COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

AUGUST 26, 1996

ATTENDANCE:

B & A MEMBERS: Swanson, Wishnie, LaMotte, Darcy, Delfino, Young, Abinanti

OTHERS: C.E.’s Office: Gina Angiulo; Budget Dept.: Leslie Bennett, Dianne Kearney; Legislator Carsky; Capital Projects: Dave Laemle; CBAC: George Hosey, Barbara Strauss; County Clerk’s Office: Eugene Rogers; Finance Dept.: Kate Tooher, Thurston Hartford; BKS: Les Storch, Nick DeSantis; Info Systems: Dick Bellar; Others: Amy Paulin, John Williams; BOL: Robert J. Boland, Glenn Guzi, Pat Gorski, Aldo Vitigliano, Tina Seckerson

Co-Chairs Swanson and Wishnie called the meeting to order at 3:15 p.m.

DISCUSSION: (There is a cassette tape on file for more detailed information):

54.* COUNTY EXECUTIVE: PROPOSED BOND ACT AUTHORIZING THE ISSUANCE OF $1,494,000 IN BONDS - IMAGE MANAGEMENT, OFFICE OF THE COUNTY CLERK. (5/6/96)

• Of the total bond act amount of $1,494,000, $684,000 is for the County Clerk’s portion. Of the $684,000; $216,000 is for equipment (optical disks for storage) and $378,00 for outside consultants.
• Mr. Darcy questioned how long the storage equipment will last. Mr. Rogers responded that with all the new info coming in, it will probably last until year end 1997. He stated that data for Finance, Probation and the Board of Elections will also be stored on these disks.
• Mrs. Swanson asked for the revenue projection. Mr. Rogers stated that preliminary projections show it to be $500,000 per year in years out.
• At what point will we make revenue? Mr. Rogers stated that he is prepared to immediately sit down to put in place remote access system and prepare charge-back system to see revenue by the end of this year or the beginning of next.
• $150,000 is designated for remote access.
• Mr. Young asked if we’re spending $216,000 why are we only projecting 18 months. The response was that we only want to purchase enough equipment to get us through 18 months - technology continually changes and hardware becomes obsolete quickly.
• Mrs. Swanson asked why we are not on line yet. Mr. Rogers responded that the money spent to date "built the apartment house" now they want to leverage the investment to get a better return on it.

On motion of Legislator Darcy, seconded by Legislator LaMotte, the motion to approve this item was carried by a vote of 6-0 with Legislator Swanson signing "Without Prejudice". (Legislator Abinanti out for vote)

COMMITTEE ON BUDGET & APPROPRIATIONS

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35. COUNTY EXECUTIVE: PROPOSED BOND ACT AUTHORIZING THE ISSUANCE OF $2,000,000 IN BONDS - UPGRADE OF HOSPITAL COMPUTER CENTER. (REFERENCE # 35)

• Mrs. Swanson informed the Committee that she is in receipt of a memo from Commissioner Stolzenberg assuring the Committee that there are no plans to privatize this function.

On motion of Legislator Darcy, seconded by Legislator Swanson, the motion to approve this item was carried by a vote of 6-0 with Legislators Young and Swanson signing "Without Prejudice". (Legislator Abinanti out for vote)

32. COUNTY EXECUTIVE: PROPOSED BOND ACT AUTHORIZING THE ISSUANCE OF $530,000 IN BONDS - INTERIOR MODERNIZATION OF PATIENT ROOMS AND NURSING STATIONS (REFERENCE # 32)

• Discussed in detail at a previous meeting.

On motion of Legislator Delfino, seconded by Legislator LaMotte, the motion to approve this item was carried by a vote of 6-0 with Legislator Young and Swanson signing "Without Prejudice". (Legislator Abinanti out for vote)

Generally Accepted Accounting Principles (GAAP): The auditors suggest county comply with all prescribed accounting policies. They further stated that there are minimal differences at this point between their recommendation and what the County is doing.

Accounts Receivable: The County has begun implementation of an accounts receivable system. BKS believes this is a high priority. The Finance Department concurs that it is a high priority and, within availability of existing staff, the Department plans to continue the implementation process during the balance of 1996.

Books & Records: Playland: According to the auditors amounts are not being recorded on a timely basis.

Airport: there is an accounts receivable system which has not been integrated with the general ledger system.

The auditors feel there should be one accounts receivable system, the County should not have a sub-system

Ms. Tooher stated that Playland personnel do perform a monthly reconciliation of their receivable subsidiary ledger to the general ledger control account. Playland is expected to go on-line with accounts receivable billings beginning 1/1/97.

According to Mr. Hartford the Airport is in a different situation in that Johnson Controls does not have to use our system, although it is made available to them.

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MINUTES - AUGUST 26, 1996

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Airport Property taxes: DOT has attempted to process all payments through the system to guarantee that the County does not incur any late penalty charges, a situation that occurred several years ago. The Finance Department and DOT have developed a procedure for future payments that will allow for their receipt by the local communities on or immediately prior to the due date. The Committee inquired as to whether electronic transfers could be made and if that would be helpful - Ms. Tooher will check on it.

Debt Service Fund: The County has not established a debt service fund. Debt service fund transactions are currently reflected in the County’s other governmental fund types including the Capital Projects Fund. BKS suggests the County should establish a debt service fund to comply with professional and legal requirements. The Finance Department feels that the creation of a debt service fund only serves the purpose of recording the same expenditure twice. Committee will put together a small group to discuss the options in this area.

Capital Project Reporting: BKS: suggests County consider including either a budget to actual report format or a project length report presentation when preparing its annual financial report to demonstrate adherence to legal and budgetary provisions. Tooher: working closely with Budget to fine tune Capital Project reporting.

Education & Transportation of Handicapped Children: BKS: believe current systems are insufficient. Expenditures must be tracked by student and institution and revenue must be tracked by student. They believe that a tracking system should be developed which would permit the aggregation of data in a variety of forms. System must also provide for a crosswalk between the costs report by child on the AVL’s and the invoices paid to each provider. According to the Finance Department procedures for correct transaction processing have been reinforced with the Health Department and are being monitored on a regular basis. Finance considers the cause of difficulty to be primarily the procedures the state requires the County to follow. Finance reviewed and concurred with the methodology developed by the auditors for establishing the 1995 reserves, and plan to use similar procedures for year-end 1996.

Finance agrees with the audit finding that a more comprehensive tracking system would be of value in monitoring this program. BKS acknowledges that no acceptable system currently exists, despite the fact that the program imposes significant financial burdens upon both the state and counties.

Procurement Policy: Will go back and look up the detail to see if there is "noncompliance" or a difference in language.

Airport: BKS recommends the contractor at the Airport be paid on a semi-monthly basis. It is the Department of Finance’s understanding that the terms and conditions of the current management contract with the private sector operator, including monthly payments by the County, are established through the year 2011.

PILOT Payments: Committee requested a listing of all PILOTS

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Compensated Absences: BKS review of the procedures used by Westchester County to develop the amounts reflected in the financial statements indicate that the amounts are not directly traceable to an employees leave records. They suggest that the current system be modified to reflect a formalized process for valuation of accumulated leave. According to the Finance Department the liability for compensated absences that should be recorded as of the end of the fiscal year requires management estimates of a variety of factors, all of which are subject to alternative points of view. The Finance Department will review the suitability of the formula currently being used to determine the liability with BKS.

MINUTES: On motion of Legislator Darcy, seconded by Legislator Abinanti, the motion to approve the Minutes of August 5, 1996, August 6, 1996 and August 19, 1996 was carried by a vote of 5-0 with Legislators Young and Delfino out for vote.

Committee will tour the Medical Center at 8:30 a.m. on Wednesday 8/28

Next week - the Committee will meet on Wednesday 9/4 at 3:00 p.m. at which time Mr. Phelan will complete his presentation of 2nd Quarter Projections

There being no further items for discussion, on motion of Legislator Darcy, seconded by Legislator LaMotte, the meeting was adjourned at 4:45 p.m.