HomeMy WebLinkAboutAudit Committee-Minutes-05/16/2017City of Colleyville Page 1
City of Colleyville
Audit Committee
Agenda
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, May 16, 2017
3:30 p.m.
City Manager’s Conference Room
Third Floor – City Hall
1.CALL TO ORDER
2. APPROVAL OF MINUTES
January 17, 2017
3. PRESENTATION AND DISCUSSION
3a Review of the General and Utility Fund Balance policy
3b Presentation of the Quarterly Investment Report for the quarter
ended March 31, 2017
4.ADJOURNMENT
I hereby certify this agenda was posted on City Hall bulletin boards Friday, May
12, 2017, by 5:00 p.m.
Amy Shelley, TRMC
City Secretary
A quorum of the Colleyville City Council and/or any other Colleyville Board,
Commission, or Committee may be in attendance at this meeting.
Any matter on this agenda may, at the discretion of the governing body, be
opened for public comment and discussion.
If you plan to attend this public meeting and have a disability that requires special
accommodations, please advise Executive Secretary at least 48 hours in advance
at 817.503.1111, and reasonable accommodations will be made to assist you.
City of Colleyville Page 1
City of Colleyville
Audit Committee
Minutes
City Hall
100 Main Street
Colleyville, Texas 76034
817.503.1000
www.colleyville.com
Tuesday, May 16, 2017
3:30 p.m.
City Manager’s Conference Room
Third Floor – City Hall
Interim Chief Financial Officer Winston Duke called the Audit Committee to order
on May 16, 2017, at 4:00 p.m.
ROLL CALL: Committee members Tammy Nakamura, Bobby Lindamood, and
Susan Mathisen were present.
Absent: Committee member Nancy Coplen
City Manager Jennifer Fadden, Interim Assistant City Manager and Executive
Director of Economic Development and Communications Mark Wood, Interim Chief
Financial Officer Winston Duke, Accounting Manager Karen Hines, and City
Secretary Amy Shelley were also present.
2. APPROVAL OF MINUTES
January 17, 2017
Committee member Nakamura made a motion to approve the January 17,
2017, meeting minutes. Committee member Lindamood seconded. All
approved by acclamation.
3. PRESENTATION AND DISCUSSION
3a Review of the General and Utility Fund Balance policy
Interim Chief Financial Officer Winston Duke provided a review of the General and
Utility Fund Balance policy.
Committee member Mathisen asked staff for clarification if the City is currently on
track with the policy where it recommends maintaining a higher than the minimum
level relative to the 90 day reserve. Interim Chief Financial Officer Winston Duke
replied the GFOA provides recommended practices of having two months as the
minimum for larger cities and this also depends on the city’s size and
circumstance. First Southwest, Colleyville’s financial advisor, recommends 25
percent as the standard, whereas the GFOA’s minimum recommendation is two
months instead of three. Committee member Mathisen added Colleyville is
maintaining a reserve higher than what is recommended. Interim Chief Financial
Officer Winston Duke concurred and added based upon First Southwest’s
recommendation.
Audit Committee Minutes May 16, 2017
City of Colleyville Page 2
Committee member Mathisen asked staff to clarify what the 25 percent standard
recommendation is based upon. Interim Chief Financial Officer Winston Duke
replied 25 percent of budgeted expenditures.
Committee member Nakamura asked staff if the percentage is based upon a city’s
size. Interim Chief Financial Officer Winston Duke replied yes, the city’s size,
income level, and circumstances surrounding the city. For example, if you live on
the coast, the advisors may require more in reserves in the case of an emergency.
Committee member Mathisen asked staff about the minimum unassigned fund
balance on page 3 of 4, should we also include the Utility Fund, since it is another
major fund. Interim Chief Financial Officer Winston Duke replied we could strike
that phrase “in the General Fund” because it says both the General and Utility
Funds.
Committee member Mathisen asked staff if there were similar policies in the other
funds, besides General and Utility. Interim Chief Financial Officer Winston Duke
replied these are the ones that are required. Committee member Mathisen
suggested deleting the General Fund from this policy.
Committee member Mathisen asked staff if the Assistant City Manager should
remain in the policy, as listed on page 3 of 4. Accounting Manager Karen Hines
stated the Chief Financial Officer could be added instead. City Manager Jennifer
Fadden stated staff can update the references in the policy.
Committee member Lindamood made a motion to approve the General
Fund and Utility Fund Balance Policy. Committee member Nakamura
seconded. All approved by acclamation.
3b Presentation of the Quarterly Investment Report for the quarter ended
March 31, 2017
Interim Chief Financial Officer Winston Duke presented the Quarterly Investment
Report for the quarter ended March 31, 2017.
Committee member Mathisen asked staff if they have information on how this
report compares to March 2016. Interim Chief Financial Officer Winston Duke
replied no.
Committee member Mathisen asked staff if a shift in the percentages from Federal
Farm Credit (FFCB) and Federal Home Loan (FHLMC) should be recommended.
Interim Chief Financial Officer Winston Duke replied no, but if there is ever an
issue, the investment advisor can be contacted. It is not crucial for them to be
equally balanced.
4. ADJOURNMENT
Audit Committee Minutes May 16, 2017
City of Colleyville Page 3
There being no further business before the Audit Committee, the meeting
adjourned at 4:00 p.m.
APPROVED BY A VOTE OF 3 AYES, 0 NAYS, AND 0 ABSTENTIONS ON THIS THE 5TH
DAY OF SEPTEMBER 2017.
Minutes taken and prepared by:
Amy Shelley, TRMC
City Secretary