GIFC-Minutes-2020-10-20

GIFC October Meeting
October 20, 2020. 7pm via Zoom Call
Present were Sandy McKean, Bud Ullman, Dave Prewitt and Allen Bush

We discussed in detail the O&M Memo sent to Skagit County Public Works on 08/25/20

Overall, the GIFC members would like to get a better understanding of how the county differentiates between O&M and Capital expenditures and, if time permits, a better understanding of how all types of exp enses make their way through the system.

Specifically, you have requested more information on the following items:

1) Review WAC 136 400 030 on capital projects, especially item number [2] under capital improvements and the third item under O&M.

2) Examples of past repairs that were determined to be O&M and not Capital were outdrive brackets, engine foundations, and deck plates. An explanation of why these three repairs were considered O&M would be beneficial

3) In looking to the future, will the major cost of replacing the batteries be considered a Capital expense?

4) We understand that besides Skagit County two other counties send expense reports to the State on O&M expenses. Would the other counties make the same determination as to what is O&M and what is Capi tal?

5) A couple of examples of expenses that were determined to be Capital expenses in recent years.

and we received a followup email scheduling a video conference call with Public Works to discuss Operations and Maintennace expenses and how they are determined.
___________________

Captain Rachel Rowe
Guemes Island Ferry
500 I Ave Anacortes, WA 98221
September 30, 2020

Good afternoon,
 
This email contains the available information requested by the Ferry Committee. We realize this is a lot of information to sift through, so we propose to allow you time to digest the information while we work to schedule a meeting. Is the Committee available Wednesday, Oct. 21 at 10:30 a.m.?
 
Please find attached the available information requested by the Ferry Committee to include:
 
·         A PDF copy of WAC 136-400-030 (attached). Please note, the provisions provided in WAC 136-400 apply to the administration of the County Ferry Capital Improvement Program (a grant program). 
·         A PDF copy of the contract (attached) between Skagit County and WSDOT for the distribution of the ferry deficit reimbursement. Section 1.3, on page 1, defines operating and maintenance expenditures as: routine dry docking and associated repairs to maintain the vessel’s certification. Examples of past repairs referenced by the Ferry Committee include outdrive brackets, engine foundations and deck plates. These repairs were completed during routine dry docking and were required to maintain the vessel’s Certificate of Inspection. Therefore, Skagit County determined these repairs were considered O&M expenditures. 
·         Non-salary O&M expenditure reports for the ferry for the years 2015 to September, 2020. 
·         Capital expenditure reports for the years 2015 to September, 2020 to include the following projects:
o   ESMVGUE-1 (Ferry Replacement Project)
o   FEMP-6 (Ferry Breakwater Repair)
o   FEMP-8 (Ferry Girder Replacement)
o   FEMP-7 (Guemes Ferry Parking Lot)
o   FETM16-1 (Ferry Terminal Maintenance)
o   FETM19-1 (Winch Replacement)
 
The Ferry Committee has also requested a better understanding of how expenses make their way through the system. The process for cities, counties and special purpose districts is prescribed by the WA State Auditor’s Office in accordance with RCW 43.09.200. The following is an excerpt from their website:
 
Cities, Counties and Special Purpose Districts (GAAP)

 

The BARS Manual prescribes accounting and reporting for local governments in accordance with RCW 43.09.200. Its purpose is to provide (1) uniform accounting and financial reporting to allow for meaningful use and comparison of financial data; (2) accounting and reporting instructions as a resource for local government managers; and (3) a consistent framework for financial reporting to intended users, including managers, governing bodies, granting and regulatory agencies, the state Legislature, and the general public.

The manual is maintained by the State Auditor’s Office with input from the Local Government Advisory Committee. It is continuously reviewed to ensure prescription and instructions remain current and appropriate to meet the needs of intended users. Accounting and reporting guidance incorporates analysis of generally accepted accounting principles (GAAP) published by the Governmental Accounting Standards Board as they become effective.

This manual is designated for all GAAP cities, counties and special purpose districts. The BARS Manual is currently updated for GASB Statements 1 – 86, 88 and 89.  Governments should refer to the source standards when researching or early implementing Statements 87 and 90.

You are welcome to peruse the BARS manual (attached in two parts). https://publicinput.com/Q7611
 
Sincerely,
Captain Rachel Rowe

Here is the recorded meeting that has been posted on Youtube:
https://www.youtube.com/watch?v=mpZSLU0Vfs8&feature=youtu.be
 
A full list of documents and content to be discussed cand be found here:
https://publicinput.com/Q7611

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