Carroll County Delegation Meeting | July 27, 2020

Part 1 of 1

Meeting Notes

Supplemental budget: $1,189,364.07 COVID-19 funds. Late 2019 audit; Lack of financial controls. Timeline of financial concerns 2012-2020. No review of quarterly budget numbers. Nursing Home annex expansion project proposal.


0:00:01

MEETING DATE: 07/27/2020


TIME IN: 10:00


ROLL CALL OFFICIALS PRESENT: Representative: :Lino Avellani


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT: Representative: Ed Butler [Arrives at 10:21 am]


ROLL CALL OFFICIALS PRESENT: Representative: Ed Comeau


ROLL CALL OFFICIALS PRESENT: Representative: Glenn Cordelli


ROLL CALL OFFICIALS PRESENT: Representative: Karel Crawford


ROLL CALL OFFICIALS PRESENT: Representative: Edie Desmarais


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT: Representative: John Macdonald


ROLL CALL OFFICIALS PRESENT: Representative: William Marsh


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT:


ROLL CALL OFFICIALS PRESENT: Representative: Steve Woodcock


ROLL CALL OFFICIALS ELECTRONIC: Representative: Tom Bucco


ROLL CALL OFFICIALS ELECTRONIC: Representative: Bill Nelson


ROLL CALL OFFICIALS ELECTRONIC: Representative: Karel Crawford


ROLL CALL OFFICIALS ELECTRONIC: Representative: Anita Buroughs


ROLL CALL OFFICIALS ELECTRONIC: Representative: Steve Woodcock


ROLL CALL OFFICIALS ELECTRONIC:


ROLL CALL OFFICIALS ELECTRONIC:


OFFICIALS ABSENT: Representative: Harrison Kanzler


EXECUTIVE COORDINATOR: Mellisa Seamans


TOWN ADMINISTRATOR:


ADMINISTRATIVE ASSISTANT:


OTHERS PRESENT: Joe Costello, County Treasurer


OTHERS PRESENT: Lisa Scott, County Registrar


OTHERS PRESENT: Commissioner: Terry McCarthy


OTHERS PRESENT: Christopher Heroux, County Human Resources


OTHERS PRESENT: Ed Comeau GovernmentOversite-com


OTHERS PRESENT ELECTRONICALLY: Commissioner David L. Babson


OTHERS PRESENT ELECTRONICALLY: Representative: Susan Ticehurst


OTHERS PRESENT ELECTRONICALLY: Representative: Jerry Knirk


OTHERS PRESENT ELECTRONICALLY: Howard Chandler, Nursing Home Administrator


NOTE: GOVERNMENTOVERSITE-COM:



0:00:33

VERBAL ROLL CALL ELECTRONIC ATTENDEES/OFFICIALS PRESENT:



0:01:40

PUBLIC HEARING/ ACCEPTING COVID-19 REVENUE/EXPENSES/CREATING APPROPRIATION LINES:


Total revenue; Total expenditures; Projected revenue/expenditures; Grant expense process; Supplemental budget creation; #JoeCostello; Unanticipated revenue/expense lines; Modifying publicly posted supplemental budget totals; Hearing closes at 14:30


0:14:35

VERBAL ROLL CALL ELECTRONIC ATTENDEES/OFFICIALS PRESENT:



0:16:37

COVID-19 REVENUE/EXPENSES:


$1,189,364.07 Received to date; Amounts dispersed;


0:21:30

COUNTY TREASURE COMMENTS:


JoeCostello; Melanson and Heath auditor letter; [Letter read into the record]; Audit delay; Treasurers email to Business office; [Email read into the record]; Requested financial information;


0:28:10

COVID-19 REVENUE/EXPENSES:


$1,189,364.07 Received to date; MVC revenues;


0:30:23

MOTIONER: Avellani


MOTION DETAILS:


To approve: $1,189,364.07 in Covid-19 revenue.


SECOND: Cordelli


DISCUSSION:


What line in budget; Treated as grants; [Estimated column: 08/31/2020]; Reimbursement request forms; Bypassing legislative oversight; MVC covid-19 revenue; June 1: Reimbursement request: Computer purchase; I.T. Inventory control;


200400.2104: Long term stipend:


200400.2105: First responder stipend:


200400.2106: Covid reimbursement funding: $1,189,364.07


AVELLANI: YES


BUROUGHS: YES


BUCCO: YES


BULTER: YES


COMEAU: YES


CORDELLI: YES


CRAWFORD: YES


DESMARAIS: YES


KANZLER: NOT IN ATTENDENCE


KNIRK: YES


MACDONALD: YES


MARSH: YES


NELSON: YES


TICEHURST: NO


WOODCOCK: YES


0:48:25

PROCESS OF DISPERSING COVID-19 COMPENSATION FUNDING:


Salary lines; First responders; Long term care; Payroll taxes; Nursing home revenue/expenditures; Jail budget; Sherifs department;


0:55:48

MOTIONER: Avellani


MOTION DETAILS: To create revenue lines;


2004102:


2004104:


2004105:


2004106:


SECOND: DESMARAIS


DISCUSSION:


Transfers; Retirement deduction;


AVELLANI: YES


BUROUGHS: YES


BUCCO: YES


BULTER: YES


COMEAU: YES


CORDELLI: YES


CRAWFORD: YES


DESMARAIS: YES


KANZLER: NOT IN ATTENDENCE


KNIRK: YES


MACDONALD: YES


MARSH: YES


NELSON: YES


TICEHURST: YES


WOODCOCK: YES


1:04:16

COVID-19 BUDGET LINES:


FEMA Liaison; CARES ACT funding; Process of creating a supplemental budget;


1:12:13

AVENUE, INC. FINANCIAL SOFTWARE INTEGRATION:


Jail Superintendent; Control access seats; Module functionality; Lack of implementation team; Treasurer access to financial system; Access protocols per computer terminal; $500.00 annual cost; Avenue Contract details; Registrar of Deeds computer IT contract/ County contract; Fidler Inc.; Separated county/registrar computer systems; Other County computer systems;


1:31:13

2019 AUDIT PROCESS:


Delays; Finance Office Staffing; CFO job description; Job description; Training; Audit delays; Close of books; Scott Egan: Plodzic Sanderson; CFO hiring panel; County organization Chart;


1:45:00

NURSING HOME ANNEX EXPANSION PROJECT UPDATE:


Agricultural Charter School; Child care; Transitional Housing; Office space; Annex roof leak;


1:49:28

OTHER BUSINESS:


GlennCordelli; County financial concerns; [timeline of concerns spanning 2012-2020] Statement read into the record; Issues with payroll system; CFO job requirements; Salaries appropriation/ Settlement budget lines; Nursing home bond;


County Financial Issues:

§ There were 4 years prior to 2012 that no financal audits were performed in violation of state law.


§ There were funds unaccounted for in the construction of the Mountain View Nursing Home. Somewhere between $250,000 and over $2 million in remaining construction bonds funds have never been identified. It is possible the funds were just transferred to the General Fund in violation of state law.


§ 2014 and 2018 Performance Audits with ignored recommendations


§ 2014 County ran deficit for the year


§ 2015 Department of Revenue Administration came in to set town tax rates due to lack of confidence in County financial numbers. This was probably the first time in state history that DRA has had to take that action.


§ Bank reconciliations are not done on timely basis – possibly never have been but was mentioned in both performance audits and 2017 Financial Audit.


§ In the past 3 years, the NH Department of Labor has had to conduct investigations at the County due to payroll and time issues.


§ 2017 and 2018 financial audits not completed till Oct/Nov.


§ Suit filed regarding late 2018 audit due to non-compliance with state law stating audit to be done within 90 days of close of books. County opposed the suit and purposely drove up the legal charges to over $16,000 to try to embarrass the complainant. Commissioner Babson had a paragraph added to annual report naming the individual and amount spent.


§ At the request of the Commissioners, the Delegation added a 3rd staff position to the Finance Office for the 2019 budget year. The hired staff person has never been trained in the financial system software.


§ Commissioner Babson has proposed vote of Board of Commissioners on release of any requested Right to Know information in possible violation of state law.


§ At the May 8th Delegation meeting, the Finance Director stated that she was working on getting items together for the audit but there was not timeline for the audit to the County building being closed. Per meeting minutes.


§ Per the July 2nd Delegation meeting minutes, the Finance Director stated that the first request for information from the auditor came at the end of May contradicting what we were told on May 8th. It was also stated in the


minutes that Chairman DesMarais would contact the auditors about the delay. The Delegation has not received any information on that contact.


§ A letter dated July 13th was received by the Commissioners from the financial auditor. It read in part “Due to the County’s lack of timeliness of the year end closing in 2019 and prior years, we have been unable to perform the annual audit as outlined included in the County’s RFP and our proposal for audit services for 2019-2021. As a result of the continued delays, it will be difficult to schedule the County’s 2019 audit in the coming months.” They went on to state “We ask that you refer your audit needs to another firm for the 2020 year.”


§ At July 22nd Delegation meeting, it was learned that the books for 2019 still had not been closed. It is unknown if they have been closed since then.


§ State law was changed to 120 day deadline for audits after the close of books. The 2019 financial audit has not even been started as of several weeks ago.


§ There has been no action taken to determine the cause of the delays in the Finance Office or to take corrective action. It is unknown if the 2019 audit will be completed by the time town tax rates are set or work begins on the 2021 budget.


§ At Commissioners meeting of July 22nd, the Financial Manager disclosed problems with the payroll system that were previously unknown to the Commissioners or Delegation.


§ Also at the July 22nd meeting, the Commissioners approved a job description in the 2020 budget for the new position of Chief Financial Officer that had been budgeted by the Delegation over the objection of some Commissioners.. The Commissioners approved a job description for this position that does not even require a college degree.


§ Settlements to aggrieved former employees are common at the County. Thus far this year over $300,000 of taxpayer funds have been paid to two former employees.


§ AT the July 1st Commissioners meeting, it was stated by the Finance Manager that the 4100 Salaries appropriation would be seriously negative at the end of the year. She went on to indicate that this will be caused primarily due to funds needed for the settlement agreed to with the former County Administrator. However, the budget has a separate appropriation of $140,000 to cover that expense. According to information I have received from a 91a request, it would appear that significant funds have been moved from the salaries appropriation to the settlement account. Is this the case? Has there been such a transfer approved by the Delegation Executive Committee? Are the


Commissioners interested in why the Finance Manager indicates the salaries line will be under funded


§ The County has contracted for an upgrade of the financial system. For the first time in history, department heads might be given access to look at their own budgets rather than keeping their own set of books. The Commissioners, however, for 3 weeks have been discussing who is to have access. The upgrade is to also include purchasing and accounts payable modules. To date, the Commissioners and department heads have no idea as to the functionality of these modules and how implementation will impact operations. The Commissioners have ignored recommendations from the Delegation and Treasurer to form implementation committees.


§ The Commissioners have done nothing to provide the Treasurer with access to the Finance Department despite repeated requests except tell hm to write an email.


2:03:04

MOTIONER: Comeau


MOTION DETAILS:


To prove the 05/08/2020 public minutes


SECOND: Crawford


DISCUSSION: NO


AVELLANI: YES


BUROUGHS: YES


BUCCO: YES


BULTER: YES


COMEAU: YES


CORDELLI: YES


CRAWFORD: YES


DESMARAIS: YES


KANZLER: NOT IN ATTENDENCE


KNIRK: YES


MACDONALD: YES


MARSH: YES


NELSON: YES


TICEHURST: YES


WOODCOCK: YES


2:04:40

MOTIONER: Avellani


MOTION DETAILS:


To prove the 07/07/2020 public minutes


SECOND: Burroughs


DISCUSSION: NO


AVELLANI: YES


BUROUGHS: YES


BUCCO: YES


BULTER: YES


COMEAU: YES


CORDELLI: YES


CRAWFORD: YES


DESMARAIS: YES


KANZLER: NOT IN ATTENDENCE


KNIRK: YES


MACDONALD: YES


MARSH: YES


NELSON: YES


TICEHURST: NO


WOODCOCK: YES


2:05:57

OTHER BUSINESS:


Nursing home; Proshare funds; Covid-19; Dental for the Dead; Auditors: 2020 RFP versus direct solicitation; RSA 91-a: All communications between the Auditor and the business office; Review of quarterly budget numbers;

Past Carroll County Delegation Meetings