Finance_Committee_Minutes_May_14_2026

Town of Presque Isle Finance Committee Meeting – Minutes Date: May 14, 2026 Time: 10:00 AM – adjourned 11:11 AM Format: Hybrid (in-person and Zoom) Presiding: Michele Hinnendael, Finance Committee Chair (via Zoom) Minutes: Dave Bogan Present: Michele Hinnendael (Chair), Dave Bogan, Rich Schmalzer, Cathy Weber, Al Eschenbauch Absent: Gary Owens, Sarah Sisbach Also Present: Lori (Town Clerk, briefly) 1. Call to Order Michele Hinnendael called the meeting to order. The meeting was recorded via Zoom. 2. Approval of Previous Meeting Minutes The March 12th minutes remain on hold pending a revised draft from Sarah Sisbach, which has not yet been received. The April 9th minutes were distributed prior to the meeting. No changes were requested. Motion: Dave Bogan moved to approve the April 9th meeting minutes as submitted. Second: Michele Hinnendael Vote: All in favor. Motion carried. 3. Designated Funds Schedule – Review and Approval The updated designated funds schedule (as of 12/31/2025) was presented and reviewed. One correction was identified during the meeting: $27,385 for the Crab Lake road project had been entered under the highway equipment line and was corrected to the highway construction line. The Gravel Pit Reclamation fund was confirmed as a fixed, multi-year designation that must be retained until the pit is fully remediated. Key Figures • Total cash on hand at 12/31/2025: approximately $1,457,000, of which $843,000 represents 2026 tax payments received in December. Net funds available outside the 2026 budget: approximately $614,000. • Gravel crushing designated balance: $21,000 remaining after prior reallocation. The existing stockpile is expected to be largely consumed by South Crab Lake Road work this year; a new crushing event will likely be needed in preparation for next year. • Pipke Park Dam Restoration: $256,000 total designated balance, representing net unspent funds from $200,000 contributions in each of 2024 and 2025, less amounts spent to date on engineering. Grant reimbursement remains pending. • Column E represents unspent designated funds from all prior years combined; Column F represents funds approved in 2025 but unspent; Column G is the total balance. • A spreadsheet formatting correction was made during the meeting: the highlighted row color was changed from orange to yellow for improved readability. The schedule was reviewed by the committee with no further questions. The corrected version will be distributed to the full board and to the town clerk for board approval. Decision: Committee considers the designated funds schedule ready for board approval. Chair to distribute updated schedule to the board and town clerk. Action: Distribute corrected designated funds schedule to board and town clerk. 4. Road Bids Road bids were briefly discussed. The board has authorized sending out bids; no financial figures are available yet for committee review. The Crab Lake Road crack sealing ($27,385) was expected to begin the following week, as the contractor indicated the work was at the top of their schedule. Status: No financial action required at this time. Item to be revisited once bid results are received. 5. Kerber Rose – Status Update Payables and Bank Reconciliation Kerber Rose has finalized assistance with payables and payroll issues. The town clerk has made the necessary corrections, and the treasurer is working to bring all bank reconciliations current. Ongoing Payroll Issue – WRS Pre-Tax Treatment A continuing discrepancy was identified between what QuickBooks is withholding for IRS payroll taxes and the correct amount. The issue relates to Wisconsin Retirement System (WRS) contributions not being treated as pre-tax deductions: QuickBooks is calculating taxes on gross pay rather than on the reduced taxable amount after WRS deductions. As a result, the town has been over-withholding and over-remitting to the IRS — meaning the town is not in arrears, but corrections are needed. • The fix is likely a configuration setting within QuickBooks (a pre-tax versus post-tax toggle on the WRS deduction item). • Dave Bogan volunteered to work with the town clerk to locate and correct the setting. • It is unclear whether this issue would have been caught as part of the procedural audit scope; Kerber Rose identified it through their deeper payroll review. Action: Dave Bogan to work with town clerk to correct QuickBooks WRS pre-tax deduction setting. Procedural Audit – Status Draft procedure documentation has been received from the town clerk covering payroll and payables — described as basic but a starting point. The treasurer is working on the cash receipts section. Journal entry procedures remain to be drafted. A previously unknown procedure manual was reported to exist behind the treasurer’s desk; this will be located and reviewed when the chair returns to town. The committee discussed the importance of documenting procedures at a level that would allow a new employee to replicate tasks step by step, comparable to the level of detail used in corporate ERP implementations. Health insurance invoice coding was identified as a specific procedure that needs to be documented, as the current clerk was not aware of the proper multi-account coding that had been used previously. Status: In progress. Documentation being assembled for Kerber Rose review. 6. Review of April Actuals The April budget-vs-actual report was reviewed. The chair has added comments to the shared spreadsheet to provide ongoing context for recurring issues. Gary Owens will continue to maintain and update the sheet going forward so that prior-month notes are retained. Items Flagged • Town Clerk Office Expenses (Account 51421): Ongoing over-budget situation. Credit card charges continue to flow through without sufficient visibility into detail. The chair will review the credit card bills when back in town and add line-item comments. Two Kerber Rose charges totaling $2,312.25 in this account will be reclassified to Account 51980 (Other General Government). • Maintenance Salary and Benefits: Running high relative to budget. The employee in this role (Max) has a split allocation between maintenance (27.5%) and parks (72.5%), based on a timesheet-driven distribution. Park-related activity is minimal in winter and early spring, causing maintenance to appear over budget in early months. The committee discussed reviewing combined maintenance and parks salary as a single figure when assessing overall budget performance and using historical payroll data (7+ years available) to validate and refine the allocation percentage. No immediate concern; the split is expected to normalize over the full year. • Highway Insurance: Health insurance premiums for certain employees (Max and Crystal) are being coded to the highway insurance line rather than the correct accounts. The chair will correct the coding when back in town. The new Security Health Plan billing (effective May) must be set up with proper account coding from the outset to avoid propagating the error going forward. The town clerk confirmed she has the new bill and will work with the chair on correct coding. • Debt Service – Loan Payment Split: The March debt payment of $114,000 had been coded entirely to principal. Lori confirmed the payment includes approximately $4,044 in interest and the remainder in principal. The entry will be corrected to split the payment between interest and principal accounts. Any additional voluntary principal payment (being considered for later in the year, before a September deadline) would be applied to principal only after any accrued interest at that time is settled. • Aquatic Invasive Species / Prescott Town Lakes Committee (Account): Two sign purchases by the Prescott Town Lakes Committee were discussed — one for invasive species notification at Lynx Lake and surrounding landings, and one for high-water slow/no-wake signage. Budget exists within the current aquatic invasive species line to cover these. The committee noted that the account label ‘Aquatic Invasive Species’ does not fully reflect the scope of the Prescott Town Lakes Committee’s activities (which predate the invasive species focus). Recommendation: relabel the account to ‘Prescott Town Lakes Committee’ to accommodate the full range of the committee’s expenses without creating additional chart of accounts lines. Action: Chair to (1) review and annotate credit card detail; (2) correct health insurance account coding; (3) work with clerk to split March debt payment between interest and principal; (4) ensure May Security Health billing is coded correctly from the start. Relabeling of the Aquatic Invasive Species account to ‘Prescott Town Lakes Committee’ to be proposed to the board. 7. Cash Balance Report Rich Schmalzer reported that he had met with the treasurer to review the cash balance report format. The current report reflects bank statement balances, which do not account for checks written but not yet cleared. The treasurer agreed to add a line item to the report deducting outstanding checks, so the report shows true available cash. An updated report was distributed by the treasurer earlier in the week; the committee was asked to review it to confirm it meets this need. Status: Treasurer updating report format. Committee to review the latest version distributed this week. 8. Next Meeting Next Finance Committee meeting: June 11, 2026, 10:00 AM. 9. Adjournment Motion: Dave Bogan declared the meeting adjourned. Vote: All in favor. Meeting adjourned at 11:11 AM. Action Items Action Item Owner Due Distribute corrected designated funds schedule to full board and town clerk for board approval Michele Hinnendael Immediately Correct QuickBooks WRS pre-tax deduction setting to resolve IRS over-withholding Dave Bogan / Lori ASAP Review credit card bills; annotate actuals spreadsheet with line-item detail Michele Hinnendael When back in town Reclassify two Kerber Rose charges ($2,312.25) from Account 51421 to Account 51980 Michele Hinnendael / Lori June 11 Correct health insurance coding for Max and Crystal (currently in highway insurance line) Michele Hinnendael / Lori When back in town Ensure May Security Health Plan billing is coded to correct accounts from the outset Michele Hinnendael / Lori Immediately Correct March debt payment entry to split $114,000 between principal and interest (~$4,044) Michele Hinnendael / Lori June 11 Propose relabeling 'Aquatic Invasive Species' account to 'Prescott Town Lakes Committee' to town board Michele Hinnendael Next board meeting Review updated cash balance report distributed by treasurer this week; confirm it reflects available cash net of outstanding checks All committee members Before June 11 Locate and review existing procedure manual behind treasurer's desk Michele Hinnendael / Becky When back in town Complete draft of revised March 12 minutes; circulate to committee Sarah Sisbach Before June 11 Draft minutes prepared by Dave Bogan — Town of Presque Isle Finance Committee | Chair: Michele Hinnendael