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HomeMy WebLinkAbout2002-02-28 RMLD Oversight Task Force Minutesp RMLD Oversight Task Force Meeting C Ur February 28, 2002 Y S S . 31 The meeting convened at 7:30 p.m. in the Conference Room, 16 Lowell StrA keadmg, Massachusetts. Present were Chairman George Hines, Finance Committee Members Richard McDonald and James Francis, RMLD Board Members Allan Ames and Dan Halloran, CAB Member Roger Lesard, Town Accountant Richard Foley, Town Manager Peter Hechenbleikner, John Sullivan from Melanson and Heath and the following list of interested parties: Joe Veno, Bill Brown, Bill Hughes, Gerry MacDonald, Robert Soli, Julie Mehegan, Tony Butler, Fred Livingstone, Nadine Wandzilak (Advocate), Robert Iorio, Priscilla Gottwald. Approval of Minutes On motion by McDonald seconded by Francis, the minutes of January 17, 2002 were approved, as amended, by a vote of 6-0-0. Progress Report - Melanson Health John Sullivan from Melanson Heath reviewed his letter of February 22, 2002. He expanded on the letter by indicating that cooperation from the Light Department staff is excellent. Mr. Sullivan reviewed the RMLD's policies. The policies revised on August 11, 1997 which were in effect for most of the period being audited were very comprehensive. The policy on overnight travel and employee expenses sets up some substantial problems. The Accounting Services Manager is responsible for determining whether or not the policies are followed. If there is an exception to the policy, it goes to the Assistant General Manager. There is no process set up if there is an exception for the Assistant General Manager, the General Manager or the Commissioners. The Assistant General Manager looks to the General Manager for any exceptions. There is no such process for either the General Manager or the Commission. There were many instances where the Accounting Manager did not sign off on expenses. Commissioner Policy #9 in Section C indicates that the Commissioners may need a majority vote to approve attendance at conferences, etc. If the expenses exceed those in the policy for employees, that requires a majority vote of the Board. Mr. Sullivan went on to review some of the key areas of the policy. The travel policy the Accounting Manager's review of the expenses to determine compliance. The requirements are that employees use the lowest possible cost for travel, there is no first class travel, and they use the lowest rate for mid-size vehicle with luxury and/or sports vehicles permitted. For meals, there is a $40.00 per diem if there are no receipts, broken down by $10.00 for breakfast, $10.00 for lunch and $20.00 for dinner. The employee must use either the per diem or 100 % reimbursement based on the receipts with an allowance for 15% for a tip. Entertainment expenses are not permitted except by the General Manager or an Assistant General Manager. RMLD Board Member Allan Ames noted there was a change in Board travel policy. Finance Committee Member Jim Francis noted that the policy which the Task Force has is not what John Sullivan was quoting; It was also noted that the Task Force has the current policy and that the policy was changed in December 2001 as a result of the Inspector General's Report. RMLD Oversight Task Force Meeting - February 28, 2002 - Page 2 Mr. Sullivan then reviewed the policy on lodging and what is permitted is standard double occupancy. The full hotel receipt is required. Travel of spouse, dependent, etc. is not covered. Flowers, gifts, etc. are not covered. Alcoholic beverages are not covered. Receipts for reimbursement are required for the hotel bill (the entire bill), parking fees, car rental, travel, registration fees. If there is no receipt, it is not reimbursable. If there is combined business and personal travel only, the business travel is reimbursable. Mr. Sullivan noted that he sees issues in the policies that are problematic. There is discretion within the General Manager's and Assistant General Manager's positions. The Ethics Commission has very clear statements and guidelines on reimbursement. They have found blatant and obvious violations of the guidelines, and this may create some issues to be reviewed and investigated by the Ethics Commission. Very clear violations are the purchase of a $45.00 bottle of wine - it violates the law and also the reasonable expense guideline. Spouses and family members attending meetings is also a violation of guidelines. The Minutes of the Commissioners reflect the Board's discussion on spouses attendance but there appears to be no acknowledgement that the RMLD would pay spouses expenses. There are also instances of conferences lasting two to three days and payment being made for four to five days with entertainment. Mr. Sullivan noted that court cases make it clear that the RMLD does not have to comply with Town policies and procedures. However, they do have the right to have their own policies and procedures and have an obligation to follow them. He asked if there were any questions but noted that he would not get into any specifics at this time. CAB Member Roger Lesard asked how much longer it would take to finalize the report. Mr. Sullivan noted that they are on target to complete the work by the end of March. Chairman George Hines asked if he thought it would be done sooner because of the cooperation that they've been getting. Mr. Sullivan noted that they probably would not be able to, particularly because Karen Roberts has been out for a period of time due to surgery. Finance Committee Member Richard McDonald asked if they were through the initial stage. Mr. Sullivan noted that they are still looking at some items in the initial stage and doing follow-up on their data gathering. Chairman George Hines asked if, based on what they have discovered to date, the scope of the forensic audit needed to be expanded or if the time period needs to be expanded. Mr. Sullivan felt that there was no need to do either. Roger Lessard asked the Chairman about the meeting of the Boards of Selectmen of the four towns. George Hines noted that it is on March 14, 2002 at the Reading Police Station. Hines asked if the Citizens Advisory Board has met on the audit, and Roger Lessard indicated that they have met but did not have any discussions on this matter. RMLD Oversight Task Force Meeting - February 28, 2002 - Page 3 John Sullivan asked if the Task Force would be wanting another interim report. George Hines asked if he felt it was needed, and Mr. Sullivan stated that he thinks they really won't have anything until the work is completed but he will contact the Town if there is anything. George Hines asked if the contact with the Inspector General has been helpful, and Mr. Sullivan noted that it was helpful particularly at the start. George Hines asked if there are gaps in what the RMLD has provided, and Mr. Sullivan noted they would like to have some deeper information on certain situations. Allan Ames asked if all travel documents require documentation, and Mr. Sullivan noted that the documentation is not necessarily all there. George Hines asked if there is other credit card abuse that has been discovered, and Mr. Sullivan noted that they are now looking into the issue of reimbursements. Dick McDonald suggested that the Task Force meet when we get the final report and presentation. Jim Francis agreed but asked if we could get the presentation in advance to make the meeting as productive as possible. George Hines suggested that whatever report is given to the Task Force be viewed as a draft so that the final report could address any additional questions the Task Force might have. Mr. Sullivan noted that they typically prepare a draft, go over the findings with the employees in question, and make sure that they've met all of the scope of services. The Task Force agreed to meet on April 4, 2002 at 7:30 p.m. Public Comment Joe Veno thanked John Sullivan for the presentation and interim report. He expressed hope that the Light Department will do the same thing with their auditor at their next meeting. He noted that the Light Department auditors have the advantage in that they know what the work of Melanson Heath has been. Bill Hughes asked about the method of scheduling meetings with the Commissioners. Mr. Sullivan noted that they will call ahead and set up a meeting. Mr. Hughes noted that he would like to volunteer to replace Dan Halloran on the Task Force when he leaves after the April 2nd Election since he is not running for reelection. George Hines noted that he will ask the Commissioners for a recommendation. Gerry MacDonald asked, as a point of information, whether this audit covers former employees. Mr. Sullivan noted that it would cover anybody who was employed by the Light Department during the period of audit beginning in 1998 to the present. On motion by Francis seconded by Halloran, the RMLD Oversight Task Force voted to adjourn jieir meeting of February 28, 2002 at 8:15 p.m. by a vote of 6-0-0. y bmitted,