1991.01.30_FAB_Minutes_RegularTOWN OF HIGHLAND BEACH
• FINANCIAL ADVISORY BOARD
REGULAR MEETING - MINUTES
Wednesday, January 30, 1991 9:00 A.M.
Chairman Fred Firstenburg called this Regular Meeting of the Financial
Advisory Board to order at 9:00 A.M. in Commission Chambers, announcing
that those in attendance were Vice Chairman John F. Rand and Regular
Members Richard Brunton, Victor J. Page and S. Myron Browner.
Others present were Chief Financial Officer Michael Seaman and Deputy
Town Clerk Doris Trinley.
Upon MOTION by Mr. Rand/Mr. Page, the Minutes of the October 16, 1990
Regular Meeting were approved with unanimous vote,
Review of Fiscal Year 1989/1990 Annual Audited Financial Report
Charles R. Shaw and Marc P. Applebaum represented the Town's auditors,
Coopers& Lybrand, with Mr. Shaw conducting the page -by -page review of
the audit report. He remarked that the figures were steady when com-
pared to the previous audit, with no new or undue items. Questions
•were asked by the members and substantial discussions took place dur-
ing the course of review. Of particular importance were the following:
Page 13, No. 3: Mr. Brunton asked if Town monies invested
with the Florida Board of Administration, which is administered
by the State, are guaranteed by the State; he also questioned
if a risk coverage factor might be made available. Mr. Shaw
was unable to answer at this time, but assured he would seek
to respond as soon as possible.
Part A, Page 1, No. 1 (Current Year Comments and Recommendations).
"We recommend that the Town consider a policy whereby
all purchases over a stated amount (i.e. $2,000) also
require the signature of a Board member (i.e. the Town's
Mayor)."
The auditors were advised that "Board" member had to be changed
to "Commission" member. It was also suggested that the amount
of $2,000 be increased reasonably and that the signature of
more than one Commission member be required.
Noting that all checks now require the signature of two Com-
mission members, a discussion ensued whereby it was clarified
that the auditors were recommending approval of a "commitment"
before a check of such amount be drawn.
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Financial Advisory Board
Regular Meeting - Minutes
• January 30, 1991 Page 2 of 4
It was the CONSENSUS of the members that when Mr. Shaw had attended to
the aforementioned questions and recommendations, he make the informa-
tion available to the Chief Accounting Officer, who would then advise
the members.
Regarding the auditors' Status of Prior Year Comments and Recommenda-
tions (Part B, Page 2), only one item was outstanding, i.e., that the
Town prepare an Accounting Policies and Procedures Manual. Mr. Seaman
assured that this was being worked on and would be accomplished during
the current fiscal year.
Substantial discussion took place in response to Mr. Rand's question
regarding accounting methods used for cash balances brought forward
versus contingency reserve funds. Mr. Shaw stated this system was not
uncommon in municipal accounting and was considered as a philosophical
approach used to account for catastrophic or "rainy day" situations.
However, Mr. Shaw did say that he would check the Florida statutes to
get the legal definition of a "balanced budget" in this regard.
Concluding discussions and having been assured that their requests of
the auditors today would be addressed as soon as possible, which
requests, the members agreed, had no bearing on the audit figures
• themselves, a MOTION was made by Mr. Brunton/Mr. Rand as follows:
The Financial Advisory Board recommends to the Town Commission
acceptance of the Coopers & Lybrand Annual Financial Audit
Report for the year ended September 30, 1990.
The MOTION met with unanimous approval.
Before they left the meeting, Messrs. Shaw and Applebaum thanked the
members for this review opportunity and commended Chief Accounting Of-
ficer Michael Seaman for an excellent job of preparing materials for
the audit, as well as his assistance and cooperation during the course
of same.
Concluding Discussion and Decision Re Change in Allocation of Communi-
cation Costs
Chairman Firstenburg referred to the study he had done regarding the
possibility of using another method of allocating Communication (tele-
phone) costs among all departments, excluding the Police Department and
the Utilities Department. A review of the Chairman's written report on
the study, previously distributed to the members (a copy of which is
attached to and made part of these minutes) then took place.
It was Mr. Firstenburg's conclusion that total telephone costs, approx-
imately $6,000 per year, be included in Other General Government as he
felt this method would alleviate the distortion of department budget
figures. He noted that this is the accounting procedure used for all
Financial Advisory Board
Regular Meeting - Minutes
,,Regular
January 30, 1991
•ATTEST:
DATE:
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APPROV;�.- ry c
Fred Firstenburg, Chairman
John F. Ran , Vice Cha' n
Ric and Brunton
Victor ,J.. Page
Myron mrowner