DATE: September 11, 2007
Members present: Marty Krueger, Tommy Lee Bychinski, Tom Kriegl, William Wenzel, Joan Fordham
Others present: Kerry Beghin, Carol Herwig, Todd Liebman, Bev Mielke, Tom Scheidegger, Mary Jo Graham, Penny Clary, Karyle Johnson, Carl Gruber, Sue Nagelkerk, Media
The meeting was called to order by Chairman Bychinski at 8:30 a.m. Certification of Open Meeting compliance was given.
Motion by Krueger, second by Kriegl to adopt the agenda with the request that the HCC staff be moved up on the schedule to allow them to return to the HCC as soon as possible. Motion carried.
Motion by Krueger, second by Kriegl to approve the minutes of previous meetings. Motion carried.
Communications.
Krueger announced that he will be late arriving to the meeting on September 24th.
Review of UW-Extension 2008 Budget Request.
Sue Nagelkerk discussed the UW-Extension and Alice in Dairyland budgets for 2008.
Presentation and Review of 2006 Audited Financial Statements.
Tom Scheidegger, a partner with Virchow Krause, presented the 2006 audited financial statements. Fund balance decreased from last year by a little more than $1 million. Sauk County should determine what percent of expenses they want to maintain in fund balance and just keep that steady. Outstanding debt is at 8.3% of capacity which is a favorable indicator; the County should keep this under 25%. Scheidegger explained that auditors look specifically at source documents, but they do not look specifically at subsidiary computer programs. Kriegl expressed concern that the Sheriff's department is one of the largest departments but is not audited separately. Scheidegger explained that because they are a large department, the auditors review a larger number of vouchers and payroll records from the Sheriff's department compared to smaller departments just by rules of statistics. Kriegl asked if the auditors believe that the inmate trust account was being handled properly. Scheidegger explained that if an audit point had not been created, then you can assume that any tests done on the inmate trust account lead them to believe that it was being handled properly. Scheidegger pointed out that the audit reports mention the material weaknesses in the County with lack of documentation of internal controls and preparing some statements and schedules that should be prepared by County staff. These weaknesses are new to a large number of governments due to changes in the auditing standards as a result of some national financial scandals such as Enron and Worldcom.
Discussion of Child Support Revenues.
Karyle Johnson spoke about a reduction in reimbursements of $2,500 per year from the State due to a change brought on by the Federal Government. Karyle believes that the 2008 budget she reported during staff reviews needs to be reduced by this adjustment.
Update on Financial Performance of the Health Care Center.
Mary Jo Graham , one of the interim Superintendents, appeared with Penny Clary, Business Manager, to update the Finance Committee on the changes that are occurring at the Health Care Center. Graham explained that some staffing issues have been corrected that had been inappropriately changed during the past months. The budget for 2008 will be based on an average number of filled beds of 105. Graham explained that the management of FMLA vacancies is challenging. Medicare B has notified us that denials went up again in the most recent quarter. Graham is training staff to understand the documentation necessary to get those claims approved, as well as working to train the registered nurses to enter their own MDS reports so that there is no delay on submitting those reports and getting reimbursements. Melyx did not properly update their forms and has caused delays in collecting our Medicaid receivables in recent months. The receivables are up in July compared to June but this should be corrected quickly and Clary expects that this number will go back down in August or September. Work towards purchasing a new computer program is continuing. Krueger explained that the County has followed the proper procedures to explore outsourcing laundry and housekeeping departments. Liebman updated the committee that he has kept the Union completely informed of the information we have received from outside vendors and the Union has the ability to match the costs. The Board of Trustees will make a recommendation to the full County Board and the full board then has the ability to approve or disapprove of these changes. Fordham expressed her support of Gunderson and Graham's actions. Graham explained the mix of nursing staff that they usually recommend. They will be working to get the HCC closer to this mix of 60% full time and 40% part time with 20% of the part time employees having no benefits.
Review of Corporation Counsel 2008 Budget Request.
Liebman explained that there have been some staffing changes. Cross training has improved and procedure manuals are being updated. There is one attorney assigned solely to child support enforcement. Liebman expressed his desire to obtain a case management computer program.
Review of County Clerk's 2008 Budget Request.
Bev Meilke explained that her budget changes according to the election process. 2008 being a presidential election year will result in a noticeable increase in expenses. Request includes money to move a wall in her office space and new furniture for her staff.
Update on Driving Simulator Usage.
Carl Gruber talked about the different employees and outside agencies that have used the simulator and the ones that have scheduled to use it in the near future. Gruber mentioned that in the past three summers, we have had accidents with our interns. This summer, there were no accidents.
Update on Home Care Receivables.
Beghin explained that she had met with Home Care staff after the last Finance meeting. Home Care has had a change in staff and a change in their computer program which is why receivables have started to build. There were some glitches in the new computer program and those are being addressed. A list of improvements that could be made has been developed, some of which are already being implemented. Krueger mentioned his concern over the fact that this is the second time in the recent past that we have seen problems due to a lack of cross training. Krueger has requested that the Personnel department identify all of the key positions within the County that would interrupt our operations if one person were to leave.
Discussion of Central Services Organizational Analysis.
Krueger lead the discussion regarding the recommendations presented in the central services organizational analysis. Beghin and Carignan will generate their responses to the recommendations.
Update on the 2008 Budget Process.
Beghin noted the changes in equalized value reported by the State. Sauk County's net new construction for 2006-2007 is 4.044%. The outcome of the State budget is needed before final decisions about the County's budget can be made.
Treasurer's Department Update.
Motion by Krueger, second by Fordham to approve the payment of the Treasurer's bills in the amount of $607.98. Motion carried.
Accounting Department Update.
Beghin updated the Committee on departmental activities. Motion by Krueger, second by Wenzel to approve payment of Accounting invoices in the amount of $186,178.20. Motion carried. Motion by Fordham, second by Wenzel to approve County invoices in the amount of $3,296,445.20. Motion carried.
Motion by Wenzel, second by Fordham to adjourn. Motion carried. The next meeting will be just prior to the County Board session on September 18th to approve payments. The Committee will meet on September 24, 25, and 26th to review 2008 budget requests. The next regular Finance Committee meeting will be on October 10th at 8:30 a.m.
Respectfully submitted,
William F. Wenzel
Finance Committee Secretary