Peoria Standard

Peoria County Ways and Means Committee met Aug. 29.

Here is the minutes provided by the Committee:

MEMBERS PRESENT: Allen Mayer - Chairman; Steven Rieker - Vice Chairman; James

Fennell, Brad Harding, Phillip Salzer, William Watkins, Jr., Sharon Williams - Committee Members

MEMBERS ABSENT:

OTHERS PRESENT: Scott Sorrel - County Administrator; Shauna Musselman - Assistant County Administrator; Jerry Brady, Larry Evans - State's Attorney's Office; Eric Dubrowski – Chief Financial Officer; Kim Hudson, Julie Ciesla – Finance; Angela Loftus, Gretchen Pearsall - County Administration; Beth Derry - Regional Office of Education; Rena’ Parker, Jennifer Shadid – Courts Administration; Robert Spears, Kevin O’Connor - Circuit Clerk; Dave Ryan - Supervisor of Assessments; Dan O’Connell – Facilities Director; Steve Sonnemaker – County Clerk; Kathi Urban – Planning & Zoning; Nicole Demetreas - Treasurer; Kent Rotherham - Auditor; Michael Brooks - Veteran's Assistance Commission; Doug Gaa, Randy Brunner - Sheriff's Office; Mark Little – Chief Information Officer; Chad Lucas – Sikich; Carol Van Winkle, Rachel Reliford - Citizens

Call to Order

The meeting was called to order by Chairman Mayer at 1:00 p.m.

Approval of Minutes

A motion to approve the minutes of June 27, 2017 was made by Ms. Williams and seconded by Mr. Salzer. The motion carried.

Informational Items/Reports/Other Minutes/Updates

County Auditor

Mr. Rotherham advised an assessment and report on Heddington Oaks has been completed, and stated that a copy of the report will be provided to committee members.

County Clerk

Mr. Sonnemaker advised that the second phase of the office remodel has begun. He stated that the scanning project continues, as in several cases U.S. Imaging scanned microfilm instead of the books themselves, and have returned to scan the books.

Peoria County Election Commission

Mr. Mayer advised that signature requirements for county board members in even numbered districts and county wide elected officials will be included in the weekly Administrator’s Update.

Mr. Sorrel advised that the owner of the Brandywine building has completed multiple rounds of mold remediation followed by air quality testing conducted by third parties, initiated by both himself and Peoria County. He stated that the last remediation was performed last week, although no air quality testing has been done since that remediation. After discussion, it was the consensus of the Infrastructure Committee to schedule an air quality test. He stressed that it is also incumbent upon the owner to perform the test initially to prove the air quality meets standard before the County invests additional funds.

Mr. Sorrel advised that the Infrastructure Committee discussed the timing and process of potential termination of the lease if the mold issue is not remedied. He added that there was committee consensus that if the most recent remediation does not meet the air quality standards, the process of notifying the owner that the County will terminate rent payments will be initiated. He noted that the portion of the building that continues to be a concern is an area that will be demolished and removed during the construction process. He added that the remainder of the building has passed air quality testing.

Finance

Mr. Dubrowski advised that the budget process continues, with staff meeting with offices and departments throughout the month. He stated that interviews for the vacant bookkeeper position at Heddington Oaks have taken place, and an Assistant Chief Financial Officer position has been filled.

Regional Office of Education (ROE)

Ms. Derry provided an update on activities of the Regional Office of Education:

• The office hosted the second annual Safety Day in Peoria County earlier in the month.

• The second annual technology focused Peoria Palooza will be held this Friday at Chillicothe IVC High School.

• A new website specific to the Regional Office of Education has been launched.

• The office has partnered with the Mental Health Support Floor for inpatient youth at UnityPoint Methodist, with the provision of a teacher on the floor.

• Ms. Derry spoke briefly on the significant teacher shortage and large amount of substitute teachers beginning the school year.

• Cross-training of employees has enabled the permanent removal of part-time and temporary lines items from the budget. Further cross-training will eliminate the necessity of replacing another employee upon their retirement.

Supervisor of Assessments/Board of Review

• Tax Cycle

Mr. Ryan advised that September 17th is the deadline to file complaints on assessments. He stated that EAV may increase slightly this year, but will become flat to negative in future years.

• Board of Review

No report. No questions or comments from committee.

Treasurer

Ms. Demetreas advised that the third distribution has been completed, with nearly $177 million collected and distributed. She stated that the next distribution date is September 22, 2017. She advised that the second tax installment is due September 6, 2017. She stated that the Trustee Auction for surplus properties will be held August 30th at 6:00 p.m. at Packard Plaza, with approximately 619 parcels to be auctioned.

Veteran's Assistance Commission

Mr. Brooks advised that final interviews for the position of part-time receptionist will take place next week.

Mr. Brooks advised that a review on Facebook revealed 25 five-star reviews and one one-star review. He stated that the reviews are still on the Facebook page. He stated that the “Goodwill Stand Down” for homeless veterans will be held October 7, 2017 at Dozer Park. He advised that magnets displaying the different branches of service are given to veterans who come into the office.

Mr. Brooks advised that over $6.5 million in compensation has been paid in 2017 to date. He noted that $6.8 million was paid in total for 2016.

Legislative Update

Mr. Mayer advised that the House has passed the leader’s compromise bill HB 1473, regarding the state’s school funding system, after being unable to overcome the Governor’s veto of SB1.

Mr. Sorrel advised that the County’s contract with its current legislative consultant expires at the end of 2017, and will be going out for a RFP for those services in Springfield.

Resolutions

• Monthly Delinquent Taxes

A motion to approve was made by Mr. Watkins and seconded by Mr. Fennell. The motion carried.

• Update to Capital Assets Policy

A motion to approve was made by Mr. Salzer and seconded by Mr. Fennell. Mr. Dubrowski advised that the Capital Assets Policy is being updated by requiring that donations be capitalized at their acquisition value as opposed to their fair market value. He also stated that additional revisions make changes to reflect current practices. The motion carried.

Discussion

• Comprehensive Annual Financial Report (CAFR)

Mr. Lucas advised that included within the CAFR is information provided by the County to Government Finance Officers Association. He noted that the County exceeds the basic reporting requirements; in addition to basic financial statements, the County includes an introductory section and statistical sections. He advised that the Financial section of the CAFR includes the Independent Auditors’ Report and the unaudited Management’s Discussion and Analysis which contains condensed financial information and comparatives. He commented that the Basic Financial Statements indicate that the net overall position of the County decreased both in governmental and business activities.

• FY 2016 Single Audit

Mr. Lucas explained that when federal funds in excess of $750,000.00 are received, a single audit is required. He stated that the auditor is required to test the compliance requirements with respect to programs from which the County receives funds. He advised that total federal funds for the year were nearly $5 million. Mr. Dubrowski advised that there were no material weaknesses found related to those federal funds.

• Internal Control Communication - County

Ms. Van Winkle, the former County Auditor, addressed the committee and commented that one of her major concerns during her time as auditor was a new accounts payable system. She stated that before her retirement she broached several matters that she felt were internal control violations, and asked if those violations have been addressed. Mr. Mayer commented that the external auditor’s findings include a significant deficiency on the Purchasing Policy, which addresses Ms. Van Winkle’s concerns.

Mr. Dubrowski advised that the auditors identified one Material Weakness dealing with Bank Accounts. He stated that during the testing of cash, it was discovered that some bank confirmations did not have accounts associated with them on the general ledger. He advised that staff has discussed the finding with elected officials, who have uniformly been open to ensuring that all accounts appear on the County’s general ledger.

Mr. Dubrowski commented on the three Significant Deficiencies identified by the auditors: Segregation of Duties – Heddington Oaks billing concerns will be alleviated by the hire of a second bookkeeper, as well as retaining a Heddington Oaks Finance Director. An additional concern with

Pentamation access security will be addressed by reviewing a replacement for the present, limited system, with a more robust security system a requirement of the new system.

Bond Covenant Compliance – The 2010 and 2011 covenants prepared by a previous bond counsel fractionalized transfers for 1/12 of the total and were not adjusted to 1/6 the amount as stated in the bond covenant. Going forward, the County will do a double transfer in January and monthly transfers through November at the 1/6 and 1/12 ratios mentioned in the bond covenants. Purchasing – Management has addressed the inconsistency in compliancy with the Purchasing Policy, and staff strongly recommends that all county offices and departments, as well as those that to report to independent Boards and Commissions, comply with purchasing guidelines for both large and small purchases. Mr. Fennell suggested determining which offices or departments continue to have compliancy issues and implement further training on the proper procedure.

Mr. Mayer suggested staff provide an update in early 2018 on responses to the auditor’s findings.

• Management Letter Mr. Dubrowski stated that the Management Letter outlines recommendations by the auditor for the strengthening of internal controls and operations. He advised that staff has provided responses proposed to address the auditor’s recommendations.

• Internal Control Communication – Clerk of the Circuit Court

Mr. Lucas advised that as part of the audit process the auditor is required to perform an audit of the Circuit Clerk’s Office, and there are compliance requirements associated with the audit of that office. He noted that the Circuit Clerk’s Office records all activity in the Odyssey system, and differences were noted in a comparison of information from the Odyssey system to Pentamation General Ledger system. He stated that the auditor recommends a reconciliation process occur between the two systems. He also noted that several bank reconciliations did not agree with the general ledger, again in relation to the two differing systems.

Mr. O’Connor advised that staff is working with both the IT Department and Mr. Dubrowski to address errors in the interface between the two systems and determine a solution. Mr. Spears reiterated that the two system are incompatible and is hopeful that a potential new Pentamation system will improve the interface.

Mr. Lucas also advised that the audit identified differences between amounts of fines and fees assessed and collected vs. the amounts required by Illinois statute.

Adjournment

The meeting was adjourned by Chairman Mayer at 2:00 p.m.

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