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HomeMy WebLinkAboutMN-IURAAC-2021-04-22Adopted: 4/28/22 108 E. Green St. Ithaca, NY 14850 (607) 274-6565 MEETING MINUTES ITHACA URBAN RENEWAL AGENCY Audit Committee 8:30 A.M., Thursday, April 22, 2021 Members: Eric Rosario, Chair; Karl Graham, Vice-Chair; Svante Myrick; Chris Proulx; Tracy Farrell; Laura Lewis (Common Council Liaison) Excused: None Staff: Nels Bohn; Anisa Mendizabal; Charles Pyott Guests: None I. Call to Order Chair Rosario called the meeting to order at 8:33 A.M. II. Review of Audit Committee Membership & Charge Membership: Each member of the IURA Board is appointed to the Audit Committee, with Chair Eric Rosario and Vice- Chair Karl Graham. Responsibilities: 1. Oversee preparation of an annual audit of the Agency prepared by an independent accounting firm; 2. Review the results of external audits and develop recommendations to the Agency to address any issues or concerns raised by the external auditor; 3. Review and approve internal controls to safeguard its assets; and 4. Investigate problems in financial reporting, internal control or compliance as they arise. III. Additions/Deletions to/from Agenda None. IV. Public Comments (3 min. max. per person) None. V. Review of Draft Meeting Minutes: July 25, 2019 Myrick moved, seconded by Graham, to approve the meeting minutes, with no modifications. Carried Unanimously: 4-0 VI. New Business A. Election of Committee Vice-Chairperson & Nomination of Chairperson Myrick nominated Rosario as Chairperson and Graham as Vice-Chairperson. No objections were raised. Moved by Myrick, seconded by Farrell: 2021 IURA Audit Committee Election of Vice-Chairperson & Nomination of Chairperson WHEREAS, the IURA By-laws provide that the committee membership shall elect its own committee Vice-Chairperson and nominate to the Agency a member to serve as Chairperson of the Audit Committee, and WHEREAS, officers of each committee serve a one-year term, but continue to hold office until their successor is selected or appointed, and WHEREAS, the current committee officers are: Chairperson: Eric Rosario Vice-Chairperson: Karl Graham, and WHEREAS, at its April 22, 2021 meeting, the IURA Audit Committee called for nominations for Vice- Chair and Chair of the IURA Audit Committee; now, therefore be it RESOLVED, that the IURA Audit Committee hereby nominates Eric Rosario as Committee Chairperson, and be it further RESOLVED, that the IURA Audit Committee hereby elects Karl Graham as Committee Vice-Chairperson. Carried Unanimously: 4-0 B. Approval of Audited 2020 IURA Financial Report Rosario explained the FY2020 Financial Audit Report raised no issues, findings, recommendations, or concerns. Since the IURA is considered a component of the City of Ithaca, this audit only represents a small proportion of the City audit. The audit is required to be conducted within 90 days of the end of each fiscal year. (Proulx arrived at 8:42 a.m.) Bohn added that when one examines the financial analysis portion of the report (illustrated below), it appears the IURA improved its fund balance by $530,000, but that is in fact merely a reflection that the City paid that remaining Bond Anticipation Notes (BAN) balance, associated with the Neighborhood Housing Initiative (NHI). While it was an IURA obligation, the City had agreed to repay it. Moved by Myrick, seconded by Farrell: Approve Audited 2020 IURA Financial Report WHEREAS, the Ithaca Urban Renewal Agency (IURA) derives the majority of its finances from grants awarded to the City of Ithaca, and WHEREAS, for financial reporting purposes, the IURA is a blended component unit of the City of Ithaca, whose financial activity is reported in the Special Grant Fund, a governmental fund of the City of Ithaca financial statements, and WHEREAS, the IURA contracts separately from the City to have its finances audited within 90 days of the end of its fiscal year to comply with the NYS Public Authorities Accountability Act, and WHEREAS, the IURA received an audited 2020 IURA Financial Report on March 27, 2021, and WHEREAS, at its April 2021 meeting, the IURA Governance Committee conducted preliminary review of the financial report, and WHEREAS, at its April 2021 meeting, the IURA Audit Committee reviewed the financial report with auditor correspondence and recommends the following; now, therefore, be it RESOLVED, that the Financial Report of the Ithaca Urban Renewal Agency for the period January 1, 2020 through December 31, 2020, prepared by the accounting firm, Insero & Company, LLP, be approved. Carried Unanimously: 5-0 C. Review Internal Controls & Separation of Duties Rosario reviewed the 2020 internal controls and separation of duties, noting it distributes responsibilities and fiscal responsibilities, which the auditors review annually. They concluded it meets their standards. Bohn added that the auditors check to ensure internal controls and separation of duties match up, but they do not examine in-depth any particular transaction. This year, the auditors added a new information technology questionnaire to examine data-security issues (e.g., data back-ups, server integrity, security protocols). Graham wondered if the IURA process for signing checks is too cumbersome. He suggested exploring if a new, simpler process could be developed for signing checks under a certain threshold. Bohn replied that IURA staff could certainly look into that. D. Review HUD 2019 Annual Community Assessment Report Rosario reported the IURA received HUD’s 2019 Annual Community Assessment (ACA) report (excerpted below) for the City, examining the IURA’s performance in administering its Community Development Block Grant (CDBG) Program and HOME Investment Partnerships Program (HOME) grant awards. “Highlights include: • Citizen participation was conducted during the program year that meets HUD requirements. • The City was compliant with Admin. caps for CDBG and HOME. • The City was compliant and exceeded expectations with the CDBG Low-Mod Income beneficiary threshold in 2019. • Ithaca satisfied the CDBG timeliness test as of 6/2/20 at 1.02. • Ithaca met the HOME commitment and expenditure deadlines during the reporting period. • Ithaca’s largest CDBG expenditures were for: Acquisition/Relocation with the GreenStar Cooperative Market Expansion, Economic Development that helped to create or retain full time jobs, various Public Services efforts and Administration. • Ithaca’s Single Audit Report is current through 12/31/18 and is in need of updated submission for 2019. • During the pandemic, Ithaca increased their level of collaboration not only at the on sought of an extremely challenging programming year, but remained consistent with a heightened level of collaboration and communication with partners and community stakeholders necessary for successful program implementation to prevent, prepare, and respond to the coronavirus.” “The following determinations have been made relative to the City’s capacity to carry out CDBG funded activities: 1. The City has carried out its program substantially as described in its Consolidated Plan submission. 2. The Consolidated Plan submission as implemented complies with the requirements of the Housing and Community Development Act of 1974, and other applicable laws and regulations. 3. The City has the continuing capacity to carry out the approved program in a timely manner.” VII. Adjournment The meeting was adjourned by consensus at 8:54 A.M. — END — Minutes prepared by C. Pyott, edited by N. Bohn.