1987.02.05_FAB_Minutes_RegularFINANCIAL ADVISORY BOARD
SPECIAL MEETING
THURSDAY, FEBRUARY 5, 1987 9:30 A. M.
A Special Meeting of the Financial Advisory Board was held on Thursday,
FEbruary 5, 1987, in accordance with the action taken by the Town
Commission at their January 6, 1987 Meeting, designating the Financial
Advisory Board to act as the Audit Review Committee and conduct the
exit interview with Coopers & Lybrand, relative to the recently
completed outside audit of the Town's fiscal affairs.
Members present included Richard Brunton, Ben Cohen, Walter Peklenk,
and Reese E. James.
Also present were Commissioner William A. Grier, Town Manager Hugh D.
Williams, and Town Finance Director Rebecca Morse.
Representing Coopers & Lybrand were Mr. B. Tinkoff (Coopers & Lybrand
Managing Director) and Jerry Kocak (Audit Manager).
Following introductions of all parties present, it was agreed that as a
format for the review:
The auditors would review their work.*
The staff would comment on each item.
- The Financial Advisory Board would question and discuss
each item before moving to the next item.
* On an item by item basis.
Mr. Tinkoff first reviewed his firm's procedure for carrying out the
audit and stated that the records and the audit were both in accordance
with the State and National requirements. He then proceeded to review
the Financial Reports and the Audit Comments that were applicable.
Particular attention was directed to the Enterprise Funds, noting that
the controversy with Delray Beach over sewage charges had been
resolved, thus removing a question of unfunded liability in this
matter. It was also noted that the Water Fund continues to carry an
accumulated deficit at $370,226.00 after a surplus of $4,907.00 for
fiscal 1985-86. It has been suggested that the matters of user fees
and administrative fee be examined for adequacy in covering the
services rendered and the amortizing of the past years operating
deficit. This matter will be addressed at a future F.A.B. meeting.
The matter of the Town's investments also came into discussion, noting
that the Finance Director had moved to maximize the investment income
but that there is a remaining question as to the degree of security
of funds held in State approved banks. This matter also will receive
FINANCIAL ADVISORY BOARD -SPECIAL MEETING
February 5, 1987
Page 2
further study at a future F.A.B. meeting.
The review of the Financial Statements having been completed, the
meeting then addressed the "Management Letter" following the format as
had been outlined earlier.
Each item in the "letter" was thoroughly reviewed yielding these
special notations:
1. Provisions should be made to assure that prior year comments
have been reviewed and when applicable, appropriate action
taken. The F.A.B. intends to meet these comments.
2. Cash Management and security thereof have been spoken to
earlier in these minutes.
3. Interest yields comments indicates that appropriate action
has already been taken by management.
4. The consolidation of bank accounts has already been accom-
plished by management.
5. Management has expressed an intent to develop for F.A.B.
review and comment a policy regarding the Petty Cash Funds.
6. The F.A.B. is awaiting Employee Retirement Board action
regarding tis query to the E.R.B. for it's (E.R.B.) interest
in F.A.B. involvment in the management of this fund.
7. Corrective action has already been taken regarding police
special pay for court appearances.
8. Management has agreed to review this matter and develop
written refinements to the current Purchasing Policy.
9. Management recognizes that the matter of utility billing and
collections is in need of strengthening and will develop
a written policy to this purpose. F.A.B. will address this
question of the need for a water utility tax.
10. The matter of a fixed -asset policy is already under consider-
ation by management.
11. Steps have been taken to require Post Office employees to
utilize the employee time clock for recording hours worked.
12. Management is already investigating notice forms for
terminating employees.
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FINANCIAL ADVISORY BOARD
(! February 5, 1987
Page 3
13. Inasmuch as the Finance Department has been in a state of
"transition", the status of appropriate records is already
recognized and in process of appropriate action.
14. General Ledgers are established as of October 1, 1986.
15. The auditor advises that consolidation of the water and sewer
funds is standard practice throughout the State. The F.A.B.
will address this matter at a future meeting for recommend-
ation for the Commission's consideration.
16. Prior year comments will be reviewed by the F.A.B. in
subsequent meetings.
At this time, the Town Manager and Finance Director departed the
meeting so as to allow for a private discussion with the Audit Team.
The Auditors spoke most highly of the cooperation from management and
particularly noted the progress already taken under the direction of
Ms. Morse as the Finance Director. They, the Auditors, did question as
to the adequacy of staffing in the Finance Department, noting that an
additional full-time person would greatly contribute to earlier
accomplishment of the changes that are necessary in the strenthening of
the financial operations.
At this point, the F.A.B. members were encouraged to question the
Auditors. All comments reflected favorably upon management.
There being no further business, the meeting adjourned at 12 Noon, with
the next meeting being scheduled for 9:30 a.m., Tuesday, February 17,
1987.
Res ctfully submitted,
Reese E. James, Chairman
REJ:elk
cc: F.A.B. Members
Town Commission
Town Manager
Finance Director