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HomeMy WebLinkAbout09-23-2020 Airport Board FC MinutesM I N U T E S Barkley Regional Airport Authority FINANCE COMMITTEE Meeting - Monday, 09/22/20, 3:30 PM Via Zoom Meeting Finance Committee (FC) Chairman Durbin welcomed everyone and recognized that a quorum was present. Committee Members present were Board Chairman George Bray, Marshall Davis, John Durbin, Chairman, and Ashley Johnson. Staff present was Dennis Rouleau, Executive Director (ED), Eddie Grant, Director of Marketing, and David Hampton of Kemper CPA Group, the outside auditor. Also present were two members of the media. Presentation of draft of audit reports by Kemper Group David Hampton of Kemper CPA Group presented the draft of the various required audit reports to the committee, including 1) letter of significant audit findings, 2) adjusting journal entries, 3) financial statements for the years ending June 30, 2020, and 2019, 4) report on internal controls over financial reporting and on compliance and other matters, 5) report on compliance for each major program and internal controls over compliance, 6) report on passenger facility charge program and 7) schedule of findings and questioned costs. Hampton explained the core financial statements received an “unqualified” or “clean” opinion regarding the fairness of the statement. He noted no exceptions in any of the other reports on compliance. He did have to repeat one comment on a “material weakness” in the segregation of duties. Our in-house accountant can make deposits and reconcile the bank accounts. We mitigate this weakness in part by having second signatures on larger checks by a board member and by having the full Board have access to the detail check registers, bank accounts, and core financial statements and journal entries monthly. Hampton mentioned that our monthly financial reporting does not properly report grant income and depreciation on capitalized assets. He offered to help the airport in some type of reporting that would continue to disclose the mostly cash basis reporting of normal revenues and expenses supplemented with reporting the periodic grant income received. Hampton agreed to finalize the reports and present an abridged version of his reports to the full Board on the 28th. Review of whistleblower log Chairman Durbin presented a screenshot of all emails received on the airport’s “whistleblower” website http://barkleyregionalcom/webmail. Durbin noted that former BRAA Treasurer Allan Kleet “tested” the site on September 14 as the most recent prior email dated back to August 19. No email on the list was deemed by Durbin worthy of follow up as they all appear to be solicitations of services to the airport. Taxiway Charlie lighting circuit issues ED Rouleau reported on continuing issues with one of the lighting circuits on the taxiway (Charlie). He believes the circuit may have been damaged by a lightning strike and is exploring documentation of lightning strikes in the area on the day of the malfunction of the circuit. Prior electricians had worked on the circuit off and on for over 30 days without satisfaction, so another firm was hired to explore the damage. Rouleau has notified our insurance carrier as to a possible claim as the final repairs and/or replacement could be several thousands of dollars. He has also been in contact with the FAA as to reimbursement potential, but that appears unlikely. IT lease and service contract proposal Rouleau presented, and Jacob Puckett from United System (in Benton, KY) elaborated on a proposal of core IT services for the next five years for the airport. Included in the monthly all-in cost of $1,210 per month are hardware, software subscriptions, and remote or on-site servicing that is all-inclusive, covering the full network, workstations, laptops, servers, and wi-fi connectivity. Printers would be purchased separately but would be included in the servicing in the single monthly cost. The new set up would essentially use existing wiring and wi-fi for connectivity to avoid the cost of new wiring that likely would be abandoned in the move to the new terminal in three years. All hardware would have a five-year warranty included serviced by United Systems. Jacob reported on United Systems’ 42-year history of servicing the West KY area and its commitment to the area with over 50 employees and constructing a new $6 million building in Benton. The proposal will be presented to the full Board for action. The next Board meeting is September 28 Meeting adjourned at 4:45 PM