Getting Down to the Last Minute Here, But I Have Been Asking These Questions for Three Months Now

HourGlass  ymca
Wayne,
There was some summary information included in the agenda item.  Unfortunately, it was not the general ledger reconciliation that you promised at the last Audit and Budget board meeting.  Could you please send me the reconciliation for other reserve account that includes the additional YMCA reserve that you are referring to in your summary list?  I am sure that you have this available now since the CPA auditors will be in soon.  I would hate to find out that that reserve account has other errors included in the balance also after the City Council votes on Tuesday night.
I am not following your numbers from the summary either.  I do see the $3,162.50 entry in the general ledger back in August 2008, but that also appears to be in error since the lease calls for $5,360.00 to be added to the repair and replacement reserve, but only $4,860.00 was being recorded as the required reserve deposit, so you may have more errors there.
Another question that I have relates to why the additional amount of rent is being added to reserves.  I asked this question sometime ago and you indicated that you had no City Council authorization for the $2,812.50.  I did go back a few years to look at the annual CAFR’s and annual budgets.  There was information about roof replacements and exterior work that totaled approximately $650,000.00 that was paid for out of the 2004 capital improvements bond fund.  Perhaps the additional reserves amount was supposed to be paying back that expenditure to the 2004 capital improvements bond fund.  I did not see this full expenditure in any of the information that you have provided so far although there were some larger amounts listed in 2007 and 2008.  If the additional reserves are to pay back the 2004 capital improvements bond fund, may the available R&R reserve amount is really only the $330,066.90 not the $718,596.90 that you are now claiming to be available.  I know it is getting down to the last minute here, but I have been asking these questions for three months now.
 
Thanks,
Mark Schaefer
3606 Donna Street
Port Orange, Florida 32129
386-316-1206

3 thoughts on “Getting Down to the Last Minute Here, But I Have Been Asking These Questions for Three Months Now

  • December 3, 2013 at 10:05 am
    Permalink

    Greg,
    If I am understanding this analysis correctly, the CAFR that was issued in June for 9-30-2012 overstated the YMCA reserve by almost $200,000.00. What that be the correct assumption?
    We still do not have any documentation on:
    1. The $35.000.00 of interest added to the reserve.
    2. A few word explanation to describe the expenditures.
    3. City Council resolution on the additional $2,812.50 monthly reserve for the YMCA.
    Thanks,
    Mark Schaefer
    =====================================================
    Wayne,
    Do you have the reconciliation done for the other reserve account that had about $800.00.00 and was off by the comparable amount of -$200.000.00? You were going to send a copy of the reconciliation after our last Audit and Budget meeting. It would be good to have a copy of the reconciliation before the City Council meeting next Tuesday.
    Thanks,
    Mark Schaefer

    Reply
  • December 3, 2013 at 10:16 am
    Permalink

    Mark,
    Yes. That information is included with the backup materials for the YMCA agenda item for next week’s meeting. It includes the detail for both the required reserves and the unassigned reserves. If you have any questions, do not hesitate to contact me.
    Wayne Saunders
    Finance Director
    ==============================================
    Wayne,
    There was some summary information included in the agenda item. Unfortunately, it was not the general ledger reconciliation that you promised at the last Audit and Budget board meeting. Could you please send me the reconciliation for other reserve account that includes the additional YMCA reserve that you are referring to in your summary list? I am sure that you have this available now since the CPA auditors will be in soon. I would hate to find out that that reserve account has other errors included in the balance also after the City Council votes on Tuesday night.
    I am not following your numbers from the summary either. I do see the $3,162.50 entry in the general ledger back in August 2008, but that also appears to be in error since the lease calls for $5,360.00 to be added to the repair and replacement reserve, but only $4,860.00 was being recorded as the required reserve deposit, so you may have more errors there.
    Another question that I have relates to why the additional amount of rent is being added to reserves. I asked this question some time ago and you indicated that you had no City Council authorization for the $2,812.50. I did go back a few years to look at the annual CAFR’s and annual budgets. There was information about roof replacements and exterior work that totaled approximately $650,000.00 that was paid for out of the 2004 capital improvements bond fund. Perhaps the additional reserves amount was supposed to be paying back that expenditure to the 2004 capital improvements bond fund. I did not see this full expenditure in any of the information that you have provided so far although there were some larger amounts listed in 2007 and 2008. If the additional reserves are to pay back the 2004 capital improvements bond fund, may the available R&R reserve amount is really only the $330,066.90 not the $718,596.90 that you are now claiming to be available. I know it is getting down to the last minute here, but I have been asking these questions for three months now.
    Thanks,
    Mark Schaefer

    Reply
  • December 3, 2013 at 10:19 am
    Permalink

    Mark,
    I believe I have provided all the information that was requested. I apologize if the format is confusing or not what you were expecting. I will attempt to answer the latest questions contained in your email but it may be more productive if you give me a call at your convenience or, if you prefer, I can schedule a time to meet with you to go over the information in more detail.
    As far as reconciliation to the General Ledger, the Reserve Balance 9/30/13 of $330,066.90 shown on the information provided (under the heading RESERVE BALANCE) is the GL Reserve balance for 9/30 as shown in the General Ledger for Fund 106. How we arrived at that number, starting from the 9/30/11 Balance, is detailed in the information provided. You asked that I send you a reconciliation for the other reserve account. There is no other reserve account unless you are referring to the Unassigned Balance. The Reserved Balance and the Unassigned Balance are both part of the 106 Fund and the detail under the Unassigned Balance section of the information provided shows the balance associated with the YMCA. The remainder of the Unassigned balance in the 106 Fund was generated over several years from the Lakeside Center and Allen Green Center. I have not tried to go back and review contributions from those rentals since the question has been the available funds for the YMCA.
    In your second paragraph, you refer to contributions made in 2008. There was an error made that year and the $7,396.13 Correction to FY08 shown on the information provided adjusts for that error.
    With regard to your last paragraph and as previously stated, we have not found information as to why the additional rental revenues have been transferred to the 106 Fund. I have not seen anything that would support your speculation as to why this was done.
    I hope this will answer your questions but as I previously stated, I will make myself available to discuss this further if you need additional explanation.
    Wayne Saunders
    Finance Director
    City of Port Orange
    =====================================================
    Wayne,
    We were very clear at the last audit and budget board meeting that we wanted the complete “general ledger” reconciliation of the account that you say has the $388,000.00 of additional reserves for the YMCA. If you need me to be more specific, then please give me the general ledger account number that contains the $388,000.00 and I will request the general ledger reconciliation for that account number.
    Thanks,
    Mark Schaefer

    Reply

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