFICATIONS.

I CAN GO BACK AND LOOK AT WHAT WE PAID PREVIOUSLY.

UM, AND THE OTHER QUESTION, THE OTHER QUESTION WAS, I WAS THINKING THAT, UM, IN OUR PROCUREMENT OR OR THE CONTRACT, WE, WE'VE ASKED THEM TO HAVE THE AUDIT DONE EARLIER THAN PREVIOUSLY.

OH.

UM, I DON'T HAVE THE RFP OR RFQ IN FRONT OF ME.

DO YOU? I THINK IT MIGHT BE, BUT THE ENGAGEMENT, THE ENGAGEMENT LETTER DOES SAY THAT IT WILL BEGIN ON, UM, SEPTEMBER 8TH AND THEN IT HAS THE DATE THAT, THAT THEY ARE SAYING IT WILL BE, UM, ISSUED BY WHAT DATE IS THAT IN THERE? LEMME FIND.

I DIDN'T HIGHLIGHT IT ALL.

QUESTION IS THAT, IS THAT GONNA MAKE IT THAT MUCH MORE DIFFICULT FOR OUR STAFF TO HAVE ALL THAT COMPLETED SO THEY CAN HAVE THEIR AUDIT DONE BY THAT MOVED UP DATE? NO.

IT, IT WILL BE DONE BY THAT DATE.

PROCESS OF THE AUDIT AND THE ENGAGEMENT LETTER, THE AUDITOR SAYS FOR ME TO START THE AUDIT ON DAY X, THEY SEND A LIST OF THINGS THAT THEY'RE GOING TO NEED TO BEGIN THE AUDIT.

IT WILL BE THE RESPONSIBILITY OF THE FINANCE DEPARTMENT TO GATHER ALL OF THAT INFORMATION, HAVE THAT READILY AVAILABLE.

SO THE DAY THEY COME, THEY BEGIN DOING THEIR AUDIT.

AND DURING THE AUDIT PERIOD THEY ARE ANALYZING, ENSURING THAT ALL OF THOSE THINGS THAT ARE ON THE CHECKLIST HAVE BEEN DONE.

THAT THEY PULL CERTAIN PURCHASE ORDERS, THEY REVIEW THEM, THEY DO AUDITS OF THE VARIOUS ENTERPRISE FUNDS, OTHER FUNDS, FEDERAL FUNDS.

IT IS A LENGTHY PROCESS FOR THEM TO GET THINGS DONE.

AND THAT'S WHY THE ENGAGEMENT LETTER SAYS, BY THIS DATE, WE'LL START BY THIS DATE, WE'LL FINISH.

AND IT IS INCUMBENT UPON THEM TO HAVE ALL THE MATERIALS READY AND IT, IT IS IN THERE, IT'S, UH, BEGIN ON SEPTEMBER 8TH, 2026 AND ISSUE A REPORT NO LATER THAN DECEMBER 1ST.

IT, IT'S DUE BY THE, BY DECEMBER 31ST.

SO THAT GIVES YOU BASICALLY A MONTH BUFFER TO GET IT DONE.

'CAUSE WE HAVE TO ACCEPT THE AUDIT AND ANY FINDINGS OR CORRECT RECOMMENDATIONS BUT, AND REPORT TO THE STATE BY THE THAT'S RIGHT.

I HAVE ONE MORE QUESTION AND WE NEED TO GET ONE, HAVE ONE QUESTION.

YOU HAVE A FIVE YEAR, UM, I, I SAW THE FIVE YEARS OF MM-HMM .

APPROVED.

SO MY QUESTION IS, IS THE SAME PERSON THE LEAD AUDITOR ALL FIVE YEARS BECAUSE IT'S, YOU TALKED ABOUT A SECOND PAIR OF EYES IN YOUR DEPARTMENT.

IT IS OFTEN APPROPRIATE TO HAVE A SECOND PAIR OF EYES.

SOMEBODY DIFFERENT MM-HMM .

IF THE SAME PERSON'S DOING IT EVERY SINGLE YEAR.

I HAVE A CONCERN ABOUT THAT.

AND I'M SPEAKING FROM MY EXPERIENCE IN MY HOA BOARD, THEY SHOULD ROTATE THROUGH DIFFERENT PEOPLE TO HAVE A DIFFERENT SET OF EYES AND IT'S JUST NOT RUBBER STAMPED.

I HAVEN'T SEEN WHO OUR AUDIT TEAM WILL BE, BUT USUALLY THE MANAGER ON THE AUDIT IS GOING TO CREATE THE AUDIT, UM, ALL OF THE PROCEDURES THAT THEY'RE GOING TO DO BASED ON OUR RISK, BASED ON OUR HISTORY, ET CETERA.

AND THEN, UM, THEY WILL TAKE THAT AND THEN THE STAFF WILL DO IT.

BUT WHEN THEY'RE DONE, THAT PACKAGE GOES UP TO A PARTNER, USUALLY DAVID IRWIN AND THEN HE REVIEWS ALL OF ALL OF IT.

AND MY QUESTION IS, DOES A DIFFERENT PARTNER REVIEW IT AFTER A COUPLE YEARS OR IF WE HAD THE SAME PARTNER DO IT? THAT'S MY QUESTION.

AND YOU DON'T HAVE TO ANSWER IT RIGHT NOW, BUT THAT WOULD BE MY QUESTION GOING FORWARD.

IT SHOULD FLIP TO A DIFFERENT PARTNER.

THANK YOU MR. LAWSON.

ON OUR AGENDA AND UH, THIS IS AGENDA EIGHT CB AND ORDINANCE TO AMEND ORDINANCE OF 2017 SLASH 12 TO APPROPRIATE FUNDS FROM THE 2017 SERIES GENERAL OBLIGATION BOND TO THE STATION 34 JOINT FIRE EMS STATION.

UM, WE WILL GO AHEAD AND PROVE THIS WITHOUT OBJECTION.

IS THERE ANY OBJECTION? SEEING NO OBJECTION, THIS HAS BEEN APPROVED.

UM, LET'S MOVE ON THEN

[8.b. An Ordinance to amend Ordinance 2017/12 to appropriate funds from the 2017 Series General Obligation Bond to the Station 34 joint Fire/EMS Station. (FISCAL IMPACT: $260,000 will be transferred from the 2017 GO Bond General Contingency Account (4010-80-0000-56000) with a balance of $2,348,171 to 4010-80-0000-54420 with a balance of $5,090,102.49.) - Courtney Spiess, Budget Manager (5 Min)]

UH, I'LL MAKE THE MOTION ALL THANK YOU.

AND A SECOND PLEASE.

I'LL SECOND IT.

AND UH, WE HAVE UH, MS. SP SP THAT'S RIGHT.

I GOT RIGHT.

I APOLOGIZE.

I SAID IT WRONG BEFORE.

I'M IMPRESSED YOU CORRECTED IT .

UM, WELL GOOD.

AND SHE'S OUR BUDGET MANAGER.

MS SP GO AHEAD.

DO YOU HAVE THE FLOOR? OKAY, SO THIS IS AN ORDINANCE TO AMEND ORDINANCE 20 17 12 TO APPROPRIATE FUNDS FROM THE 2017 SERIES GO BONDS TWO STATION 34 JOINT FIRE EMS STATION.

IN 2017, COUNSEL AUTHORIZED THE ISSUANCE OF $35 MILLION IN GENERAL OBLIGATION BONDS.

THE REHABILITATION OF STATION 34 WAS ORIGINALLY FUNDED THROUGH BOND FUNDS, BUT THE ULTIMATE COST OF THE PROJECT WAS HIGHER THAN ANTICIPATED.

THERE'S APPROXIMATELY $2.35 MILLION UNSPENT AND UNAPPROPRIATED WITHIN THE 2017 GO BOND GENERAL CONTINGENCY ACCOUNT AVAILABLE TO FUND THE PROJECT OVERAGES.

THE OVERAGE WAS DISCOVERED WHEN A RECONCILIATION WAS PERFORMED WHEN THE FUNDING FOR THE REAPPROPRIATION FOR STATION 39 WAS

[00:40:01]

APPROVED.

STAFF IS PROPOSING THAT $260,000 BE TRANSFERRED FROM THE 2017 GO BOND GENERAL CONTINGENCY ACCOUNT TO COVER THE OVERAGE FROM STATION 34.

DOES ANYONE HAVE QUESTIONS? ALRIGHT, ANY ADDITIONAL QUESTIONS? THE OVERAGE, THIS IS FOR MR. ROBINSON.

THE OVERAGE WAS FOR, UH, MOLD REMEDIATION.

IT'S STATION 34.

OR AS BEST AS WHATEVER IT WAS.

YEAH, THERE WAS SOME REMEDI, WE HAD SOME REMEDIATION.

IS THAT WHAT THE OVERAGE WAS FOR? NO MA'AM.

THERE WERE THIS, UH, STATION 34.

SO, UM, THERE WERE SEVERAL PARTS OF THAT PROJECT DURING CONSTRUCTION THAT, THAT WENT OVER.

THERE WAS SOME IT COSTS, THERE WAS SOME VENTILATION COSTS.

THERE WAS A FIREWALL THAT HAD TO BE RE HAD SOME REMEDIATION WORK DONE, INSTALLATION OF GENERATOR.

SO THERE WAS, THERE WAS A, A QUITE A FEW SMALL THINGS THAT ADDED UP.

THERE WAS, UM, THE MOLD YOU'RE TALKING ABOUT WAS NOT PART OF THE ORIGINAL PROJECT.

THIS WAS AS THEY WENT TO, THIS WAS LIKE THREE YEARS AGO, TWO YEARS AGO.

SO AS THEY WENT TO DO WORK ON THE EXTERIOR OF THE BUILDING, WHICH WAS PART OF THAT PROJECT, THEY FOUND THE ORIGINAL PART OF THAT BUILDING HAD SOME, UH, TERMITE DAMAGE AND SOME OTHER DAMAGE THAT HAD HAD TO HAVE THAT RESTORATION DONE.

SO THERE WAS SEVERAL THINGS THAT KIND OF ADDED UP TO THIS INCREASE IN, UH, TO INCREASE IN COST.

AND IT'S TOTALLY FINISHED.

YES, IT'S BEEN UM, GREAT FOR A WHILE.

CERTIFICATE OCCUPANCY FOR OVER, UM, OVER TWO YEARS I THINK AT THIS POINT.

ON THEN TO, UH, EIGHT C AN ORDINANCE TO AMEND THE FISCAL YEAR 2027 BUDGET ORDINANCE TO CARRY FORWARD PURCHASE ORDERS AND FUNDS FOR FISCAL YEAR 2026 AND PRIOR FOR PROJECTS THAT HAVE NOT YET BEEN COMPLETED.

ANYONE, ANY ADDITIONAL QUESTIONS? ALRIGHT, WE CAN APPROVE THIS WITHOUT OBJECTION.

ALRIGHT, THIS HASN'T BEEN APPROVED WITHOUT OBJECTION.

UH, THIS MOVES FORWARD TO COUNTY COUNCIL.

ALRIGHT, LET'S MOVE

[8.c. An Ordinance to amend the Fiscal Year 2027 Budget Ordinance to carry forward purchase orders and funds from Fiscal Year 2026 and prior for projects that have not yet been completed. (FISCAL IMPACT: The Fiscal Year 2027 Budget will increase by $35,973,634.66 carried forward from Fiscal Year 2026) - Dave Thomas Procurement Services Director]

UM, THIS IS, UM, 35,973,634 AND 66 CENTS CARRIED FORWARD FROM FISCAL YEAR 2026.

ALRIGHT, AND MR. THOMAS, WHO IS OUR PROCUREMENT SERVICES DIRECTOR, YOU'RE GONNA PRESENT THIS TO US OR? YES SIR.

EXPLAIN IT REAL QUICK.

IT'D BE GREAT.

THANK YOU VERY MUCH.

UH, THIS IS, UM, WHAT WE'RE BASICALLY DOING IS I PUT TOGETHER A PACKET FOR COUNSELOR REVIEW.

IT HAS A COLOR CODED LIST AND I WANTED TO RECOGNIZE VICTORIA MOYER, MY DEPUTY.

SHE PUT THAT TOGETHER AND HOPEFULLY IT'S EASIER FOR YOU TO READ.

UM, IN THE PAST A LITTLE BIT OF PAST HISTORY, WE BROUGHT THIS FORWARD, I THINK IN FISCAL YEAR 24 IT WAS 75 MILLION, 70, UH, FISCAL YEAR 25 IS, IT WAS AROUND 25 MILLION.

NOW THIS YEAR IT'S 35 MILLION.

SOME CHANGE.

A LOT OF THAT IS BECAUSE WE HAVE EQUIPMENT.

SOMETIMES IT TAKES A LONG TIME TO BUILD EQUIPMENT LIKE FIRE AMBULANCES.

UM, WE HAVE SOME PROJECTS, CONSTRUCTION PROJECTS THAT TAKE A LONG TIME AND THEN WE HAVE SOME ROAD PROJECTS THAT WOULD TAKE, TAKES A LONG TIME.

NOW THE LIST IS FOUR PAGES.

IT'S DIFFERENT COLORS BY DIFFERENT DEPARTMENTS.

SO YOU CAN EASILY READ THROUGH THAT.

BUT WE'RE BRINGING THIS FORWARD TO YOU TO BASICALLY CREATE AN ORDINANCE TO ALLOW US TO CARRY THIS, THESE FUNDS FORWARD, WHICH WILL INCREASE OUR OVERALL BUDGET.

BUT THAT'S WHAT I'M BRINGING FORWARD TO YOU AND ASK THAT YOU APPROVE THE LIST AND IT COULD CHANGE.

WE'VE ALREADY, WE STARTED OUT, I THINK LAST WEEK WITH 71 PROCUREMENTS.

NOW IT'S DOWN TO LIKE 69.

'CAUSE WE PAID THEM, WE CLOSED SOME POS OFF WHEN WE FINISHED THE PROJECTS.

SO HOPEFULLY NEXT WEEK THAT MIGHT CHANGE.

BUT WE HAVE THREE READINGS SO THAT LIST MIGHT CHANGE A LITTLE BIT.

MM-HMM.

SO SUBJECT TO YOUR QUESTION, MAKE A MOTION TO DO THIS.

I DON'T THINK WE MADE THE MOTION.

OH, WE DID.

WE DID NOT ABOUT THAT.

WE MAKE THE MOTION.

MAKE A MOTION SECOND PLEASE.

ANY, ANY ADDITIONAL DISCUSSION? NO.

AGAIN, APPROVE THIS, MOVE THIS FORWARD WITHOUT OBJECTION.

SO AGAIN, THIS HAS BEEN MOVED FORWARD, UM, TO COUNTY COUNCIL.

WILL THIS GO ON THE NEXT COUNTY COUNCIL? YES SIR.

WE WANT TO, WE WANTED TO GO TO, UH, THE NEXT COUNTY COUNCIL MEETING.

I WAS GONNA SAY ONE POINT ON THAT, UM, IT'S THREE READINGS.

SO TECHNICALLY THESE WOULDN'T BE ABLE TO BE USED UNTIL THIRD READING.

SO THAT'S WHY WE LIKE TO MOVE IT.

'CAUSE EVEN NOW IT WOULDN'T BE UNTIL AUGUST WHEN AT THE NEXT COUNCIL MEETING.

JUST ARE YOU TELLING ME IT'S TIME SENSITIVE FOR NEXT MONDAY? PLEASE DON'T USE THAT.

I'M JUST TELLING YOU THAT, UM, IF IT DOESN'T GO TO THE NEXT COUNCIL MEETING, THAT'S GONNA PUSH IT INTO SEPTEMBER UNTIL THESE UM, APPROPRIATIONS MOVE FORWARD.

COUNCIL MEETING.

WELL, WE'LL SEE WHAT THE AGENDA LOOKS LIKE AND THEN WE'LL TALK ABOUT IT.

WE WOULD ASK THAT IT BE CONSIDERED TO BE MOVED FORWARD.

WE'LL TALK ABOUT IT WEDNESDAY.

I'M NOT PUTTING ON THIS.

OBLIGATED TO THE DEPARTMENT OF TREASURY.

UM, SO THIS HAS BEEN APPROVED WITHOUT OBJECTION.

LET'S, UM, MR. THOMAS, THANK YOU.

APPRECIATE YOU GETTING HERE.

[8.d. An Ordinance to reallocate remaining American Rescue Plan Act (ARPA) funds in the amount of $1,496,825.73 towards existing projects as obligated to the Department of Treasury. (FISCAL IMPACT: Funds are moving within the already obligated projects. No additional fiscal impact) - Allison Kirby, Grants Administrator (5 min)]

THANK YOU VERY MUCH.

LET MOVE ON TO OUR FINAL ITEM THAT'S EIGHT D IN ORDINANCE TO REALLOCATE REMAINING AMERICAN RESCUE PLAN ACT TO ARPA FUNDS IN THE AMOUNT OF $1,496,825 AND 73 CENTS TOWARDS EXISTING PROJECTS AS OB

[00:45:01]

I MAKE THE MOTION.

MR. PASS.

IS THERE A SECOND PLEASE? I'LL SECOND THAT ONE.

AND, UH, MS. NOVAK IF YOU CAN PLEASE.

UH, OKAY, SO THIS WAS ALLOCATED TO THE DUSKY ISLAND FERRY AT CROSS ISLAND.

THAT IS IN CURRENT LITIGATION.

SO THERE IS NO WAY TO GET IT EXPENDED BY THE DECEMBER 31ST STATE.

HOWEVER, THE HANGAR PROJECTS AT THE BUFORT EXECUTIVE AIRPORT IS AN EXISTING ARPA PROJECT THAT NEEDS ADDITIONAL FUNDING FOR THE 12 BAY AND EIGHT BAY HANGERS.

THIS REALLOCATION WILL HELP COMPLETE THE PROJECT AND WOULD BE ABLE TO EXPEND THE FUNDS BY DECEMBER 31ST.

BOTH THE FERRY AND AIRPORT WERE PART OF THE REVENUE REPLACEMENT SECTION OF AMERICAN RESCUE PLAN ACT.

AND WE CAN'T REALLOCATE TO NEW PROJECTS, BUT WE CAN REAPPROPRIATE TO EXISTING PROJECTS.

JUST, UH, ERIC OBVIOUSLY DEF FERRY AND PEOPLE ALWAYS SAY, WELL YOU'RE TAKING MONEY FROM THE DEF ISLAND FERRY.

WE'RE NOT.

THIS WAS SET ASIDE FOR THE, UH, PARKING AREA UNDERNEATH THE CROSS ISLAND BRIDGE, WHICH AGAIN HAS NOT MOVED FORWARD FOR US TO SPEND THAT MONEY.

AND THEN SO THE MONEY HAS TO BE PUT TOWARDS EXISTING PROJECTS AND HAS TO BE SPENT BY THE END OF THIS YEAR, 2026, DECEMBER 31ST, OR ELSE WE LOSE THAT MONEY.

SO, ANY OTHER QUESTIONS MS. MS. BROWN? DO WE HAVE A LIST OF WHERE THIS MONEY EXACTLY WHERE THIS MONEY'S GOING? A LIST DATA PROJECT OR ALL OF ARPA? I WANNA KNOW WHAT THE PROJECTS ARE.

RIGHT HERE.

RIGHT THERE.

AND HAVE, IF WE'VE GIVEN THEM MONEY, HAVE THEY COME BACK TO US WITH A DETAILED LIST OF WHERE THAT MONEY WENT? WE DO IT ON A REIMBURSEMENT BASE.

SO WE ARE HOLDING THE MONEY UNTIL IT'S SPENT.

SO THIS MONEY IS STILL WITH US IN A SEPARATE BANK ACCOUNT.

SO THIS PROJECT WHERE THE MONEY'S GOING WILL BE COMPLETED BY 20 END END OF THIS YEAR? YES.

HAS TO BE EVERY PENNY JUST ASKING THE QUESTION THAT'S LEFT.

ALL $5 MILLION HAS TO BE EXPENDED BY DECEMBER 31ST.

TAYLOR QUESTIONS HAS TREASURY, UM, NOTIFIED US IF THEY'RE GONNA DO AN AUDIT.

'CAUSE I UNDERSTAND, UM, THERE WAS GONNA BE AN AUDIT, ALL THE APA FUNDS WITH ALL THE STATES, NOT JUST US, BUT ALL THE PLACES THEY GAVE US MONEY.

THERE HAS BEEN SOME TALK ABOUT IT.

IT IS INCLUDED UNDER OUR SINGLE AUDIT, WHICH IS UNDER THE AUDIT ENGAGEMENT LETTER WHERE ALL FEDERAL FUNDS ARE AUDITED AND IT UM, IT WAS A MAJOR PROGRAM LAST YEAR, SO IT DOES GET A LITTLE EXTRA SCRUTINY.

BUT IF THEY'RE GOING TO DO AN ADDITIONAL AUDIT, UM, WE HAVE AMAZING RECORDS ON THIS ONE.

SO THERE WAS TALK LAST YEAR, MAYBE TWO YEARS AGO, BUT THE SPLASH PAD IN PORT ROYAL, IS THAT ON HERE OR IS THAT PORT ROYAL'S MONEY? THAT WAS PORT ROYAL'S MONEY.

THAT WAS THEIR ARPA MONEY.

CORRECT.

YEP.

THESE ARE JUST OUR PROJECTS.

ARE YOU SAYING THAT THE LADIES ISLAND, UM, AIRPORT PROJECT WITH THE $1.4 MILLION, ALMOST 1.5 IS GONNA DO WHAT? AT LADIES ISLAND? WE'RE GONNA BUILD HANGERS, AIRCRAFT HANGERS AND THAT WILL BE DONE BEFORE THE 31ST OF DECEMBER.

WE'RE ALREADY IN WORK ON BUILDING A TRANSIENT HANGAR.

IF YOU GUYS REMEMBER ABOUT A YEAR AND A HALF, TWO YEARS AGO, WE CAME TO COUNCIL.

LEMME ASK THIS QUESTION.

UM, IS IT GONNA THE HANGAR'S PROJECT OR IS IT JUST GONNA, WE'RE GONNA EXPEND THE FUNDS BEFORE THE PROJECT IS FULLY COMPLETED, BUT THEY'S GONNA INVOICE US UP TO THAT AMOUNT BEFORE THE PROJECT.

SO WE'RE STILL PROBABLY GONNA NEED MORE FUNDING FOR THAT PROJECT FOR ENTERPRISE FUNDS.

SO, WE'LL WE HAVE THOSE FUNDS IN OTHER PLACES.

EXPENSIVE 'CAUSE OF THE NESTING.

SO HOW MANY HANGERS WILL THIS COVER? UM, THE TOTAL LIST FROM ALMOST TWO YEARS AGO THAT WE CAME TO YOU GUYS, I, I UPDATED THAT LIST.

WE HAVE A 12 BAY T HANGER BUILDING THAT'S ONE BUILDING.

WE HAVE AN UN NESTED EIGHT BAY BUILDING, SO THAT'S EIGHT T HANGERS IN ONE BUILDING A LARGE BOX HANGER, WHICH IS ABOUT 7,200 SQUARE FEET AND A SMALL BOX HANGER THAT WE'RE ADDING ON TO AN EXISTING BUILDING.

SO WITH THIS MONEY AND BASED OFF THE NUMBERS I HAVE, WE'RE ABLE TO PUT THAT TOWARD THE EIGHT BAY T EIGHT BAY T HANGER BUILDING AND THE SMALL BOX BUILDING.

SO THAT LEAVES THE 12 HANGERS IN THE LARGE BOX.

WE ARE USING OUR EXISTING ARPA FUNDS ALONG WITH STATE MONEY FOR THE TRANSIENT HANGAR THAT'S GOING IN RIGHT NOW, AS SOON AS THE SITE WORK'S DONE.

SO THAT ONE'S GETTING WORKED.

UM, THE OTHER THREE BUILDINGS ARE LEFT OVER.

THE 12 BAY NEST OF T HANGER IS QUITE

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SO I'M DOING THE EIGHT BAY AND THE SMALL BOX HANGER.

SO THE ONLY BUILDING I HAVE LEFT IS THE, THE 12 BAY T HANGER.

OKAY, THANKS.

SINCE THIS IS AN ORDINANCE REQUIRES THREE READINGS, THIS IS SOMETHING THAT REALLY NEEDS TO MOVE FORWARD BECAUSE WE CANNOT MOVE THIS MONEY INTO THAT ACCOUNT UNTIL ALL THREE ORDINANCE OF ALL THREE READINGS ARE DONE.

THAT'S CORRECT.

SO I'M LOOKING AT MS TAB.

THAT WILL PROBABLY BE ANOTHER ONE WE WOULD NEED TO MOVE FORWARD.

YOU KNOW HOW I FEEL ABOUT TIME SENSITIVE.