McHenry County Finance & Audit Committee met Aug. 9.
Here is the minutes provided by the Committee:
1. CALL TO ORDER
Meeting called to order at: 8:19 AM by Michael Skala.
PRESENT: Skala, McCann, Barnes (Remote), Heisler (Remote), Christensen (8:27 AM), Wheeler, Smith ABSENT:
Also present: Peter Austin, County Administrator; Ralph Sarbaugh, Associate County Administrator- Finance; Scott Hartman, Deputy County Administrator; Judge Michael Sullivan, Judge Michael Cowlin and Dan Wallis, Courts; Cheryl Chukwu, Human Resources Director; Tom Sullivan and Pete Voss, Information Technology; Tom Burroughs, Director of Facilities; Dennis Sandquist, Planning and Development Director; Hans Mach and Jena Hencin, Community Development; Shannon Teresi, Auditor; George Hoffman, Assistant State's Attorney; Sandy Salgado, Sheriff's Office; Glenda Miller and Cindy Kozlowski, Treasurer's Office and John Rader with Baker Tilly, Auditors.
Mr. Smith made a motion, seconded by Ms. McCann, to allow Ms. Barnes and Mr. Heisler attend the meeting remotely. The motion passed with all members present voting aye on a roll call vote (Smith, McCann, Wheeler and Skala). Absent was Christensen.
2. MINUTES APPROVAL
1. Finance & Audit - Joint Public Meeting - Jun 6, 2018 8:15 AM
RESULT: ACCEPTED [UNANIMOUS] MOVER: Larry W Smith SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
2. Finance & Audit - Public Meeting - Jun 7, 2018 8:15 AM
RESULT: ACCEPTED [UNANIMOUS] MOVER: Larry W Smith SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
3. Finance & Audit - Public Meeting - Jul 11, 2018 8:15 AM
RESULT: ACCEPTED [UNANIMOUS] MOVER: Larry W Smith SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
3. PUBLIC COMMENT
None.
4. MEMBERS' COMMENTS
Ms. McCann stated she felt every Board member on the committee should know what the debt policy says. She feels it should be updated to include the use of the Valley High fund. Mr. Sarbaugh informed the committee the policy can be found online in the budget book under financial policies.
5. NEW BUSINESS
1. ERP Project Invoice Approval 08-09-2018
Mr. Voss joined committee members for a presentation to review the recent invoices for the ERP (Enterprise Resource Planning) software program which are included in the meeting packet.
Ms. McCann made a motion, seconded by Mr. Wheeler, to recommend payment of the milestone payments for the ERP project as presented. The motion carried on a roll call vote of all ayes (Barnes, Smith, Wheeler, Heisler, McCann and Skala). Absent was Christensen.
Chairman Skala informed members the meeting will move to agenda Item No. 7-Routine Consent Agenda.
RESULT: PRESENTED
6. PRESENTATION
1. Baker, Tilly, Virchow and Krause Audit Update
John Rader, Director of Baker Tilly, joined the committee and presented the Audit update. A handout was given to the committee members with the Year End 11/30/17 Audit results. He stated the audit started last fall (October/November 2017). During the third week of February, the team came back to focus on the numbers. With this being a team effort with the County's Auditor's Office they can usually get through the majority of the audit during this week. On July 24, 2018 finals were issued with a clean opinion. This is the highest level of assurance you can receive. The audit of the Circuit Clerk was done last February with no findings or problems. The single audit was completed in early July, and a draft was issued with a couple of findings. CDBG (Community Development Block Grants) and Housing Investment Partnership Program were both looked at. The findings were not material but will be responded by the County and then finalized. Mr. Rader provided an overview of the Audit results for McHenry County, accompanied with a handout. He suggested reading the NDNA in the CAFR. It focuses not just on the numbers, but why the numbers have changed for the last two to three years. In the very back of the handout is a statistical section with financial data for the last ten years. Financial results can be found on page five of the handout.
Mr. Christensen arrived at 8:27 a.m.
Chairman Skala questioned if there were any items on the consent agenda members would like to have removed for discussion. Mr. Wheeler requested item No. 7.1, 7.7, 7.8 and 7.9 be removed, and Ms. McCann requested item No. 7.6 be removed for discussion.
Mr. Wheeler made a motion, seconded by Ms. McCann, to recommend approval of agenda item No. 7.2, 7.3, 7.4, 7.5, 7.10, 7.11, 7.12, 7.13, 7.14 and 7.15 on the routine consent agenda as presented. The motion carried on a roll call vote of all ayes (Barnes, Smith, Wheeler, Heisler, McCann and Skala). Absent was Christensen.
Chairman Skala stated the meeting would move to agenda item No. 6.1 - Presentation
1. Resolution Authorizing an Amendment to the Fiscal Year 2018 Senior Services Grant Fund Agreement Between the County of McHenry, Illinois and Catholic Charities of the Archdiocese of Chicago and Reallocation of the 2018 Senior Services Grant Award
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
2. Resolution Authorizing a Two (2) Year Base Contract for Option Years Three (3) and Four (4) of the Contract with Brightview Landscapes, LLC of Rockville, Maryland for Lawn Maintenance Services in FY2019 and FY2020
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
3. Resolution Authorizing a Contract with Jensen's Plumbing & Heating, Woodstock, IL for the Construction of a Roof Storm Water Collection and Discharge System at the Division of Transportation Truck Storage and Maintenance Facility
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
4. Resolution Authorizing Monthly Transactions for the Delinquent Tax Program
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
5. Resolution Authorizing Acceptance of a Modification to the Illinois Department of Commerce and Economic Opportunity Grant #17-651002 and an Emergency Appropriation to the McHenry County Workforce Network Fiscal Year 2018 Budget
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
6. Resolution Authorizing a Contract with McHenry County College of Crystal Lake, Illinois for Young Adult Math Skills Training in the Amount of $43,020 for McHenry County Workforce Network Youth Program
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
7. Resolution Authorizing a Contract with McHenry County College of Crystal Lake, Illinois for Young Adult Digital Literacy Training in the Amount of $31,606.00 for McHenry County Workforce Network Youth Program
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
8. Resolution Authorization to Accept Fund Reimbursements from Workforce Board Partners as
Outlined in a Memoranda of Understanding (MOU) for Workforce Network PY 18 Grant
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
9. Resolution Authorizing a Budget Line Item Transfer of $10,010 in the Sheriff's DUI Conviction Fund FY2018 Budget
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
10. Resolution Authorizing a Lease for Office Space at 400 Russel Court to Relocate the Office of
Special Projects and an Emergency Appropriation to Court Administration's FY2018 Budget
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Mary McCann AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith ABSENT: Christensen
8. ITEMS REMOVED FROM CONSENT AGENDA
1. Resolution Establishing the Guidelines for Fiscal Year 2018-2019 Pay-for-Performance Adjustments
Cheryl Chukwu, Human Resources, presented the resolution establishing the guidelines for the FY18-19, Pay-For-Performance updates. Mr. Wheeler asked for an explanation of how a merit increase works and how the 2.25% was arrived at. Ms. Chukwu stated this year the changes include a new class and comp study that was done. The old class and comp study was replaced with the new resolution. This year they are not asking for the scale adjustment since they were already adjusted effective July 1, with the new class and comp study. She noted there are a few employees, because of the comp study, are now outside of their scale. These employees will not move until the scale catches up with them. Added for this year, around 200 people through the class and comp study got some type of adjustment. If you look at 2C there is an extra chart that has been added. This chart shows that if someone received a wage increase of 5% or more due to the class and comp study they would not be eligible for a merit increase this year. This is different from the past when those restrictions were not in place. Some employees who have been here for a number of years are making the same as brand new employees because of the adjustments. There will be enough money to make some compression adjustments for those people, which will be brought back to the next meeting. This would come out of the same money and not cost any additional funds.
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Chris Christensen SECONDER: Charles S Wheeler AYES: Skala, McCann, Barnes, Heisler, Christensen, Wheeler, Smith
2. Resolution to Amend the Travel and Business Expense Policy to Address Pre-Election Business Expenses of State Constitutional Elected Office Holders
Ms. McCann questioned what are they doing to preserve the integrity of the elections. She stated they are addressing the pre-election business expenses for constitutional elected office holders. She feels the title should be changed to reflect this because it is directly related to the policy. Ms. McCann made a motion, seconded by Mr. Christensen, to amend the title of the resolution to "Resolution to Amend the Travel and Business Expense Policy to Address Pre-Election Business Expenses of State Constitutional Elected Office Holders." The motion carried on a roll call vote of six ayes (Barnes, Smith, Wheeler, Christensen, McCann and Skala). Mr. Heisler voted nay. Ms. Barnes and Mr. Christensen reserve the right to change their minds.
Ms. Barnes suggested the title should match the language and questioned who it is referring to. Ms. McCann stated it refers to the Recorder, Clerk, Auditor, Circuit Clerk, Sheriff, States Attorney, and Treasurer, and all countywide elected officials. Mr. Wheeler questioned what the penalty was for violating the resolution. It was determined that those expenses wouldn’t be paid.
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Mary McCann SECONDER: Charles S Wheeler AYES: Skala, McCann, Barnes, Heisler, Christensen, Wheeler, Smith
3. Resolution to Amend the Travel and Business Expense Policy Regarding Professional-Related Business Expenses to Include Civic Engagement Expenses
Mr. Wheeler questioned what the penalty would be for violating the policy. Chairman Skala stated it would have civil penalties because they would certify and do an affidavit.
Ms. McCann made a motion, seconded by Mr. Smith, to amend the resolution title to, "Resolution to Amend the Travel and Business Expense Policy Regarding Professional Related Business Expenses".
Ms. McCann withdrew her first motion to amend the title.
Ms. McCann made a motion, seconded by Mr. Smith, to amend the travel and business expense policy professional related expense section to include civic engagement expenses. The motion carried on a roll call vote of five ayes (Skala, McCann, Barnes, Wheeler, Smith). Mr. Heisler and Mr. Christensen voted nay.
Mr. Wheeler feels civic and engagement expenses should be defined better.
Ms. McCann made a motion, seconded by Mr. Wheeler, to remove “See Section D”. The motion carried on a roll call vote of seven ayes (Skala, McCann, Barnes, Heisler, Christensen, Wheeler, Smith)
Chairman Skala informed the committee they would move to agenda item No. 7.9 and come back to agenda item No. 7.8 after closed session.
RESULT: RECOMMENDED [6 TO 1] MOVER: Mary McCann SECONDER: Chris Christensen AYES: Skala, McCann, Barnes, Heisler, Wheeler, Smith NAYS: Christensen
4. Executive Session - Pending Litigation
Ms. Barnes announced she would be leaving the meeting at 9:38 a.m. and would not be returning to the meeting.
Mr. Wheeler made a motion, seconded by Ms. McCann, to recommend the committee enter into executive session at 9:38 a.m. to discuss pending litigation. The motion carried with all members present voting aye on a roll call vote (Skala, McCann, Heisler, Christensen, Wheeler, Smith). Ms. Barnes was absent.
Ms. McCann made a motion, seconded by Mr. Smith, to return to regular session at 9:52 a.m. The motion carried with all members present voting aye on a roll call vote (Skala, McCann, Heisler, Christensen, Wheeler, Smith). Ms. Barnes was absent.
Chairman Skala noted that no action was taken by the committee during executive session.
5. Resolution Authorizing a Settlement Agreement in the Case of Taxpayer Wolf Realty, LLC, et al.
v. Miller (Case No. 15 TX 5)
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Larry W Smith SECONDER: Mary McCann AYES: Skala, McCann, Heisler, Christensen, Wheeler, Smith ABSENT: Barnes
6. Resolution to Provide Information Security Assessment and Penetration Testing
Tom Sullivan, Information Technology, presented the resolution to the committee. Mr. Wheeler questioned how the program would make the County more secure in two years, and what it would accomplish in general. Mr. Sullivan stated they have done a securities assessment penetration test every year for the last ten years. It is considered best practice to do this at least once a year although four times a year would be ideal if you can afford it. The test looks at what your vulnerabilities are externally and internally and tries to break into your network.
RESULT: RECOMMENDED [UNANIMOUS] MOVER: Charles S Wheeler SECONDER: Larry W Smith AYES: Skala, McCann, Barnes, Heisler, Christensen, Wheeler, Smith
9. OLD BUSINESS
None.
10. REPORTS
1. Auditor's Report
Shannon Teresi, Auditor, updated the committee on the status of the audits that will be presented in the near future. She stated they have been working on the ERP project, training on the accounting side and wrapping up the single audit reports. In the future, they will be working on the Watch Dog and control audits.
RESULT: PRESENTED
2. Contingency Report as of June 31, 2018
RESULT: PRESENTED
3. Economic Development Corporation
None.
4. Visit McHenry County
Mr. Hartman stated at the last special meeting they approved a contract to proceed with their strategic plan.
11. ADJOURNMENT
Mr. Wheeler made a motion, seconded by Mr. Smith to adjourn the meeting at 9:58 a.m. The motion carried with role call vote of six ayes (Skala, McCann, Smith, Christensen, Wheeler, Heisler) Absent was Barnes.
Full Comments on the above agenda items are included in the audio recording of this meeting, which can be found on the McHenry County Meeting Portal.
https://mchenrycountyil.iqm2.com/Citizens/FileOpen.aspx?Type=12&ID=4021&Inline=True
Alerts Sign-up