Amanda Absher

To clarify--they committee allowed time for public comment, but there was no one wishing to comment.

Documenters.org: Making Local Government More Accountable All the info you need on public meetings in your town, in one easy-to-search place. Get TRAINED and PAID to hold your local government accountable. Powered by City Bureau.

The DESC Audit and Finance Committee meeting was adjourned at 2:57 pm. For more information, check out detroit.documenters.org.

No public comment.

Traci Sassak (sp), CFO, has been removed as a check signer. There is no CFO currently. Dana will be meeting with Paul in about a week re the skills and requirements for their new finance leader. "No offense to consultants, but we need someone permanent on staff."

Attendance policy changed in order to pass City of Detroit's review in January.

None of these are pressing for today. They were sent out on Thursday, the committee would like some more time to review before approving. Motion to move the policy updates to the next meeting. Supported and approved.

Three policy updates brought by Angela Smith.

Debt collection policy update in line with policy update from the state.

Accounts payable policy - added a section that any check issued with Detroit funds requires two signatures. They previously received a waiver for this but no longer

Things will be cleared up by next meeting, re the numbers.

The committee reminds them "the math is the math, numbers aren't going to change no matter how you present it to us. 4 million dollar loss" They called for candidness on losses.

Presenters want to balance making things confusing for different levels of knowledge at the table, and transparency.

"I have this gut feeling, caused by the phrase 'delicate situation.'"

The gap in GDYP was never explained, despite being told it would be later. "It was never explained clearly."

Also doesn't recall getting a clear explanation about why the numbers added to 90%, not 100%.

Can the Workforce Penalty Dollars be used to fund GDYP?

Those dollars are really specific, and there's a policy on what they can and should be spent on. "It's not significant enough to close the gap."

"When did we discover we were down 2 million for GDYP?"

August, but because of the timing of the program (getting and spending the money happens at the same time) it's happened. "We are talking about reimagining GDYT." They want employers to lean in with GDYT as a talent pipeline, not philanthropy

Looking ahead

"These numbers are going to get tighter. Cash analysis is going to be critical. Monthly reporting is going to be critical."

Cash Timing

"Is it supposed to add up to 100%?"
"Where is the other 10%?" "It's probably in the other category" based on how they went grant-by-grant.

The city has allowed where programs were unspent to be moved into GDYT since it's an established program, and the timing of how GDYT funds are spent.

Part of the reason they have to reallocate is they cannot create new programs for ARPA dollars after a certain point.

The unspent funds do not have to be returned to federal government, there's no liability on DESC with that to reimburse the program. The city will be responsible if not all ARPA funding is spent.

Community Health Corps is split in two phases - 1 where DESC was doing work, 2 where the City was. Complicated billing, multiple invoices.

ARPA Grants Updates

They are hoping to increase more regular reports to the board and reports monthly.

Skills for Life has an unspent balance. This was expected.

Learn 2 Earn expected some higher spend. Some unspent balance.

All Jumpstart dollars were spent down and transferred to other programs.

Net deficit detail ($7.1m)

Asks if they are required to have a balanced budget, being a quasi-governmental agency.

A: Yes, they should have balanced budgets. Expenses are still less than revenue. They are in a "delicate situation" because they have expenses they don't have approved revenue for.

Statement of activities

It's a little difficult to hear, but they are continuing to talk about the change in cash flow. Some committee members are also asking for help understanding the charts.

Most of the training was delayed and not forecasted in that years budget, there was a gap. It's a timing issue.

Balance Sheet

Finance Update, Karen Legendre PSS Senior Manager Rehmann and Dana Williams.

Have not heard from auditors on known investments. In addition to preparing compared to last year, they compared to 2019, pre-ARPA.

Audit update by Angela Smith, Controller, and Dana Williams.
Everything's been submitted. They should be sending the financials to the managing partner and will be available for review at next meeting.

There will be a difference in funding for GDYT. Internally and operationally they've set up a different system for GDYT because it's such a "quick cash" program.

Question about interest on the credit.

(It is difficult to see who is speaking.)

They ask about some more formality for this discussion re credit, if it will be something the committee will be asked to provide a recommendation on.

They started "very early" exploring a line of credit. Unsure if Comerica/Fifth Third merger will impact this. Have proposed about $15m/quarter. "A lot of this was the banking community not quite understanding." They say workforce development is new to the bank.

Reimbursements for program funding are actually coming. This was uncertain with the budget and government shutdown.

Fundraising outreach has begun. Says funders "are coming to us" with ARPA ending.

Chair asks who the funders are.
A: Detroit Area Workforce Funders Collaborative - primarily private

They've been expecting funding changes. They are 20% smaller than last year, right off the bat.

Some things going well: grant action notices are meeting expectations. "What the government said they were going to send, we're actually getting."

Organizational updates from Dana Williams, DESC President.

Making pretty significant updates to career service providers, where most of their cash is sent. "Maximizing dollars"

He says funding is different than a year ago, they're closely monitoring cash flow. "A time to have eyes wide open"

Agenda for today and meeting minutes for Aug 11 approved.

Chairperson's report, Chris Uhl, DESC Board Treasurer and Committee Chair.