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WELD COUNTY COUNCIL
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Weld County Centennial Center
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The Weld County Council met in regular session in full conformity with the Weld County
Home Rule Charter at the Weld County Centennial Center, 915 10`" Street, Greeley,
CO, Tuesday, October 16, 2001, 6:30 p.m.
ROLL CALL: The meeting was called to order by President Dwaine Kurtz. Vice
President Joyce Smock, Councilwoman Jody Malone, Councilman Mitchell Martin, and
Councilman Douglas Rademacher were present, constituting a quorum of the
members. Also present: Scott Anthony, Shirley Carroll, Timothy Dennis, Erica Flores,
John Folsom, Henry Frey, Claud Hanes, Chuck Henderson, Ed Jordan, Michael Pallas,
Judy Roth, Ms. Sauter, Ken Sigley, Suki Tsukamoto, Art Willis, Carol Willis, Sue Young,
and the Council secretary, Bev Thomas.
REVIEW PROGRAM:
Public Hearing RE: Internal Controls at the Office of the Weld County Treasurer
Mr. Timothy Dennis and Mr. Michael Pallas summarized the scope of work the
accounting firm, Deloitte and Touche, performed at the Weld County Treasurer's office.
Mr. Dennis said there was willingness and openness on the part of Weld County 's
Treasurer and all of his staff to work with Deloitte and Touche personnel during the
audit.
Mr. Pallas' and Mr. Dennis' comments included:
1) The focus of the audit was limited to income, disbursements, and investments.
2) Reconciliation and segregation of duties (making sure the checks and balances are
in place) are traditionally primary controls in place when developing a control
structure.
3) Professional accounting advice is essential in the Treasurer's office as well as
accountability to make sure desired outcomes are met.
4) Denied conducting assessment of allocation of resources of personnel and
technology.
President Dwaine Kurtz invited Mr. Art Willis to speak. Mr. Willis asked that his
September 12, 2001 correspondence to the Weld County Council be included in the
Council's October 16, 2001 minutes. Council President agreed.
Mr. Willis said there are thousands of things that are done right and have been done
correctly at the Weld County Treasurer's office, and have been ignored. More than
three billion dollars have passed through his office and have been accounted for
virtually error free. The office distributes tax receipts to more than one hundred taxing
authorities, timely and accurately.
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Weld County Council Minutes
October 16,2001
Page 2 of 5
Mr. Willis's counsel, Henry Frey, said that Mr. Willis has agreed that Deloitte &
Touche's recommendations are good. He said there have been innuendos in the
press, before all the facts are made public, that Mr. Willis has not been doing his job,
and that the Treasurer should resign. Mr. Willis was recognized as "Treasurer of the
Year" upon Commissioners' nomination.
Mr. Frey said, by using existing policies and procedures, Mr. Willis discovered
improprieties and has brought these to the attention of proper authorities. Mr. Frey
introduced Wells Fargo bank officials, Mr. Henderson and Ms. Sauter, to speak to the
Council regarding credits (approx. $160,000.) owed to Weld County by Wells Fargo
Bank.
Mr. Henderson and Ms. Sauter of Wells Fargo Bank were invited to participate in the
discussion. Mr. Henderson said Norwest/Wells Fargo had made posting errors
amounting to approximately $160,000. in May 2000, on the very day that Norwest
converted to Wells Fargo. In August 2000 this error was identified and after 90 to180
days elapsed, Wells Fargo took back some of the Weld County credits in December
2000. These problems have been resolved and put to rest as far as Wells Fargo is
concerned as of August 2001, and it was agreed the bank is committed to make full
restitution.
Mr. Willis said that these banking problems were finally solved with the help of Bryan
Finley of Deloitte and Touche. Mr. Willis said the approximately $160.000. figure was
made up of two approximately $80,000. deposits. Credits were found and sorted out
and the bank had credited the County. Mr. Finley was able to identify the second
$80,000, but Mr. Willis said he had already been looking for the first $80,000.
Vice President Joyce Smock referred to Mr. Willis's September 14, 2001 letter to the
Council in which he refers to a shortage of personnel in the Treasurer's Office. Mr.
Willis said he agreed with Mr. Pallas' statement that the more people you have the
better the segregation of duties can be.
Mr. Willis's comments included:
1) He can document approximately 2800 hours per year of Weld County work during his
term of office albeit many of those hours have been given to Weld County while
he was not physically present in the Weld County Treasurer's office.
2) He spent many hours working for Weld County from his home either on the phone or
on the computer.
3) He was personally involved in the supervision of the Treasurer's work.
4) He was the sole investment officer for Weld County, but his staff posts all
investments to the general ledger.
5) He had placed an investment without approval from the Board of County
Commissioners; it was a good faith error.
Weld County Council Minutes
October 16,2001
Page 3 of 5
6) He had recommended to the County Commissioners for the last four years that the
Treasurer's office be assigned another technician. The changes recommended
in the internal controls audit could be better implemented if more technicians and
an accountant position were made available to the Treasurer's office
7) He agreed that managerial skills are not his strength, and that Mr. Sigley, the Deputy
Treasurer, and his office manager helped him in that area.
8) He thrives on the investment aspect of his job.
Mr. Willis was asked who manages the personnel of the office; when a staff person
needs help who does he ask? He said the staff person usually goes to the Deputy
Treasurer or the office manager. He said his staff knows what they are suppose to do.
Council members encouraged Mr. Willis to be more visible in his County office.
UNFINISHED BUSINESS:
Performance Review of Internal Controls at Weld County Treasurer's Office
President Dwaine Kurtz asked Mr. Claud Hanes, Weld County Comptroller, to tell
about his relationship with the Treasurer's office. Mr. Hanes stated that for about two
weeks he has been working with the Deputy Treasurer and office manager to define the
job description for a soon-to-be-hired accountant. Treasurer Willis and Mr. Hanes have
agreed that Weld County Accounting Department staff would define and perform the
duties that an accountant in the Treasurer's office would do. Mr. Hanes said the
accountant's job description has been identified, and next his staff will physically be
doing that job description for a period of time to verify a flow chart of staff work to
accomplish segregation of duties outlined by Deloitte and Touche's recommendations.
Mr. Hanes also stated:
1) Besides creating the flow chart of work in the Treasurer's office and defining the
qualifications for the accountant position, Weld County Accounting Department
staff has been performing the bank reconciliations.
2) The county's fiscal year is the same as the calendar year.
3) Generally accepted accounting principles are basic principles of operation of financial
institutions.
4) The Deputy Treasurer and office manager have been very helpful and have worked
well with Weld County's Accounting staff.
5) He will also be working with Weld County Information Services about facilitating the
security measures and the reconciliation of the two computer systems used in
the Treasurer's office.
President Dwaine Kurtz asked Mr. Hanes if other elected officials or departments need
to have performance audits done. Mr. Hanes said he was not aware of such a need,
but the Finance Office is planning to do surprise cash checks more often throughout
the county.
Weld County Council Minutes
October 16,2001
Page 4 of 5
President Kurtz closed public input at 8:30 p.m. to set a time for the Council to compile
and prepare a Report to the People about the review the Treasurer's office.
Councilwoman Jody Malone made a motion to table the matter of the Council's Report
to the People regarding internal controls of the Treasurer's office until 6:30 p.m. at the
Weld County Centennial Center, October 23, 2001. The motion was seconded and
carried unanimously.
President Dwaine Kurtz noted that he has received the following documents that are
made part of these minutes by attachment:
1) Deloitte and Touche's September 7, 2001 Report on the Review of Internal
Controls over Cash Receipts, Cash Disbursements and Investment Activities of
the Weld County Treasurer's Office
2) September 14, 2001 letter from Mr. Art Willis with Treasurer's Response to the
Auditors' Report on the Review of Internal Controls
3) October 15, 2001 letter from Mr. Brad Keil, Weld Information Services
President Dwaine Kurtz reconvened the meeting at 8:55 p.m., after a ten minute break.
Correspondence RE: Coroner's Office
Council members will meet with the County Coroner regarding correspondence related
to his office.
AGENDA ADDITIONS/APPROVAL: President Kurtz said the agenda would stand as
printed.
APPROVAL OF MINUTES: Councilman Douglas Rademacher made a motion to
approve the September 18, 2001 Council minutes.
NEW BUSINESS:
Email from Thelma Day
Council President reported the information requested by Thelma Day of the Del Camino
area was provided, and issues she raised were forwarded to appropriate county
agencies.
Third Quarter Report to the People
Councilman Douglas Rademacher made a motion to approve the 2001 third quarter
Report to the People. The motion was seconded and carried unanimously.
2001 Weld County Charter Amendments
President Dwaine Kurtz requested a motion for the Council to endorse the Weld County
Home Rule Charter Amendments listed on the November 2001 ballot. Councilman
Martin made a motion that the Council, as a body, take no stand on the housekeeping
Weld County Council Minutes
October 16,2001
Page 5 of 5
measures on the November 2001 ballot. The motion was seconded and carried with
President Kurtz voting no.
APPOINTMENTS AND ANNOUNCEMENTS:
2001 Weld County Budget
The Commissioners approved the Council's 2001 budget as requested on October 16,
2001.
October 25, 2001 2002 Budget Hearings
Weld County Treasurer's 2001 budget hearing is scheduled at 10:45 a.m. October 25,
2001.
PAYMENT OF THE BILLS: Payment of bills was postponed until the next Council
meeting.
ADJOURNMENT: President Kurtz adjourned the meeting at 9:25 p.m.
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November 20, 2001
Date approved wai Ku -to cil President
Beverly Thomas, Council Secretary
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