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PEDC Board Meeting Minutes March 21, 2017 Page 2 of 4 although February is usually the highest month because it is December's sales tax; this year is was about $20,000 more due to a business audit. Our monthly expenses worksheet shows our ending cash balance as $2,867,453.66 and our reserves as $540,763.66. This gives us a total cash and reserve balance of $3,408,217.32. Mr. Brockman made a motion to approve the financials. Mr. Banks seconded the motion. Vote was 5 -ayes and 0 -nays. Discuss and possibly approve the yearly Audit Report for the 2015 -2016 year as presented by Andy Reich and Victoria Bethea of McClanahan and Holmes. Mr. Andy Reich and Ms. Victoria Bethea from McClanahan & Holmes presented the PEDC audit report. Mr. Reich read from page 2 of the Independent Auditors' Report: Opinions "In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities of PEDC as of September 30, 2016, and the respective changes in financial position and, where applicable, cash flows for the year ". Mr. Reich stated that basically this was a "clean opinion" on the financial statements. He went on to page 4 the Statement of Revenues and Expenditures for the year ended September 30, 2016. The Sales Tax Revenue was just over $1.4 million and the Expenditures were about $400,000; adding $1,000,000 to the Fund Balance to be used for future incentives. Mr. Banks questioned the Investments section on page 8, paragraphs two and three. Mr. Wilson said Gene Anderson would be the one to answer questions on the investment pools since cities all over Texas use the pools. Mr. Banks is concerned that the PEDC is using investment pools that are not insured. Mr. Paris asked if they would like a discussion of investment pools with Mr. Anderson to be a future agenda item. Mr. Manning said they would like it on a future agenda. Mr. Reich asked the Board if they had any other questions about the audit. There were no other questions. Mr. Banks made a motion to accept the Audit Report. Mr. Wilson seconded the motion. Vote was 5 -ayes and 0 -nays. Discuss future budget amendments. Mr. Wilson stated that he wanted the Board to discuss future budget amendments so the adjustments could be made before his term as Secretary/Treasurer ended in June of this year. The first adjustment would be $23,000 taken from Contract Labor and put into Salaries & Wages. Under the Direct Business Incentives we added the Park Street Project during the fiscal year which we should list as $60,000. We ask for any suggestions or problems you see in the budget be brought to our attention. Budget amendments will be ready for approval at the April Board meeting. Mr. Banks asked if the numbers we add in will be taken from another item. Mr. Wilson responded that we would just be adding to the budget since we were under budget. The $8,000 to Potters' Industries for 2015 should have been paid in fiscal year 2015 -2016, but was paid in fiscal year 2016 -2017. This second payment for $8,000 is for Potters' Industries 2016 and it is the correct payment to be paid this fiscal year. We