HomeMy WebLinkAbout11/09/1989 FC minutesMINUTES OF THE MEETING
FINANCE COMMISSION
Thursday, November 9, 1989
I Chairman Richard Bachhuber called the meeting to order at 7:30 p.m. in the
Village Hall Trustees' Room. Present were Paul Davies, John Engel, Vincent
Grochocinski, Newt Hallman, James Morrison, John Mussar, Tom Pekras, and Ann
Smilanic. Also in attendance were David Jepson, Finance Director, Don
Mazza, Assistant Finance Director, Carol Widmer, Accounting Manager, and Lou
Karrison and Sherry Lauterbach of Karrison, Byrne, Jansey & Trimarco,
Auditors.
II Discussion of Management Letter to Audit Finance Director Dave Jepson
introduced Lou Karrison and Sherry Lauterbach of Karrison, Byrne, Jansey &
Trimarco. Their firm conducted the annual audit of the Village's finances.
In conjunction with the audit, their examination included a scrutiny of
internal control procedures. Their findings were presented in a separate
letter to Village management along with suggestions for improvement.
Their comments and recommendations centered on Cash Receipts and Collections,
Purchasing, Cash Disbursements, Payroll and Regulatory Compliance. Mr. Jepson
had previously prepared a response to the management letter including his
recommendations for implementing the auditors' suggestions. Mr. Jepson, in
particular, felt that the Village would benefit from the recommendation to
review Internal Revenue Service regulations and reporting requirements to
establish compliance requirements for the Village. In addition, Mr. Jepson
recommended that a study be made of the new TIF District reporting require-
ments passed by the Illinois Legislature in September 1988 because of their
substantial nature and complexity.
The Commission discussed each point in the letter with the auditors and
examined Mr. Jepson's responses to the points. The Commission concurred with
Mr. Jepson's responses, in particular his recommendation for a study of IRS
regulations and TIF provisions by an outside consultant.
III The minutes from the meeting of October 26, 1989 were approved as amended.
IV Finance Director's Insurance Proposal Mr. Jepson began with a brief
history of the Village's self-insurance program since 1984 emphasizing the
fluctuations in costs and availability of coverages during the period as well
as the formation of HELP, the excess liability insurance pool formed in 1987.
The Village's insurance program has become increasingly complex requiring
more and more time and resources as time progresses. This, coupled with a
genuine concern over the language contained in the policies and the exposure
for the Village because of this language and policy limitation, caused
Mr. Jepson to recommend that a study be made of the Village's risk management
program and in particular, the policies pertaining to liability coverages.
Mr. Jepson had previously presented the Commission with copies of a proposal
for a study to be made by Corporate Policy Holders Counsel, Inc. The firm is
an independent consulting group not tied to any one company nor does it sell
policies for 1'.3bi1 ity The proposal is in t'.ao
Mr. Jepson's recommendation was centered only on Phase I at the present
time. Phase I's objectives include the following:
1. Identify major loss exposures.
2. Analysis of financial implications of the exposures.
3. Evaluate the existing risk management program.
4. Evaluate current levels of retaining risk.
5. Identify and consider alternatives to the current program.
The Commission shared Mr. Jepson's concern and recommended the study be made.
V Finance Director's Report Mr. Jepson announced the next meeting would
be on Thursday, November 30, 1989 at 7:30 p.m. in the Trustees' Room. Topics
to be covered at the meeting will be:
1. Six Month Budget Review
2. Tax Levy
3. Purchasing Policy
4. Consultant's Report on the Elevated Water Storage Facility
VI Adjournment was at 10:15 p.m.
ADM/sm
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Respectfully Submitted
Don Mazza
Assistant Finance Director