Minutes for September 28, 2007
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DRAFT
Board of Trustees
Policies and Procedures Workshop
Friday, September 28, 2007
1:00 p.m. – Building D&E
The Barefoot Bay Recreation District held a workshop on September 28, 2007 in Building D&E, Barefoot Bay, FL. Chairperson Wilma Weglein called the meeting to order at 1:00 p.m.
Ms. Weglein requested a silent prayer for all our servicemen. She led the Pledge of Allegiance to the Flag.
Ms. Crouse called the roll. Mr. Farrell and Mr. Allan were excused. Mr. Repperger was present as counsel.
Mr. Klosky continued the workshop on Page 11 at the liquor surtax. Mr. Mata replied as of July 1, 2007 the tax was voided. Of the storage fee, $1.20 is sales tax. Dependents’ assessment fees are taxed. Golf Pro Shop merchandise and membership dues are taxed. Social fees collected from closings on homes sold in the Bay are taxed. Taxes are electronically transmitted to the proper agency.
RV Storage Billing on Page 12: Mr. Peet commented some of the things the Board is putting into the Policy and Procedures Manual is better suited to a Job Instruction Training manual. The Board agreed the “click on” instructions should be taken out. Mr. Peet suggested each department head should write a JIT. Mr. Ferris said there are no late fees on the RV storage. “Front desk” changes to “Building B office”. Monthly statements will re-commence when other problems have been solved.
Pro Shop on Page 14: Mr. Bleau said the Pro Shop procedures should appear in their JIT.
Food and Beverage, Page 15: Ms. Weglein said the fee for having a bartender at a Club’s party may change. Some events are too small to support a bar. Ms. Weglein said the clean-up charges for catered events are not current. Mr. Peet felt the Food and Beverage Manager should order food and liquor. Mr. Mata does not keep a separate master liquor log. Mr. Peet suggested changing the wording to “Food and Beverage Manager” rather than “Administration”. Ms. Weglein commented the procedures for procuring liquor, whether to move it from storage to the bars or to purchase it from a vendor, should be in the Food and Beverage JIT. Ms. Crouse said some reference to physical inventory logs should be left in for identification purposes; that the Board of Trustees is aware of the procedures and the necessity for them. Liquor inventory should be performed around the first day of each month. [Reference: page 15 and 16 “Separate master log books”] “Quarterly” is actually done “monthly” for Food and Beverage and the Pro Shop. Ms. Weglein said someone from Building F should assist with monthly liquor inventory and keep a master log book for comparison. Mr. Peet commented the new registers are also an inventory tool. Ms. Crouse asked that Item #6 be changed to “Food and Beverage Staff”, and #7 be changed to “finance department.” Conclusion: retain “2 books language”; remove Items 1-5 to the departmental JIT.
Ms. Crouse asked how the Board would oversee how the JIT procedures are transmitted to the master JIT for transmission to the departments. Ms. Weglein responded the Board would inform the Community Manager; the Community Manager would confer with the department managers. The information would be codified first, brought to the Board for approval, then appropriately distributed into the areas it describes. Ms. Weglein said it’s better to have a policy for each department; department managers won’t read 20 pages, but they might 3 or 4. Ms. Weglein suggested the Trustees Policies and Procedures be attached to individual department information. Ms. Crouse said the Trustees Manual should be the “Trustees Policy Manual” and the departmental manual should be the Procedure Manual. The procedure manuals can be updated separately from the policies.
Payroll Page 17: The pay period runs from Monday to Sunday. Payroll is bi-weekly. Consensus. Ms. Weglein asked to include language reflecting time clocks and time cards are used; employees may not write in their times. Manual entries must be initialed by the employee’s supervisor. Time cards are collected on Mondays and turned in to the Finance Department; hours are entered on time sheets, an internal control form; summaries are transmitted to PayChex currently, but the language could reflect any outsourced payroll provider being used. Hours are posted also in the District’s accounting system. “The next sentence is obsolete”: The direct deposit . . . . . .to their account. On Wednesday, staff person . . . . . . . . Delete both sentences.
Sentence re: transmission procedure. Mr. Mata said deposit slips and manual checks are provided by the payroll company. Delete both sentences referring to this. The next one is out also. The payroll company directly accesses the District’s checking account. Payroll arrives in Administration the day after the file is transmitted to the provider company. The Finance Department releases the checks on Thursday. Ms. Crouse: remove reference to time of day and leave “distribute on Thursday”. Consensus.
Mr. Mata requested a change in the Procedure manual: Time sheets now reflect total number of hours by category such as regular, vacation, overtime, sick, holiday. The totals are compared to the payroll report. This system of checks and balances catches anything that may have been entered incorrectly. Mr. Mata said a reference “total hours by department checked to the payroll” should be in the Policy manual while how it’s done should be in the Procedures. Consensus.
Page 18 #8 pension funds: ICMA is correct. Instead of IMS or SAGE, change to “approved accounting software”. The Pension Fund is posted to the General Ledger. Entries are posted to the ICMA website; a confirmation is issued; then a telephone link is performed to Bank of America to transfer funds from the District account to ICMA. Mr. Peet clarified that the funds taken from the employee’s paycheck are credited to that employee’s pension account. Ms. Crouse said Barefoot Bay Recreation District should be left in because it refers to ICMA in one place and the employee share is credited to their account fund through Barefoot Bay Recreation District’s accounting. “HR” changes to “Finance Department”. Consensus.
Fixed assets: “Supplies” are not reconciled to the ledger; they are expensed. Physical inventory at the Pro Shop is done monthly and reconciled to the ledger. “Fixed asset inventory” as reflected by putting tags on them when they arrive, is not being done currently. Audit requires an annual “fixed asset inventory report” on September 30th. Ms. Crouse commented the department managers need to follow policy. Ms. Weglein pointed out that what is sold needs to be taken out of inventory. Mr. Mata said he has bills of sale which can be reconciled for that purpose. He said he did that for the last audit. Ms. Crouse commented the Policy needs to be stressed to the department managers, and the Procedures will outline how it is to be done. Mr. Ferris said each manager could keep current with tagging assets as they are acquired on a report sheet; that way the work is automatically done and the information is available by September 30th of each year. Mr. Mata said the Fixed Assets are reconciled as “additions to Capital Outlay”. Ms. Crouse suggested “special revenue” should be “general fund accounts”. A line item for inventory or assets still will exist. Ms. Crouse asked if the District deleted a fixed asset by sale, how is the operation identified [in the last paragraph]. Mr. Mata replied the value of the asset is compared to the book cost; if the book cost is more than what’s received, it’s accounted as a loss. If the book cost is less, the difference is accounted as income. The General Ledger amount is adjusted to the physical inventory. The General Fund is the operating account and there are line items within the General Fund that track additions and deletions. Ms. Weglein suggested leaving the language as is: to the General Fund account for capital purchases on September 30th of each year.
Month end closing procedures: “the financial statement is prepared . . . . . . . . on the Wednesday before the meeting . . . . .” Ms. Donahue said there is no “time frame permitting”. Mr. Mata commented the “roving” dates of the Board’s meetings made it difficult for him to prepare the reports. Ms. Donahue responded if it was easier to choose a set date each month, the reports could be run separately but the report is required, not optional. Ms. Weglein commented the reports are generated from computer information; Mr. Mata commented the way the data gets into the system to generate the report needs to change. Staff is currently very short and functions that support input into the accounting system are not being performed timely. Mr. Ferris asked how the incorrect figures on the last financial statement got there. Ms. Weglein responded, “I asked that question the next morning and the answer was, ‘Oh. I’m sorry to see that.” Ms. Weglein said that “to this day I do not have an answer” as to how the incorrect numbers were generated. Consensus.
The following activities are performed and/or reconciled . . . . . . . . Ms. Crouse asked if that paragraph was correct. Mr. Mata said those activities were not his responsibilities. Ms. Crouse responded it referred to standard accounting; her question was aimed at finding out if it were complete as is or if there were more that should be done. Mr. Mata said he did not know if they were all being done currently. With further discussion the Board decided to wait on this one.
Checks written, Page 19: The check register is in SAGE. “IMS” and “SAGE” change to “approved accounting software”. Lotus is out. Checks written are cash disbursements; the second sentence in the paragraph should say “cash disbursements” not “cash receipts”. A check is posted in the register as it is written and after it has printed properly. Mr. Mata commented ideally cash receipts are posted daily. Change A/R to Finance Department staff prepares the daily bank deposit.Consensus.
Journal entries: are prepped in Excel and put into SAGE. SAGE does not provide a copy of inputted data so mistakes don’t show up timely. Ms. Crouse asked what needed to be fixed in this paragraph. Mr. Mata replied it wasn’t descriptive enough. Journal entries include the pension fund, Pro Shop memberships, insurance payments, out of balance analysis work. After further discussion, the Board reached consensus to leave the paragraph as is.
General Ledger Accounts: Mr. Mata read the first sentence and commented currently it is not being done every month. Ms. Crouse commented the bank reconciliation should be done on a monthly basis. Mr. Mata is not allowed to perform the bank reconciliations because he does accounts payable and payroll.
Shopping Center and Enterprise Funds: The bank lists these with the Operating Fund. Storm water Fund and Debt Fund are separate by resolution. All the other funds were combined under GASB 34 accounting procedures. The total of the 3 accounts equal the total bank balance (ledger). Consensus.
Page 20: eliminate the last item; it is a duplicate. Preparing bank reconciliations will appear in the Administration JIT. Mr. Ferris said in the 3rd and 4th paragraphs “Lotus” should be changed to “procedures”.
“Commissions” are policy; procedures are how you take them. Mr. Bleau clarified the addition of “Commissions are paid to the Pro Shop quarterly.” Payroll accruals are policy. “Supporting entries in the general ledger” stays as is. Ms. Crouse: all accruals are removed to procedures? Yes. Mr. Alford is doing interest and SBA accounts. Consensus.
Yearly budget schedule: stays as is. Page 21 stays as is. Mr. Repperger said 112.061 deals with “Rates of per diem”, mileage and subsistence. Combine bullet points: use of personal vehicle and rates of per diem. Take out “cents per mile”. Ms. Crouse suggested annually review the manual and adopt changes. She asked who does the document. The Recording Secretary does. Add an item called Provision for Updating Policy and Procedures. Mr. Repperger commented the Board’s direction had been the Clerk to the Board would prepare the changes. Once the changes are made, the Board may want to attach the document to a resolution approving it. Mr. Repperger instructed the Recording Secretary (Clerk to the Board) that the document would be prepared with strike throughs and underlines showing deletions and changes. The Board will then review the changes. Approval of a final version will generate a resolution.
Mr. Klosky referred to page 13. Diane Sauls will write up procedures; Mr. Klosky asked if that could be given to Ms. Jenkins and incorporated into the proper document. Ms. Crouse feels stating when an account is past due is a policy, and also when coupon books are sent. Mr. Klosky read the activities that are policy. Customer delinquent 30 days is policy. Ms. Weglein said they have procedures set up they do right now even on the payables. Mr. Ferris, bottom of page 18, having to do with the Fixed Asset Fund: the pier was mentioned as a fixed asset, but it appears to Mr. Ferris to be more of a capital improvement. Ms. Weglein and Mr. Peet explained the pier is “property” therefore a fixed asset.
Ms. Crouse reminded the Board that Item 18 would appear as the method whereby the Manual will be annually updated and adopted by resolution. The Board members agreed the process should be handled by the Board in a workshop.
Policy for selling salvage equipment, handled as fixed assets: Should be advertised in a local newspaper; should have 3 bids or public auction; opportunity to inspect before sale; highest bid wins. Mr. Repperger said there may be a statute dealing with disposing of public property. If so, the reference to the Statute should be included in that section of the manual. [Mr. Repperger said he would look it up and give it to the Recording Secretary.]
Ms. Crouse said currently the Board receives a listing of checks over $10,000. She wants a listing of all payments made with the Department, the account being charged, to whom the check is made and amount. She said without that the Board has no oversight. Ms. Donahue commented it should be possible to obtain that kind of breakdown since the information has to be entered into the system anyway. Ms. Crouse volunteered to speak to Mr. Mata about it. There may be some other reports that could be stated in the policy that would support the Board and give the Community Manager information about what the Board expects.
The Recording Secretary asked permission to price and purchase a new recorder. The one being used is failing. The Board consented to purchasing one from petty cash.
Ms. Weglein requested a copy of all Resolutions for each Trustee. Ms. Weglein informed the Board that any transfer of funds from the accounts in Tallahassee requires a resolution by the Board of Trustees. Two accounts can be drawn on; the third account is the one from which the District pays its debt fund.
Ms. Weglein entertained a motion to adjourn. Mr. Klosky made the motion to adjourn. Second Ms. Donahue. The meeting was adjourned at 3:40 p.m.
Louise Crouse, Secretary Barrie Jenkins, Recording Secretary
THIS DRAFT OF MINUTES HAS NOT BEEN APPROVED BY THE BAREFOOT
BAY RECREATION DISTRICT BOARD. IT IS SCHEDULED FOR APPROVAL DURING THE NEXT MEETING.
PHONE: (772) 664-3141
FAX: (772) 664-1928