1 00:00:23,600 --> 00:00:32,279 that% we're pretty small in the big picture. 2 00:00:27,760 --> 00:00:32,279 Hang on, hang on, hang on. One thing 3 00:00:50,000 --> 00:00:57,199 I sure >> I would like to call this joint workshop 4 00:00:55,199 --> 00:01:03,760 with the county commission and the and the MTA board to order at 10:34 on 5 00:01:01,199 --> 00:01:08,159 Thursday, August 27th and we will start this meeting and we 6 00:01:05,600 --> 00:01:12,240 have in attendance we have our finance director Chantel Lindseay, Commissioner 7 00:01:10,720 --> 00:01:17,680 Mccertie, Commissioner Martinez, Commissioner Mcan, Commissioner 8 00:01:13,520 --> 00:01:23,280 Winfield, We have our MTAB chair Wendell and uh myself, Commissioner McCless. 9 00:01:21,360 --> 00:01:27,759 And the intent for the meeting today is to review the outdoor recreation 10 00:01:24,799 --> 00:01:31,640 mitigation grant application with our tourism advisory board. 11 00:01:32,640 --> 00:01:40,640 You want to take it away? >> Um no. Well, I'm we have only just been 12 00:01:37,520 --> 00:01:47,600 presented with the application um this morning. Um and so going through it very 13 00:01:43,920 --> 00:01:54,799 quickly. One of the MTAB um and our letter dated um October the 16th last 14 00:01:50,720 --> 00:01:59,439 year, our recommendations to the um commission, our priorities, the number 15 00:01:57,280 --> 00:02:06,240 one priority was mitigation. >> Um and um so this is in fitting with our 16 00:02:03,119 --> 00:02:12,720 priorities of making sure that priority for the county. And so while 17 00:02:08,959 --> 00:02:18,080 with HP456 and the change in H1456 um this new grant allows us additional 18 00:02:15,200 --> 00:02:22,239 mitigation of the emergency services funds and so with that I think you guys 19 00:02:20,560 --> 00:02:25,520 have been working very diligently on this application and this is the first 20 00:02:23,760 --> 00:02:27,599 time we've actually >> cherry do you mind if I give a small 21 00:02:26,959 --> 00:02:31,599 background? >> Sure. I do want to note that we have um 22 00:02:29,440 --> 00:02:37,760 Councilman Taylor that just joined us. He is also an MTA member. 23 00:02:34,879 --> 00:02:42,480 » Perfect. Yeah. Thanks. So the uh um the the grant that we're talking about came 24 00:02:39,440 --> 00:02:47,599 about by uh um from HB456. There was an additional quarter% of tax 25 00:02:44,720 --> 00:02:53,280 that we passed here as a county. And so part of that quarter% of tax went into 26 00:02:50,640 --> 00:02:58,239 this outdoor mitigation grant which is supposed to help out uh uh uh mitigating 27 00:02:55,840 --> 00:03:02,560 the impacts of tourism or helping with essential services is kind of the way 28 00:02:59,680 --> 00:03:08,080 that I've always looked at it. Um, you know, we started, um, in the MTA board. 29 00:03:05,599 --> 00:03:12,000 We had a a presentation on this. We brought department heads in. We talked 30 00:03:09,680 --> 00:03:15,519 to folks about making sure that, um, they were collecting the data that was 31 00:03:13,840 --> 00:03:22,480 going to be required for this uh, ahead of time. Both the sheriff's office, um, 32 00:03:17,680 --> 00:03:26,480 solid waste and um, um, EMS as well were all present at that meeting. Um we had 33 00:03:24,560 --> 00:03:30,720 follow-up meetings uh individually with each department head and we also um had 34 00:03:28,640 --> 00:03:35,680 a big uh meeting here with all the department heads letting them know um of 35 00:03:33,040 --> 00:03:42,400 this grant kind of coming up. Um the the high level of this grant right here is 36 00:03:38,560 --> 00:03:49,440 that there's going to be a uh um a d a reimbursement for search and rescue 37 00:03:45,040 --> 00:03:54,560 primarily EMS and then um and then any road repairs that were required as of 38 00:03:51,920 --> 00:03:59,040 safety cost. Um, the priorities in the grant list those emergency costs first 39 00:03:56,959 --> 00:04:04,319 and then there's a second bucket left over. It's about a $6.6 million fund 40 00:04:02,319 --> 00:04:08,799 from what I've been told right now. And so if there is anything left over in the 41 00:04:06,560 --> 00:04:14,560 state, it will go into a second bucket which will be a visitor related safety 42 00:04:11,360 --> 00:04:19,040 cost which would cover your highway um non-emergency solid waste and law 43 00:04:16,959 --> 00:04:24,240 enforcement. So that's kind of the the breakdowns of those two buckets. The 44 00:04:21,280 --> 00:04:30,720 priority ranking on that will be uh um communities that are smaller in size and 45 00:04:27,360 --> 00:04:35,680 then communities that have larger um that have larger uh uh um essential 46 00:04:33,120 --> 00:04:40,960 service impacts, right? And then the third criteria on that is um that are 47 00:04:38,400 --> 00:04:46,080 unable to meet that financial burden. Uh that's right there. So, you know, as we 48 00:04:43,040 --> 00:04:51,759 go through this, we have a couple of uh numbers from this grant that I'll just 49 00:04:47,600 --> 00:04:56,199 highlight. So right now um our SAR uh um costs that were identified were 242,367. 50 00:04:57,199 --> 00:05:06,080 The EMS um costs that were identified were $695,000. 51 00:05:03,280 --> 00:05:10,479 The highway road repairs that were identified as safety cost. And so an 52 00:05:08,560 --> 00:05:14,160 example of that is, you know, there's there's road repair that we do and then 53 00:05:12,479 --> 00:05:19,600 there's road repair that needs to be done because there could be um safety uh 54 00:05:17,600 --> 00:05:23,120 concerns by having to go around that. A good example would be like the Onion 55 00:05:21,199 --> 00:05:26,960 Creek, right? Having to go out there and do that emergency repair on Onion Creek, 56 00:05:25,680 --> 00:05:30,400 right? Because you had people that were trapped behind their equipment and 57 00:05:28,800 --> 00:05:35,280 things like that. So a little bit more geared towards visitor safety than just 58 00:05:33,039 --> 00:05:39,759 standard road repair. Um, and that came in at about $250,000. 59 00:05:37,919 --> 00:05:45,280 So that's bucket one. That's so that sits at about 1 point 1.2ish 60 00:05:42,960 --> 00:05:51,840 million when you add that up. And then bucket two would be uh $750,000 61 00:05:49,120 --> 00:05:59,120 that's listed for highway repairs. Um 8.5 million that's listed for solid 62 00:05:54,240 --> 00:06:03,840 waste and then 1.6 million that's uh listed for law enforcement services. And 63 00:06:01,520 --> 00:06:07,759 that's a a conservative estimate right there on our law enforcement. So that 64 00:06:06,000 --> 00:06:12,720 would be considered in there for bucket two right there. Um, one of the things 65 00:06:10,240 --> 00:06:17,440 I'd just like to consider or maybe look at putting in this grant. Um, so I think 66 00:06:15,440 --> 00:06:21,280 that we all understand that number one, right, we qualify as being a small 67 00:06:19,039 --> 00:06:25,759 community, right? 10,000 people. So we are one of the smaller communities that 68 00:06:22,880 --> 00:06:30,000 will be eligible for this grant. Um, number two is I think that everybody 69 00:06:27,360 --> 00:06:34,960 could see the cost or the size of our uh uh essential services to this community. 70 00:06:32,720 --> 00:06:40,479 Um, but I think that the easiest way to to really see the financial uh uh uh uh 71 00:06:38,800 --> 00:06:45,919 strain that the county is under with this really is to look to see how we 72 00:06:42,639 --> 00:06:50,479 used our TRCCA this year um to fund essential services. Um you know, in 73 00:06:48,000 --> 00:06:55,120 previous years we have used our TRCCA for for other services throughout the 74 00:06:52,720 --> 00:07:00,400 county. Um, so it's it's it is worth noting this year that we did use our our 75 00:06:56,960 --> 00:07:04,800 TRCCA for that. So it shows that that those are growing cost and it's it will 76 00:07:03,039 --> 00:07:08,880 be nice to see some of those funds be able to come back and reimburse those 77 00:07:06,800 --> 00:07:13,520 costs moving forward. >> Recommended that um in our letter last 78 00:07:11,120 --> 00:07:17,120 year be able to use TRCCA towards mitigation. Yeah, 79 00:07:14,560 --> 00:07:22,120 » correct. Well, and anyways, I hope that that helps provided and not even 80 00:07:19,120 --> 00:07:22,120 tonight. 81 00:07:23,520 --> 00:07:31,955 So we're going to go through or I mean the application. So we just 82 00:07:29,120 --> 00:07:35,680 went over the all the numbers. Yeah. [laughter] 83 00:07:33,039 --> 00:07:41,039 » I just I mean the one obviously solid waste at 8 point if that sounds what 84 00:07:38,880 --> 00:07:45,360 kind of funds are available if it's they're asking for 8.5 85 00:07:42,720 --> 00:07:49,599 » 6 million dollars available. But I think that what this does is it gives the 86 00:07:47,520 --> 00:07:55,039 state a really good idea of what does it cost or communities to hatch their 87 00:07:52,880 --> 00:08:00,639 » and so even though we won't be getting $8.5 million but you know our our 88 00:07:57,520 --> 00:08:06,639 landfill is about ready to close our one and so we are looking at getting land 89 00:08:03,680 --> 00:08:09,840 for our um transfer station and that's I would imagine this is part of that 90 00:08:07,840 --> 00:08:12,319 expense is is to expand that transfer station. 91 00:08:10,560 --> 00:08:15,280 » So it's a future need just showing the need. Yep. Showing the need. I think 92 00:08:13,919 --> 00:08:20,479 it's important too for a lot of people to understand who might be, you know, 93 00:08:16,720 --> 00:08:24,639 watching later or that this is um cannot replace anything that we're currently 94 00:08:22,639 --> 00:08:27,520 doing. So this is not like basically money that we're trying to replace what 95 00:08:26,160 --> 00:08:32,240 we're currently spending. This is in addition to. So we're having to show 96 00:08:29,280 --> 00:08:36,159 that um the amount of TRT we're using towards mitigation does not cover 97 00:08:33,760 --> 00:08:40,000 everything. So for the general public to know this is an additional funds the 98 00:08:38,399 --> 00:08:43,919 state and this is not we're not raising this money. the state is this is that 99 00:08:41,599 --> 00:08:49,200 additional TRT that the state is raising and so um it's important to kind of 100 00:08:47,279 --> 00:08:53,920 reconcile between the two doesn't change how we're going to recommend our TRTS 101 00:08:51,440 --> 00:08:58,320 been for next year it doesn't change how um our recommendations this just allows 102 00:08:55,760 --> 00:09:02,640 us that secondary fund um to be able to fund our central services better 103 00:09:00,399 --> 00:09:06,160 » yeah I think it's key to show that it sorry Jason it's it's key to show that 104 00:09:04,800 --> 00:09:10,480 this is >> unreimbured expenses from visitor 105 00:09:08,480 --> 00:09:14,800 visitor so it's unpaid visitor are related expenses when you look at EMS 106 00:09:13,200 --> 00:09:19,600 and searching rest. So those are those two pieces that this is money that we 107 00:09:17,040 --> 00:09:24,399 spent and that we did not get recouped. >> Yeah. Yeah. Our application is basically 108 00:09:22,320 --> 00:09:29,680 to demonstrate need and so that's what this is about. The there are some that 109 00:09:26,959 --> 00:09:35,440 are I mean to be determined determine the amount. Um I just know that there's 110 00:09:32,160 --> 00:09:39,680 like an EMS to provide it with actual do they is this a general so like under the 111 00:09:37,760 --> 00:09:43,040 EMS section it just talks about Grand County will be provided with X number of 112 00:09:41,519 --> 00:09:47,920 dollars but it doesn't have a line item there do we something to be determined 113 00:09:45,519 --> 00:09:54,240 » that part out maybe yeah that very top line I 114 00:09:50,640 --> 00:09:58,560 page five page uh five just has blank so 115 00:09:56,560 --> 00:10:03,040 » it says um so this is I think to the county if Um, will any portion of the 116 00:10:01,279 --> 00:10:06,880 requested funding be shared with or used by a special service district? And we 117 00:10:04,720 --> 00:10:10,560 said yes. So then it said if yes, identify the entity, amount, purpose, 118 00:10:08,480 --> 00:10:14,240 and the role. So Grant County MS would be provided with blank. And I think we 119 00:10:12,399 --> 00:10:18,079 do need to still fill those in and solid waste would be provided with blank. 120 00:10:16,160 --> 00:10:21,279 » I think we need to put percentages of the reimbursement because we don't know 121 00:10:19,760 --> 00:10:26,240 how much they're going to give us. So, so I don't know what the commissioners 122 00:10:23,440 --> 00:10:30,720 think or or um administrator, but I would imagine that this would be like, 123 00:10:27,360 --> 00:10:34,720 you know, em write 100% of their revenue and then special district would also be 124 00:10:32,480 --> 00:10:37,920 100% because if that they're going to give us money for that 125 00:10:36,480 --> 00:10:43,519 » uh transfer station, >> how we dedicate uh percentages without 126 00:10:40,640 --> 00:10:46,240 knowing the amount and or deciding the amount per 127 00:10:44,800 --> 00:10:50,000 » because per groups >> be by each entity. We'd be getting money 128 00:10:48,240 --> 00:10:53,120 by each entity by percentage. >> Yeah. And I disagree with that, 129 00:10:51,279 --> 00:10:57,680 Commissioner McCandless. Um, you know, the the commission here, we put what was 130 00:10:54,800 --> 00:11:02,480 it? $350,000 last year towards EMS costs. We also put another $90,000 131 00:11:00,320 --> 00:11:06,240 towards the funding of a new ambulance as well. So, those were costs right here 132 00:11:04,160 --> 00:11:09,440 that the that the that the uh commission actually took out of the mitigation 133 00:11:07,760 --> 00:11:13,120 right now. So, I would think that, you know, rather than using a percentage 134 00:11:10,959 --> 00:11:17,680 that we would say that it is, you know, in excess of these funds right here, 135 00:11:16,000 --> 00:11:21,360 something like that. And and same way when we look at solid waste as well. So 136 00:11:19,600 --> 00:11:25,200 rather than saying, you know, we're going to give solid waste, you know, 137 00:11:22,959 --> 00:11:29,839 $500,000, it would be, you know, we're going to replace the 300, what was it, 138 00:11:27,360 --> 00:11:34,320 I'm sorry, 500,000 that we that we uh allocated this year to solid waste right 139 00:11:32,320 --> 00:11:40,519 here. So that those funds are available for all of the other mitigation uh uh uh 140 00:11:36,640 --> 00:11:40,519 needs that the county has. 141 00:11:40,880 --> 00:11:52,640 even if it was to the uh to the tune of solid waste 142 00:11:47,279 --> 00:11:58,320 500,000 back. But we we can go excess of we can we can go past that with the uh 143 00:11:56,320 --> 00:12:02,560 with the funds being replaced. We can decide again to give them another 144 00:12:00,079 --> 00:12:08,240 500,000 out of the remaining mitigation past this grant. But 145 00:12:05,040 --> 00:12:10,959 » yeah, we can just give put it back into >> or put it back into mitigation as a 146 00:12:10,000 --> 00:12:13,279 total work. >> Yep. And then we can allocate our 147 00:12:12,399 --> 00:12:19,839 mitigation from there. >> I believe that's why that's still empty. 148 00:12:14,959 --> 00:12:22,079 We don't have a specific. >> Yeah, 149 00:12:20,800 --> 00:12:27,363 » Jason had a comment. >> I was just going to say exactly what you 150 00:12:23,680 --> 00:12:31,839 what you said. So [clears throat] 151 00:12:29,040 --> 00:12:36,079 » I can speak on behalf of um EMS when he is doing this research. 152 00:12:33,920 --> 00:12:41,040 that in our board meeting the other day, uh we talked about how we've always 153 00:12:38,079 --> 00:12:46,639 thought that visitors um calls are 40% and locals are 60%. But as he was doing 154 00:12:43,920 --> 00:12:53,040 this research that even though the calls out 40% of the calls are are um tourists 155 00:12:50,480 --> 00:12:57,200 and 60% are local, but the time and expenses is actually opposite. So for 156 00:12:54,959 --> 00:13:01,920 those 40% of calls, you're getting 60% of the expenses and for those 60% of 157 00:12:59,680 --> 00:13:05,360 calls, it's 40% of the expenses. So really it is lopsite. So when the 158 00:13:03,920 --> 00:13:09,279 community says, "Well, tourists are costing us more money." It it really is 159 00:13:07,040 --> 00:13:13,519 true. Even though we have that 40% call volume to 60% call volume, that expenses 160 00:13:12,079 --> 00:13:18,959 are actually different because of the the time spent and the services that are 161 00:13:16,320 --> 00:13:20,959 and I'm sure that search well majority is um 162 00:13:20,560 --> 00:13:25,760 » sure >> always has shown as majority. 163 00:13:23,839 --> 00:13:29,200 » No, I I I don't disagree with that at all. Uh the only thing that I'm saying 164 00:13:27,200 --> 00:13:33,600 is is that I think that that our job as the commission is to define where that 165 00:13:31,680 --> 00:13:36,800 need is right because right now what we are we were seeing and what we are 166 00:13:35,040 --> 00:13:41,440 saying in this is that there is more need than there are funds available 167 00:13:38,800 --> 00:13:47,120 right and so if you know search and res I'm sorry if EMS has just gotten a a new 168 00:13:44,320 --> 00:13:51,040 tax right and their their need now is less right now than someone else who 169 00:13:49,279 --> 00:13:54,240 does not have the ability as a taxing entity to pull something up right we 170 00:13:52,959 --> 00:13:57,920 want to make we might want to make sure that we are you're allocating ating 171 00:13:56,079 --> 00:14:03,279 those funds to where the need is greatest rather than rather than uh 172 00:14:00,480 --> 00:14:07,600 based on a percentage. Do we have the total amount of all these to with the 173 00:14:05,040 --> 00:14:11,440 sheriff and the total amounted with the 8.5 and the 1.5 174 00:14:09,120 --> 00:14:17,199 » it comes to like 1.18 is what I added up um 175 00:14:14,959 --> 00:14:20,399 » and then the total I'm sorry with each one of the amounts that we're requesting 176 00:14:18,959 --> 00:14:25,560 the total amount >> the total amount right here would be uh 177 00:14:22,240 --> 00:14:25,560 12 million289,000 178 00:14:26,320 --> 00:14:35,600 » and do we have any idea of what other um counties are doing in terms of their 179 00:14:32,000 --> 00:14:39,519 requests like are they >> 24 million right now just look because 180 00:14:37,519 --> 00:14:42,880 they can look at what people are maybe not haven't submitted yet but what they 181 00:14:41,680 --> 00:14:47,360 can look at what they're working on and he mentioned and he's the chair of that 182 00:14:44,639 --> 00:14:50,560 board so our uh he mentioned that it was at 24 million okay 183 00:14:48,720 --> 00:14:56,480 » for the communities >> 24 million the total of the be required 184 00:14:54,240 --> 00:15:02,240 » and that was part of the intent of this as well was to start at a state level to 185 00:14:59,279 --> 00:15:06,800 be able to actually get a grip on what the what the emergency service costs are 186 00:15:04,639 --> 00:15:10,720 for the state um based on tourism. So that is one of the parts of of this and 187 00:15:09,040 --> 00:15:15,040 hopefully you know this will be moving into you know legislation into the 188 00:15:13,440 --> 00:15:18,480 future that helps fund some of these services and we start being able to use 189 00:15:16,959 --> 00:15:22,880 these numbers a little bit more effectively. So when yeah if I can just 190 00:15:20,560 --> 00:15:27,920 say like when we were first like I kind of talked a lot when when this bill was 191 00:15:25,279 --> 00:15:32,399 getting created and stuff and um that's why they they put that formula in here 192 00:15:30,079 --> 00:15:36,000 you know that it was like for EMS and search and rescue and stuff like how 193 00:15:34,000 --> 00:15:39,600 many calls did you go on you know how many of those calls did and then of 194 00:15:37,680 --> 00:15:43,519 those calls what were your what were you reimbursed and what were you not 195 00:15:41,120 --> 00:15:48,639 reimbursed according to what your costs were and this was supposed to kind of 196 00:15:45,199 --> 00:15:53,519 help or make up those costs that weren't recovered. you know, so like EMS, 197 00:15:51,440 --> 00:15:56,399 um, someone gets hurt on the white rim or something like that, they have to 198 00:15:54,399 --> 00:15:59,360 send an ambulance, but then a helicopter goes and picks them up. We still had to 199 00:15:58,160 --> 00:16:02,399 send an they still had to send an ambulance up there. They they're not 200 00:16:00,959 --> 00:16:09,440 billing for that. And I was trying to cover those costs of what it would what 201 00:16:05,920 --> 00:16:13,360 they spent to drive out there and they had a non-revenue call or whatnot. So, 202 00:16:11,600 --> 00:16:18,399 and so that's why I think that yeah, part of that was to have this um this 203 00:16:16,079 --> 00:16:21,759 criteria where these where these districts are or people that are 204 00:16:20,000 --> 00:16:24,560 applying were supposed to say this is what we this is how many calls we did. 205 00:16:23,279 --> 00:16:27,759 This is what we got reimbured and this is the difference and this is what we're 206 00:16:25,839 --> 00:16:33,040 asking the state for is that difference. >> Yeah. And also um you know in in in 207 00:16:30,720 --> 00:16:37,519 federal discussions as well um one of the discussions right now is so when we 208 00:16:35,440 --> 00:16:41,839 look at our mitigation and how our essential services are are funded here 209 00:16:39,759 --> 00:16:47,360 in the county right they're funded by folks who stay at hotels right so the 210 00:16:45,040 --> 00:16:52,320 the people who stay inside of hotels fund our county's entire essential 211 00:16:49,440 --> 00:16:56,480 services or not entirely but the lion share of our essential services are 212 00:16:54,240 --> 00:17:02,160 funded by people staying in hotels. However, we have what is that like 6,000 213 00:16:59,199 --> 00:17:07,039 campsites inside of Grand County, right? And those folks do not pay anything into 214 00:17:04,959 --> 00:17:11,919 essential services. And if you actually think about it, um they are the they are 215 00:17:09,280 --> 00:17:15,760 the larger users of the uh of the resource. Uh think of the the garbage 216 00:17:14,160 --> 00:17:20,000 that you actually create when you're out camping compared to the garbage that you 217 00:17:17,520 --> 00:17:24,000 create when you're staying at a hotel. Um also think of the user groups, right? 218 00:17:21,839 --> 00:17:27,919 the people who stay inside of hotels as opposed to the folks that are out uh in 219 00:17:26,160 --> 00:17:31,679 the back country, right, camping. They're more likely to be actually using 220 00:17:29,520 --> 00:17:37,280 the search and rescue services than folks staying inside the hotels. So, on 221 00:17:34,320 --> 00:17:41,039 a larger lay uh uh conversation, this will help give us some numbers when 222 00:17:39,120 --> 00:17:45,200 we're having those talks on how do we get folks who are at those campsites to 223 00:17:43,360 --> 00:17:47,840 start paying their fair share, right? Because that's what it really all comes 224 00:17:46,480 --> 00:17:51,360 down to. We just want to make sure that folks are being able or we have a 225 00:17:49,520 --> 00:17:53,679 mechanism to say, hey, we want everyone to pay their fair share about the 226 00:17:52,720 --> 00:17:58,960 services. >> I think this is a great first step, too, 227 00:17:55,120 --> 00:18:02,240 because this is the first um Sorry, just Yeah, I'm sorry. Go ahead, Mary. 228 00:18:00,080 --> 00:18:13,760 » I just had a question. My understanding is that uh like commercial RV camps and 229 00:18:07,760 --> 00:18:17,200 such do pay TRT. It's uh just um >> BLM and Foresters. 230 00:18:15,679 --> 00:18:23,760 » That's right. That's >> we have worked I worked really closely 231 00:18:19,919 --> 00:18:30,320 with John C and it is >> it's a very difficult to uh 232 00:18:28,080 --> 00:18:36,160 get uh [clears throat] federal agencies don't pay taxes. 233 00:18:33,520 --> 00:18:40,720 » So it we kept hitting a wall. We spent a lot of time, especially my first few 234 00:18:38,240 --> 00:18:46,880 years, trying to get so that we could get more money for our But the nice 235 00:18:43,679 --> 00:18:52,559 thing about the BOM campgrounds and such is all the money stays here. None of the 236 00:18:49,280 --> 00:18:56,559 money goes out of Grant County, but Okay. I just got you when you were 237 00:18:54,240 --> 00:18:58,880 saying that none of the campers I was saying, wait, I thought 238 00:18:57,440 --> 00:19:01,039 » I've been on the federal lands. >> Okay, that that I just needed that 239 00:19:00,400 --> 00:19:04,559 clarification. >> Yep. Oh, that's good. And then, you 240 00:19:02,960 --> 00:19:08,480 know, just just moving that forward, right? It's how do we come up with a 241 00:19:06,080 --> 00:19:12,480 formula, right? So that inside of their fee structure, right, we can include 242 00:19:10,799 --> 00:19:16,400 those fees in the fee structure that they're paying at the camp at the box, 243 00:19:14,559 --> 00:19:20,480 right? And then figuring out a a mechanism that we can retain those fees 244 00:19:18,559 --> 00:19:23,520 so that we can provide those services because we are providing services to 245 00:19:22,080 --> 00:19:27,600 people that are camping on federal lands, right, to those folks. And that's 246 00:19:26,240 --> 00:19:31,600 and that's really what we're trying to figure out. And these numbers, I think I 247 00:19:29,679 --> 00:19:35,200 think right here will be very helpful in moving those conversations forward. And 248 00:19:33,200 --> 00:19:38,559 I think that's a great idea. I just know it's complicated. 249 00:19:37,120 --> 00:19:41,440 » It was tough. Yeah. >> I moved. 250 00:19:39,520 --> 00:19:45,760 » I was just gonna say this is probably a long overdue process for all of these 251 00:19:43,520 --> 00:19:50,799 departments to kind of now having to have these line items to show, you know, 252 00:19:48,400 --> 00:19:55,840 what's what's actual tourist related and what they're being paid for and what 253 00:19:51,919 --> 00:20:00,400 they're not. And also um just a this is the first grant. This is the first time 254 00:19:58,080 --> 00:20:05,120 it's ever available. So this is I think the state is probably also figuring this 255 00:20:03,039 --> 00:20:08,640 out as well in terms of how this is going to work. So it doesn't I don't 256 00:20:07,039 --> 00:20:12,080 think everything has to be perfect but I think you know we have to be as close to 257 00:20:10,240 --> 00:20:17,120 you know what we want as possible. Um but I think it's a great step towards uh 258 00:20:14,559 --> 00:20:21,840 future grants and you just in terms of what we recommend for what TRT is spent 259 00:20:19,039 --> 00:20:27,960 on now that we have more of an idea you know that u actual spend on uh choice 260 00:20:24,640 --> 00:20:27,960 related costs. 261 00:20:28,000 --> 00:20:37,120 Mike, >> with that $1.8 million hand out, uh, we 262 00:20:35,600 --> 00:20:44,720 look like we Grant County has the biggest handout to this. I mean, with a 263 00:20:39,280 --> 00:20:49,520 22 22 to $23 million total ask, $24 million ask. Grant County's share of 264 00:20:47,440 --> 00:20:54,080 it's going to be or I mean our handout's going to be 12.8 million. 265 00:20:52,080 --> 00:20:56,880 » Well, there's only million available. >> Is that horrible? 266 00:20:56,240 --> 00:21:01,200 » Yeah. I mean, >> well, the local horrible in a way. Yeah, 267 00:20:58,960 --> 00:21:03,679 we're asking for half of the, but I don't know if all of them are done. That 268 00:21:02,559 --> 00:21:06,080 was just kind of where it was at right now. So, could that be more money being 269 00:21:05,440 --> 00:21:09,520 asked for? >> Well, I just wonder counties. We we they 270 00:21:09,039 --> 00:21:13,600 add up, >> but only certain counties are allowed to 271 00:21:11,440 --> 00:21:16,080 go for this. You have to have specific uh and and I think Brian lined them out 272 00:21:15,200 --> 00:21:19,120 at the beginning. I don't have them memorized, but only specific counties 273 00:21:17,840 --> 00:21:21,679 can go for this grant. It's not available to all 29 counties. 274 00:21:21,280 --> 00:21:24,640 » Yeah. >> And um 275 00:21:22,960 --> 00:21:28,960 » fourth through six class. Four through six class. Go ahead. 276 00:21:25,600 --> 00:21:32,799 » Yep. And so we um >> so we don't know what that final goal 277 00:21:31,039 --> 00:21:36,400 » and it does seem like a lot. I think $12 million sounds like a huge ask if we're 278 00:21:34,880 --> 00:21:40,159 ask if that's half of the amount of all the counties that are asking but I also 279 00:21:38,240 --> 00:21:45,360 think it shows a need and that's the purpose in a way is collecting that data 280 00:21:42,799 --> 00:21:49,679 to say what is the tourism cost in these >> in this grant application. Are we 281 00:21:47,039 --> 00:21:54,720 clearly stating that this is this is the need not the ask? There's it's broken 282 00:21:52,240 --> 00:21:59,039 down like into two buckets, right? So bucket one is your uh emergency cost, 283 00:21:57,679 --> 00:22:04,880 right? And so those are going to be prioritized first, but every county will 284 00:22:01,919 --> 00:22:09,280 have basically their emergency cost in bucket one. Ours comes to about 1.2 285 00:22:07,679 --> 00:22:15,440 million on that bucket. Okay. >> Okay. So from that they will go and they 286 00:22:11,919 --> 00:22:19,840 will say okay uh Grant County has 1.2. The other I don't know 20 counties that 287 00:22:17,760 --> 00:22:24,400 are possibly available for this, right? they have these these funds when they're 288 00:22:21,919 --> 00:22:29,760 when they're deciding who gets priority on that. They'll start with the smaller 289 00:22:26,400 --> 00:22:33,280 communities go first. Number two will be uh uh and so then they'll come up with 290 00:22:31,440 --> 00:22:37,440 all the smaller communities and then the second thing that they'll say is okay 291 00:22:34,799 --> 00:22:41,280 who had the largest amount of tourism, right? And so those those numbers are 292 00:22:39,120 --> 00:22:46,000 asked inside of here. So we'll put the uh visitation numbers and the uh uh uh 293 00:22:43,840 --> 00:22:50,400 the needs inside there next. Right? So that's number two on the criteria. And 294 00:22:48,080 --> 00:22:54,960 then if there's still, you know, more demand than there are funds available, 295 00:22:53,039 --> 00:22:59,360 they'll look at, hey, whose financial need was unable to meet their mitigation 296 00:22:57,520 --> 00:23:03,200 costs. And so that's why when I saying at the beginning of the meeting, we just 297 00:23:00,720 --> 00:23:09,360 want to make sure that we highlight the fact that this year we did put $1.5 298 00:23:05,760 --> 00:23:14,799 million more than previous years, right, into essential services than we had done 299 00:23:12,080 --> 00:23:18,640 in, you know, in in in the years past, right? So that also shows that there is 300 00:23:16,559 --> 00:23:22,960 that financial need right there. And then the rest of it, that bucket too, 301 00:23:20,960 --> 00:23:27,200 right? It's it's it's going to be huge because it's all kinds of things, road 302 00:23:24,960 --> 00:23:31,200 repair, solid waste, all of these other things for these other counties. That 303 00:23:28,400 --> 00:23:34,559 that that bucket is going to be large, right? But it will be broken down into 304 00:23:32,880 --> 00:23:39,919 those two, you know, visitor related safety cost and then just visitor cost. 305 00:23:38,720 --> 00:23:43,600 » It's almost Yeah, it's almost time to wrap up the meeting. We have an 11 306 00:23:41,200 --> 00:23:47,440 o'clock, but Okay. Yes. But um I think we make sure the MTAB has we'll go to 307 00:23:45,600 --> 00:23:50,799 Stephen next after you've make sure MTAB has the information that you 308 00:23:49,440 --> 00:23:55,600 » and just very quickly I don't know if it's applicable anywhere in the 309 00:23:52,559 --> 00:24:01,440 application but to mention um how the percentage of of CRT that Grant County 310 00:23:58,640 --> 00:24:04,320 brings in is far greater than any of the uh counties will probably be competing 311 00:24:03,280 --> 00:24:07,520 with. So I don't know if that's something that is relevant or we can put 312 00:24:06,880 --> 00:24:10,880 into the >> That's what I was going to ask like is 313 00:24:08,880 --> 00:24:16,640 is there like a formula like you put X amount in are you subject to get X 314 00:24:14,000 --> 00:24:20,559 amount out because of that percentage or >> I think that's why there's priority two 315 00:24:18,720 --> 00:24:26,320 inside there but yeah I mean so you know we [clears throat] could sit and do the 316 00:24:21,679 --> 00:24:30,640 math it's a 0.25% tax right we roughly are are budgeting right around 10 317 00:24:28,240 --> 00:24:36,240 million we're budgeting right around 10 million bucks this year in TRT. Okay. 318 00:24:33,440 --> 00:24:40,320 And then and 33% of that is going into this grant. So I mean we can tell we can 319 00:24:38,400 --> 00:24:42,720 find out exactly what we put into this grant. Right. 320 00:24:41,200 --> 00:24:44,880 » Right. And and hopefully we're getting that plus. Yeah. 321 00:24:44,000 --> 00:24:48,159 » Right. >> If we go over $10 million we aren't we 322 00:24:46,960 --> 00:24:50,320 don't get to qualify for this grant though. Right. 323 00:24:49,360 --> 00:24:54,000 » Correct. >> Yeah. 324 00:24:50,799 --> 00:24:58,240 » So if our goes up then we would be excluded. And I did and I did do the 325 00:24:56,799 --> 00:25:02,640 math actually on that as well if you're interested which is it's it's a it's a 326 00:25:00,559 --> 00:25:06,960 from 10 million to 12 million. That's where the delta is if and I and I 327 00:25:04,559 --> 00:25:11,520 actually use the 1.2 million right there as far as you know. So between 10 328 00:25:09,440 --> 00:25:17,200 million and 12 million is where that delta is at 12 million basically in TRT. 329 00:25:14,720 --> 00:25:20,360 Yeah. Then we once again start positive on that. 330 00:25:22,640 --> 00:25:28,240 » Okay. Did Chantel did you have a number? No. 331 00:25:27,120 --> 00:25:33,200 » Okay. [laughter] Okay. 332 00:25:30,320 --> 00:25:35,919 » Just just an inquiry. Do we know what percentage and this may be something 333 00:25:34,480 --> 00:25:40,400 that you guys could talk about what percentage of the total pool that we're 334 00:25:38,480 --> 00:25:45,520 pulling from >> is generated by the county by county. 335 00:25:46,000 --> 00:25:50,960 Once we have that value, I do think that would be an important thing to add to 336 00:25:49,039 --> 00:25:54,240 the letter and say Marian County generates X percentage of it just to 337 00:25:52,640 --> 00:25:57,520 call it out. Not that that makes us entitled to it, but it does 338 00:25:56,240 --> 00:26:01,679 » just points that >> I would hope that that's that board has 339 00:26:00,240 --> 00:26:04,679 well when the board's making those decision 340 00:26:07,120 --> 00:26:13,760 » but I need to learn. Ask Andy all about it whenever he 341 00:26:11,760 --> 00:26:15,919 » It's a quarter% for people. 342 00:26:14,559 --> 00:26:18,919 » Yeah. >> 10,250,000. 343 00:26:19,039 --> 00:26:24,640 » 250,000. So 344 00:26:21,919 --> 00:26:27,600 » then we don't want to figure it out. >> That's all we got. 345 00:26:26,559 --> 00:26:30,480 » Okay. >> All right. 346 00:26:28,000 --> 00:26:33,480 » Thank you. And then just in terms of whatever 347 00:26:34,320 --> 00:26:38,159 we have to move, don't we have? >> Yeah, we're gonna move. So, we're going 348 00:26:36,480 --> 00:26:41,679 to take a short recess and we're going to Are we going to do a motion? 349 00:26:40,240 --> 00:26:43,840 » No, we don't do a motion this meeting. This is a workshop. 350 00:26:43,360 --> 00:26:46,960 » Oh, okay. >> We'll do a motion in our meeting. We're 351 00:26:45,440 --> 00:26:51,400 going to move into moving the letter in our meeting. 352 00:26:48,159 --> 00:26:51,400 » Oh, okay. 353 00:26:51,919 --> 00:26:55,320 » Break down tables. 354 00:26:56,799 --> 00:26:59,799 » What? 355 00:29:47,279 --> 00:29:55,279 I'd like to call the special meeting of the Grand County Commission to order at 356 00:29:50,960 --> 00:30:00,120 11:03 on August 27th. And with that, I would like to stand for the pledge of 357 00:29:57,120 --> 00:30:00,120 allegiance. 358 00:30:02,399 --> 00:30:11,200 to the flag of the United States of America and to the republic for it 359 00:30:07,200 --> 00:30:15,720 stands one nation under God indivisible with liberty and justice for all 360 00:30:16,320 --> 00:30:22,640 » and those in attendance today are commission commissioner man commissioner 361 00:30:20,399 --> 00:30:27,600 mccertie commissioner bill myself commissioner mas our county attorney 362 00:30:25,520 --> 00:30:33,320 Stephen Sts County administrator Mark Tanner our assistant deputy categor. 363 00:30:35,279 --> 00:30:40,600 And with that, we'll get to 364 00:30:43,919 --> 00:30:52,120 So, our first order of business today is um commission members disclosures and 365 00:30:48,799 --> 00:30:52,120 future considerations. 366 00:31:19,120 --> 00:31:26,080 Okay, Mike >> disclosure for the sheriff's department. 367 00:31:23,120 --> 00:31:31,039 » My son works for uh SP. >> Okay, thank you. And moving on to number 368 00:31:29,200 --> 00:31:35,039 three is the consideration of approval of the outdoor recreation mitigation 369 00:31:32,640 --> 00:31:40,320 grant application. We just had a workshop with the MTAB as we discussed 370 00:31:38,080 --> 00:31:44,559 this grant. Does anyone have any more comments about 371 00:31:41,760 --> 00:31:48,320 it? >> Yeah, I just like to see if we there was 372 00:31:46,240 --> 00:31:56,640 a way that we could add in a statement that you know uh um for the 2025 budget 373 00:31:52,880 --> 00:32:03,240 um that we did allocate all of our TRT mitigation towards essential services as 374 00:31:59,519 --> 00:32:03,240 well as our TRCC 375 00:32:03,360 --> 00:32:09,039 I'm going to enter the letter. >> Correct. Yeah. 376 00:32:06,320 --> 00:32:13,440 » Okay. You can make a motion to that. >> I can 377 00:32:10,480 --> 00:32:19,679 » I move to approve submission of the OMG grant application as presented with the 378 00:32:16,960 --> 00:32:25,360 addition of Commissioner Martinez's comments. How does that work? Perfect. 379 00:32:24,480 --> 00:32:31,320 » That was Chief. >> Okay. Second by Mike. 380 00:32:27,679 --> 00:32:31,320 Any other discussion? 381 00:32:33,200 --> 00:32:36,519 All in favor 382 00:32:36,799 --> 00:32:44,480 that passes. Five2 absent. 383 00:32:42,240 --> 00:32:50,080 Moving on to number four is a consideration of our 2025 financial 384 00:32:47,200 --> 00:32:55,519 audit results. I believe we have our auditor here with us and oh we have Gabe 385 00:32:52,880 --> 00:33:02,720 as well. Our code auditor that joined us. Gabe White Tech. Thank you. 386 00:32:58,559 --> 00:33:09,039 What do we want to start with this one? Richie May, do you want to 387 00:33:06,720 --> 00:33:13,039 Mike introduce yourself? >> Okay. Hi, my name is Mike Whipple. I'm a 388 00:33:10,799 --> 00:33:17,279 director with Richie May and and been involved, you know, throughout the audit 389 00:33:15,120 --> 00:33:20,080 process this year for Grand County. And if you're okay with that, I'll go 390 00:33:18,480 --> 00:33:24,240 through some highlevel points to the financial statements. and then you know 391 00:33:22,720 --> 00:33:27,679 feel free to interrupt me at any time with you know more detailed questions 392 00:33:25,840 --> 00:33:31,960 and we can and see where our discussion leads us if that's okay with you. 393 00:33:32,320 --> 00:33:38,720 » Okay, wonderful. Okay, I'm going to open up on my open on my screen here a copy 394 00:33:36,720 --> 00:33:43,600 of the PDF that we emailed out last night that reflected updates after the 395 00:33:42,159 --> 00:33:47,440 you know a couple of minor corrections after the audit committee went through 396 00:33:45,679 --> 00:33:50,960 the financials yesterday and we appreciate their input there and may 397 00:33:49,120 --> 00:33:55,519 also say you know really appreciate you know Gabe and his team and all that the 398 00:33:53,360 --> 00:33:58,960 work and time and you know effort took to respond to all requests and questions 399 00:33:57,120 --> 00:34:02,480 as we go through the audit. It's a it is a rigorous pro process and we appreciate 400 00:34:00,799 --> 00:34:07,039 all their help and and want to acknowledge that. 401 00:34:05,120 --> 00:34:11,520 So going to financials to hit you know the highest level points first you know 402 00:34:08,960 --> 00:34:17,520 I'm going to go to page five of the PDF which is the independent auditor's 403 00:34:13,919 --> 00:34:21,200 report you know which is um the I mean the really after after all the work and 404 00:34:19,679 --> 00:34:26,240 effort this I mean this is kind of the end result of of it all you know and 405 00:34:23,679 --> 00:34:31,520 this is you the wording here is pretty is mostly standard for for a government 406 00:34:28,320 --> 00:34:35,119 and reflects a clean audit opinion again that's a you know great job to everyone 407 00:34:33,280 --> 00:34:38,960 that's a you going through and answering all our 408 00:34:36,240 --> 00:34:42,000 questions and getting there and having everything in a state where we can get 409 00:34:40,399 --> 00:34:47,520 get comfortable, you know, with the books and get a clean opinion there. One 410 00:34:45,040 --> 00:34:51,119 item to call out that's, you know, not standard wording is on page at the 411 00:34:49,119 --> 00:34:56,399 bottom of page five, we've emphasis of the matter and we and in in the course 412 00:34:54,399 --> 00:35:00,240 of our audit, we looked at, you know, a liability on your books for some 413 00:34:58,000 --> 00:35:04,000 deferred revenue. So, an old COVID era grant that been there for a few years. 414 00:35:02,640 --> 00:35:08,720 As we look through the grant, look through the requirements of the grant, 415 00:35:05,680 --> 00:35:12,400 looked through the, you know, the rules to recognize revenue for that grant, we 416 00:35:11,040 --> 00:35:15,680 determined that it should have been recognized as revenue in a previous 417 00:35:13,760 --> 00:35:20,400 year. And so these financials have been updated to reflect as if that grant had 418 00:35:18,240 --> 00:35:26,720 been recognized in revenue prior to the 2025, you know, year. And so that didn't 419 00:35:24,560 --> 00:35:32,160 affect net income this year. It did affect your, you know, beginning net 420 00:35:29,520 --> 00:35:34,960 position on the balance sheet. And there there are other parts of financials that 421 00:35:33,599 --> 00:35:39,200 refer to this. So we can discuss it more now. We can discuss it more later as I 422 00:35:37,119 --> 00:35:45,119 you know come to those sections too if if desired. 423 00:35:41,680 --> 00:35:53,800 » Um are you able to discuss that now? >> I'd be happy to. 424 00:35:47,760 --> 00:35:53,800 » Okay. So that I think I'm going to go to 425 00:35:55,200 --> 00:36:03,680 let's I mean I guess there's not a whole lot more to what to say there other than 426 00:36:00,640 --> 00:36:09,599 it I mean it was well let's see I'm going to go to page 20 actually or no 427 00:36:06,640 --> 00:36:14,400 page 21 excuse me. So page 21 that has the amount there. It was about it was 428 00:36:10,960 --> 00:36:18,320 about $6 million and in a in a past year it had been received and got gone to 429 00:36:16,640 --> 00:36:22,000 your you received the cash and so that increased your cash account and the 430 00:36:20,240 --> 00:36:25,839 offset was to a liability you know called unearned re revenue where where 431 00:36:23,839 --> 00:36:30,240 it will sit where it would sit until it was recognized into revenue. And this 432 00:36:28,400 --> 00:36:34,800 particular grant, you know, we looked at the requirements and there's nothing 433 00:36:32,320 --> 00:36:39,359 that said that you need to wait, you know, for to for you to spend it for you 434 00:36:37,440 --> 00:36:44,960 to recognize that revenue. And so that that was an error in a past year that 435 00:36:41,040 --> 00:36:48,960 that wasn't caught that, you know, we >> money was to be spent. 436 00:36:47,839 --> 00:36:50,880 » Sorry, could you repeat your question, please, Commissioner? 437 00:36:50,320 --> 00:36:54,800 » Microphone. >> Use microphones. 438 00:36:51,839 --> 00:36:58,240 » Oh, yep. Thanks, Mike. Can you go over the requirements of how that money was 439 00:36:56,640 --> 00:37:02,079 to be spent? I wasn't a commissioner when uh back in COVID when this was 440 00:37:00,560 --> 00:37:05,359 awarded. >> Okay. Yeah, I'd be happy to. Brandon, 441 00:37:03,680 --> 00:37:08,400 would you I see Brandon Kais from my office is also join us. Brandon, would 442 00:37:06,640 --> 00:37:12,320 you be okay to speak to the, you know, purpose of that grant, you know, that 443 00:37:10,480 --> 00:37:18,720 had the restatement on the 2025 financial statements. 444 00:37:14,960 --> 00:37:22,560 » Um [clears throat] yeah, so I I reviewed it high level, but I the one who 445 00:37:20,079 --> 00:37:28,000 reviewed it is not with us right now. uh he's on PTO but my understanding is it's 446 00:37:25,040 --> 00:37:34,960 a co relief grant that when the funds were brought in uh back in 22 23 there 447 00:37:32,800 --> 00:37:40,720 are different tranches of it uh meant for um just to continue to help with 448 00:37:38,320 --> 00:37:45,839 some of the efforts on co uh during that time frame. Uh so we saw the money come 449 00:37:43,440 --> 00:37:50,480 in uh we believe the money had been earned because of the triggering 450 00:37:47,119 --> 00:37:54,160 requirements in that grant. Um, but if you if we need to get to further 451 00:37:51,520 --> 00:37:57,359 details, I can maybe get you a a better synopsis of that maybe after this 452 00:37:56,240 --> 00:38:02,920 meeting where where they were actually spent uh because that that individual 453 00:37:59,359 --> 00:38:02,920 would have that information. 454 00:38:03,119 --> 00:38:14,160 » Yesterday you made a statement that um the county uh uh uh deferred to 20 uh uh 455 00:38:10,800 --> 00:38:19,359 the funds from 24 to 25. Um would that have been done in 24? because as a 456 00:38:16,480 --> 00:38:23,359 commissioner I never deferred funds from 24 to 25. And so I just want to know 457 00:38:21,599 --> 00:38:27,040 where that decision was made or who made that decision. And when you say the 458 00:38:24,960 --> 00:38:30,280 county, I I I imagine you're speaking to this body. 459 00:38:31,200 --> 00:38:37,680 Uh I we know that it was deferred in 2024. 460 00:38:35,839 --> 00:38:41,359 I believe it was deferred prior to that as well, though. Uh if you want to give 461 00:38:39,280 --> 00:38:44,960 me just one minute, I can quickly check that for you. 462 00:38:43,599 --> 00:38:50,720 And I guess part of what was brought up yesterday when we were discussing it, we 463 00:38:47,520 --> 00:38:54,240 you know we as as auditors required to reach out whenever we have a restatement 464 00:38:52,480 --> 00:38:57,839 to reach out to the predecessor auditor which in this case was Larson company 465 00:38:55,839 --> 00:39:04,960 and bring to their attention you know the you know our reasons for wanting to 466 00:39:00,640 --> 00:39:09,040 restate and you know and getting their I mean sort of getting their input on it 467 00:39:07,280 --> 00:39:12,400 and you know I don't think he intended it to be necessarily read out loud word 468 00:39:10,800 --> 00:39:15,920 for word. We did communicate with John Hatterley who who led the audit last 469 00:39:14,400 --> 00:39:20,720 year and brought this to his attention and brought our reasons for restating 470 00:39:18,560 --> 00:39:25,599 and his comment was that he agreed on the the recognition and and restatement. 471 00:39:23,280 --> 00:39:30,960 you know, he his documentation indicated that indicated that the county preferred 472 00:39:28,560 --> 00:39:37,760 to defer until 2025 when they spent the funds to rec recognize it and but he 473 00:39:35,760 --> 00:39:41,440 didn't have more detail on that and I guess at this time I don't have more 474 00:39:39,200 --> 00:39:46,480 detail on the reason why there was a preference at a time to defer it but 475 00:39:44,079 --> 00:39:51,119 that didn't jive with the accounting rules that you know govern 476 00:39:49,200 --> 00:39:57,400 » with this commission right here the uh statement yesterday from for Mr. happily 477 00:39:53,280 --> 00:39:57,400 was I should have caught this. 478 00:39:57,680 --> 00:40:07,359 » The the [clears throat] LA CTF funds, I might have that 479 00:40:04,320 --> 00:40:13,119 abbreviation incorrect, were 22 and 23 funds and they were identified my first 480 00:40:11,440 --> 00:40:17,119 year as a commissioner that they had come in the first year of those had come 481 00:40:15,040 --> 00:40:22,160 into the county and the second year was getting ready to and this came about 482 00:40:18,960 --> 00:40:26,079 from some work by some senators. I believe it started in Montana and then 483 00:40:24,240 --> 00:40:32,240 of course went to the federal level and this money came back. So I guess I'm a 484 00:40:28,480 --> 00:40:38,800 little curious. We received that money the it came in split in two years half 485 00:40:35,520 --> 00:40:44,960 and half. So basically 2.5 million one year and 2.5 the next year would have 486 00:40:42,000 --> 00:40:51,119 been 2023. Why we're clear pushing receiving that money into 20. 487 00:40:49,040 --> 00:40:56,160 So I don't think we need to delve into that. right now, but I think it needs 488 00:40:52,960 --> 00:41:01,760 looked into why that's getting pushed two plus years down the road to where 489 00:40:59,119 --> 00:41:06,720 we're um accepting or or showing that that revenue came in. It seems uh 490 00:41:04,640 --> 00:41:10,520 something seems a little bit off there to me. So, 491 00:41:11,343 --> 00:41:16,640 [clears throat] and I did look at the reporting. It 492 00:41:14,560 --> 00:41:24,960 looks like this first was reported back in the December 31st, 2023 financials 493 00:41:21,680 --> 00:41:28,319 and so it was there for 23 there for 24 and our conclusion was that it should 494 00:41:26,240 --> 00:41:31,319 have been recognized prior to that. >> Yeah. 495 00:41:35,920 --> 00:41:41,599 » Brian, did you do your answers on that one move along? 496 00:41:39,920 --> 00:41:46,599 » Yeah. Yeah, we can we we can continue on unless you guys have anything else you'd 497 00:41:43,040 --> 00:41:46,599 like to say about that. 498 00:41:46,800 --> 00:41:52,960 » Okay. I I don't have any more detail at this time. So, I will I will move 499 00:41:50,800 --> 00:41:57,680 forward and Okay. So, the 500 00:41:56,000 --> 00:42:00,720 I think that covers the audit opinion there which you know reflects your 501 00:41:58,960 --> 00:42:04,800 financial statement audit the additional compliance testing over the federal 502 00:42:02,880 --> 00:42:11,280 funds received you know chiefly for the airport and that's so that's the clean 503 00:42:07,839 --> 00:42:14,960 opinion there. I'm going to jump ahead quite a few pages. I'm going to jump 504 00:42:13,119 --> 00:42:21,680 ahead to page 505 00:42:18,319 --> 00:42:26,240 90 to and as you're you know our audit report has several I mean several 506 00:42:23,359 --> 00:42:30,319 opinion reports in it. Page 90 is our report on intro control over financial 507 00:42:28,720 --> 00:42:34,160 reporting and on compliance and other matters you know based on audit in 508 00:42:32,560 --> 00:42:37,839 accordance with government auditing standards. So this is an extra report 509 00:42:35,680 --> 00:42:43,040 required for you know government audits and and similar audits. So this one goes 510 00:42:40,800 --> 00:42:47,520 through um you know if we identified any issues 511 00:42:46,000 --> 00:42:53,760 with internal control over compliance over internal control generally for 512 00:42:49,520 --> 00:42:58,560 financial reporting and and it defines a few words in there that you know it 513 00:42:56,720 --> 00:43:03,599 calls one and the one it defines is material weakness which is you know some 514 00:43:00,960 --> 00:43:06,800 kind of you know breakdown in process or where you know something material to 515 00:43:05,280 --> 00:43:11,599 financials which material means big enough that it could you know affect 516 00:43:09,119 --> 00:43:16,720 financial statement. users decisions would you know would not you know 517 00:43:13,599 --> 00:43:22,640 prevent such an error in from happening or or being caught and corrected are the 518 00:43:19,920 --> 00:43:26,319 the key words there as far as you know material weaknesses or significant 519 00:43:24,400 --> 00:43:29,119 deficit deficiencies. We don't necessarily go looking for those as as 520 00:43:28,079 --> 00:43:32,640 part of your audit. do look at your internal controls and processes and 521 00:43:31,119 --> 00:43:38,560 consider what effect they will have on our you know our auditing our testing 522 00:43:35,119 --> 00:43:42,880 procedures and and adapt our testing pro procedure accordingly. And so in the 523 00:43:40,800 --> 00:43:47,200 course of the audit we found a couple matters that you know areas for 524 00:43:45,359 --> 00:43:51,760 improvement that were significant enough that we said okay these are you know 525 00:43:49,839 --> 00:43:55,280 these would be you know significant these would be material weaknesses and 526 00:43:54,000 --> 00:44:01,119 we reference them there but we don't define them further those get defined 527 00:43:57,440 --> 00:44:06,880 later on believe on page 98. So that's you not we didn't have any 528 00:44:04,880 --> 00:44:11,839 issues with compliance and I'll get more into compliance in a second. So I could 529 00:44:09,599 --> 00:44:16,160 talk about those you know deficiencies now now if you would like or I can go 530 00:44:14,640 --> 00:44:21,280 through them linearly if you you know what would be your pre preference or how 531 00:44:17,680 --> 00:44:24,480 I I shall pro proceed here. >> Uh Mr. Whipple do you mind if I just 532 00:44:22,960 --> 00:44:27,520 just make a clarification? I just want to make sure that I that I got that 533 00:44:25,680 --> 00:44:32,079 correct of what you just stated. So there are there are two deficiencies 534 00:44:30,079 --> 00:44:37,920 basically. There's significant deficiency which is basically what it 535 00:44:34,720 --> 00:44:43,359 sounds like and then there is material weakness 536 00:44:39,520 --> 00:44:46,880 and material weakness is worse than a significant deficiency. Is that correct? 537 00:44:45,760 --> 00:44:51,520 » Correct. >> Okay. And that the county has three of 538 00:44:49,280 --> 00:44:56,000 those those material weaknesses. >> That that is correct. 539 00:44:53,839 --> 00:45:02,400 And those were persistent through not just 25 but needed to be restated from 540 00:44:59,200 --> 00:45:06,880 24. So we Is that correct? >> The 24 2024 restatement did play into 541 00:45:04,880 --> 00:45:12,960 that. Yes. >> Okay. And so that was not the scope of 542 00:45:10,960 --> 00:45:17,839 this audit. Correct. That's these are just these were just these were just 543 00:45:14,560 --> 00:45:21,839 items that you ran into um during the course of conducting the audit for the 544 00:45:20,480 --> 00:45:24,480 state compliance and the federal compliance. Is that correct? Yes, that 545 00:45:23,520 --> 00:45:28,280 is correct. >> Okay, thank you very much. 546 00:45:33,760 --> 00:45:42,560 » Did you have any more to add, Michael? >> I I do. I just whether I wanted you want 547 00:45:40,079 --> 00:45:45,440 to I guess just what the order is we want to talk through things. I guess 548 00:45:43,839 --> 00:45:53,839 maybe I'll jump ahead since since we were on the topic. Let's jump to page 90 549 00:45:49,839 --> 00:45:59,040 99. Let's so let's talk about these and then I'll jump backwards in a second. 550 00:45:56,640 --> 00:46:04,640 Okay. So you know number one you know prior 551 00:46:00,720 --> 00:46:09,040 period statements. So part of our I mean as we go through the audit and I 552 00:46:06,720 --> 00:46:12,960 guess in auditing and accounting theory you know in theory you know the auditor 553 00:46:10,960 --> 00:46:16,560 should you know not never should find any misstatements you know they they 554 00:46:14,880 --> 00:46:20,079 should always be you know corrected and caught before they come to the auditor 555 00:46:18,000 --> 00:46:23,760 since we're outside of your organization. 556 00:46:21,599 --> 00:46:27,760 If you have small adjustments, you know, even those are, you know, those aren't 557 00:46:26,000 --> 00:46:32,880 rise to the level of these matters that we've discussed because many many 558 00:46:31,040 --> 00:46:38,560 governance clients, companies have have those kind small adjustments that are 559 00:46:36,000 --> 00:46:41,680 not as big a deal. The bigger they are, at some point they get big enough that 560 00:46:39,920 --> 00:46:44,560 we, you know, can't ignore them. You know, that, you know, they're just, we 561 00:46:43,280 --> 00:46:47,760 have to, we have to bring them to your attention. Have to bring them to your 562 00:46:45,599 --> 00:46:52,800 attention in writing. And so that's part of why these are, you know, why these 563 00:46:50,319 --> 00:46:55,520 are here. So that co co error money you know 6 million of that you know should 564 00:46:54,480 --> 00:46:59,839 have been recognized in the previous year but was but was not and I mean 565 00:46:57,760 --> 00:47:02,640 that's part of why that I mean that's just big enough you know it's material 566 00:47:01,280 --> 00:47:06,800 enough to your financial statements that it you know it that's material error and 567 00:47:05,359 --> 00:47:11,920 it wasn't caught so that's a material weakness you know by by definition and 568 00:47:09,599 --> 00:47:15,359 so that is that is just a little more color on finding number one there on 569 00:47:13,520 --> 00:47:19,839 page 99 and so we 99 breaks it down and goes 570 00:47:18,560 --> 00:47:24,640 through you know the required elements for finding for for government audit 571 00:47:21,520 --> 00:47:29,119 going through you know the criteria the condition that led to it what caused it 572 00:47:26,560 --> 00:47:31,760 the effect our recommendation and also includes an opportunity for for 573 00:47:30,480 --> 00:47:35,760 management to respond there and that's the last one that you know you know Gabe 574 00:47:34,160 --> 00:47:41,280 was able to give us yesterday and we incorporated the report there you has 575 00:47:38,160 --> 00:47:45,680 his you know you know his response and which you know sometimes the the 576 00:47:44,400 --> 00:47:49,119 management can respond say we we disagree with the auditor we disagree 577 00:47:46,960 --> 00:47:54,560 with this finding and this is why you know is an option to to respond and in 578 00:47:52,240 --> 00:47:58,480 this case that's you know Gabe did not you know give us that response so you 579 00:47:57,200 --> 00:48:04,960 acknowledge it here and you've got that there um so that I mean that's finding 580 00:48:02,560 --> 00:48:08,960 number one there you know questions or comments 581 00:48:06,480 --> 00:48:11,599 or >> I've got a question on three when you 582 00:48:10,640 --> 00:48:16,319 get those >> okay and just just still my original 583 00:48:14,079 --> 00:48:20,160 question of is is when you say that the county deferred that I still and and I 584 00:48:18,640 --> 00:48:24,400 understand that that's not in the scope of of this audit. I I can pass this off 585 00:48:22,720 --> 00:48:28,720 to the internal auditor as well. I just want to know who who made that decision 586 00:48:26,480 --> 00:48:30,800 to defer that off. Was that where that happened at 587 00:48:30,079 --> 00:48:35,280 » and [clears throat] I when I was watching the meeting yesterday, he did 588 00:48:32,559 --> 00:48:38,400 say our internal auditor was going was looking into this. 589 00:48:36,800 --> 00:48:43,520 » Yeah. >> On 71. I don't know if I don't know if 590 00:48:41,280 --> 00:48:46,480 that we on this finding right here. I don't know if we pushed this to the 591 00:48:44,720 --> 00:48:49,599 internal auditor or not. He said it was already in his scope when I watched it 592 00:48:48,480 --> 00:48:53,119 yesterday >> on on this finding. 593 00:48:50,960 --> 00:48:57,440 » Yeah. >> Um I mean I'll I'll read a little bit 594 00:48:55,200 --> 00:49:01,280 from John's email which again I I don't know if John you know Hatterly of 595 00:48:59,359 --> 00:49:06,079 Larsson intended his email to be read you know out loud word for word but as I 596 00:49:03,920 --> 00:49:09,760 that's my only source for the the answer here. You know his his comment was that 597 00:49:08,160 --> 00:49:13,680 conversations may have occurred between Squire and 598 00:49:11,760 --> 00:49:18,480 Gabe regarding different revenue but he is kind of vague. He wasn't sure on that 599 00:49:15,680 --> 00:49:24,760 one. So I I unfortunately can't give you more information at this time on, you 600 00:49:20,480 --> 00:49:24,760 know, why that decision was made. 601 00:49:27,680 --> 00:49:31,280 » Okay, you want to move on to the next one? 602 00:49:29,599 --> 00:49:34,960 » And just an important thing, Mike, from this right here that I did is, you know, 603 00:49:33,359 --> 00:49:41,440 the when I look at it, we've had to restate our financials in 2022. We had 604 00:49:38,480 --> 00:49:46,240 to restate our financials in 2023 and now we've had to restate our financials 605 00:49:43,280 --> 00:49:51,119 in 2024. And you know this was the historical data right here that you know 606 00:49:49,280 --> 00:49:56,880 this commission had to build the budget off of for our 2025 budget. 607 00:49:54,400 --> 00:50:00,319 » Okay noted and that's good context. Thank you. 608 00:49:58,720 --> 00:50:04,880 And maybe I'll just add one little piece to it and and I understand how 609 00:50:03,040 --> 00:50:09,520 frustrating that's got to be to have to go through these restatements and having 610 00:50:06,720 --> 00:50:14,880 to redo budgets and amend them. Uh, one thing to maybe consider going forward is 611 00:50:12,640 --> 00:50:19,920 this does impact your general fund budget. And there is a compliance 612 00:50:17,520 --> 00:50:24,160 finding that or not a finding, sorry, a compliance requirement 613 00:50:21,839 --> 00:50:29,680 uh that this could potentially cause a problem for next year's audit. um given 614 00:50:26,800 --> 00:50:33,359 that we've just added $5.7 million to your general fund budget. And so we got 615 00:50:32,079 --> 00:50:37,839 to make sure that we're paying attention to that and that's something I can talk 616 00:50:34,880 --> 00:50:41,440 to uh you know Gabe or whoever would like to on this audit committee maybe 617 00:50:39,280 --> 00:50:44,720 after this call uh just to make sure you're aware of like the ramifications 618 00:50:42,960 --> 00:50:48,400 could potentially come up as you guys are working through the budget for next 619 00:50:46,079 --> 00:50:51,359 year because that is a new fund balance number. So just wanted to make sure 620 00:50:50,079 --> 00:50:55,359 you're aware of that. something we're we're keeping an eye on and want to make 621 00:50:53,040 --> 00:50:59,920 sure we don't run into a a problem for next year's audit with that piece alone. 622 00:50:58,480 --> 00:51:03,160 » Yeah. Thanks for that, Randy. >> You're welcome. 623 00:51:04,319 --> 00:51:11,280 » Okay, I'll move on to, you know, finding number two, you know, 624 00:51:09,280 --> 00:51:14,280 regarding financial records and account reconciliations. 625 00:51:15,040 --> 00:51:20,559 Okay. Um, I want to start and say, you know, we 626 00:51:19,280 --> 00:51:24,240 really really are appreciative of Gabe and his team and all the effort, all the 627 00:51:22,400 --> 00:51:28,480 questions we had, you know, going through all our audit audit inquiries 628 00:51:26,079 --> 00:51:32,960 and all the work going there too. There were some challenges and they and they 629 00:51:31,200 --> 00:51:37,520 did add up over time. You know, there have been questions posed to us, you 630 00:51:35,760 --> 00:51:41,359 know, you know, by the audit committee and you know, why why did the audit take 631 00:51:39,760 --> 00:51:49,040 so long? You know, what challenges did your team face? And there's 632 00:51:45,040 --> 00:51:52,079 I mean we in this in our finding here kind of reflects that we went you know I 633 00:51:51,040 --> 00:51:56,160 guess let me tell you a little bit about how we audit you know we we get a copy 634 00:51:53,760 --> 00:52:01,040 of your trial balance you know every material balance requires some kind of 635 00:51:58,160 --> 00:52:04,720 audit procedure over it and we you know you know make our audit plan and then 636 00:52:02,400 --> 00:52:08,880 and then we audit it you know say you know an example I use is accounts 637 00:52:06,400 --> 00:52:12,880 receivable. Well what does an auditor do to audit accounts receivable? You know 638 00:52:10,880 --> 00:52:17,200 the first step is ask for you know a schedule showing all those accounts 639 00:52:15,119 --> 00:52:20,640 receivable owed to the county. This is all money that you are owed. And the the 640 00:52:19,520 --> 00:52:24,000 very first thing we do with that schedule is we see does it tie to the 641 00:52:22,720 --> 00:52:28,720 trial balance. Does it tie to the accounts that we are auditing? And if it 642 00:52:26,319 --> 00:52:34,319 does not then that presents a problem because we just I mean I still don't 643 00:52:31,359 --> 00:52:38,800 know how to it's you know if it doesn't tie and it doesn't tie by a lot it's not 644 00:52:36,559 --> 00:52:42,640 auditable. And so then okay well now what do we do? So that you know Gab and 645 00:52:41,359 --> 00:52:46,480 team had to work with Cassell on that one. That one was a software issue where 646 00:52:44,800 --> 00:52:50,880 Cassell was doing some strange things with applying deposits 647 00:52:49,040 --> 00:52:54,720 and so that you know accounts receivable was way different than the bounces on 648 00:52:52,559 --> 00:52:58,160 the books and after some back and forth and some time passing you know Gab and 649 00:52:56,880 --> 00:53:02,800 his team were able to resolve with Cassell and we were able to get a 650 00:53:00,079 --> 00:53:06,880 schedule that you know in tithe and we were able to audit that and get 651 00:53:04,160 --> 00:53:12,880 comfortable with that. I mean that's I mean one example and all that you know 652 00:53:08,720 --> 00:53:16,319 took time took extra effort and you know you know when we come in there and just 653 00:53:14,240 --> 00:53:21,760 the first pass you know the schedule wasn't time you know is a problem and as 654 00:53:19,440 --> 00:53:26,880 we as we went through all the audit areas it seems like we'd have kind of 655 00:53:23,520 --> 00:53:32,960 similar analogous challenges with almost every audit area that we looked into 656 00:53:29,200 --> 00:53:38,800 whether is cash or fixed assets compensated absences 657 00:53:35,280 --> 00:53:42,160 and um debt. I'm not sure that we found an area that we just said yet. Yeah, 658 00:53:40,800 --> 00:53:45,839 everything clicked here. Went through cleanly, went through here quick. So 659 00:53:44,480 --> 00:53:49,599 there, you know, there was a lot of back and forth, a lot of, you know, research 660 00:53:48,000 --> 00:53:54,319 by Gabe and his team as to, you know, why things were not tying and how to get 661 00:53:51,839 --> 00:53:58,079 there. And so the I mean the aggregate of all this is that you know the the way 662 00:53:56,480 --> 00:54:02,240 we look at things when we're tying out the balances to sporting schedules 663 00:53:59,839 --> 00:54:07,280 doesn't you know the way things are being reconciled it wasn't you know 664 00:54:04,240 --> 00:54:11,119 wasn't in in a good form to make it a you know an easy clean way to work 665 00:54:09,200 --> 00:54:17,440 through the through each audit area. We got there and we got there at by the end 666 00:54:14,240 --> 00:54:21,040 you know by now and but it it was it was a challenge and it did add a lot of 667 00:54:19,680 --> 00:54:26,559 extra time and work there and so that's where we have a kind of fairly broad you 668 00:54:24,800 --> 00:54:30,640 know material weakness there about how you know the reconciling of the the 669 00:54:29,040 --> 00:54:36,240 period in accounts worked and all the the tying the schedules to period end 670 00:54:32,319 --> 00:54:39,680 balances all worked and I'll open that up for questions. 671 00:54:46,000 --> 00:54:52,000 Move on to number three. >> Just one quick question. And was this it 672 00:54:49,119 --> 00:54:56,960 says significant the uh uh significant uh effort was placed in this portion. 673 00:54:54,559 --> 00:55:02,160 Was it significant or the majority of your guys' time that was what that was 674 00:54:58,960 --> 00:55:04,640 dealing with uh um reconciliations? I mean I think that you mentioned 675 00:55:03,200 --> 00:55:07,359 yesterday I mean that went down all the way down to cash balances. Is that 676 00:55:06,559 --> 00:55:13,359 correct? >> That is correct. Yes. Yeah. That this 677 00:55:10,480 --> 00:55:17,119 would be this was yeah this significance is good work. This is a lot of this was 678 00:55:15,280 --> 00:55:21,359 a lot of extra work we did not originally envision as we you know you 679 00:55:19,280 --> 00:55:25,520 know bid on your audit last fall and and were brought on you know on boarded as 680 00:55:23,280 --> 00:55:29,119 your as your new auditor. So this was you know beyond above and beyond the the 681 00:55:27,359 --> 00:55:33,920 normal scope of you know financial statement audit that we did not 682 00:55:31,280 --> 00:55:38,160 originally anticipate. and and and I do once again appreciate 683 00:55:35,839 --> 00:55:42,480 Brandon's comments yesterday um in the audit meeting on uh how we'll be moving 684 00:55:40,640 --> 00:55:47,319 forward next year and so that those were appreciated. 685 00:55:43,920 --> 00:55:47,319 » Oh, thank you. 686 00:55:49,119 --> 00:55:56,960 » Finding three. >> Yeah, moving forward. So, finding number 687 00:55:54,160 --> 00:55:59,760 three, there was a another restatement of sorts of on the financial statements. 688 00:55:59,533 --> 00:56:03,280 » [clears throat] >> So in the course of you know preparing 689 00:56:01,760 --> 00:56:07,040 and drafting the financial statements which also involved you know making sure 690 00:56:05,440 --> 00:56:13,359 things were consistent with prior year we became aware that there is a 691 00:56:08,960 --> 00:56:17,200 fiduciary fund fund number 71 which was you know not included at all in last 692 00:56:14,880 --> 00:56:21,839 year's financial statements. So it it has a balance about of about $8 million 693 00:56:20,319 --> 00:56:26,400 you know in cash and assets and a balance of about $8 million in 694 00:56:23,280 --> 00:56:30,400 liabilities. So on on the one hand, omitting it fun from the financials had 695 00:56:28,079 --> 00:56:36,240 no effect on last year's net position or net income, but it is something that's 696 00:56:32,960 --> 00:56:40,240 required to be included and and was not there at all last year. And and we we 697 00:56:38,480 --> 00:56:45,760 corresponded with with John Hatterley Larson about it and he agreed that it 698 00:56:42,559 --> 00:56:50,640 should have been there and it was its omission wasn't oversight, but it was, 699 00:56:48,000 --> 00:56:54,720 you know, never caught, you know, at any stage. And so this is that's another 700 00:56:52,559 --> 00:56:59,200 material weakness to have a you know an $8 million fund which is on the books. 701 00:56:56,960 --> 00:57:02,160 It's on the trial balance but it was not included in the financial state the 702 00:57:00,799 --> 00:57:07,520 final financial statements from last year and so that 703 00:57:04,559 --> 00:57:12,319 » material weakness here and I'll open up for questions. 704 00:57:09,839 --> 00:57:18,079 I've got a question unless I'm stepping on somebody else's toe. Under condition 705 00:57:15,680 --> 00:57:23,280 the second sentence it says county personnel. Is that a mistake? Should 706 00:57:20,400 --> 00:57:27,760 that be the clerk auditor or are county personnel? 707 00:57:25,599 --> 00:57:33,280 What what what's the explanation there is what I'm looking for. 708 00:57:31,200 --> 00:57:38,160 » Um I mean, you know, Gabe was the our lead 709 00:57:36,559 --> 00:57:41,599 contact and our our questions went through Gabe and so on the one hand you 710 00:57:39,920 --> 00:57:47,200 probably could the statement I think would be correct who said county clerk 711 00:57:43,680 --> 00:57:52,280 you know you describing it. Um, actually I don't remember or let me Sorry, let me 712 00:57:52,480 --> 00:57:58,240 I mean we talked a lot with Gabe about this. I can't remember if the treasurer 713 00:57:55,520 --> 00:58:02,079 brought this up or not. No, I'm sorry. I'm mixing up things. I mean, so I mean 714 00:58:00,240 --> 00:58:06,079 we disc we discussed with Gabe, so we could putting, you know, county clerk 715 00:58:03,839 --> 00:58:10,160 and that would be a correct sentence. I mean, I guess in my mind as I read that 716 00:58:08,960 --> 00:58:15,839 sentence, county clerk and county personnel would be fairly synonymous. I 717 00:58:13,520 --> 00:58:18,880 mean, we could we could I mean, we change we could change that if you 718 00:58:17,040 --> 00:58:23,520 liked. >> It it isn't something whether I like or 719 00:58:21,359 --> 00:58:30,400 not. I was just curious if county personnel were involved in this. My my 720 00:58:26,640 --> 00:58:34,720 concern is that we're going back and saying that Mr. Hatterley's admitted 721 00:58:32,640 --> 00:58:39,760 that he should have had this in last year's audit. 722 00:58:36,799 --> 00:58:45,520 And I know that we asked the internal auditor to look into how long this fund 723 00:58:43,200 --> 00:58:50,960 has been in existence. So it could be that it should have been in the previous 724 00:58:48,480 --> 00:58:57,920 three years audits. And also it's never been on a budget 725 00:58:55,599 --> 00:59:03,440 that I've worked on that I'm aware of. So I I don't think that it's just that 726 00:59:00,720 --> 00:59:08,799 Mr. Hatterly missed this. There's clearly an issue that this fund 71 727 00:59:06,000 --> 00:59:12,720 hasn't been public to the commission and that funds have gone through it. Now, 728 00:59:10,480 --> 00:59:18,799 I'm not saying that funds have been misused through it, but 729 00:59:16,720 --> 00:59:22,799 I'm hoping this is the only one and that we found it and that it's out now for 730 00:59:20,799 --> 00:59:29,240 the commission to work on. But it it seems a little bit odd to me, I guess, 731 00:59:25,200 --> 00:59:29,240 is where I'm coming from, 732 00:59:30,480 --> 00:59:36,079 » right? >> Yeah. and just, you know, one by one, I 733 00:59:34,000 --> 00:59:39,839 think I understand them. But, you know, to me, it's the the the difficulty and 734 00:59:38,079 --> 00:59:44,160 and I just applaud you guys for for finding this and then bringing this out 735 00:59:41,760 --> 00:59:48,079 into the open. It's it's the way that the whole system plays together, right? 736 00:59:46,319 --> 00:59:53,599 It's the environment that that's created inside of it. Um, you know, you have you 737 00:59:51,119 --> 01:00:01,520 have 5.7 million dollars that's been floating around since COVID. Um you have 738 00:59:57,040 --> 01:00:06,799 uh a lack of of uh of oversight on uh um reconciliations 739 01:00:03,280 --> 01:00:12,079 um especially as far as the process of how is it put inside there was like due 740 01:00:08,960 --> 01:00:17,280 to and due from right so the moving around of of money inside there and then 741 01:00:14,880 --> 01:00:22,240 we find out that there's a a fund that we never knew about that had $ 8.7 742 01:00:19,760 --> 01:00:28,559 million and I know that it's a custodial fund and that it is uh um you know and 743 01:00:25,920 --> 01:00:32,240 it nets out to zero but you know a custodial fund still means that this 744 01:00:30,400 --> 01:00:38,400 commission is responsible for those funds and so to not know about 8.7 745 01:00:35,359 --> 01:00:42,400 million an 8.7 million fund is concerning to me. So I I just want to 746 01:00:40,400 --> 01:00:45,760 thank you guys and appreciate you for bringing this forward and and I'm sure 747 01:00:44,319 --> 01:00:50,960 that we'll be looking forward to some answers and some recommendations coming 748 01:00:48,000 --> 01:00:55,000 from our internal auditor on on uh some of the things that you've brought to 749 01:00:52,000 --> 01:00:55,000 light. 750 01:00:55,040 --> 01:00:58,440 pay for that. 751 01:01:01,760 --> 01:01:06,400 » Okay. So, you'd mentioned so we went forward into the findings and you wanted 752 01:01:04,799 --> 01:01:11,359 to go backwards somewhere else in the audit. 753 01:01:07,599 --> 01:01:16,559 » Yes. I'll go backwards to let's see. So, I'll go backwards to page 754 01:01:14,240 --> 01:01:20,480 92 now. So, I think we've addressed everything that was on page 90 91. Page 755 01:01:19,520 --> 01:01:24,720 92. >> Can I speak? 756 01:01:21,839 --> 01:01:28,720 » Yes. Chair, can I may I speak? Chair. >> Okay. 757 01:01:26,319 --> 01:01:33,599 » So, with with regards to custodial fund fund 71, um it feels to me like the 758 01:01:32,160 --> 01:01:38,160 conversation's really getting carried away as it relates to how it relates to 759 01:01:35,520 --> 01:01:42,720 the budget. I I appreciate the the desire to to sort of be aware of all of 760 01:01:40,640 --> 01:01:46,799 these funds that are coming in and out. Um but the custodial funds ju just to 761 01:01:45,200 --> 01:01:51,520 give I mean it it seems like we're not speaking directly as to what those funds 762 01:01:48,960 --> 01:01:56,240 are. And so th those are subdivision bonds held. Those are commissary funds 763 01:01:54,000 --> 01:02:00,960 that are held from the from jail inmates. I mean, let's talk about how we 764 01:01:59,200 --> 01:02:05,280 would budget for the amount of commissary funds we're holding from jail 765 01:02:03,200 --> 01:02:09,680 inmates. I mean, le let's talk in practical sense what we're actually 766 01:02:07,280 --> 01:02:14,559 talking about and not get carried away with this narrative about how this this 767 01:02:12,160 --> 01:02:19,359 is some sort of this is some sort of irresponsible budgeting practice. I I'm 768 01:02:17,359 --> 01:02:24,040 I'm a little bit confused about how this narrative is getting carried away. Thank 769 01:02:21,040 --> 01:02:24,040 you. 770 01:02:25,359 --> 01:02:30,960 » Thank I think it's just that it was not in the last year's budget or last year's 771 01:02:30,240 --> 01:02:34,240 audit report. >> Well, I I would ask that commissioners 772 01:02:32,400 --> 01:02:38,079 be a little bit more, you know, conscientious about how they're how 773 01:02:36,400 --> 01:02:42,680 they're choosing to speak about their own organizations books. Thank you. 774 01:02:43,200 --> 01:02:48,799 » Okay, so we're on page 92. Yes. 775 01:02:47,280 --> 01:02:54,160 » 92. >> So page 92. As part of our audit of your 776 01:02:52,480 --> 01:02:57,920 county, we're required to do certain procedures over compliance which are 777 01:02:56,480 --> 01:03:02,880 published by the state auditor. State auditor gives a a nice guide for all the 778 01:03:00,000 --> 01:03:06,160 audit firms to go through the various areas of compliance they want us to look 779 01:03:04,000 --> 01:03:09,920 at and even and even has suggested procedures to look at. And so this 780 01:03:08,160 --> 01:03:14,559 report is reporting on on the results of that testing. So we there's certain 781 01:03:12,799 --> 01:03:17,520 areas that we test every single year. we're required to test every year and 782 01:03:16,079 --> 01:03:20,799 there's certain areas we're you know required to test every three years and 783 01:03:19,359 --> 01:03:24,640 so we can spread that testing over several years to you know ease the 784 01:03:22,319 --> 01:03:28,880 burden a little bit on on us and on on on you as you as you work through these 785 01:03:26,960 --> 01:03:33,039 things and so the the report lists the areas that we looked at this year and 786 01:03:30,960 --> 01:03:36,319 this report is a clean report you went through the our testing of state 787 01:03:34,799 --> 01:03:42,240 compliance and we did not have any findings and so great great job great 788 01:03:38,559 --> 01:03:47,680 job everyone you know this is you know you know this is a clean you opinion on 789 01:03:44,720 --> 01:03:53,280 on your state compliance. Um, ahead in the financials on the very page 103, 790 01:03:51,839 --> 01:03:56,000 you know, in following government auditing standards, government 791 01:03:54,480 --> 01:04:00,480 accounting rules, you know, we do have to repeat, you know, the findings from 792 01:03:57,920 --> 01:04:03,520 the previous year. And, you know, so those are the two findings that, you 793 01:04:02,079 --> 01:04:07,920 know, that you had from last year's audit about budgetary compliance and 794 01:04:05,520 --> 01:04:11,599 deficit fund balance. And I will call attention to the the final clause of 795 01:04:09,839 --> 01:04:14,319 both those current status, you know, where it says finding has been resolved 796 01:04:12,799 --> 01:04:19,119 in no repeat finding as of December 31st, 2025, you know, for both of those. 797 01:04:16,880 --> 01:04:22,559 So So great job. Good job. You know, we didn't we looked at those this year and, 798 01:04:21,280 --> 01:04:29,359 you know, we concluded that you were compliant and on those and all the other 799 01:04:25,440 --> 01:04:34,240 areas and for state compliance. So that 800 01:04:32,480 --> 01:04:38,720 I'll open up for questions or comments on on this report. 801 01:04:37,039 --> 01:04:44,160 Mary, oh, >> am I I'm hearing you right. You're 802 01:04:40,400 --> 01:04:48,799 saying that uh there's a clean audit and that uh we are in compliance is 803 01:04:47,680 --> 01:04:53,079 » am I correct? >> Yes. 804 01:04:49,839 --> 01:04:53,079 » Thank you. 805 01:04:53,520 --> 01:04:58,440 » Okay. Any other questions, comments? 806 01:05:01,200 --> 01:05:09,200 » We have a motion. Well, if I if I could speak chair one more time just to you 807 01:05:05,359 --> 01:05:14,720 know um so I I guess um I'll just have to say you're welcome for delivering a 808 01:05:12,000 --> 01:05:19,520 cleared audit. Um I guess it's up to me to say thank you to all the hardworking 809 01:05:17,119 --> 01:05:24,400 county personnel that w worked over six months through a rigorous process 810 01:05:22,079 --> 01:05:29,200 onboarding a brand new firm into this audit process. The effort put forth by 811 01:05:27,359 --> 01:05:33,280 Gran County offices in pushing through and working towards these financial 812 01:05:30,799 --> 01:05:36,240 statements is a great accomplishment. Gran county continues to show 813 01:05:34,799 --> 01:05:40,240 improvements year-over-year and continues to do an exemplary job with 814 01:05:38,079 --> 01:05:44,880 the resources and capacity at its disposal. This audit contains zero 815 01:05:42,799 --> 01:05:49,440 opinions and zero compliance findings. It is a clean audit. It's the cleanest 816 01:05:47,119 --> 01:05:53,520 audit we've seen in quite some time. An audit without recommendations or areas 817 01:05:51,680 --> 01:05:58,079 for improvement that are identified is hardly useful. And I welcome the 818 01:05:55,839 --> 01:06:03,200 guidance that's identified in this audit to to introduce more improvements and 819 01:06:01,520 --> 01:06:07,280 interpret the aspects of this audit constructively. So I want to just thank 820 01:06:05,520 --> 01:06:11,119 in particular I want to name all the folks that have worked tirelessly that 821 01:06:09,599 --> 01:06:15,039 that are the people that make this county run. I'm talking about Jenny 822 01:06:13,280 --> 01:06:19,839 Beth. I'm talking about Chantel, Chris Williams, Emily Valentine, Chris 823 01:06:17,119 --> 01:06:24,640 Kaufman, Lily H. Hotton, Christina Bakis, Tess Barger, Laura Alred, Angie 824 01:06:23,039 --> 01:06:28,960 Mortonson. These are the people that make this county go and I really thank 825 01:06:26,880 --> 01:06:33,599 them for all of their tireless effort and what is really a rigorous and not 826 01:06:30,960 --> 01:06:36,559 easy process. Thank you. >> I appreciate that. Thank you, G. Thanks 827 01:06:35,280 --> 01:06:44,160 for calling all those people out. Appreciate them. And you 828 01:06:40,160 --> 01:06:52,000 » Mary I move to approve the 2025 financial audit as presented by uh 829 01:06:48,240 --> 01:06:58,400 Richie May. And and I wonder chair, maybe the county attorney, but shouldn't 830 01:06:53,920 --> 01:07:02,799 that verbiage be accept or adopt um rather than approve? 831 01:07:01,119 --> 01:07:06,079 » That makes more sense. That makes a lot more sense. 832 01:07:03,440 --> 01:07:13,280 » Yes. So, I will amend my motion to say I move to accept the 2025 financial audit 833 01:07:09,599 --> 01:07:20,480 as presented by Richie May and to express my appreciation to the staff who 834 01:07:16,640 --> 01:07:24,480 created a clean uh compliant report uh audit. Thank you. 835 01:07:22,880 --> 01:07:29,200 » I'll second that. >> Okay. Any other comments? 836 01:07:26,960 --> 01:07:33,599 » Yeah, I'd like to make comment. >> Okay. I um I think that it's worth going 837 01:07:32,079 --> 01:07:38,480 back and watching the audit committee meeting for the people that didn't and 838 01:07:36,559 --> 01:07:43,359 quick auditor. I mean, I understand your frustrations and I understand the hard 839 01:07:40,559 --> 01:07:46,880 work that you've put in here, but regardless of the fact that this is a 840 01:07:45,039 --> 01:07:53,839 clean audit, there's some problems in here and we have been working on trying 841 01:07:50,319 --> 01:07:59,760 to make some changes for the last four years of my commission and I appreciate 842 01:07:57,119 --> 01:08:03,440 the fact your responses. I read through your responses this morning and I 843 01:08:01,680 --> 01:08:07,839 appreciate the responses you put in there because they aren't push back. 844 01:08:05,680 --> 01:08:12,079 They're let's fix this. And that's what I'm about. Let's fix some of the 845 01:08:09,839 --> 01:08:16,960 mistakes, some of the problems that exist here, some of the weaknesses that 846 01:08:14,559 --> 01:08:21,440 we have, and some of the lack of transparency. And I'm not saying that 847 01:08:18,799 --> 01:08:26,480 that came from you, sir. I'm simply saying that there is a lot of homework 848 01:08:23,520 --> 01:08:31,839 and cleanup that we need to do when we have the previous external auditor admit 849 01:08:29,600 --> 01:08:37,040 that he made mistakes and left things out and when we change auditors we have 850 01:08:34,880 --> 01:08:41,440 commissioners who fight tooth and nail to keep that from happening and yet we 851 01:08:39,679 --> 01:08:46,719 still move forward here. So I I think it's important that we understand and I 852 01:08:44,880 --> 01:08:51,199 I understand where you're coming from your frustrations Gabe. I truly do. But 853 01:08:49,359 --> 01:08:56,560 we have frustrations. I have frustrations. And the fact that we're 854 01:08:53,600 --> 01:09:03,359 here two months after this should have been done, that's a frustration on our 855 01:08:59,600 --> 01:09:07,839 end. So I I I don't want to push back. I appreciate the staff and the hard work 856 01:09:05,279 --> 01:09:13,040 that everybody does here. And I don't think you can ever find a time that I 857 01:09:09,839 --> 01:09:18,000 don't appreciate you or staff, but I also know that we have a job to do. We 858 01:09:15,839 --> 01:09:22,960 all do. and part of it having this done and having it done on time. And so let 859 01:09:21,359 --> 01:09:29,000 let's move forward and make those corrections. Again, thank you for your 860 01:09:25,120 --> 01:09:29,000 responses specifically. 861 01:09:29,279 --> 01:09:35,080 Okay, we have a first and a second. Paula in favor 862 01:09:35,359 --> 01:09:44,560 that passes by with two absent. And with that, we can adjourn this meeting at 863 01:09:42,000 --> 01:09:47,199 11:42. Thank you. Thank you everybody for your time. 864 01:09:46,560 --> 01:09:50,080 » Thank you. >> Thank you guys.