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Home My WebLink AboutMN-IURAGOV-2010-10-15Ithaca Urban Renewal Agency Approved 11/19/10 City 108 East Green Street Ithaca, New York 14850 (607) 274-6559 Minutes Minutes IURA Governance Committee IURA Governance Committee 8:30 A.M., October 15, 2010 8:30 A.M., October 15, 2010 Present: Susan Cummings, Carolyn Peterson, Kathy Schlather Present: Susan Cummings, Carolyn Peterson, Kathy Schlather Excused: David Whitmore Excused: David Whitmore Staff: Nels Bohn, Sue Kittel, Alice Vargo, Jill Sage, IURA Bookkeeper Staff: Nels Bohn, Sue Kittel, Alice Vargo, Jill Sage, IURA Bookkeeper I. Call to Order I. Call to Order The meeting was called to order by Chairperson Cummings at 8:40 a.m. The meeting was called to order by Chairperson Cummings at 8:40 a.m. II Additions to or deletions from the agenda ‐ none II Additions to or deletions from the agenda ‐ none III. Public comment ‐ none III. Public comment ‐ none IV. Approval of meeting minutes: September 19, 2010 IV. Approval of meeting minutes: September 19, 2010 Minutes of the September 19, 2010 meeting were not included in packet. Minutes of the September 19, 2010 meeting were not included in packet. V. New Business V. New Business A. Review of IURA component of recently completed City of Ithaca 2008 Audit – report A. Review of IURA component of recently completed City of Ithaca 2008 Audit – report Bohn introduced IURA Bookkeeper, Jill Sage, who reviewed how IURA and HUD funds are accounted for in the City’s 2008 financial audit. Sage explained the relationships of various City funds and how they come together to make the City financial statements that are then reviewed by an independent auditor. Bohn introduced IURA Bookkeeper, Jill Sage, who reviewed how IURA and HUD funds are accounted for in the City’s 2008 financial audit. Sage explained the relationships of various City funds and how they come together to make the City financial statements that are then reviewed by an independent auditor. She focused her review of the financial audit on the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the draft management letter contained in the City’s financial audit. She noted that IURA‐administered funds are categorized in the “special grant fund” and that the vast majority of the approximately $3.044 million in this fund are IURA‐administered funds. Sage reviewed the auditor’s management letter, which reported the prior year’s concern to update IURA accounting software has been satisfactorily addressed. Sage reported that the IURA now uses QuickBooks financial management software. She She focused her review of the financial audit on the Balance Sheet, the Statement of Revenues, Expenditures, and Changes in Fund Balances, and the draft management letter contained in the City’s financial audit. She noted that IURA‐administered funds are categorized in the “special grant fund” and that the vast majority of the approximately $3.044 million in this fund are IURA‐administered funds. Sage reviewed the auditor’s management letter, which reported the prior year’s concern to update IURA accounting software has been satisfactorily addressed. Sage reported that the IURA now uses QuickBooks financial management software. She October 15, 2010 Minutes IURA Governance Committee Minutes Page 2 of 3 also discussed various internal controls, separation of duties, and other procedures in place to prevent fraud and ensure that financial reports are accurate. She noted that IURA financials governing HUD funding are compared monthly against HUD‐ reported balances as a check. Sage reviewed the 9/30/10 IURA balance sheet with members and answered questions about the ten major current asset accounts contained on the IURA Balance Sheet and the programmatic restrictions that apply to each account. Bohn explained, for instance, that so‐called HODAG funds can only be used for rental housing purposes per the close‐out agreement that governs use of income resulting from the loan made with the original grant award. Members requested staff to define acronyms and add a description of limitations for each major asset account on the balance sheet. B. Cayuga Green Garage and Creek Walk, Financial Assistance Agreement, annual appropriation request ‐ report Bohn gave a brief update on the Cayuga Street Garage, and explained that per the 2003 Financial Assistance Agreement between the City and the IURA, the IURA makes an annual appropriation request to the City Controller for a City appropriation to the garage in an amount sufficient to cover the projected net deficiency for garage operations and financing expenses related to the 2003 civic facility revenue bonds issued for construction of the Cayuga Garage and the Six Mile Creek Walk. VI. Old Business A. City Audit timeliness – status report Cummings reported that HUD staff has informed IURA staff that continued delinquency in submission of the City’s financial audit may imperil future receipt of CDBG and HOME funds by the City and significantly increases the likelihood that HUD will field monitor the IURA annually. She noted that IURA is not allowed to conduct its own financial audit of HUD funds, but must be consolidated into the City’s annual financial audit of the City as the City is the official grant recipient. Cummings asked about the status of the City’s 2008 audit. Bohn replied that the City Controller submitted the 2008 audit to the Federal Audit Clearinghouse on September 20, 2010, but the management letter and release of written copies of the financial audit are awaiting receipt by the auditor of correspondence from the City Attorney disclosing pending and potential law suits against the City that may have a material impact on the City’s financial position. It is his understanding that these issues have October 15, 2010 Minutes IURA Governance Committee Minutes Page 3 of 3 been discussed with the independent auditor, but not reduced to a written document. The Mayor indicated she would follow up on this issue with the City Attorney. VII. Staff Report A. Restore NY #3 projects Bohn reported that construction work in the former Plantation Building at 130‐132 E. State/MLK Street is advancing rapidly with a scheduled March 2011 completion date for the $2.5 million building rehabilitation led by Lex Chutintaranond and Flaminia Cervesa. He noted that Petrune was unable to secure bank financing for their upper story housing project at 126‐128 E. State/MLK Street and has submitted an alternative proposal to rehabilitate upper floors for textile production, which does not require bank financing. Bohn reported that the economic Development Committee is reviewing this proposed project modification. B. Common Council matters of interest to the IURA Bohn reported that the Mayor’s proposed 2011 City budget does not use any CDBG revenue to fund general fund expenses. The 2010 budget included $40,000 of revenue from the CDBG program, said Bohn. C. Other Kittel noted that the Human Services Coalition will be having financial training for non‐profit boards. Kittel requested notification of this training so any interested IURA Agency member can attend. VIII. Other Business A. Review of IURA September 2010 financials Bohn reviewed the financials and noted that all lessees and borrowers are current with payments with the exception of Diane’s State Street Auto, which remains one month behind. Bohn is working to set up a meeting with Diane’s to investigate revising the amortization schedule on the loan. B. Next Meeting: November 19, 2010 IX. Adjournment The meeting was adjourned at 10:10 a.m. by consensus. END Minutes prepared by A. Vargo, edited by N. Bohn.