Board of Finance Regular Meeting Agenda (linked)

Board of Finance Wednesday, August 12, 2020
Regular Meeting Minutes 7:00 pm
Remote Access
Present:
Absent:
Elected:
RTM:
Staff
Chairman Ronald R. Fedor, Mark Geer, John Sheehan, Kevin Petchark, Glenn
Patterson, Tali Maidelis and Robert Tuneski
None
Robert J. Brule, First Selectman; Selectwoman Jody Nazarchyk:: 7
Thomas Dembek, Sue Driscoll
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Abby Piersal, Planning Director; Brett Mahoney, Chief of Police; David Campo,
Town Clerk; Dani Gorman, Director Youth and Family Service Bureau; Gary
- Schneider, Director Public Works; Bruce Miller, Director Fire Services; Joseph
Mancini, BOE Director of Finance/Operations; Kim Allen, Director of Finance,
Maryellen McConnell, Secretary
Establishment of a quorum and call to order:
A quorum was established and a call to order was established at 7:00 pm,
August 12, 2020.
Public comment: No public comment.
Approval and acceptance of Board of Finance regular minutes from July 15, 2020
and Board of Finance Special Meeting Minutes on July 28, 2020
Motion by John Sheehan and seconded by Tali Maidelis to approve the Special
Meeting Minutes of July 15, 2020; the Regular Meeting Minutes of July 15, 2020,
and the Special Meeting of July 28, 2020.
Vote: 7-8 , Motion: Passed

Board of Finance Regular Meeting Minutes — August 12, 2020
Remote Access, Page 2
A, Matthew Coit and Vanessa Rossitto, representatives with Blum Shapiro, will be
providing the Board of Finance with a presentation on Required Audit
Communication Discussion. Please see attached presentation.
Questions from Bill Sheehan to Matthew Coit: What new accounting principles
are being used this year? Also, if you could explain the internal accounting
controls for our new members.
Matthew Coit — there would have been some new accounting principals,
however; due to COVID-19 they pushed them back till next year. It will look very
similar to last year.
Internal Controls: A large part of the internal audit is compliance checks and
looking at the actual numbers and making sure the numbers vouches out as we
expect. The other side of that is government audit standards and similar
standards that go with Federal and State single audits is looking at the control
environment over the preparation and financial statements and over the
preparation of the major programs that we selected. We do walk through and
testing of controls along with our audit work. While we are doing compliance
testing and seeing if the expenditures are in line with what the expenditures
should be. With the controls in place we are also looking to see if they were
recorded and spent correctly under the grant. There are two sides of the coin
that we look at for the single audit side, it’s actually the walk through that is a
big part of that where we actually go through the processes of the Town and
select the controls that we see as being critical in being key controls.
This is an annual audit and is done once a year once the books are closed, that is
when we come in. Any audit incorporates sampling, if we were to look at every
single transaction and dollar spent in the Town it would have to be a full year-
round audit. Quite honestly, the fees would be extreme, and it is not what is
required under government auditing standards. We look and assess materiality
across all those different opinion units and funds that we have, we do
incorporate an element of sampling and the idea is that we have developed the
audit as such that we have reasonable assurance that there aren’t material
misstatements. That is not to say that there could not be one, but the audit is
_ designed so there will not be one. There is prescribed audit guidance from a
general government auditing standard prospective that we use for the financial
statement side of the audit. As far as the single audit, there is guidance that
speaks to appropriate sampling for Federal and State single audit purposes. The

AICPA provides guidance on sampling, we look at the controls that are
happening during the year and they play a large part of this as well.
Board of Finance Regular Meeting Minutes — August 12, 2020
Remote Access, Page 3
5.
To consider and act on a request from, the Board of Selectmen, contingent on
their approval, on behalf of Abby Piersal Planning Director, for an appropriation
in the amount of $65,000 for a new roof at the Eugene O’Neil Theater and
forward to the RTM.
Motion by John Sheehan and seconded by Glen Patterson to approve the
appropriation of $65,000 and forward onto the RTM as required.
Amended motion by John Sheehan and seconded by Mark Geer to pull this from
the undesignated fund balance of the Capital and Non-Recurring Expenditure
Fund line #205-31520 to go to a project designated after the RTM meeting. The
donation from the Eugene O’Neil Theater will be returned to the undesignated
fund balance of the Capital and Non-Recurring Expenditure Fund.
Vote: 7-0 Motion: Passed
To consider and act on a request from, the Board of Education, on behalf of
Thomas Girard, Superintendent, to approve the draft of the M.O.U. and establish
the non-lapsing account.
Motion by Mark Geer and seconded by Tali Maidelis to approve the request as
stated.
Motion by John Sheehan and seconded by Mark Geer to change the verbiage in
the agreement on paragraph 2e, the last sentence. It says the Board of
Education proposes to the Board of Finance in paragraphs pursuant to b and.c
above of said funds and agrees to receive the approval of the Board of Finance
before making the proposed expenditure. Also on the five items listed, we are
changing COVID-19 to COVID-19/Public Health Emergency.
Vote: 6-1. Abstain: Mark Geer Motion: Passed

Board of Finance Regular Meeting Minutes — August 12, 2020
Page 4
7. To consider and act on a request from, the Board of Selectmen, on behalf of
Kimberly Allen, Director, Finance Department Town of Waterford, for an FY20
Out of Series Transfer as follows:
Account Description Increase Decrease
| 10104-51110 | Assessor (Administration) 4,515
10104-51210 | Assessor (Clerical) 3,262
10108-52030 | Legal (Professional Fees) 12,462
10112-52240 | Insurance (Unemployment) 2,806
10143-51210 | Ethics Commission (Clerical) 528
10143-51920 | Ethics Commission (FICA) 41
| 10139-56028 | Debt Service (Interest) 23,614
Total 23,614 23,614
Motion by John Sheehan and seconded by Glen Patterson to approve the
Request as stated.
Vote: 6-1 Opposed: John Sheehan Motion: Passed
8. To consider and act on a request from the Board of Selectman on behalf of Brett
Mahoney, Chief of Police, Town of Waterford, for an FY20 Out of Series Transfer
as follows: ,
Account Description Increase Decrease
10129-53090 | Gasoline 8,756
10129-51430 | Detectives 8,756
Total 8,756 8,756
Motion by John Sheehan and seconded by Mark Geer to approve the request as
stated. :
Vote: 7-0 Motion: Passed

Board of Finance Regular Meeting Minutes — August 12, 2020
Page 5
9. To consider and act on a request from the Board of Selectmen, on behalf of
Robert Brule, First Selectman, Town Of Waterford, for an FY20 Out of Series
Transfer as follows:
Account Description Increase Decrease
10101-51010 | Elected Officials 757
10101-51110 | Administration 527
10101-53020 | Other Supplies 223
10101-52030 | Professional.Fees 1,070
10101-51920 | FICA 437
Total 1,507 1,507
Motion by John Sheehan and seconded by Mark Geer to approve the request as
stated.
Vote: 7-0 Motion: Passed
10. To consider and act on a request from, the Board of Selectmen, on behalf of
Gary Schneider, Director, Public Works Department, Town Of Waterford, for an
FY20 Out-of-Series Transfer as follows:
Account Description Increase Decrease
10130-53090 | Fuels and Lubricants 16,000
10130-52470 | Solid Waste Disposal 16,000
Total 16,000 16,000
Motion by Glen Patterson and seconded by John Sheehan to approve the
request as stated:
Vote: 7-0 Motion: Passed

Board of Finance Regular Meeting Minutes — August 12, 2020
Page 6
11.
12.
To consider and act on a request from the Board of Selectmen, on behalf of
David Campo, Town Clerk, Town of Waterford, for an FY20 Out-of-Series
Transfer as follows:
Account Description Increase Decrease
10109-51110 | Administration 659
10109-52510 | Rental of Equipment 659
Total 659 659
Motion by John Sheehan and seconded by Mark Geer to approve the request as
stated:
Vote: 7-0 Motion: Passed
To consider and act on a request from the Board of Selectman, on behalf of Dani
Gorman, Director, Youth and Family Service Bureau, Town of Waterford, for an
FY20 Out-of-Series Transfer as follows:
Account Description Increase Decrease
10119-51110 | Administration 5,405
10119-51210 | Clerical 1,195
10119-52030 | Professional Fees 5,728
10119-52100 | Electric 550
10119-52020 | Postage 215
10119-52380 | Programs 107
Total 6,600 6,600
Motion by John Sheehan and seconded by Mark Geer to approve the request as
stated:
Vote: 7-0
Motion: Passed

13.
14.
To consider and act on a request from the Board of Selectman, on behalf of
Bruce Miller, Director, Fire Services, Town of Waterford, for an FY20 Out-of-
Series Transfer as follows:
Account Description Increase Decrease
10123-52040 | Service Contracts & Repairs 7,500
10123-52050 | Dues, Conferences & 15,000
Education
10123-52090 | Heating Oil 12,500
10123-53090 | Gasoline & Diesel 4,000
10123-53111. | FF Protective Clothing 20,000
10123-53113 | Volunteer Responder Awards 4,000
10123-54218 | Firefighting Equipment 10,000
10123-51810 | Overtime 73,000
Total 73,000 73,000
Motion by John Sheehan and seconded by Glen Patterson to approve the
request as stated:
Vote: 7-0 Motion: Passed
Liaison Reports:
Glen Patterson — Municipal Complex: The remediation of the site is well
advanced and will be done by the end of the month. Everything is going
smoothly, the foundation for the garage is going in. They are working in parallel
remediating the site, overall the project is 65-70% complete. The garage is the
largest part to be done. There are still issues with the wash bay, which we are
‘working on. Putting the process on report, we have had issues processing the
items in the contract with allowances. We have had several occasions where we
have allowed a dollar amount in the contract that was woefully inadequate for
what we ended up seeing was required for the project. | think that future
building committees, if that can be captured, that will be a huge lesson learned
from this episode. The wash bay is one of those items. | would like to take this
opportunity to say that Gary Schneider is a fine steward of this Town’s dollars,
along with Dan Matheson they are doing.a fantastic job of holding O&G to what
they promised in the contract and pushing through any problems that seem to
come along. There are some minor issues with the air conditioning in the new
building, but they are working on those. That is the biggest punch list item that
has come across the table since they opened the offices.

Board of Finance Regular Meeting Minutes — August 12, 2020
Page 8
15.
16.
Old Business: None
New Business:
To start to hold the Board of Finance meetings in person in the auditorium.
Following the Board of Selectmen, with their in-person meetings, and if
everything goes well, our next meeting will be in person. .
To appoint a Board of Finance Liaison for the Purchasing of Unbudgeted Items
Policy. In the past, the Board of Finance member who is the liaison for that
board or agency is the one who is the member of that committee that approves
it since they are the one who is the bridge with the Board of Finance. If there is
no liaison, then the Chairman of the Board or his representative, will attend that
meeting, whomever he chooses to appoint,
Review and discuss policy regarding current year capital. Kim Allen suggests that
because the Board of Finance already has a policy and authority to review capital
projects at the end of the year, that we roll into that if they are not going to be
done or current and their justification does not say the next fiscal year that the
Board of Finance makes the decision to roll it into the CNR and transfer the
whole project balance and everything over. The Board of Finance already has
the authority to close a project, carry it over and do what they need to do. The
easiest route will be to revise our current policy and it keeps control with the
Board of Finance. |
. Update on COVID-19 and Tropical Storm Isaias: Robert Brule — COVID-19 there
could possibly be spikes coming in the next months, there is a lot of information
out there. Right now, the Board of Education is taking the lead of all of our
attention, as this is a town wide approach with a hybrid model and digital
learning, and we are updated every day. All hands are on deck to help the Board
of Education to get up and running. There are situations in town that myself and
the Police Department have been notified that there are too many people and
we are looking into this, for instance, the Waterford Speedbowl. This has to do
with attendance, | will let the Emergency Manager know what is going on along
with the Chief of Police. The town’s emergency order does expire on September
1, 2020, and | am going to ask to extend this, so we mirror the Governor’s order
and keep it consistent, being under a state of emergency and reimbursements if
we can apply for them later. As a town we are doing very well, we have had four
outbreaks in 20 days. This is unheard of in a town of 20,000 people. A lot of
what we had was nursing home related, those numbers have not changed, and
we are doing well as acommunity. Budget wise, we have done a very well job

we are not overspending. The non-lapsing account for the Board of Education
that was just voted on we worked with the Board of Education because we knew
there would be increased costs, this was well thought out at the town level as
Board of Finance Regular Meeting Minutes — August 12, 2020
Page 9
we have never done this before. | applaud the Board of Finance for doing
something that we have never done before with the controls there it is a win win
for both groups. We have spent about $500,000 on vacation time, at the end of
the day when it comes to liabilities when people retire, we used time during
COVID that worked for families on the town side we did everything we could to
work with them when they needed time. We have mask protocols in place, the
town hall is open along with most buildings in the town. The Senior Center will
be the last to open, for obvious reasons, along with senior programs. We have
been following the direction of Steven Mansfield, our public health director, his
guidance and he is involved with everything we do. We tried renting our
outdoor facilities through the Recreation and Park Department, but it was not
working. We had people from out of town who were not following the
guidelines, so we stopped that program after two weeks.
Update on Tropical Storm Isaias - We were one of the only towns to open the
EOC, and | appreciated the feedback that was given by John Sheehan. John
Sheehan sent me an email, which | greatly appreciated, it was what | was
thinking of doing anyway. As we have a whole new team, we really needed to
get into the EOC and work together and | am glad we did, | learned a lot. There
are things that | will be coming to this board regarding capital, not too expensive,
but things | think we need to do if we have another storm like this. What can we
do better? | do have ideas that | have talked to my team about. We processed
the storm the day after, we have some take away. Obviously, the Eversourse
response was subpar at best, they know that, | said that. I sent a certain
response to the senator who sits on the Energy Commission, because they were
not there! Due to COVID, they all work from home. It was Murphy’s Law, they
ran out of power! We had a great team working, we have experienced people
showing the new people how to follow the procedure and follow the plan. |
learned about GIS and layering and what we need to see in a moment’s notice
and layering is very important at this level and we need to do it. I’m having the
Emergency Management Director look at other ways we can be more efficient
with our abilities and follow ups with special needs, families on blocked roads,
. downed lines, and if Eversourse is not in the room, which they weren’t, we did
great and we did everything that we could. We planned ahead with Police,
Public Works, Utilities, we had three ambulances on with crews on the whole
night. We had everything in place to help people that needed to be helped, and
_we followed the rules by not touching any downed wires that were tangled in
trees. What was very helpful was the diagrams of the Eversource electrical -
distribution that we received during Hurricane Sandy. Understanding where the _
power is out and where it is coming from makes it easier to say to that citizen

who calls up and wants to know why he can’t get any electricity why he can’t
even though you can’t give it to him. We are also looking at Everbridge as
another way to communicate with our residents, during storms like this. We are
Board of Finance Regular Meeting Minutes — August 12, 2020
Page 10
taking a deeper dive and looking into how we can improve after this storm. As of
this moment we have spent $174,000 on COVID-19 and Isaias and we awaiting
grant approval from FEMA and the State of Connecticut. We have not been
declared disaster yet for this storm, we have a report that we have to submit to
the state on the 19". The state will submit to the Federal Government and then
FEMA will decide if they will open up a grant application for any damages.
My understanding, after talking to department heads, is that it will be minimal.
We did not receive any damage to our properties or public buildings. We will
have man hours but no insurance claims. Everything has been documented with
pictures and real time.
17. Correspondence: None
18. Adjournment:
Motion by John Sheehan and seconded by Mark Geer to adjourn the Meeting of
_ the Board of Finance at 9:01 p.m.
Vote: 7-0 Motion: Passed
Respectfully submitted,
ZC_E EZ
Mark Geerefr, Clerk Maryellen McConnell, Secretary


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» Responsibilities - Management
— The selection and application of accounting principles
— Preparation and fair presentation of the financial statements,
schedule of expenditures of federal awards, schedule of
expenditures of state financial assistance
— Establishing and maintaining effective internal controls, including
internal controls over compliance
— Making all financial records and related information available to us
and for the accuracy and completeness of that information
— The design and implementation of programs and controls to prevent
and detect fraud and for informing us about all known or suspected
fraud affecting the government
— Identifying government award programs and understanding and
complying with the compliance requirements
| blumshapiro

» Responsibilities - Auditor
— Express opinion on the Financial Statements
— Plan and perform our audit to provide reasonable assurance about
whether the Financial Statements are free of material misstatement.
— Consider internal control relevant to the entity’s preparation and fair
presentation of the financial statements
— Evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by
management
» Independence
— There are no relationships between any of our representatives and
the Town of Waterford that in our professional judgment impairs our
independence. blumshapiro

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