Please join us for the Microsoft Public Sector CIO Summit, February 27 – March 1, 2007 in Redmond, WA. We look forward to celebrating our 5th year of this event as it provides an opportunity to bring together nearly 400 government and education leaders to discuss how technology can provide solutions within public sector.

This invitation-only event will include a keynote presentation by Steve Ballmer, Microsoft Chief Executive Officer and a number of executive presentations including Scott Charney, Microsoft Vice President Trustworthy Computing. During the event you will gain insight on IT advancements to help solve the issues facing your organization or institution today and also have the opportunity to network and exchange ideas and solutions with your peers. Microsoft Product Managers, Executive Management and the Microsoft Education and Government teams will also be on hand to answer any questions you might have and are always anxious to hear your feedback.

We look forward to providing you with two full days of information designed to help you extend your existing Microsoft technology investment; update you on current and future Microsoft technologies; and showcase solutions specifically designed for education and government organizations. We hope that you will join us.

LOCATION
Microsoft Worldwide Headquarters
16070 NE 36th Way
Building 33
Redmond, WA 98052

9. RFP FOR ACCOUNTING SOFTWARE

We are starting to look for new Accounting Software for the Village of Machesney Park.  Does any one have a RFQ or RFP they used for finding software?  I would appreciate any information you might be able to share!
Bob Mullins
BobM@machesneypark.org 

10. HOLIDAY PAY FOR PUBLIC WORKS

I would like to know how other municipalities pay their public works department for working on holidays. This department is paid hourly. Our policy is to pay 8 hours holiday pay and 8 hours double time pay. For example, if they were paid $10.00 per hour this would give them #30.00 per hour for that day. Is this standard for other communities?

Thanks! 
Diana R. Foor, Treasurer
City of Neoga
Neoga, Illinois 62447
diana@neoga.org 

11. New STATEMENTS ON AUDITING STANDARDS

In March 2006, the Auditing Standards Board (ASB) issued eight new statements on auditing standards (SAS) intended to improve the quality and effectiveness of financial statement audits.  SAS no. 104-111 all focus on the need to incorporate a rigorous risk assessment process into each financial statement audit.

Will this cost Grayslake more money?

Per my auditor we can expect 10-15% increase for the additional work.  In the past the auditor’s role was to test the balances, the new SAS require that the auditors learn the design of our internal controls and test the controls.

SAS #103 changed the audit completion date from the “end of field work date” to the “report acceptance date”.  If the municipality’s report is accepted by one person, such as the finance director, then upon his/her acceptance that would be the date.  Example: fiscal year end is 4/30/2006, auditors complete their field work on 7/10/2006, the first draft of report is reviewed and approved by the finance director on 9/1/2006.  Then 9/1/2006 becomes the completion date.  This however, results in the auditors having to do additional review of our minutes and legal actions during the period 7/10 to 9/1/2006.  Thus causing an increase in audit fees.

SAS #112 Eliminates the phrase “reportable condition” and replaces it with “significant deficiency and material weakness”.  Of notable concern is a clause that suggests “if the auditors are preparing the year end accruals, that should be reported as a significant deficiency and material weakness.”   Our auditor stated there is a gray area in the language that his firm interprets to mean “if the auditing firm’s staff determines that the municipal staff is capable of making the accruals, then there isn’t a “significant deficiency and material weakness” even though the auditor will actually be preparing the accruals.  Ask your auditor for their interpretation. 

Comment:

The Illinois GFOA TARC Committee is also looking into SAS #112.  There are 2 main concerns at this point regarding #112 from TARC which are as follows:

1)                  Accruals – Our committee is currently looking at the language, and last discussed it at our November 20, 2006 meeting.  We discussed the difference between the government providing the necessary information to make accruals and the auditor determining the accruals altogether.

2)                  Financial statements – Another area of major concern is whether there is a significant deficiency and material weakness if an auditor produces the financial statements.  Our discussion was regarding whether the government needs to produce the statement, has the ability to do so, and whether the financial statement is ultimately reviewed by the government.

The intent is to put something on the Illinois GFOA website in early 2007 regarding this statement.  Please share any feedback you may receive on this statement with me.  Thanks.

Justin E. VanVooren
Finance Director
Sugar Grove
jvanvooren@sugar-grove.il.us

 

12. ELECTRICITY FRANCHISE AGREEMENTS

During the last Treasurer's Institute, several people discussed new franchise agreements they had been offered by their local electric/power companies.  Can anyone respond with their thoughts on this matter?  What is the current rate being offered to municipalities by the utility companies?  We are looking at a new franchise agreement now, so I would appreciate as much feedback as possible on this issue.  Thank you.

Raenita Wallace
Treasurer's Office
City of East St. Louis, Illinois
raenita.wallace@cesl.us

RESPONSE:

Plano
Janet Goehst
planotreasurer@comcast.net

Electricity Franchise Agreements – Our City entered into an agreement with NIMEC (Northern Illinois Municipal Electric Cooperative) which took our ComEd water/sewer account(s) to bid.  We ended up with Constellation New Energy with the following rates: 

      1/29/2007 – May 2008:
                        Water
                        $25 admin fee per billing
                        $0.05802 NTOU Price ($/kWh)
                        $0.04293 Off-Peak Price ($/kWh)
                        $0.07380 On-Peak Price ($/kWh) 

                        Sewer
                        $25 admin fee per billing
                        $0.05635 NTOU Price ($/kWh)
                        $0.05635 Off-Peak Price ($/kWh)
                        $0.05635 On-Peak Price ($/kWh)

13. PENSION CHECKS 

Yorkville will soon have its first person drawing a pension check from the police pension fund.

We have an elected Treasurer and a separate Finance Director.  The elected Treasurer is the fund's Treasurer.
I would like to know how the pension check is created and how tax withdrawals are handled by other municipalities.

Thanks, Bill Powell Treasurer
wpnkp81@sbcglobal.net 

RESPONSE:

PLANO
Pensions – our police retiree is paid from the pension checking account via an EFT transfer (which occurs between the 25th and the end of each month) for payment due on the 1st of the following month.  This alleviates the problem with Sat., Sunday and Holidays whereby the banks are closed.  The FIT payment is made monthly via EFT as well.  The Pension Board voted to process the pension payments accordingly and the minutes so reflect their decision.
Janet Goehst
planotreasurer@comcast.net

GURNEE
Set up the checking account whereby you can have either / or (Treasurer or Finance Director) sign the checks.   My advise on Pension Funds -- OUTSOURCE!!!  Attached is the RFP we used for the Gurnee Police & Fire Pension Funds.  Have had Lauterbach and Amen on board for 2 years.  They do all of the pension payroll, vendor checks, bank reconcilations (including equity holdings), monthly financial statement compliation, Treasurer Reports, 1099Rs/IRS filings, and annual DOI filing.  Worth the money!  If you don't want to go that route - the Finance Department should "charge-back" to the Pension Fund for the services provided.  This is a job function that grows, and grows, and grows.  The pension funds should pay for it!  Just my 2 cents! 

Tina Morris Smigielski, C.P.A.
Director of Finance
Village of Gurnee
tinas@village.gurnee.il.us

14. WARRANTS

The Fall 2006 IMTA newsletter summarizes 65 ILCS 5/8-1-8, which requires that warrants drawn upon the municipal treasury be signed by the mayor and clerk and state the fund and appropriation the warrant is chargeable to and the person to whom payable.  I would appreciate some input from treasurers who believe they are in compliance with this statute as to what it means and how they implement it.  Any samples (in .pdf or other format) would be helpful.  (Cortland is a rapid-growth municipality in northern Illinois with approximately 3,600 population, 13 full-time employees, and a $4,000,000 budget.) 
Susan Dockus, Treasurer
Town of Cortland
sdockus@cortlandil.org 

Warrants - I, too, am interested in the comments regarding warrants.  This requirement is news to me.  Is it just for municipalities using the appropriation method or does it include the budget ordinance municipalities?  Today, our policy gives signature authorization to four people:  Mayor, Treasurer, Finance Chairman and City Clerk.  Unless one is absent, the Clerk and Treasurer sign all warrants. Our listing of warrants to be paid, which is voted upon by the Council ahead of the checks being issued, lists the G/L# (which includes the fund) and the explanation of what the costs are for.  The check, however, does not list the G/L#.  I’m anxious to hear the responses.  Thanks,
Janet Goehst
planotreasurer@comcast.net