CCRPC reports balanced FY23 third-quarter finances; auditor bid, cash reserves and payroll authority discussed

The Chittenden County Regional Planning Commission’s Joint Executive and Finance Committee reviewed its FY23 third-quarter finances on June 14, reporting that revenues and expenses were essentially even through March and outlining several near-term budget and audit decisions. Forest Cohen, the CCRPC senior business manager, presented the balance sheet showing $343,552 in operating checking, $409,179 in a money market reserve, current assets over liabilities of $876,329 and deferred income for community match of $143,798.

Cohen told the committee the organization used $100,000 in Agency of Community and Cultural Development funds toward MPO match through March 31, 2023. He said the final quarter of the fiscal year is typically the strongest revenue generator and staff expect to end FY23 in good position. "We are exactly even for the year, through March," Cohen said during the review.

Committee members pressed for clearer cash-reporting and contingency planning. Jeff Carr asked how many months of cash the CCRPC prefers; Forest Cohen said the target is three months and staff currently hold about a month and a half, or roughly 60% of the target. Carr said, "cash is king," and urged more frequent review of the reserve figure. The committee asked staff to make the cash and balance-sheet presentation clearer to reflect both the money-market reserves and available operating cash.

The committee also reviewed the auditor search. Forest Cohen said the request-for-proposals initially produced no responses; the committee received a single proposal from Marcum, LLP at $40,000, an increase from the approximately $30,000 the CCRPC had previously paid. Cohen said he hopes to negotiate the fee but could not be certain it would change. Jeff Carr noted Marcum is a nationally recognized firm and suggested the higher fee reflects that scope.

On motions and formal actions, the committee voted unanimously to approve the quarterly journal entries for January through March 2023 and carried other procedural approvals. After an executive session to discuss personnel, the committee also voted to recognize employee achievement and authorized the executive director to spend up to 100% of the FY24 salary budget as determined by the executive director for staff, and as determined by the executive committee for the executive director. That motion was moved by Mike O’Brien and seconded by Chris Shaw; all in attendance voted in favor.

The committee discussed that the lease accounting rule change will be recorded at fiscal year-end and reflected in the audit; Forest said the adjustment appears under "Accumulated Lease Asset" in other assets and will be part of the year-end audit work. Mike O’Brien asked whether the accounting change would affect the CCRPC's indirect rate; Forest said only higher grant revenue would alter that calculation.

Next steps include staff refining cash reporting materials for committee review and pursuing negotiations with the auditor candidate. The CCRPC will finalize FY23 year-end allocations on June 30, 2023.