February 20, 2020

Commissioner Strickland

asked to have an item on the agenda to pursue the purchase of the 25 lots next to the arena. February 20, 2020 SITTING AS THE BOARD OF COUNTY COMMISSIONERS SHERIFF

Commissioner Blundo

made a motion to accept, execute and fund from 10340; seconded by Commissioner Strickland .

Commissioner Blundo

said cannabis was legal in Nevada , however, there was still a black market issue so he thought it was good that the Sheriff continued to work with federal partners to eradicate the black market issues and problems.

Commissioner Koenig's

only concern was whether the District Attorney would actually follow through with it and prosecute because his opinion seemed to be it was legal so let them do what they want.

Commissioner Strickland

asked about the negatives in intergovernmental and charges for services. February 20, 2020 4.10:00 a.m. - For Possible Action - Discussion and deliberation to approve the audits of fiscal year 2018-2019 for Nye County and all component units of Nye County conducted by Daniel McArthur, LTD-Cont'd.

Mr. McArthur

said intergovernmental was because of the consolidated tax. Savannah Rucker added that DTAX provided projections and those were compared to what the County had experienced in the past and then an educated assumption was made for the next fiscal year. As to charges for services, Mr. McArthur said that particular item could be a moving target as those were fees collected in the various offices and the number of transactions during the year had an impact on the fees charged.

Mr. McArthur

talked about compliance with NRS. One of the statutes indicated budgets could not be spent in excess of a function as that would be deemed a violation of the law. A function would be government, public safety , judicial and intergovernmental. The juvenile probation fund 's budget was $92,000.00 and the payments were $97,240.00, which was over budget. He explained that was an exception because payments were made for intergovernmental payments mandated to be made out of the control of the County or city. Additionally , guidance from DTAX indicated in a situation like this it was not a technical violation of the statute.

Commissioner Blundo

mentioned the embezzlement issues with that department.

Mr. McArthur

explained some of the rules over this department came from the Nevada Supreme Court, which set out minimum accounting guidelines for the courts to follow. Every three or four years there were specific audits for those courts and this year his firm was engaged to do that audit. They were doing that audit right now and the results would go to the Nevada Supreme Court . I\IIrs. Rucker said the Juvenile Probation Department was more than willing to have their internal policies and procedures reviewed by her office and the Treasurer. They had also come up with solut ions to keep that from reoccurring

Mr. McArthur

discussed the Pahrump ambulance fund on page 101 which showed a total net position of negative $1 ,181,641, which became a potential issue. Similar to the OPEB item it was tied to the State pension liability. Since the State pension fund was under­ funded the proportionate share of that plan had to show on the statement of the Pahrump ambulance. Their share was over $3 million, but if Mr. McArthur removed that liability there would not be a negative fund balance. Lastly, Mr. McArthur reviewed the schedule of findings and responses with the Board. He discussed the reconciliation not occurring on a timely basis and not being presented to the Board per statute , which in his opinion was a material significant weakness.

Commissioner Koenig

and Mr. McArthur discussed the difficulty in complying with that statutory requirement due to the schedule of Board meetings. Mr. McArthur felt that producing that report at the first meeting of the following month would adhere to the intent of February 20, 2020 4. 10:00 a.m. - For Possible Action - Discussion and deliberation to approve the audits of fiscal year 2018-2019 for Nye County and all component units of Nye County conducted by Daniel McArthur, LTD-Cont'd. the statute. He said as the bank reconciliation procedure got better the ability with online banking to reconcile on a daily basis would change and improve so probably the ability to have it done within the 30 days would exist. Mr. McArthur said right now his position as an auditor was he thought if it was in by the first of the following month that meant every effort was being made. John Bosta said on page 80 under unincorporated towns $788,000.00 was shown and now it was $1,328,000, which was collected on marijuana money in unincorporated towns. He asked if that $1,328,000.00 belonged to Beatty, Pahrump and Amargosa Valley, how it would be utilized next year, and how to get around this with DTAX.

Mr. McArthur

said from an auditor's point of view those were legal questions. Since he was not an attorney he could not make a legal determination.

Mr. Bosta

asked about recommendations at the end of the audit. In past years they had been there, but the Commissioners never followed up. He recommended the Commissioners give a report as to how they had satisfied those recommendations so the public could see the Board was following up.

Commissioner Koenig

said he would ask the Treasurer if he would like to do that.

Commissioner Blundo

made a motion to approve; seconded by Commissioner Strickland; 5 yeas. SITTING AS THE GOVERNING BODY OF UNINCORPORATED TOWN OF PAHRUMP 5.10:00 a.m. - For Possible Action - Discussion and deliberation to approve the audits of fiscal year 2018-2019 for the Town of Pahrump conducted by Daniel McArthur, LTD. Dan McArthur said the Pahrump financials resided inside the County's. His only comment was on page 225 where the Pahrump town general fund was shown. Pooled cash investments as of FY18 were $4,565,000 and in 2019 cash was $5,080,000. The fund balance at end of FY18 was $4,545,000 and in FY19 it was $4,787,000, so the Pahrump town general fund was in good financial condition.

Commissioner Blundo

thought only getting $9,000.00 in interest receivable was pretty low and wondered if it was invested correctly.

Mr. McArthur

said he would get some detail for Commissioner Blundo.

Commissioner Blundo

made a motion to approve; seconded by Commissioner Strickland; 5 yeas. February 20, 2020 AS THE BOARD OF TRUSTEES FOR THE PAHRUMP POOL DISTRICT 6.10:00 a.m. - For Possible Action - Discussion and deliberation to approve the audits of fiscal year 2018-2019 for the Pahrump Pool District conducted by Daniel McArthur, LTD.

Mr. McArthur

reviewed the audit for the Pahrump Pool District and said he did not see any issues from a financial point of view.

Commissioner Blundo

made a motion to approve; seconded by Commissioner Strickland; 5 yeas. FINANCE

Commissioner Koenig

adjourned the meeting. "l1'L'--­ Of~--,--YJ---=U_i ,2019. ~zfJ