Finance Committee Meeting Minutes for January 15, 2009
The meeting of the Finance Committee was held on January 15, 2009 at noon at the
ACE Construction Authority office, 4900 Rivergrade Road, Irwindale, California.
| I. | In attendance were:
Hon. Harry Baldwin, San Gabriel Hon. Tim Spohn, Industry Kevin Radecki, Industry Hon. Stephen Atchley, Pomona Linda Lowry, Pomona Hon. David Spence, La Canada Flintridge Nicholas Conway, SGVCOG Staff Rick Richmond, Chief Executive Officer Carlos Monroy, Director of Finance Menchu Ituralde, GrantsIAudits Manager Deanna Stanley, Office Manager |
| II. | Public comment
There were no public comments. |
| III. | Committee Organization and Meeting Dates
The committee agreed the Chairman would be the same as the Chairman of ACE. The committee agreed to meet quarterly. |
| IV. | Review of ACE Financial Management System
Rick Richmond reviewed the history of the financing of the ACE Project. He reviewed the comprehensive financial management system of the ACE Project. Elements included finance department organization, funding, budgeting, spending, billing, audits and treasury. He reviewed federal, state, local, city/county and railroad funding and how funds are allocated to each project. He reviewed the 28 active accounts and how each must be balanced for reimbursements. He reviewed project budgets and annual budgets. He reviewed annual indirect rate approvals which are done by Caltrans. Mr. Richmond reviewed invoice approvals, retention and invoice payment processes. He indicated invoices to funding agencies are prepared within five working days after payment of major contractor invoices. Mr. Richmond reviewed the various elements of audits at length. He reported on the Authority's treasurelbanking investments. |
| V. | Current and Future Status Reporting The Committee agreed the current reporting was acceptable but would like to discuss ACE internal audits further at the next Committee meeting. |
| VI. | Review of Fiscal Year 2008 Audit Comments
Carlos Monroy reviewed ACE responses to the comments of the Lopez & Company audit. He indicated new accounting standards require auditors to communicate control deficiencies that are significant deficiencies or material weaknesses in internal control. He explained a significant deficiency is a control, or combination of control deficiencies, that adversely affects the entity's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the entity's financial statements that is more than inconsequential will not be prevented or detected. He explained material weakness is a significant deficiency, or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected. He indicated the findings of the audit did not result in a significant deficiency. He reviewed each finding. |
| VII. | Adjournment
The meeting was adjourned and staff was asked to schedule the next meeting in three months. |