McHenry Times

McHenry County Finance & Audit Committee met Aug. 31.

Here is the minutes provided by the committee:

1. CALL TO ORDER

Meeting called to order at: 8:20 AM by Michael Skala.

PRESENT: Skala, McCann, Barnes, Heisler, Christensen (8:15 AM - 10:54 AM), Wheeler, Smith ABSENT :

Also in attendance: Peter Austin, County Administrator; Scott Hartman, Deputy County Administrator; Ralph Sarbaugh, Associate County Administrator of Finance; Michael Rein, County Board Member; Robert Ross, Chief County Assessment Officer; Shannon Teresi, County Auditor; Mary McClellan, County Clerk; Kerri Weisz, Senior Financial Analyst; Joseph Tirio, County Recorder.

2. PUBLIC COMMENT

Michael Rein, County Board Member, addressed committee members and provided them with an amended version to the Expense Blackout Integrity and Civic-Engagement Expenses. The handout provided the original version along with the proposed changes. Chairman Skala stated it would be discussed again at the Finance and Audit meeting on September 6, 2018.

Joseph Tirio, County Recorder, addressed committee members to bring attention to the County Clerks budget, being discussed in today’s meeting. Mr. Tirio expressed concerns of the County Clerks reduction of 40%. While Mr. Tirio commends them for the reduction he felt there should be caution with such a large cut especially with the engagement of the new election services and equipment company. Mr. Tirio stated the systems, services, and the contract have not been tested as of yet.

Ralph Sarbaugh, Associate County Administrator of Finance, stated the election budget is reduced every other year due to not having a main election each year.

3. MEMBERS' COMMENTS

Mary McCann addressed the other committee members, she stated at the last three meetings she has asked that the Debt Issuance Policy be provided. Ms. McCann explained the reason she has asked for the policy is that, as committee members, they are told by the Chairman that they are a policy-making organization. Ms. McCann feels most board members, especially new ones, may not know what the policies are since there is no coordinated policy booklet. McCann stated she is most familiar with the Debt Issuance Policy and feels it needs consideration to reflect using reserves for Valley Hi. Ms. MaCann also feels that policies should be discussed more during committee meetings. Ms. McCann informed the committee members that the Capital Plan is in the Debt Policy to reference when needed. Chairman Skala asked Ms. McCann to take note of any changes she feels may need to be made to the policy and bring them forth to the next meeting for discussion.

4. NEW BUSINESS

1. FY18-19 Budget Reviews

1. Auditor

Peter Austin, County Administrator, along with Shannon Teresi, County Auditor, joined the committee members for the presentation of the FY18-19 Auditor’s budget (contained in the meeting packet). Various department funds were reviewed, along with FY18-19 performance indicators.

Committee members recommended the FY18-19 budget for the Auditor’s Department be moved forward through the budget process.

Full comments can be heard on the McHenry County's website audio of this meeting.

Chris Christensen arrived at 8:35

Ms. Teresi, in addition, informed the committee members the Auditor’s office is looking at the Civic Engagement and has placed a tentative draft in the committee members mailboxes for feedback.

RESULT: PRESENTED

2. Assessments

Peter Austin, County Administrator, along with Robert Ross, Chief County Assessment Officer, joined the committee members for the presentation of the FY18-19 Assessment budget (contained in the meeting packet). Various department funds were reviewed, along with FY18-19 performance indicators.

Committee members recommended the FY18-19 budget for the Assessment Department be moved forward through the budget process.

Full comments can be heard on the McHenry County's website audio of this meeting.

RESULT: PRESENTED

3. County Clerk

Peter Austin, County Administrator, along with Mary McClellan, County Clerk, joined the committee members for the presentation of the FY18-19 County Clerk’s budget (contained in the meeting packet). Various department funds were reviewed, along with FY18-19 performance indicators.

Ms. McCann forwarded constituents concerns of the voting system being hacked by an outside source. Ms. McClellan addressed the concerns and stated, while this is a National concern, the County Clerk has been a part of the Cyber Security Enforcement Task for almost a year. The Federal Government mandated money to the state and the State of Illinois received over thirteen million dollars. Half of the money received was set aside for Cyber Securities. Clerks across the State of Illinois have joined forces with Homeland Security and other agencies. McHenry County itself is on a stand-alone, no one is able to get into our database besides the County Clerk. Everything that comes through our system has military-grade encryption and penetration tests are done with the State. Essentially, there is a bouncer at every door with encryptions every step of the way.

Committee members recommended the FY18-19 budget for the County Clerk’s Department be moved forward through the budget process.

Full comments can be heard on the McHenry County's website audio of this meeting.

RESULT: PRESENTED

4. Discussion: FY19 Revenues

Ralph Sarbaugh, Associate County Administrator of Finance, addressed the committee members to discuss the FY19 Revenues. Mr. Sarbaugh informed the committee members they have been working diligently on finishing up the budget before his medical leave. Mr. Sarbaugh stated that most of the main numbers are in and the last step is the balancing of the budget. Mr. Sarbaugh reviewed key points of the revenue, on a power point presentation, including where all the main taxes stood as of this morning. It was noted the second largest recoupment of payment is the property taxes, with the second installments being due next week. Mr. Sarbaugh will provide the committee members with a copy of the presentation discussed during the meeting.

Ms. Barnes asked for a summary and response to the recent newspaper article regarding the levy.

Mr. Sarbaugh brought up the discussion of this being the first year Finance will be doing a Year- End audit and a CAFR (Comprehensive Annual Financial Report). He assured the committee members that he does not take this responsibility lightly. Many measures have been put in place to fix weaknesses that have been noted in the previous year’s audit. Mr. Sarbaugh stated they have been actively recruiting strong accounting employees within the organization to assist. This will be a team effort with key employees throughout the County working on the CAFR report.

Mr. Sarbaugh expressed concerns about the applications received for the Senior Accounting position. He asked the committee members to afford him the opportunity to hold a few more interviews for the position.

Mr. Sarbaugh also expressed concerns with the contract for the outside auditors firm. Mr. Sarbaugh stated, if the current auditors are done after the 2018 audit, interviews for a new auditing firm will need to take place early in 2019. A payroll implementation will also be done during that time as well as phase two of the new finance software. These tasks combined will put additional pressure on them. Mr. Sarbaugh is asking this committee to please consider allowing them to extend the contract an additional year. Mr. Sarbaugh explained that an auditing firm cannot walk in and simply audit the books, there has to be a person to teach them how our process is set up, the account structure, as well as the software structure. He doesn’t feel at that point in time he will have enough people to assist them while also balancing the conversion process. This process will be a huge change to how finances have been reported at County Governments and Governmental Bodies. While he understands and appreciates the concern to want a new set of eyes on the books he feels now is not an ideal time for it.

Ms. McCann suggested the concerns be brought forward and placed on the agenda before this December. This will allow the current board members, who are familiar with the situation, to vote on a resolution before a new committee is in place.

Chairman Sakla and other committee members agreed to the request of bringing a resolution forward to extend the Auditor’s contract another year before December.

Detailed information on the discussion can be found on the County’s website media portion of the meeting.

Chris Christensen left the meeting for good at 10:54

5. EXECUTIVE SESSION (AS NECESSARY)

None.

6. ADJOURNMENT

Chairman Skala indicated he would entertain a motion to adjourn. Mr. Heisler made a motion, seconded by Ms. Barnes, to adjourn the meeting at 11:25 a.m. The motion passed on a unanimous voice vote of all ayes of members present. Absent was Mr. Christensen.

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=4054&Inline=True