MINUTES
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
September 25, 2009
The Special Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Twenty-Fifth day of September, 2009, at 8:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Ray Roethle
Scott Sackman
Jim Finneman
Ric Holden
Barry Rakes
James Whitmer
Also present and participating were, Pat Davis, Assistant Secretary, Tim Kortum, Kay Braddock; Terry Tribune, and Kyla Stafford; CAP CFE for Anderson Zurmuehlen.
President Ray Roethle called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member.
Thereupon, President Roethle announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.
President Ray Roethle asked Kyla Stafford for her report. She stated to the Board that she is a CPA, & a CFE(certified fraud examiner) for Anderson Zurmuehlen & Co. She has 11 years of experience, with fraud examination being her specialty. She looked into, and learned the operating procedure of Buffalo Rapids, claims, contracts, revenues, expenditures, and recording of financials for the Project. She stated to the Board that she found no evidence of fraud, and felt confident in that finding. She stated to the Board in detail what she had looked at in the financials of Buffalo Rapids that she thought were areas of risk. She stated that every single claim she had looked at had a corresponding supporting documents. She stated that not all of the credit card statements had supporting receipts, but they were isolated incidents and were under a thirty dollar value. She recommended that there should be a more detailed explanation on the credit card receipt itself to make the documentation stronger. She looked at the Grant expense and expenditure. She stated that there is possible confusion because the grant project lasts for more than one year and is spread out over several years. She stated that the amount budgeted for the current year seemed appropriate according to the files, and the remaining amount left on the grants. Ric Holden asked if the correct number of grants were in the budget, and Ms. Stafford stated that the budget was correct in the amount of grants that were listed, but that lateral 209 would have to be added to the new budget after the first of the year. Mr. Roethle asked Ms. Stafford if listing the grants on a white board would be a good idea, and she agreed. Mr. Whitmer asked if the grants made it seem like there was more money in the Project, when in fact there was not, and therefore they had not raised assessments of the years. Ms. Stafford did not agree with that statement. Ms. Stafford recommended that they have a project summary report for the grants, prepared by the project manager, to help it be understood better. Ms. Stafford stated to the Board that the project manager has been completing a summary for the grants, they are required by the grant itself. The Board needs to look at the files or request them and look at those reports. Mr. Whitmer asked why there was not a report through Quick Books that would tell them how they were standing financially on any certain grant or EQIP project. Ms. Stafford informed him that Quick Books is capable of doing that, but the system is not currently set up to do that. Mr. Rakes asked if there were classes to take to learn how to do that. Ms. Stafford stated that there are classes, but they do cost. She did not think that the cost would warrant the benefit of having the system do those reports since they were already available in the files. Ms. Stafford stated that the level of reports given to the Board members each month could be confusing to the members. She advised that the reports given should be less detailed, and more condensed. She felt that possibly the members were given to much less detailed information within different reporting dates. She also advised that there should be a better tracking system with the inventory, because she feels that it is tying up cash. Pat explained to the Board that if they want her to make changes to the reporting, or how things are processed through Quick Books, they will have to get her help to do that. She explained to the Board that while she knows the Quick Books system, she is by no means and expert and knows only what she has been taught when she came to Buffalo Rapids. Ms. Stafford also recommended to the Board that the signature stamps be done away with. She advised that for employee and employer protections the stamps no longer be used. That all the Board members needed to be more involved and go through the claim forms before the meeting, and Pat would have the checks ready for them to sign at that time. Ms. Stafford also suggested that Dave not be authorized to sign the checks for protection of the employee and the employer. Ms. Stafford also looked at employee charges. She feels that the process is good now, but could be stronger. She recommended that those charges be billed out to the employee through Quick Books. She also advised that the foreman initial the receipt of all personal charges so there was a second verification of that charge. She also advised that the Project have the employees sign an agreement to have any charges held from their final paycheck for any unpaid balance. She stated that there is not a lot of volume in employee charges, but it would be a safeguard practice that could be implemented. Ric Holden requested a final written report from Kyla Stafford, the majority of the Board agreed. Ms. Stafford stated to the Board that as Board members they should be proud of the product that Pat has given them, she has been very consistent, her records are in good order, and the reports just need to be a step up in the sophistication. Mr. Ric Holden passed around copies for the Board the contract that he had negotiated with Ms. Kyla Stafford from Anderson, Zurmuehlen & Co. The contract was signed by Kyla Stafford and President of the Board, Mr. Ray Roethle. Mrs. Davis asked Ms. Kyla Stafford why she was asked to come to Buffalo Rapids and what she was told in coming here. Ms. Stafford replied that she was told that there were some concerns on some budget differences, and some questions as to whether what was reported was right or not. Pat Davis asked Ms. Stafford if she was asked to come in and do a quick fraud audit. Kyla Stafford stated that she was asked to see if there was fraud. Pat Davis asked her if she found any signs of fraud. She stated that she had not.
Mr. Ric Holden passed for the Board’s review the counter petition that the subcommittee had drafted to send to the State of Montana, Department of Labor & Industry, election judge John Andrew. Mr. Holden stated that the election judge for the state had granted an extension to Buffalo Rapids to draft a counter petition to the bargaining unit. He also informed the Board that the Board will have to fax the counter petition in to the State that evening. Mr. Holden read the counter petition to the Board. The counter petition stated who the Board wished to remove from the list that was submitted for the prospective bargaining unit for the union. The employees that were petitioned to be removed from the unit are: Dave Schwarz-Manager, it was explained that Mr. Schwarz was added by mistake and should not have been included in the list, Mrs. Patricia Davis, Mr. Allen Gierke, Mr. Timothy Kortum, Mrs. Jamie Larsen, and Mr. Kelly Hubbert. The reasons for the petitioning of those select employees to be withheld from the bargaining unit were due to direct management oversight of employees, working directly with the Board, very infrequent employment at Buffalo Rapids, and a letter of resignation received. Ric Holden made a motion for purposed of discussion to adopt the counter petition, seconded by James Whitmer. Mr. Barry Rakes asked whether the subcommittee had adhered to the regulation of the open meeting laws. The subcommittee reported that they had looked into it and were told that they did not have a quorum present, and that they were not making decision but only a fact finding mission, so they did not have to adhere to those laws. Barry presented them with the MCA codes that pertained to subcommittees and open meeting laws. It was stated by Mr. Holden that James Whitmer was designated as a direct contact person to the election judge for purpose of the petition. Barry Rakes stated that if the names listed were unable to join the union, they would have to form their own employment contract with the Project. Ric stated that the committee discussed that and they would deal with that at that time. Ray Roethle stated that Associated Employers’ associate stated that this was a very common thing that happens when the union comes in. Dave Schwarz stated that not letting certain employees in the union will possibly set the tone for the negotiations. Ric stated that if they enter into negotiations to see what the employees want without representation as to who is going to be in the bargaining unit, they will have waived any rights with the unions’ attorney. Barry Rakes stated that Buffalo Rapids could not contest the bargaining unit. Mr. Whitmer stated that he had talked with the associate form Associated Employers Scott Sackman asked if this counter petition could make the employees angrier. Barry Rakes stated that he was very uneasy about making any decision tonight. Mr. Roethle stated that they had to make a decision that night. Mr. Buxbaum said that they do not have a choice. Barry Rakes had questions concerning the money involved with the counter petition and the acquiring of a lawyer to deal with the union. Dave stated that if the Board contests the bargaining unit it will cost Buffalo Rapids more money, and cause harder feeling with the employees. On a motion made by Mr. Ric Holden, and seconded by Mr. Jim Finneman it was resolved to:
Approve and send the counter petition to the state election judge.
5 in Favor 2 Opposed.
Mr. Barry Rakes asked that it be noted that the majority of District II does not agree with the motion.
The counter petition was signed by the Chairman of the Board Mr. Ray Roethle. The counter petition was then faxed to the election judge John Andrews. Ric Holden asked that it be noted that a fax verification was also received and the original would be mailed.
The Board discussed that the subcommittee did not have the authority to hire an attorney to deal with the union, only to research for one. The prior resolution was read and discussed on that subject. On a motion made by James Whitmer, and seconded by Don Buxbaum, it was resolved that:
The Subcommittee would go forward to find an attorney and make recommendations to the Board.
All in Favor.
Mr. Barry Rakes brought the subject up again about the subcommittee adhering to the open meeting laws when they met. He advised them that they should look into it further to make sure they were not violating any laws. Mr. Finneman stated that he would look into it again.
Next meeting will be held on October 14, 2009 at 8:00pm.
There being no further business to be considered, and no objection, the said meeting of the Commissioners of the Buffalo Rapids Project Board of Control adjourned.
ATTESTED:
________________________________ ____________________________________
Dave Schwarz, Secretary Ray Roethle, President
of the
MEETING OF THE COMMISSIONERS
of the
BUFFALO RAPIDS BOARD OF CONTROL
Terry, Montana
September 25, 2009
The Special Meeting of the members of the Buffalo Rapids Project Board of Control, at Terry, Prairie County, Montana, was held on the Twenty-Fifth day of September, 2009, at 8:00 p.m.
There were present and participating at the meeting:
Don Buxbaum
Ray Roethle
Scott Sackman
Jim Finneman
Ric Holden
Barry Rakes
James Whitmer
Also present and participating were, Pat Davis, Assistant Secretary, Tim Kortum, Kay Braddock; Terry Tribune, and Kyla Stafford; CAP CFE for Anderson Zurmuehlen.
President Ray Roethle called the meeting to order, stating that all necessary and advisable business be conducted during this time and that notice had been received by each Board Member.
Thereupon, President Roethle announced that legal notice had been given and a quorum was present so that the meeting was legally and lawfully ready to transact business.
President Ray Roethle asked Kyla Stafford for her report. She stated to the Board that she is a CPA, & a CFE(certified fraud examiner) for Anderson Zurmuehlen & Co. She has 11 years of experience, with fraud examination being her specialty. She looked into, and learned the operating procedure of Buffalo Rapids, claims, contracts, revenues, expenditures, and recording of financials for the Project. She stated to the Board that she found no evidence of fraud, and felt confident in that finding. She stated to the Board in detail what she had looked at in the financials of Buffalo Rapids that she thought were areas of risk. She stated that every single claim she had looked at had a corresponding supporting documents. She stated that not all of the credit card statements had supporting receipts, but they were isolated incidents and were under a thirty dollar value. She recommended that there should be a more detailed explanation on the credit card receipt itself to make the documentation stronger. She looked at the Grant expense and expenditure. She stated that there is possible confusion because the grant project lasts for more than one year and is spread out over several years. She stated that the amount budgeted for the current year seemed appropriate according to the files, and the remaining amount left on the grants. Ric Holden asked if the correct number of grants were in the budget, and Ms. Stafford stated that the budget was correct in the amount of grants that were listed, but that lateral 209 would have to be added to the new budget after the first of the year. Mr. Roethle asked Ms. Stafford if listing the grants on a white board would be a good idea, and she agreed. Mr. Whitmer asked if the grants made it seem like there was more money in the Project, when in fact there was not, and therefore they had not raised assessments of the years. Ms. Stafford did not agree with that statement. Ms. Stafford recommended that they have a project summary report for the grants, prepared by the project manager, to help it be understood better. Ms. Stafford stated to the Board that the project manager has been completing a summary for the grants, they are required by the grant itself. The Board needs to look at the files or request them and look at those reports. Mr. Whitmer asked why there was not a report through Quick Books that would tell them how they were standing financially on any certain grant or EQIP project. Ms. Stafford informed him that Quick Books is capable of doing that, but the system is not currently set up to do that. Mr. Rakes asked if there were classes to take to learn how to do that. Ms. Stafford stated that there are classes, but they do cost. She did not think that the cost would warrant the benefit of having the system do those reports since they were already available in the files. Ms. Stafford stated that the level of reports given to the Board members each month could be confusing to the members. She advised that the reports given should be less detailed, and more condensed. She felt that possibly the members were given to much less detailed information within different reporting dates. She also advised that there should be a better tracking system with the inventory, because she feels that it is tying up cash. Pat explained to the Board that if they want her to make changes to the reporting, or how things are processed through Quick Books, they will have to get her help to do that. She explained to the Board that while she knows the Quick Books system, she is by no means and expert and knows only what she has been taught when she came to Buffalo Rapids. Ms. Stafford also recommended to the Board that the signature stamps be done away with. She advised that for employee and employer protections the stamps no longer be used. That all the Board members needed to be more involved and go through the claim forms before the meeting, and Pat would have the checks ready for them to sign at that time. Ms. Stafford also suggested that Dave not be authorized to sign the checks for protection of the employee and the employer. Ms. Stafford also looked at employee charges. She feels that the process is good now, but could be stronger. She recommended that those charges be billed out to the employee through Quick Books. She also advised that the foreman initial the receipt of all personal charges so there was a second verification of that charge. She also advised that the Project have the employees sign an agreement to have any charges held from their final paycheck for any unpaid balance. She stated that there is not a lot of volume in employee charges, but it would be a safeguard practice that could be implemented. Ric Holden requested a final written report from Kyla Stafford, the majority of the Board agreed. Ms. Stafford stated to the Board that as Board members they should be proud of the product that Pat has given them, she has been very consistent, her records are in good order, and the reports just need to be a step up in the sophistication. Mr. Ric Holden passed around copies for the Board the contract that he had negotiated with Ms. Kyla Stafford from Anderson, Zurmuehlen & Co. The contract was signed by Kyla Stafford and President of the Board, Mr. Ray Roethle. Mrs. Davis asked Ms. Kyla Stafford why she was asked to come to Buffalo Rapids and what she was told in coming here. Ms. Stafford replied that she was told that there were some concerns on some budget differences, and some questions as to whether what was reported was right or not. Pat Davis asked Ms. Stafford if she was asked to come in and do a quick fraud audit. Kyla Stafford stated that she was asked to see if there was fraud. Pat Davis asked her if she found any signs of fraud. She stated that she had not.
Mr. Ric Holden passed for the Board’s review the counter petition that the subcommittee had drafted to send to the State of Montana, Department of Labor & Industry, election judge John Andrew. Mr. Holden stated that the election judge for the state had granted an extension to Buffalo Rapids to draft a counter petition to the bargaining unit. He also informed the Board that the Board will have to fax the counter petition in to the State that evening. Mr. Holden read the counter petition to the Board. The counter petition stated who the Board wished to remove from the list that was submitted for the prospective bargaining unit for the union. The employees that were petitioned to be removed from the unit are: Dave Schwarz-Manager, it was explained that Mr. Schwarz was added by mistake and should not have been included in the list, Mrs. Patricia Davis, Mr. Allen Gierke, Mr. Timothy Kortum, Mrs. Jamie Larsen, and Mr. Kelly Hubbert. The reasons for the petitioning of those select employees to be withheld from the bargaining unit were due to direct management oversight of employees, working directly with the Board, very infrequent employment at Buffalo Rapids, and a letter of resignation received. Ric Holden made a motion for purposed of discussion to adopt the counter petition, seconded by James Whitmer. Mr. Barry Rakes asked whether the subcommittee had adhered to the regulation of the open meeting laws. The subcommittee reported that they had looked into it and were told that they did not have a quorum present, and that they were not making decision but only a fact finding mission, so they did not have to adhere to those laws. Barry presented them with the MCA codes that pertained to subcommittees and open meeting laws. It was stated by Mr. Holden that James Whitmer was designated as a direct contact person to the election judge for purpose of the petition. Barry Rakes stated that if the names listed were unable to join the union, they would have to form their own employment contract with the Project. Ric stated that the committee discussed that and they would deal with that at that time. Ray Roethle stated that Associated Employers’ associate stated that this was a very common thing that happens when the union comes in. Dave Schwarz stated that not letting certain employees in the union will possibly set the tone for the negotiations. Ric stated that if they enter into negotiations to see what the employees want without representation as to who is going to be in the bargaining unit, they will have waived any rights with the unions’ attorney. Barry Rakes stated that Buffalo Rapids could not contest the bargaining unit. Mr. Whitmer stated that he had talked with the associate form Associated Employers Scott Sackman asked if this counter petition could make the employees angrier. Barry Rakes stated that he was very uneasy about making any decision tonight. Mr. Roethle stated that they had to make a decision that night. Mr. Buxbaum said that they do not have a choice. Barry Rakes had questions concerning the money involved with the counter petition and the acquiring of a lawyer to deal with the union. Dave stated that if the Board contests the bargaining unit it will cost Buffalo Rapids more money, and cause harder feeling with the employees. On a motion made by Mr. Ric Holden, and seconded by Mr. Jim Finneman it was resolved to:
Approve and send the counter petition to the state election judge.
5 in Favor 2 Opposed.
Mr. Barry Rakes asked that it be noted that the majority of District II does not agree with the motion.
The counter petition was signed by the Chairman of the Board Mr. Ray Roethle. The counter petition was then faxed to the election judge John Andrews. Ric Holden asked that it be noted that a fax verification was also received and the original would be mailed.
The Board discussed that the subcommittee did not have the authority to hire an attorney to deal with the union, only to research for one. The prior resolution was read and discussed on that subject. On a motion made by James Whitmer, and seconded by Don Buxbaum, it was resolved that:
The Subcommittee would go forward to find an attorney and make recommendations to the Board.
All in Favor.
Mr. Barry Rakes brought the subject up again about the subcommittee adhering to the open meeting laws when they met. He advised them that they should look into it further to make sure they were not violating any laws. Mr. Finneman stated that he would look into it again.
Next meeting will be held on October 14, 2009 at 8:00pm.
There being no further business to be considered, and no objection, the said meeting of the Commissioners of the Buffalo Rapids Project Board of Control adjourned.
ATTESTED:
________________________________ ____________________________________
Dave Schwarz, Secretary Ray Roethle, President
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