1 KERR COUNTY COMMISSIONERS COURT Special Session Thursday, June 18, 2015 9:30 a.m. Commissioners' Courtroom Kerr County Courthouse Kerrville, Texas PRESENT: TOM POLLARD, Kerr County Judge H.A. "BUSTER" BALDWIN, Commissioner Pct. 1 TOM MOSER, Commissioner Pct. 2 JONATHAN LETZ, Commissioner Pct. 3 BOB REEVES, Commissioner Pct. 4 2 I N D E X JUNE 18, 2015 PAGE 1.1 Consider, discuss and take appropriate 3 action to approve additional work associated with the County Clerk's office pursuant to the Agreed Upon Procedures with Pressler, Thompson and Company, LLC. --- Adjourned 16 3 On Thursday, June 18, 2015, at 9:30 a.m., a special meeting of the Kerr County Commissioners Court was held in the Commissioners' Courtroom, Kerr County Courthouse, Kerrville, Texas, and the following proceedings were had in open court: P R O C E E D I N G S (Kerr County Judge Tom Pollard not present.) COMMISSIONER BALDWIN: Good morning. This is the Commissioners Court. It is 9:30 a.m. on Thursday, June 18, 2015. We're in the Commissioners' courtroom at Kerr County courthouse. We have one agenda item. And like for the record to show that the judge is absent at this time taking care of juvenile issues. And I'm sure will be here soon. Item 1.1, consider, discuss and take appropriate action to approve additional work associated with the County Clerk's office pursuant to the Agreed-Upon Procedures with Pressler, Thompson and Company, LLC. This is from Commissioner Moser and Brenda Doss. Do you want to -- COMMISSIONER MOSER: Thank you. COMMISSIONER BALDWIN: -- do this? COMMISSIONER MOSER: Thank you, Buster. This came up -- COMMISSIONER BALDWIN: It's Commissioner Baldwin. 4 COMMISSIONER MOSER: Commissioner Baldwin. Excuse me. That's true. Your Honor. COMMISSIONER BALDWIN: We're getting there, now. COMMISSIONER MOSER: This came up last week. I believe the judge got a call saying that Pressler, Thompson had reached the limit on the funding that they had not to exceed in the support of -- of the accounting, and also training for the County Clerk's office. And so, purpose of this is -- I believe we've also -- and you-all have copies of correspondence that they, Pressler, Thompson, has sent over here saying that they've reached that point. They have training to -- to continue. And it's -- the total cost to the County will not exceed $21,500, up from the previous limit of $16,000. And it's to provide Clerk's office training in QuickBooks, and assist the Treasurer with the May bank reconciliation. So let me see if that's -- that's the issue. Let's see if Brenda has any -- Brenda Doss has any -- MS. DOSS: That's the issue that I understand, yes. COMMISSIONER MOSER: Okay. If this was -- when we did this -- to remind the Court, this was an emergency action that we took, based on the situation with the accounting, and meeting for Commissioners Court to make sure 5 that we had all of our ducks in a row regarding the -- the submission of records and -- to the State. And also the accounting for County Clerk's office. So we hired Pressler, Thompson to do that. And this is for them -- enable them to complete the work. So with that -- here comes the judge. With that -- COMMISSIONER BALDWIN: Let me ask you a question. Kind of get this ball rolling here. In our backup, there's the page called "Agreed-Upon Procedures Attachment." It's those things we agreed that the original 16,000 would go for. COMMISSIONER MOSER: Right. COMMISSIONER BALDWIN: How many of -- or where are we in that, as far as completing these issues? MS. SOLDAN: As far as what Pressler, Thompson has completed, they have reconciled January through May. I mean, I'm sorry, January through April. COMMISSIONER BALDWIN: Okay. MS. SOLDAN: And they still need to train. They still need -- they're going back to finish up December, I believe. And then training the County Clerk's office on how to enter into QuickBooks. And then help with reconciling May, if needed, with my office, based on the corrections that they've had to make for the last -- for those months that they reconciled. 6 (Kerr County Judge Tom Pollard entered courtroom.) COMMISSIONER MOSER: If I may, just let me read for the record what the letter from -- to -- to the judge, who is now here, from Brenda Beaty from Pressler, Thompson and Company. Says, "Additional time to properly, quote, wrap-up, unquote, and transfer the records, go over the corrections noted with the County Clerk and possibly others, as well as the recommendations for improvement, train personnel in the County Clerk's office on entering into QuickBooks, assist the Treasurer with the May bank reconciliations, if needed, due to the corrections made effecting May, and prepare our final report, including recommendations for improvement, is estimated to be $2,650. Therefore, the total cost to the County will not exceed $21,500." So I think that one sentence, long sentence there, summarizes the remaining work. MS. DOSS: I agree. COMMISSIONER REEVES: Do you feel progress has been made? MS. DOSS: Yes. Yes. They have -- as Tracy said, they finished reconciling January, February, March, April. They're working into May. And they're going to use 7 that as a training tool. There were still a few discrepancies that they found as they went through the other months that went back into December. So they're trying to look into those to see if -- sometimes things have been carried forward for quite a few months that they found as they've gone forward. COMMISSIONER REEVES: I don't like the fact that we've got to spend more money. But I don't believe we have a choice. COMMISSIONER MOSER: I agree. I think that was even said. It was an emergency at first. We needed to do it. And that was the estimate -- and a very quick estimate -- on when it would take to do it -- what it would take to do it. And now we're there, so -- COMMISSIONER REEVES: And I felt Pressler, Thompson and Company was very up-front that they estimated. That they made sure we knew it wasn't a hard number when -- when they estimated that, because they didn't know what they'd get into. Is my understanding of the original agreement, and where we're at now. COMMISSIONER MOSER: Well, Judge, since I came off the bench for this Item for you, I think that . . . JUDGE POLLARD: I agree with everything I've heard. COMMISSIONER MOSER: Okay. JUDGE POLLARD: I think that was -- you know, 8 when they first came on board, they didn't really have any idea what they were going to run into. And I think they have run into some additional items. And that's pretty normal. That's nothing unusual about this kind of thing. So I agree with everything I've heard. COMMISSIONER BALDWIN: So the -- the original issue of not being able to fill out some -- I can't remember exactly how that was. But fill out some form in order to pay the State and Federal government, or the State government, money owed to them. MS. DOSS: Yes. COMMISSIONER BALDWIN: Have those things been rectified, and fixed, and -- MS. DOSS: The reports have not been filed. MS. SOLDAN: No. MS. DOSS: As of yet. MS. SOLDAN: The reports have not been filed to include the County Clerk's revenues. MS. DOSS: Revenues. MS. SOLDAN: They've been filed for the rest of the offices that collect fees that go to the State. JUDGE POLLARD: So is it planned that they will be filed? MS. SOLDAN: Yes, sir. The reports will be revised. 9 JUDGE POLLARD: This estimate that's come forward from Pressler, Thompson? MS. DOSS: Yes, sir. They haven't been filed yet, because they wanted to finish their job to make sure they were correct. Because as I said before, quite often as they go into another month, they are finding things that may go back into -- JUDGE POLLARD: Into previous months. MS. DOSS: Yes. So they wanted to finish their job to make sure that it was correct. JUDGE POLLARD: Uh-huh (affirmative expression). COMMISSIONER BALDWIN: Are there late fees involved in this? MS. SOLDAN: There are no late fees. There are percentages that we will not get to keep. Normally when you file timely, you get to keep a certain percentage of the fees that would normally go the State. MS. STEBBINS: As an incentive to file timely. MS. SOLDAN: Right. COMMISSIONER BALDWIN: Now, is this forevermore, this not being able to keep the fees? MS. SOLDAN: No. For each reporting period. COMMISSIONER BALDWIN: Each reporting period. MS. SOLDAN: Yes. COMMISSIONER MOSER: So we missed one reporting 10 period. Are they quarterly reports? MS. SOLDAN: They're quarterly reports. COMMISSIONER MOSER: It's anticipated we'll be timely with the next report. So we missed one. MS. SOLDAN: We missed one. COMMISSIONER MOSER: Okay. MS. SOLDAN: So it's not a fee, but it is -- we count it toward our revenue each month. COMMISSIONER MOSER: We lose money. MS. SOLDAN: Yeah. Each year. COMMISSIONER MOSER: May not be a fee, but it's less revenue coming in. MS. SOLDAN: Exactly. COMMISSIONER REEVES: Ms. Stebbins, do you have anything? MS. STEBBINS: No, sir. Not at this time. Thank you. COMMISSIONER LETZ: I have one more going forward. I mean, if accounting firm is having the difficulty that they're having reconciling, and I hear Tracy answer most of the questions. But it's coming out of Becky's office, I think, unless we changed procedures. How do we know that we know how to do it now? Or will. Because, I mean, obviously it's pretty complicated. And I don't want to spend $21,000 and have us 11 first of June not be able to do this. Or start to reconcile the June period. How is -- I'm more concerned about, I think, the training part, and how we know what we're doing, than anything else. JUDGE POLLARD: Well, is my understanding that Pressler, Thompson is going to arrange for that, due to training, and to get those reports done. Now, with -- with Becky's approval. And train her people. That's part of what they're planning on doing. Am I incorrect about that? MS. DOSS: No. They are planning on doing training. COMMISSIONER MOSER: Let me help with Commissioner Letz. You can train, but did the training take place and it can be executed? I guess that's the question for County Clerk. MS. DOSS: I can't answer for the County Clerk's office. COMMISSIONER MOSER: I know. We're asking the County Clerk. MS. BOLIN: Sounds to me like it's just a training issue, and a matter of me understanding. I don't think I'm going to have a problem with understanding any of the information they pass on to me. And then that's a matter of me having it in writing, and making sure I've got step-by-step what I'm supposed to do. 12 I've also -- it's not just going to be me taking the training. I've got three -- myself and two others -- that will be doing the training. COMMISSIONER REEVES: Is there a contingency for in the -- now the $21,500 amount to help with training? I mean, is this like -- or how long is Pressler, Thompson going to be available for training? Under the proposed -- under this amount that I'm talking about. MS. DOSS: I think they were planning on training for a couple of days. Is that what I understand? MS. SOLDAN: I'm not sure how long the training period will last. But they're anticipating that additional amount will cover the time needed to train. COMMISSIONER MOSER: I guess another way to ask that is, is ask the County Clerk, do you feel competent that with this training, and what they propose to do, that you'll be able -- that we won't have this issue again? MS. BOLIN: Yes, sir. I do. COMMISSIONER MOSER: Okay. So you've had some discussions with them on -- MS. BOLIN: I have. And it's my understanding with the training would be three, four days. And they're -- it was my understanding that they're competent that we won't have any problem with us picking up on how to do things in order to start and move forward. 13 COMMISSIONER MOSER: And your staff feels that same way? MS. BOLIN: Yes. COMMISSIONER MOSER: Okay. That's the important thing. COMMISSIONER BALDWIN: We also talked about, when we were talking about training -- which is my favorite part -- that we train the County Clerk, and a couple of her staff, and possibly the Treasurer, as well. Have we had any conversations about you being involved in the training? MS. SOLDAN: I have actually sat with the external auditors and watched them enter the first part of May into QuickBooks. So I -- I feel competent that I would know how to do it to help, if needed. COMMISSIONER MOSER: Okay. Okay. Cool. As long we know how to do. That's the -- JUDGE POLLARD: Talking about cross-training. And that is important. You know, the people leave, they get sick, go on vacation. You've got to have other people that can step in that are familiar with how to do it. That's real important. It ought to be more than just one backup. And I think Becky has -- I've had conversations with Becky that she -- she's aware of that, and intends to make sure there is cross-training. Am I correct about that? 14 MS. BOLIN: Yes, sir. JUDGE POLLARD: All right. COMMISSIONER BALDWIN: So my only question now is where do you come up with the extra moneys? MS. DOSS: I have -- Becky and I have looked at her budget. And since she had so many open positions for part of the year, she would have money in the budget to cover it. COMMISSIONER BALDWIN: So that's a -- that a grand total of what? MS. DOSS: Twenty-one five. COMMISSIONER BALDWIN: Forty-one five? COMMISSIONER REEVES: No. Twenty-one something. MS. DOSS: 21,000. COMMISSIONER BALDWIN: Twenty-one. Well -- COMMISSIONER MOSER: So an additional $2,650. MS. DOSS: Yes. From where we are right now. COMMISSIONER REEVES: It's the 16,000, they've expended more time already, is that my understanding? MS. DOSS: Yes, sir. COMMISSIONER REEVES: And to cover the additional time that they expended, plus it's -- COMMISSIONER MOSER: I was incorrect on that 2,650. It's up to a total -- so it's 41 -- $4,150. MS. DOSS: From the original, yes. COMMISSIONER BALDWIN: And that's what we're 15 doing, we're adding on 4150. MS. DOSS: Yes, sir. COMMISSIONER BALDWIN: And that comes from the salaries that are being unused in the County Clerk's office? MS. DOSS: Yes, sir. Payroll items, salaries, retirement, health insurance. COMMISSIONER MOSER: Well, I would like to say that we've had an issue. It costs us money. Costs us reduced revenue. We see what the problem is. We brought in an outside accounting assistant to fix the problem, and to train the staff of both the County Clerk and the Treasurer's office, and with cross training, so that this problem is corrected, should not have it in the future. And to do that, we have to add 4,000 -- $4,150 to the agreement with Pressler, Thompson. So I so move that we modify and change the not-to-exceed limit for Pressler, Thompson from 16,000 to $21,500. COMMISSIONER BALDWIN: Second. JUDGE POLLARD: It's been moved and seconded, as stated in the motion. Is there any further discussion? (No response.) JUDGE POLLARD: There being none, those in favor of the motion, signify by raising their right hand. (The motion carried by unanimous vote, 4-0.) JUDGE POLLARD: It's 4-0, unanimous. It passes. 16 Anything else? That's all that's on the agenda, isn't it? COMMISSIONER BALDWIN: Yes, sir. JUDGE POLLARD: All right. Anybody have a motion to adjourn? COMMISSIONER MOSER: So move. COMMISSIONER BALDWIN: I want to talk about Johnny Manziel a little bit. JUDGE POLLARD: Well, after we do this motion. Do you second the motion? COMMISSIONER BALDWIN: I do second it. JUDGE POLLARD: Those in favor signify by raising your right hand. (The motion carried by unanimous vote, 4-0.) JUDGE POLLARD: 4-0, unanimous. We are adjourned. Now let's talk about Johnny Manziel. (Commissioners Court was adjourned at 9:50 a.m.) 17 THE STATE OF TEXAS ) COUNTY OF KERR ) The above and foregoing is a true and complete transcription of my stenotype notes taken in my capacity as deputy reporter for the Commissioners Court of Kerr County, Texas, at the time and place heretofore set forth. DATED at Kerrville, Texas, this 1st day of July, 2015. ____________________________ KELLY C. RODE, Texas CSR #4639 Expires: 12/31/15 Official Court Reporter, County Court at Law Kerr County, Texas 700 Main Street, Suite 123 Kerrville, Texas 78028 (830) 792-2207