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Informal Meeting Minutes Monday, June 09, 2025 9:30 AM BOARD OF SUPERVISORS Maricopa County, Arizona (and the Boards of Directors of the Flood Control District, Library District, Stadium District, Improvement Districts and/or Board of Deposit) "The mission of Maricopa County is to provide regional leadership and fiscally responsible, necessary public services to its residents so they can enjoy living in healthy and safe communities” Board Members Thomas Galvin, Chairman, District 2 Kate Brophy McGee, Vice Chair, District 3 Mark Stewart, District 1 Debbie Lesko, District 4 Steve Gallardo, District 5 County Manager Jen Pokorski Clerk of the Board Juanita Garza Meeting Location Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003 BOARD OF SUPERVISORS ~ Chairman Galvin was absent for the meeting and Vice Chair Brophy McGee was the Acting Chairman ~ Acting Chair Brophy McGee opened the meeting and asked the Clerk to call the roll. The Board of Supervisors of Maricopa County, Phoenix, Arizona, convened in an Informal Session at 9:30 AM on Monday, June 9, 2025, in the Supervisors’ Conference Room 301 W Jefferson, 10th Floor Phoenix, AZ 85003, with the following members present: Kate Brophy McGee, Vice Chair, District 3; Mark Stewart, Supervisor, District 1; Debbie Lesko, Supervisor, District 4. Absent: Thomas Galvin, Chairman, District 2, and Steve Gallardo, Supervisor, District 5. Also present: Juanita Garza, Clerk; Kelly Gardiner, Minutes Coordinator; Jen Pokorski, County Manager; Brooke Worcester, Legal Counsel. PRESENTATION AND ACTION 1. PRESENTATION REGARDING THE MARICOPA COUNTY FY 2024 AUDIT Auditor General presentation of the audit results for fiscal year ended June 30, 2024. Melanie Chesney, Arizona Auditor General, Deputy Auditor General Michelle Walters, Arizona Auditor General, Financial Audit Manager TJ Wilhelm, Arizona Auditor General, Financial Audit Senior (C-18-25-083-X-00) Informal Meeting Minutes Monday, June 09, 2025 Page 2 of 11 Acting Chairman Brophy McGee welcomed and introduced the Auditor General presenters listed on the slide above. Melanie Chesney, Deputy Auditor General, thanked the Board for their time to hear the results of the Maricopa County FY 2024 Audit. She took a minute to review with the Board the role of the Auditor General as listed on the slide above. Informal Meeting Minutes Monday, June 09, 2025 Page 3 of 11 Ms. Chesney reviewed the slide above, giving further detail of the process that has taken place, and to answer any questions that the Board might have. Ms. Chesney reviewed the responsibilities of the Auditor General’s Office as listed above. Informal Meeting Minutes Monday, June 09, 2025 Page 4 of 11 Ms. Chesney outlined the terms and conditions that are the responsibility of the County. She said this included unrestricted access to personnel, documentation, and resources related the information requested. TJ Wilhelm, CPA, Financial Audit Deputy Manager, thanked the County staff for their assistance and reviewed the above slide that listed the reports that have been provided to the County. He said there were four findings on the internal control and compliance audit report. Some of the report highlights were outlined on the next four slides. Informal Meeting Minutes Monday, June 09, 2025 Page 5 of 11 Mr. Wilhelm said the reports can be complex and so each one was summarized in charts to aid in understanding the information. The primary revenue sources and their fluctuations are seen in the above slide. Mr. Wilhelm explained that the above slide highlights the County’s four main categories of primary expenses and what they support. He talked about the rise and fall in each category. Informal Meeting Minutes Monday, June 09, 2025 Page 6 of 11 The above slide gave a more comprehensive look at totals, showing that revenues have exceeded expenses consistently over that past five years. The net position has continued to climb too. Supervisor Lesko asked for an explanation of what the term “net position” means. Michelle Walters, CPA, Financial Audit Manager, came forward and explained that net position is the difference between the assets and the liabilities. It can be either a positive or negative position. Mr. Wilhelm reviewed the above slide and said the large amounts in FY 2020 were mainly due to the COVID 19 American Rescue Plan Act (ARPA) money that came from the federal government and then dropped off once the pandemic had subsided. Informal Meeting Minutes Monday, June 09, 2025 Page 7 of 11 Ms. Walters acknowledged the County’s progress on corrections from prior years findings. She reviewed the four Fully Corrected items, and the four Partially Corrected items listed on the slide above. Supervisor Lesko asked about the circumstances of the partially corrected IT control procedures as seen on the slide above. Jen Pokorski, County Manager, was able to give an update on the item in question and said the policy for this situation had been approved in December 2024. She said the overlap of fiscal year Informal Meeting Minutes Monday, June 09, 2025 Page 8 of 11 information and subsequent Board approvals were clarified. Ms. Pokorski said specialized software (Varonis) was procured to help manage the massive amount of data and would assist Enterprise Technology and Innovation (ETI) in future reporting. She said further details could be given by Shea McGrew, Chief Technology Officer with ETI, who came forward to speak about data classification. Ms. McGrew stated the training for this software and classification of data is underway in every department of the County, using Data Stewards to help sort and classify. She said the information is classified into three categories: Public, Restricted, and Classified. Supervisor Lesko asked about the findings listed on the slide above. She asked if there was employee training going on over the past three year. Ms. McGrew said the employee training was primarily on proper classification, and it will be ongoing. Supervisor Lesko acknowledged the difficulty for individuals to determine safe internet behavior and Ms. McGrew gave examples of training that is also ongoing to help keep data protected. Informal Meeting Minutes Monday, June 09, 2025 Page 9 of 11 Ms. Walters continued with the slide above and addressed the misstatement of $6.6 million that was regarding the inmate sack lunch inventory management system. She reviewed the corrective action recommended by the Auditor General. The County Finance department corrected this error before the issuance of the financial statements. Jim Prindiville, Chief Financial Officer (CFO) for Maricopa County Sheriff’s Office, came forward to further clarify how this error occurred. Ms. Walters talked about the above slide and explained the discrepancy had to do with utilizing funding allocated to Juvenile Detention for Accommodation School program operations. The anticipated corrections were to be completed by December 2024. Informal Meeting Minutes Monday, June 09, 2025 Page 10 of 11 Superintendent Shelly Boggs came forward to confirm this issue has been corrected and occurred before she took office as the Superintendent. Ms. Walters reviewed the Single Audit Report compliance issue and the correction that was required. She said the County anticipated completion of corrections by March 31, 2025. Tamara Bridwell, Director of Human Services, and Amanda McKeever, Administrator, came forward to answer questions. Ms. McKeever said this error was human error/oversight. She said the department reported the error as soon as they were made aware of it in February 2025 and since then, the department has implemented changes to avoid the same error in the future. Acting Chair Brophy McGee revisited the partially corrected items and got confirmation they would be fully corrected when the Auditor General issues the 2025 reports, that covers 2024. There were some final comments for corrections being made and an offer from the Board if there was any assistance needed, they are willing to help. Supervisor Lesko thanked the Auditor General for their work year after year. Ms. Walters thanked Mr. Mike McGee, Chief Financial Officer (CFO), and County staff for all the help in putting these reports together. Presentation only. No action taken. Informal Meeting Minutes Monday, June 09, 2025 Page 11 of 11 2. EXECUTIVE SESSION Vote to convene in Executive Session to consider the items on the Executive Agenda dated Monday, June 09, 2025, for Board of Supervisors and relevant Special Districts pursuant to the statutory authority listed for each item. Motion to approve by Supervisor Debbie Lesko, seconded by Supervisor Mark Stewart Ayes: Kate Brophy McGee, Mark Stewart, Debbie Lesko Absent: Thomas Galvin, Steve Gallardo MEETING ADJOURNED After discussion of the items listed on the Executive Session agenda and there being no further business to come before the Board, the meeting was adjourned. _________________________________________ Kate Brophy McGee, Acting Chairman of the Board ATTEST: ____________________________ Juanita Garza, Clerk of the Board