GLWA Audit Committee Meeting E-Binder

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GLWA Audit Committee Meeting E-Binder Great Lakes Water Authority Audit Commiittee Meeting Agenda Friday, March 4, 2016 at 8:00 a.m. 5th Floor Board Room, Water Board Building 735 Randolph Street, Detrooit, Michigan 48226 GGLWater.orrg AGENDA 1. CALL TO ORDER 2. ROLL CALL 3. APPROVAL OF AGENDA 4. APPROVAL OF MINUTES A. February 19, 2016 (Page 1) 5. PUBLIC PARTICIPATION 6. OLD BUSINESS A. FY 2017 and 2018 Financial Planning Upddate – Includding: (Page 5) ‐ Implementation of Lease and Related Documents ‐ Financial Planning Implications for Use of Lease Payment ‐ DWSD‐R Current and Next Year Budget Update Presenter: Nicolette N. Bateson, CPA, Chief Financial Officer/Treasurer Proposed Action: None. 7. NEW BUSINESS A. FY 2015 Detroit Water & Sewerage Audit Update (verbal report) Presenter: Joseph Kowalski, Partner, KPMG Proposed Action: None. B. Investment Management Report (Page 11) Presenter: Deirdre Henry, Treasury Manager and Briian Quinn, Director, PFM Asset Management LLC Proposed Action: Receive and file reportt. C. Proposed Resolution of the Great Lakes Water Authority Authorizing (Page 29) Declarations of Intent to Reimburse Expenditures from Proceeds of Revenue Bonds Presenter: Jon Wheatley, Public Finance Manager Proposed Action: Audit Committee recommends that the Great Lakes Water Authority Board approve the resolution Authorizing Declarations of Intent to Reimburse Expenditures from Proceeds of Revenue Bonds as presented at its Regular Meeting on March 9, 2016. 8. REPORTS A. ERP and HRIS/Payroll Implementation Budget and Implementation Update (verbal report) – Mike Huber, Finance Director; Butch Johnson Procurement Director; and Denis DesRosiers, ERP Program Director; Nicolette N. Bateson, CFO B. Shared Services – Billing & Agreement Review (verbal report) – Nicolette N. Bateson, CFO and Mike Huber, Finance Director C. City of Detroit Retail Receivable (verbal report) ‐ Marcus Hudson, CFO, DWSD D. Great Lakes Water Authority Receivable Report ‐ Cindy Cezat, CPA, Financial Management Professional 9. INFORMATION A. Highland Park Accounts Receivable (Jon Wheatley, Public Finance Manager) (Page 33) B. Flint Prepayment Reconciliation (Jon Wheatley, Public Finance Manager) (Page 34) C. Wholesale Water Customer Sales (Jon Wheatley, Public Finance Manager) Page 35) D. Cash Transfers to DWSD (Nicolette N. Bateson, CFO) (Page 40) 10. LOOK AHEAD Next Audit Committee Meeting: Friday, April 1, 2016 at 8 am 11. OTHER MATTERS 12. ADJOURNMENT AGENDA ITEM #4A Great Lakes Water Authority Special Audit Committee Meeting MINUTES Friday, February 19, 2016 at 8:00 a.m. 5th Floor Board Room, Water Board Building 735 Randolph Street, Detroit, Michigan 48226 GLWater.org 1. CALL TO ORDER Chairman Baker called the meeting to order at 8:03 am 2. ROLL CALL Chairman Brian Baker, Director Robert Daddow, and Director Joseph Nardone 3. APPROVAL OF AGENDA Chairman Baker requested approval of the Agenda. MOTION BY: ROBERT DADDOW SUPPORT: JOSEPH NARDONE ACTION: APPROVED 4. APPROVAL OF MINUTES Chairman Baker requested approval of the Minutes of February 5, 2016 MOTION BY: JOSEPH NARDONE SUPPORT: ROBERT DADDOW ACTION: APPROVED 5. PUBLIC PARTICIPATION None Page 1 6. OLD BUSINESS A. FY 2017 and 2018 Financial Planning Update – Including: - Implementation of Lease and Related Documents including Cash Transfers - Financial Planning Implications for Use of Lease Payment - Upcoming Goals & Objectives Session - DWSD-R Current and Next Year Budget Update Presenter: Nicolette N. Bateson, CPA, Chief Financial Officer/Treasurer Nicolette N. Bateson stated she will send out Retail Revenue Requirement Memo Action: None B. Update: Highland Park Billing & Collections (verbal) Presenter: William M. Wolfson, Chief Administrative and Compliance Officer/General Counsel Action: None 7. NEW BUSINESS A. Treasurer’s Cash Flow Report for January 2016 Presenter: Deirdre Henry, Treasury Manager Action: Receive and File Report MOTION BY: JOSEPH NARDONE SUPPORT: ROBERT DADDOW ACTION: APPROVED 8. REPORTS A. ERP and HRIS/Payroll Implementation Verbal Update - Mike Huber, Finance Director; Butch Johnson, Procurement Director; Denis DesRosiers, ERP Program Director; Jennifer Casler, Manager, Financial Planning and Analysis; Terence Anderson, Manager, Logistics & Materials; and Nicolette N. Bateson, CPA, Chief Financial Officer/Treasurer - Nicolette Bateson introduced this team and stated that the GLWA Procurement Team is two weeks ahead of schedule. She also presented the new Purchase Order created by the new software BS&A o Jim Glavin . This is the first PO in production issued under the new ERP system. It’s cleaner, formatted correctly and no black boxes overcoming the dollar amounts. It can handle multiple General Ledger Accounts. o Denis DesRosiers . Production database is live right now 2 Page 2 . Procurement team is entering open POs that are carrying over . DRMS is up and running . Phase 1 should be ready by March 1st . Check printers should be here on Monday and we should be doing testing . Training is taking place and BS&A is on site o Nicolette Bateson . WAM will be broken down into two Plants . Plant one is DWSD . Plant two is GLWA . City of Detroit has started its black out (bring the DRMS system down) with the last check run going this week in Oracle DRMS. They’re moving to Oracle Cloud. Because of great perplexity, we are letting them go first. We did not want to split a system and connect a system all at the same time. Terry’s team will do the manual work arounds for WAM o Denis DesRosiers . Until the WAM Plants are split, we cannot have interface between the two . Other exciting things are Monica Daniels and Mike Gould have identified all the assets in WAM and labeled them DWSD or GLWA (over 400,000 assets in it). A lot of good work going on. 9. INFORMATION None 10. LOOK AHEAD The next GLWA Board Meeting will be held on Wednesday, February 24, 2016 at 2:00 pm The next Audit Committee Meeting will be held on Friday, March 4, 2016 at 8:00 am 11. OTHER MATTERS There was a discussion about the budget. Chairman Baker asked Nicolette Bateson how far along are we on the budget? Nicolette Bateson responded that we are not there yet. However, we should have something available at our next meeting on February 24th. Chairman Baker stated that the Public Hearing is scheduled for March 2nd. Chairman Baker also stated that the GLWA Board is looking forward to the timeline from William Wolfson and the Highland Park memo. 3 Page 3 12. ADJOURNMENT Chairman Baker requested a motion to adjourn. MOTION BY: ROBERT DADDOW SUPPORT: JOSEPH NARDONE ACTION: APPROVED There being no further business, the meeting adjourned at 9:33 am. 4 Page 4 AGENDA ITEM #6A Great Lakes Water Authority Finnancial Services Group Audit Committee Communication Date: March 4, 2016 To: Great Lakes Water Authority Audit Committee From: Nicolette Bateson, CPA, Chief Financial Officer Re: FY 2017 and 2018 Financial Planning Update Background: The Great Lakes Water Authority (GLWA) conducted a public hearing on March 2, 2016 for both the schedule of charges for FY 2017 and the biennial budget for FY 2017 and 2018. While the overall framework for the schedule of charges and budget are in place, there are significant efforts to carry out the restructured entities and impacts of the shared services agreement approved in December 2015. Analysis: Attached are discussion materials for the March 4, 2016 meeting. Additional materials may be distributed at that meeting. Proposed Action: None. Page 5 Great Lakes Water Authority Finnancial Services Group FY 2017/18 Financial Planning Cycle (as of 3.1.2016) The Great Lakes Water Authority (GLWA) FY 2017/18 Financial Planning Cycle includes: 1. FY 2017 ‐2018 biennial budget 2. FY 2017 – 2021 Five Year Capital Improvement Plann 3. FY 2017 Schedule of Revenues and Charges The operational effective date for the regional system assets by GLWAA began on January 1, 2016. The schedule below reflects planning for the first full operating fiscal year for the GLWA. Date Activity Tuesday, November 17, 2015 Customer Rollout Meeting #1 – Capital Improvement Plan Tuesday, November 17, 2015 Customer Rollout Meeting #2 – Units of Service Tuesday, December 1, 2015 GLWA and DWSD (City) exchange shared services to be provided and costs (Shared Services Agreement 5.4) Friday, January 1, 2016 DWSD ‐ Preliminary two year budget forecast Including key assumptions and impact statement due to GLWA (Servicees Agreement 5.3) Wednesday, January 13, 2016 GLWA Workshop ‐ Customer Outreach Program and Schedule Thursday, January 14, 2016 Customer Rollout Meeting #3 ‐ Status Report: FY 2017/18 Biennial Budget Friday, January 15, 2016 GLWA Audit Committee Meeting ‐ Status Report re: FY 2017/18 Biennial Budget Request Wednesday, January 20, 2016 Internal ‐ Deadline for Budget Request for Cost of Service Analysis Tuesday, January 26, 2016 GLWA Capital Planning Committee – Present Proposed FY 2017‐21 Capital Improvement Plan for Reeview Wednesday, January 27, 2016 GLWA Board Meeting ‐ Present Proposed FY 2017 Schedule of Revenues and Charges and Request for FY 2017/18 Biennial Budget Public Hearing Thursday, January 28, 2016 Customer Rollout Meeting #4 ‐ Proposed Service Charges Monday, February 1, 2016 DWSD – Current capital improvement plant due to GLWA (Services Agreement 5.3d(i)) Monday, February 1, 2016 Publish notice of the hearing by publication in a newspaper of general circulation (B) Friday, January 29, 2016 Mail Notice to Customers of Public Hearing to be held on March 2, 2016 (minimum 30 days prior to Act 279 Public Hearing) (D) Friday,
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