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HomeMy WebLinkAboutAgenda Packet - Finance & Human Resources Committee - 05/16/2022FINANCE & HUMAN RESOURCES COMMITTEE MAY 16, 2022 East Valley Water District was formed in 1954 and provides water and wastewater services to 103,000 residents within the cities of San Bernardino and Highland, and portions of San Bernardino County. EVWD operates under the direction of a 5­member elected Board. COMMITTEE MEMBERS David E. Smith Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee Meeting May 16, 2022 ­ 4:00 PM 31111 Greenspot Road, Highland, CA 92346 PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2021­22 Audit 2.Discuss the Memorandum of Understanding Side Letter of Agreement Between The East Valley Water District and The East Valley Water District Employee Partnership REPORTS ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEMAY 16, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERS David E. Smith Governing Board Member James Morales Jr. Governing Board Member Finance & Human Resources Committee Meeting May 16, 2022 ­ 4:00 PM 31111 Greenspot Road, Highland, CA 92346 PLEASE NOTE: Materials related to an item on this agenda submitted to the Board after distribution of the agenda packet are available for public inspection in the District’s office located at 31111 Greenspot Rd., Highland, during normal business hours. Also, such documents are available on the District’s website at eastvalley.org and are subject to staff’s ability to post the documents before the meeting. Pursuant to Government Code Section 54954.2(a), any request for a disability­related modification or accommodation, including auxiliary aids or services, that is sought in order to participate in the above agendized public meeting should be directed to the District Clerk at (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2021­22 Audit 2.Discuss the Memorandum of Understanding Side Letter of Agreement Between The East Valley Water District and The East Valley Water District Employee Partnership REPORTS ADJOURN FINANCE & HUMAN RESOURCES COMMITTEEMAY 16, 2022East Valley Water District was formed in 1954 and provides water and wastewater services to103,000 residents within the cities of San Bernardino and Highland, and portions of SanBernardino County.EVWD operates under the direction of a 5­member elected Board.COMMITTEE MEMBERSDavid E. SmithGoverning Board Member James Morales Jr.Governing Board MemberFinance & Human Resources Committee MeetingMay 16, 2022 ­ 4:00 PM31111 Greenspot Road, Highland, CA 92346PLEASE NOTE:Materials related to an item on this agenda submitted to the Board after distribution of theagenda packet are available for public inspection in the District’s office located at 31111Greenspot Rd., Highland, during normal business hours. Also, such documents are availableon the District’s website at eastvalley.org and are subject to staff’s ability to post thedocuments before the meeting.Pursuant to Government Code Section 54954.2(a), any request for a disability­relatedmodification or accommodation, including auxiliary aids or services, that is sought in orderto participate in the above agendized public meeting should be directed to the District Clerkat (909) 885­4900 at least 72 hours prior to said meeting. In order to comply with legal requirements for posting of agenda, only those items filed with the District Clerk by 12:00 p.m. on Wednesday prior to the following Wednesday meeting not requiring departmental investigation, will be considered by the Board of Directors. CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL OF BOARD MEMBERS PUBLIC COMMENTS Any person wishing to speak to the Board of Directors is asked to complete a Speaker Card and submit it to the District Clerk prior to the start of the meeting. Each speaker is limited to three (3) minutes, unless waived by the Chairman of the Board. Under the State of California Brown Act, the Board of Directors is prohibited from discussing or taking action on any item not listed on the posted agenda. The matter will automatically be referred to staff for an appropriate response or action and may appear on the agenda at a future meeting. INFORMATIONAL ITEMS 1.Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2021­22 Audit 2.Discuss the Memorandum of Understanding Side Letter of Agreement Between The East Valley Water District and The East Valley Water District Employee Partnership REPORTS ADJOURN Agenda Item #1 May 16, 20221 4 0 4 Meeting Date: May 16, 2022 Agenda Item #1 Informational Item Regular Meeting TO: Committee Members FROM: Chief Financial Officer SUBJECT: Review Letter Regarding Auditor Responsibilities and Planning Document from Rogers, Anderson, Malody & Scott, LLP for Preparation of the District's FY 2021-22 Audit RECOMMENDATION Staff recommends that the Finance and Human Resources Committee (Committee) review the audit Communication Letter and planning document from Rogers, Anderson, Malody & Scott, LLP (RAMS) for the preparation of the Audit of Financials for EVWD for the year ended June 30, 2022. BACKGROUND / ANALYSIS Staff has placed this item on the Committee meeting agenda in order to introduce the principals from the District’s new audit firm. In addition, as auditing is a review of managements’ activities, best practices dictate that a line of communication be established between the District auditors and Governing Board. Therefore, attached for the Committee to review is a “Communication Letter” from RAMS regarding auditor responsibilities to help ensure there is no expectation gap regarding the audit services for the fiscal year ended June 30, 2022. Also attached is a schedule / timeline for the work to be performed over the next four months. Auditing Standards require these documents be communicated to those charged with Governance and RAMS is present to answer any questions. AGENCY GOALS AND OBJECTIVES II - Maintain a Commitment To Sustainability, Transparency, and Accountability A. Practice Transparent and Accountable Fiscal Management REVIEW BY OTHERS This agenda item has been reviewed by the Finance Department. Agenda Item #1 May 16, 20222 4 0 4 Meeting Date: May 16, 2022 Agenda Item #1 Informational Item FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Brian Tompkins Chief Financial Officer ATTACHMENTS 1. Communication Letter 2021-22 2. RAMS Auditing Plan 2021-22 East Valley Water District Finance Committee Meeting May 16, 2022 Interim Fieldwork – week of May 30th (after Memorial Day holiday) Interviews with staff to gain understanding of processes: o Accounts payable o Billing and collections o Payroll o Cash and investments o Debt management o Journal entries and financial reporting o IT Various tests to ensure controls are operating effectively, based on our understanding obtained in interviews above o Reviewing invoices for proper approval o Payroll is properly approved, timesheets are reviewed o Segregation of duties within the various modules (IT) o Bank reconciliations are prepared and reviewed in a timely manner Reading through the minutes of Board meetings to identify any significant contracts, transactions, etc. Testing various contracts to determine whether purchasing policies were followed Import of prior year trial balances and setup up groupings for financial statements Year-End Fieldwork – week of September 5th (after Labor Day holiday) Various tests to ensure balances are not materially misstated: o Confirm cash, investment, debt balances with third parties o Trace receivables to subsequent collections/receipts o Ensure all material payables have been recorded as of June 30 o Perform analytical comparisons over revenues and expenses and drill into further details, if needed o Review support of additions and disposals of capital assets and CIP Reviews of actuarial valuations for pension and OPEB liabilities Prepare draft financial statements based on agreed-upon timeline with management (to be discussed during interim fieldwork) Agenda Item #2 May 16, 20221 4 0 2 Meeting Date: May 16, 2022 Agenda Item #2 Informational Item Regular Meeting TO: Committee Members FROM: Director of Administrative Services SUBJECT: Discuss the Memorandum of Understanding Side Letter of Agreement Between The East Valley Water District and The East Valley Water District Employee Partnership RECOMMENDATION This agenda item is for informational purposes only, no action required. BACKGROUND / ANALYSIS On Thursday June 17, 2021, President Joe Biden signed legislation making Juneteenth (June 19) a federal holiday. Since this was only two days prior to the designated holiday, the District did not have time to discuss the possible addition of this federal holiday to the approved holiday listing. The District agreed, however, to consider it as a reopener item for the 2021/22 fiscal year seeing as federal holidays are currently observed by the District. The Partnership met on March 22, 2022, to discuss the addition of the Juneteenth holiday as well as an additional reopener item regarding retiree health insurance. The Partnership requested that the District remove the requirement of enrollment in a CalPERS health program for retirees to be eligible for the District’s retiree health reimbursement. Currently when an employee retires, they must enroll in one of the CalPERS health plans to receive the contracted health reimbursement. This limits the retiree’s ability to select a plan of their choice, which could be less expensive, especially as it relates to retirees moving out of the state or country. In most cases, when a retiree moves out of the state or country, under the CalPERS health program, they have to select the PPO option which tends to have higher monthly premiums, deductibles, and hefty out of pocket expenses. Staff is supportive of this request as it would give retirees the freedom to enroll in a health plan of their choice and continue to receive the monthly reimbursement to allocate toward their premiums. There would be no additional cost to the District, as each MOU has a set maximum monthly reimbursement, and it could reduce the District’s costs as many health plans outside of California are offered at a lower cost. To ensure that retirees are actively enrolled in a health plan prior to receiving the Agenda Item #2 May 16, 20222 4 0 2 Meeting Date: May 16, 2022 Agenda Item #2 Informational Item District’s health reimbursement, the retiree would be required to show proof of coverage on a quarterly basis. Regardless of health plan selection, retiree health reimbursements will cease when the retiree reaches the age of eligibility for Medicare, which is currently 65. If approved, the addition of the Juneteenth holiday and the removal of the CalPERS health plan requirement would go into effect on May 30, 2022. This would allow time for staff to prepare notices informing customers that the District will be closed on June 19, 2022, in observance of the Juneteenth holiday, and will also allow time for staff to communicate the health plan requirement change to retirees. The Partnership employees agreed on both these items, and if approved, these benefits will be passed on to the non-represented group as well. The Side Letter of Agreement addresses these reopener items only, and will have no other impact on the current MOU. AGENCY GOALS AND OBJECTIVES III - Deliver Public Service With Purpose While Embracing Continuous Growth C. Promote a Positive Organizational Culture REVIEW BY OTHERS This agenda item has been reviewed by Administrative staff and the Employee Partnership representatives. FISCAL IMPACT There is no fiscal impact associated with this agenda item. Respectfully submitted: ________________ Kerrie Bryan Director of Administrative Services ATTACHMENTS MOU Side Letter 2022 Page 1 of 2 SIDE LETTER OF AGREEMENT Between EAST VALLEY WATER DISTRICT And EAST VALLEY WATER DISTRICT EMPLOYEE PARTNERSHIP This Side Letter of Agreement is made between East Valley Water District (District) and the East Valley Water District Employee Partnership (Partnership) to address reopener items for discussion impacting the current July 1, 2020 – June 30, 2023, Memorandum of Understanding (MOU). This Side Letter of Agreement is not intended to supersede any of the other terms and conditions of employment contained in the MOU unless specifically mentioned herein. The following provisions of this Side Letter of Agreement represent the mutual understanding and consent of both parties. 1. MOU Article 18 – Holidays Addition of June 19 (Juneteenth) as an approved holiday a. On Thursday June 17, 2021, President Joe Biden signed legislation making Juneteenth (June 19) a federal holiday. b. Juneteenth will be added to the District’s approved holiday listing and will be observed beginning June 19, 2022. 2. MOU Article 25 – Retiree Health Insurance Remove the requirement of enrollment in a CalPERS health program for retirees to be eligible for the District’s retiree health reimbursement ($700.00 per month reimbursement for the term of this contract). a. Retirees would have the freedom to enroll in a health care plan of their choice and be eligible to receive the monthly reimbursement to allocate toward their premiums. b. Retirees would be required to show proof of health insurance coverage quarterly in order to receive the reimbursement. c. Regardless of health plan selection, retiree health reimbursements will continue to end when the retiree reaches the age of eligibility for Medicare (currently 65) Page 2 of 2 This Side Letter of Agreement is executed on May 25, 2022. FOR THE DISTRICT: FOR THE PARTNERSHIP: ___________________________ ___________________________________ Phillip Goodrich, Board President Mike Baffa, Employee Representative _____________________________ ___________________________________ John J. Mura, General Manager/CEO Jeremy Subriar, Employee Representative ___________________________________ Jennifer Wallace, Employee Representative