How Do I Sign Connecticut Banking Presentation

How do i industry sign banking connecticut presentation simple

this conference will now be recorded okay good morning everybody this is matt um and we have uh an agenda you know that we're going to try to get through and uh we'll circle back to the resolutions if um you know from when lonnie joins um lonnie joined yep she just joined all right great well good morning lonnie uh then in that case good morning in that case i'm going to call the meeting to order um this is the october 15 meeting of the acg committee and we have uh lonnie and mike and myself as uh quorum so let's jump right in because i know we only have booked an hour and we have to get through our kafir which is sitting at the almost the bottom of the agenda um the first order of business is the uh to just review the board of uh directors membership and attendance review that the second part of this is something we started doing um i don't know two or three years ago to just sort of give uh members a reminder if they are missing a number of meetings and you know trying to keep attendance at a at a at a good level so brian i'm gonna rely on you or if there's someone else who can walk us through the membership term update in the attendance review sure i could this is brian farnham i could do that um yeah and all the letters went out that was kind of a a nudge we wanted to do this board members to you know just make sure and again and we totally get it especially when meeting dates change we're in this crazy world of covet and this is at the end of the day um a volunteer position so it's a balancing act for us and we sent those letters out when it comes to dependents maybe a couple of board members we'd kind of like to see um pick it up but there's also good news too um you know the statement of financial interest we've never had a missed date for those being filed which i'm happy to report um i would also like to you know this this memo also raises that um you know our board composition uh we have one vacancy right now for the finance position that we're actively looking uh to fill um and then when it comes to governance docs we can hold off on that part of the review which is also part of this memo but we'll handle that as a separate item and we'll just talk about that annual review so um and then in just another way background people may notice that if their term expires it doesn't mean that they are no longer a board member this is something that there's statutory authorities for and advices uh surveyed other quasis and basically um you're in that position until either a someone resigns or b another person is appointed in their place i know that's been a question that's come up by others like hey my term ends you know on this date am i still on the board or do i need to get a new letter the reality is so long as the appointing uh entity or person doesn't reappoint someone else um you you can stay on um until someone is appointed so let's i'll just end it there because i know we've got a lot more to cover with the kaffir unless there's questions uh no no i think that's good um i skipped just circling back for a second i did skip soliciting any public comments so i'll just mention that here uh are there any public comments okay uh hearing none we'll check the box on that um all right then the next uh the next item is the governance review documents brian did you say you want to hold off on that and go right to the camera we could do the governance we could do the governance review documents now and um the one thing do we approve the minutes uh no sorry let's back let me back up to that agenda so yes uh um we have uh the minutes of our may 19 2020 meeting um that are in the packet so if we could if i if everyone could take a look at those and then i would accept a motion to adopt the minutes mike or lonnie would you like to make a motion on the minutes um i move adoption this is michael seconds great okay all those in favor aye aye opposed abstentions it looks like okay all right okay so uh two eyes and one abstention and the minutes are adopted okay and then the next item is going to be we're going to jump to item uh five which is the um governance review documents all right perfect i'm gonna go one more slide all right excellent so on an annual basis what we do at the green bank is basically do something that it's kind of a healthy exercise we go through and read um these governance documents and say hey do we want to make any changes to them and we were comfortable with all the documents and the one thing i would just point out is that the bylaws were already revised this year those revisions came about based on a state auditor's document that was created based on a review of other quasi publics and they basically created those best practices so that was probably the biggest change we've had to our bylaws in a few years you know it did some simple things like adding the purpose and function of the green bank but also gave us the flexibility to add a treasurer to the board of directors um it also added uh the oath right into the bylaws which was helpful and then um we also had another requirement that basically that when it comes to like the ethics policy um it actually has to be counter-signed so um and then we also expanded the conflict of interest policy to include immediate family members so these are all changes that were done uh this year in our bylaws but uh beyond that none of the other governance documents uh needed any revision so unless anyone has any questions uh we could we can move on from that any questions mike or lonnie nothing for me okay all right well brian thank you for going through these you know i as you pointed out it is in our bylaws and uh so it's a good thing to peruse even for us members although there's a lot of them so thanks for putting it on the agenda and then uh section b of item five is the reporting requirements we could just get an update on where we stand with with on all our reporting requirements sure and um we're uh we're plugging ahead of those a few years ago this was something that was an audit compliance issue and what we did is we created a statutory report checklist so basically we would have all these reporting requirements all in one place and we track them and i believe we're in pretty good shape jane is there every offset with any of the financial reporting requirements that would have been the only area that sometimes from a resource issue but i think we're all set there too yeah we're we're good with those since we um worked with the state to change our reporting so that it can come directly out of intact so now it's easy which which was great that was good yeah and i was just going to say for lonnie mike if you didn't notice there is a that table that brian's referring to is in the the overall book not it looks like we don't have it on the slide deck but um which shows where we stand on each thing and i would say we seem to have this seems to have really helped in addition to the change chain that you're referring to so all right well good so yeah let's keep on track because this seems like easy pickings uh when we if we're late on them it's just you know it just shows up in our audit no matter what nobody nobody needs a hartford current article based on the lack of filing of three blah blah blah so it's something that we just you know we've been on top of and jade's team has been amazing with getting that revision done which i think really helped from a resource perspective and streamlined and for efficiencies yeah it is a lot of reporting though just i'll just note we have a lot of reporting obligations um someday it would be interesting to quantify it and see if we couldn't streamline them with the legislature yeah on that note this is mike i mean are you guys going through the same exercise that the rest of the state government is when to like identify all the reporting requirements that you have that you no longer think are relevant no that that has not come to us um you know that we haven't been provided that request gotcha yeah so you know i'm not sure if you guys want to check on this but you know the governor hired boston consulting group to help us plan for the 2020 retirements or 2022 retirement sorry and so as part of that exercise a lot of it is like what how can technology replace you know retirement and then one of the other parts is like what are the things that are sort of outdated and obsolete that we no longer think that we need to do or should have to do anymore um and a lot of it is like reporting requirements and we're like compiling a list so i mean people can consider whether or not we can drop some of the things if you if you have a copy of that ask from the governor's office send it our way because we would take a look at it but maybe something that would be worthwhile for us and other classes to also consider from a streamlined perspective yep yeah especially this is this is lonnie i just want to and everybody probably knows this already that kevin rennie is now joining face the state and uh so i really applaud how proficient everybody's being uh dotting all the highs and crossing all the t's but you know there's going to be a lot of foi particularly with all you know public-private uh entities so um just something else to keep an eye on we don't want his call exactly well the good news is we we're we're doing doing well so let but yes let's keep it that way but i think let's maybe just uh maybe jane or brian you guys can talk offline and uh think about what mike just said because if there's going to be a bill for the other agencies even if we're not asked to do it it'd be good to have it handy and see if we could get it put in and again it might not trying to not report but we have a lot and maybe some of them can be consolidated or done you know every year instead of every quarter anyway um all right let's move on to the unless there's more comment uh let's move on to the kafir because you know that's the main protein dish here this is gene i'd like to introduce ron nasic jessica aniskoff and dan smith who are our audit team this year on the financial side and they've put together a presentation for you uh regarding their findings and a quick overview of where we stand this year so i'll turn it over to either jess or ron i'm not sure who's doing it i i've got it so i got it okay this is ron nauseok from bloom shapiro uh thanks for having us what we're going to go through here today is is the reporting results uh of our audit for the fiscal year and june 30 2020 some financial highlights and then we'll go over the required communications from us the auditors to to you those charged with governance it is not uh this presentation is not meant to be down at a granular level uh we're probably at 35 000 feet here um we'll certainly take on any questions that you may have now or down the road uh relative to the kafir but uh if you've got it in your custody as you know in draft form you know it's a pretty uh uh substantial document that um there probably isn't enough time in a week to go through that page by page so um we'll move forward here uh the first section we'll talk about it we could jump couple slides ahead is going to be the reporting results and these by far uh i think are the most you know significant things we could report to you relative to the kafir itself are our reporting which is performed generally accepted auditing standards and under generally accepted governmental auditing standards those reports are the only things that actually belong to us uh the financial statements uh and i think you you all fully understand this our management's financial statements and then we are simply there to audit and opine on those financial statements our opinion under generally accepted auditing standards is the primary opinion page one of the the kaffir document and for june 32 we've issued or are going to be issuing an unmodified audit opinion on the financial statements which which uh simply states that in our opinion the financial statements fairly represent the financial position and results of operations of the bank for the fiscal year and at june 30 2020. under generally accepted governmental auditing standards uh we're also required to gain an understanding of the internal controls relative to financial reporting at the bank and report to you if we uncover during that during that work any material weaknesses or significant deficiencies relative to that internal control and we're also required to identify any compliance requirements that the bank may be under that a violation thereof in our opinion would be deemed material to the financial statements and in both of these cases both of the criteria again we're required to reissue what we call a standalone yellow book report relative to this that report when issued is going to uh indicate that there were no material weaknesses or significant deficiencies that were identified relative to the internal control control structure over financial reporting and relative to compliance there were no issues of non-compliance that were identified during the performance of our procedures so all in all uh top marks if you will relative to uh financial you know our opinion and reporting relative to the financial statements for some financial highlights we can jump ahead of slide what these are are uh simply snapshots of um and they're right out of your mdna and actually as i said that before i go further if again i know it's a it's an extremely cumbersome document uh all governmental financial statements are and uh what i suggest to to any committee i meet with is if if you read anything in those financial statements take the time to read the management's discussion and analysis which you know is is anywhere from maybe eight to fifteen pages long it's it's at the very front of the report and it really discusses uh not what happened but but uh well yeah what happened as opposed to you know something changed by a million dollars or whatever the case may be it gives some reasoning behind that so it's it provides some clarity and some commentary relative to the financial statements rather than just looking at numbers uh from a comparative perspective but so what we're looking at right now the snapshot on the screen is the the assets and deferred outflows of resources as of june 30 2020 and uh total assets of the green bank uh inc increased to 213 million during fiscal year that was an increase of about 2.3 million your program loans increased by 17.1 million those were increases in the low and moderate income lending you had an increase 5 million over your commercial solar pv asset and and some some sale fire pv asset sale financing of uh i'm i'm sorry i'm i'm uh i'm jumping backwards here this program loans increased by 17.1 um your commercial solar pv sale financing uh had an increase of about 4.1 in your multi-family lending 2.7 all of those increases in assets were offset uh by decreasing cash and cash equivalents which was driven by disbursements contractors uh for the construction of the cscu solar pv systems overall current assets decreased by uh 9.1 million while current uh non-current assets increased by about 11.4 we'll talk in a second just what that did to the liquidity position of the balance sheet uh but still still in in good shape but it did uh decrease the liquidity position of the balance sheet a little bit if we jump to the next slide what we're looking at here are the liabilities and deferred inflows and as you see here relative to variance total liabilities increased 1.9 million during the fiscal year and that was primarily due to your line of credit that you're entered into about 6.1 million as well as uh your increase in opeb liability which is getting pushed down to you from the state of state of connecticut and those uh are actually offset by some decreases in long-term debt so while uh you know clearly the 1.9 the 6.1 uh 6.1 of the 4.5 uh jumped well ahead of 1.9 million that that decrease in long-term debt uh drove that overall increase down total in that position of the bank as of june 30 2020 was 76.7 million dollars which uh was was quite consistent with the prior year uh it increased 460 thousand dollars i'm sure you all remember quite well uh last year we had the sweep from from the state of connecticut which uh it created quite a a depletion of net position so uh that that did stabilize here in 2020 and as i just spoke spoke to the liquidity of the balance sheet so current assets divided by current liabilities decreased from uh 192 to about 110 um depending on uh you know industry uh and where you are uh as long as you're over 1.1 you know 100 percent um you're considered to be in a in a viable position 200 is considered to be very strong but i i think the the the change in that is is a recovery is going to be a recoverable change if it hasn't already simply because it was uh it was all relative to uh to to some cash flow activity and during the fiscal year jump ahead to the next slide uh we're going to be looking at the statement of changes in net position and again just a pretty high level here you had operating revenues of approximately 53 million dollars for the year that was an increase from the prior year of about seven and a half million dollars it was mainly due to an increase in wreck sales of 2.8 rggi auctions a revenue of about 2.5 these are increases in and the sale of energy systems of about 1.2 your total operating expenses increased approximately 5 million during 2020 and that was due mainly to the increase in pension and opec expense of 1.4 million and an increase in the provision for losses of 2.8 so uh one of the two of those actually two of the three of those as you all know are are really not under your control um the state is is having the actual actuarial valuation of those plans and and again those liabilities get pushed down to you for financial reporting uh you can jump ahead another slide uh same slide off to your right there same snapshot but what we're looking at here is is just your non-operating revenues and expenses uh which were approximately 3.9 million net expense for fiscal 20 it was 17 million last year but as as as i stated earlier you had that significant sweep of 14 million dollars last year from the state of connecticut uh which is really what drove the swing so that will um you know again 35 40 000 foot review uh relative to the financial statements and basically your variances that went on during there so we can jump to the next slide and what i want to go through is the uh required communications to those charged with governance so these are um topical areas that uh we are required under auditing standards to report to man uh to to those charged with governance and uh through them you will receive a formal letter when the financial statements are issued um but uh it is important to go through these with you and and you know from an overall objective really what the whole design of this required communication is is um an opportunity for us to provide you information that would be relevant to our feelings and thoughts to if management was indicating or showing any bias relative to financial statements and by bias it would mean trying to make them perhaps look better than they actually are or absolutely worse than they actually are um you know so that that's the point of this so first and foremost um we're required to report to you about qualitative aspects of the accounting practices so this really encompasses the selection of generally accepted accounting principles and the implementation of those principles as well as the use of estimates in the financial statements if management typically if management is going to [Music] show any level of bias relative to the financial statements where it is going to arise is within your uh estimates because they are just that estimates uh they are easy to be manipulated um you know one being reserve you know loss reserved so you know clearly there's no empirical evidence we can look at as auditors we've got to look at estimates a little bit differently and if we thought that they were getting weighted too heavy or too light uh that would be something we report to you so relative to what transpired in 2020 um as a statement says here management is responsible for the selection and use of appropriate accounting policies during the performance of our audit we did not note any transactions entered into by the green bank during the fiscal year for which there was a lack of authoritative guidance or consensus so there was nothing you know a one-off or anything out of the ordinary that we had to evaluate outside of the scope of generally accepted accounting principles and based on the work we performed all significant track uh transactions have been recognized in the financial statements in the proper period so that is a that's relative to cut off um where again we would report to you if we if management was trying to back things into the fiscal year or push things forward into the next fiscal year the next slide continues on with qualitative aspects this is about the estimates uh the statement here uh estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events what we provide to you here are in our opinion the most significant and sensitive estimates that are embedded in the financial statements those are the loan loss reserves the fair value calculation relative to your swap transactions the net pension and opeb liability and your asset retirement obligations i will read through those i think you all are are well aware of um what those are and then the next slide what we're indicating to you is you know what did we do relative to these so we evaluate the key factors and assumptions used to develop the sensitive estimates in determining that they are reasonable in relation to the financial statements taken as a whole um and and in some instances uh relative like to to your uh opeb and pension liabilities we're relying on a third party expert we're relying on that actuarial firm there that is doing the calculation um in the other cases we're comparing this information uh both statistically relative to the underlying asset or liability that that is generating the estimate uh as well as comparing it to uh multiple years both just side by side in relative to the percentage estimate the percentage calculations we're doing relative to the estimate so that's basically the reasonableness work that we're doing relative to that to that estimate and then finally the financial statement disclosures in our opinion are neutral consistent and clear there were no sensitive disclosures affecting the financial statements uh again now clearly if there were sensitive disclosures uh we would bring those to your attention in this communication so next slide we would be required to report to you if there were any difficulties encountered in performing the audit and these would be uh you know issues where maybe uh management was not providing us information we were requesting or uh they kept moving the timing of when information was going to be available to us or if the timelines that they were placing uh on us were unreasonable all you know all of that we would uh we would be required to report to you relative to that so that you can make a determination if there's something that that you would need to do um but you know in the case of the audit uh in in the history of our experience with the green bank we and this year as well we encountered no significant difficulties in dealing with management in performing and completing the audit corrected and uncorrected misstatements we're required to report to you any corrected or uncorrected misstatements generally that are material to the financial statements again for you to evaluate and and determine okay you know what why are we encountering um misstatements if you will uh that that you know management missed or or perhaps misinterpreted something or something to that nature uh but again we'd be required to report them to you for your evaluation uh to make you know related to management but in this case in in the audit of 2020 there were no uncorrected misstatements and were identified in connection with our financial statements for the fiscal year and at 2020 so there is nothing to report to you relative to that uh next slide uh we'd be required to report to you any disagreements with management and uh what these generally apply to would be uh gap and and gas things so if we had a disagreement relative to the application of generally accepted accounting principles or if we had disagreement with management relative to certain procedures that we felt were necessary to perform over the financial records as part of our audit engagement we would be required to report those to you uh and and again as consistent as it's been over our time with the bank we encountered no significant difficulties in dealing with management in performing and completing the audit relative to management representations we have not obtained them as of yet those basically are the last piece of evidential matter that we will obtain but we will obtain management representations from management just prior to issuance final issuance of the financial statements those are pretty comprehensive in nature i think the the rep letter is probably about four or five pages long uh it changes from from year to year relative to what's going on but there are some standard representations in there as well uh management will have a copy of that subsequent to the issuance uh so if if any of the board members care to look at it they can inquire with management or you could inquire with us and we could send it along uh jump ahead here management consultations with other independent accountants we would be required to to report to you if we were aware that management reached out to another audit firm or accounting firm primarily due to the fact that they did not agree with us on a certain uh matter so um often oftentimes uh this is referred to as is gaining a second opinion or uh in worst-case scenario opinion shopping but again as has been consistent to our knowledge no such consultations occurred and then uh what we do report to you is audit discussions related to gap and gas and other matters that we have with management on a regular basis and if any of them uh in our opinion were odd or uh gave us pause we would report those to you uh but in our opinion relative to the audit of 2020 any such discussions that did occur took place in the normal course of our professional relationship and our responses we're not we're not a condition on our retention so uh management uh you know isn't holding anything over our head to make a decision one way or another and then finally other matters and this is just letting you know with respect to supplementary information and this is all spelled out in the audit opinion itself um but in regards to supplementary information this basically gives you a general idea as to what we're doing with that information relative to the audit uh so in in certain circumstances supplementary information in particular we're comparing it to the audited records so we are taking um some responsibility for that information there is and again identified in the opinion there is other information in that kafir that we are not taking um you know any type of responsibility for the statistical information and things of that nature we do not issue an opinion on those we do look at them to make sure that uh you know they're comparable and and line up with the with the audited uh section of the financial statements um but but we're not going into a deep dive there whereas with the supplementary information we do tie that back directly to the audited records and then second to last slide is just uh standard communication that the information in this slide deck and in the letter a formal letter that will be issued is intended solely uh solely for uh for you okay the audit auto compliance and governance committee and management of the green bank it's not intended and should not be used by anyone other than those specified parties uh what you do with it internally is is up to you we're we're simply uh explaining to you that it's only meant to be communications between the two of us uh finally as always um just want to thank uh the staff at the green bank that we work with relative to the audit uh we we truly enjoy the relationship that we have um it's been a very very good professional relationship uh and we're happy to be your auditors and um and uh that'll that'll be it the last slide actually is just some uh identification or contact information relative to the audit team that was announced earlier uh as always you can reach out directly to us it generally is is more efficient to work through management to get to us uh but but nonetheless if you call us directly or email us directly we'll pick up the phone or respond to the email so that's all i was going to cover today again the team is on the line here uh we'll take any questions that you may have at this point and again i know we've got another meeting next friday and even beyond that if if if there is a desire to to have a meeting with us to talk about uh matters that are in the in the kafir to get further clarification we're more than happy to uh to do that so i'll turn it back to whomever is going to take control all right uh this is matt well thank you ron and uh jessica and dan um it is always nice to get an unmodified report and uh thanks uh jane and the management team it does seem like you know as you guys as collectively all have this really running smoothly for the audit and it's uh it's nice to hear that um before we open up the questions i just i guess i would just say typically and and i may have missed it wrong but i think we always say to the commission the the members of the committee that if you have any concerns or want to talk offline with the auditors you know you're encouraged to do so calling them directly if something that you want to do that that that's absolutely correct and um um especially if if there are concerns um you know directly relative to management but but most certainly um we're here uh we we work for you uh the board um we work with management so uh we're certainly here at your beck and call all right thank you so why don't we open it up uh to any questions from uh mike or lonnie um i i this is mike i don't think i have any questions but maybe i mean just so i understand it right i mean you're sort of like make a representation based on what you can tell but there are limitations to all the information that you have so right because i guess that makes me think about this like berkshire hathaway article i was just reading about how they bought this company and all their financial statements were inaccurate essentially and even a giant company like berkshire still bought this other company and couldn't see through sort of like the financial statements um of the company that they bought and they ended up buying this company that was essentially a big loser um i mean is that fair to say that they're you know i think that's what you were saying all these caveats about what you can and cannot tell well you know um under generally accepted auditing standards where we're required to plan and perform our engagement in a manner that would detect any material misstatement to the financial statement so we're responsible for that to that level um if if berkshire bought a company that tanked um and they bought it based off of analysis they were doing on those financial statements i would suggest to you that that audit firm failed uh in in in complying with general accepted auditing standards but i think it was more that the management misrepresented the financial to the audit firm and but the audit firm could not tease through that is my interpretation yeah i think i understand okay okay uh lani any questions no i thought this was one of the uh the best audit presentations i've i've heard so um now i think it's uh i think it was very well done in it and i and i'm very proud of that management has really been transparent in working with the auditors as well so that's all good news yeah no i i agree it's uh i think we as a green bank and uh ron and your team you know it's uh it's they have have done a good job of trying to be transparent and going the extra mile so i i had a question i just uh a clarification i guess so the on slide i think it was sticks or five there was we had indicated there was a decrease in our currently available or really our cash position about um uh i can't remember it was uh nine nine million or ten million dollars um what and and that that in turn affected our liquidity uh you know down to from 192 down to 110. i i'm not a financial person so what is what does that mean i mean was there a sort of a is 110 sort of a range we should be concerned about i know you indicated that there was no reason to think it wouldn't bounce back up but you know is there sort of a line at which a liquidity line at which you know there's sort of a yellow zone or and two is there was there anything i read i tried to find them in the management statement where the cash uh drop came from but i i couldn't so from from the perspective of the of the liquidity if if if that you know that calculation was below 100 um you know we we would bring it to your attention if it's if it's below 100 percent and a year later it it it continues to dip you know clearly then at that point in time depending on how much that dip was we may as auditors find ourselves doing uh a going concern evaluation that that doesn't mean we'd be issuing a going concern opinion um but but you know that's basically that liquidity is one of the primary triggers that that would cause the any audit firm to start looking or considering going concern now you know we're in a unique environment in the sense that um the state you know you're a component unit to the state of connecticut and and so that would that would certainly come into the evaluation if we were ever to get there but as long as you're over 100 percent um you know there's there's really no concerns as a matter of fact last year at 190 and i you know i forget but i could get that information out relative to what it was perhaps a year prior to that um you know i i i think the bank was was pretty much off the charts relative to to its liquidity position uh and perhaps now especially because of that 14 million sweep last year um maybe down to earth a little bit you know at the current period but um if we looked at [Music] well i i don't have it in front of me but if if you do have the draft um the cash flow statement so it's going to be that that third statement that's that's in the draft financials that is going to give you a far more granular picture as to you know basically what transpired what took cash from point a to point b um don't again i'm trying to see if i can flip through my computer files here get to that but that's all right i think the first part of the question is really the other i mean we can talk internally i'm sure our team knows where that you know could explain it uh so i don't want to put you to finding it hey matt this is brian maybe just offer one one macro observation that's consistent with our sustainability plan that we focused on in december of 2017. so you can see here um the program loans increasing by 17 million over the fiscal year to year so our strategy is is to move from current assets to non-current assets so that we're generating interest income that comes into our current asset growth so that over time our interest income from our investments covers our operating expenses that that was our that was our going principle on our sustainability plan and making really good progress on it um you know so again trying to address this that were hit that hit up in 2018 and 2019 by investing the resource we have an interest producing assets so so that's that's a large part of this story and and this is burt hunter uh chief investment officer um so and another part of the strategy met is also that we have lines of credit that were secured by various assets so with our shreks and with certain other uh non-current assets that we've obtained lines of credit that the board has previously approved so as of the end of the last fiscal year june 30th of 2020 uh jane i believe we had approximately 13 million dollars of of availability uh under those lines of credit i believe we had approximately eight million available to us on the shrek line and we also had i think uh four and a half million dollars available on uh the the the amalgamated short-term line of credit so in addition to the the cash resources you see there we're able to re uh as as brian said remain more fully invested because if we do need some short-term access to liquidity bearing in mind that we uh have our system benefit charge which rolls in uh we have access to uh to short-term liquidity lines of credit uh that we can avail ourselves of okay all right now that's helpful i i i see that that you know we don't want to have a pile of cash laying around either i just wondered if it was a particular expense that we use that uh foot those funds for all right look just to add real quick and i won't i won't take much your time but i i i did track down the cash flow statement so when you have time uh the section under cash flows from investing activities the last two lines under that section are the program loan disbursements that that were discussed just a few minutes ago and those are close to 20 million dollars of investment that would be cash going out um but as was indicated by uh by someone earlier um you know it's going to be returning uh with a premium uh included with that return being the interest component of it okay so we basically put that money to work is what it sounds like yeah that's right matt okay thank you sorry to take up time any other uh questions okay i think then uh uh thanks ron and your team again uh for for the report and thanks jane and your team for all the hard work as well and uh do we brian sorry do we have a motion on this do we make a recommendation or yes there would be a recommendation recommendation to the full board okay can we put that up it's resolution number two matt okay thanks i can read it if you like yeah that would be great thank you just the just the the resolution part not all the preamble okay and now actually can someone now i'm knocked off the uh the web so it's not pointing up brian or jane do you want to read it until like this uh resolved that the audit compliance and governance committee hereby recommends to the board of directors for approval the proposed draft comprehensive annual financial report kafir for the fiscal year ending june 30th 2020. great i i would accept the motion if someone wants to make it so moved in a second second thanks mike thanks lonnie uh all those in favor say aye aye aye opposed abstentions hearing none the uh resolution passes and thank you everybody um okay so we're running getting close to our 9 30. so why don't we move right into the evaluation framework presentation great eric do you agree with this or carl we do have one resolution on this too just to head up to everyone all right i'll move to quick on the resolution uh so as you all are aware we have established methodologies that help us quantify our impact or estimate our impact in specific areas we started originally with the job study working with decd and navigate we're now guide house that helped us estimate the jobs created by the activities that are associated with our projects and our investment that was approved initially back in 2011 i believe and then um refreshed in 2016. we have a tax uh methodology we have um other methodologies that this committee is reviewed and endorsed for the board around environmental impact which involves us leveraging models built by um epa for public health uh again we're using an epa model for both of those we worked with the state government to get their buy-in that these work well locally um so deep in dph respectively endorse those we're coming to you now with a methodology that helps us shape our story around energy savings and what that actually means in dollar terms um so how much we're reducing the energy burden for the end customers who are participating in our programs so the next slide so ultimately what we want to do is quantify the reduction of the energy burden so how much money are we saving somebody by them having been part of our programs and this methodology is something we've wanted to do for a long time we've had the data available um but there was a lot to sift through and carl johnson who's our new asset manager who just joined us i believe it was march 13th he joined the first day that we were in shutdown um he's been working on this and helping us codify our the methodology make sure that we wanted what we wanted to do actually made sense so basically our approach is to look at where we have insight into what the end customer is spending associated to the cost of the renewable energy and what putting a value on what that energy would have cost had they procured that um from their traditional suppliers to the ability um and we're able to know uh exactly what energy we're talking about because we have insight into that generation through our locus platform so we have uh metering on that solar and just to clarify for this methodology we're specifically talking about just solar and we started out just looking at systems where the green bank has insight into what the expenses are for the cost on a regular basis for that um to learn energy so that program-wise that means anything that's a um in sl2 or sl3 where or beyond where we have insight into what those payments are for the power that's being purchased um sl2 sl1 and posigen because we know the lease payments on oxygen and sl2 and we know the loan payments on solution one um we are still working on how we would do this outside of those programs we don't have specific insight into that monthly payment um but we expect us to come back at some point with the methodology that expands on us and the reason that we have all this information is we've spent uh the better part of the past couple years building out a great um platform for all of our data in our data warehouse so the next slide so ultimately our approach is to value this power that's um being produced by the system locally um based off of what it would have cost had they procured it somewhere else so carl did amazing work through pure dockets to understand what rates were historically going back to when these programs launched and logging that all into our data warehouse and creating something that we could use exactly for this so we're taking um basically you took all sorts of documentation um went to learn something that was totally qualitative and totally quantitative you can just apply the value to this power so next slide let's see our our calculations are actually quite simple so we're taking the solar generation and then we're applying a rate for commercial there we're just applying what the difference is between the utility rate um and what their the customer's paying on the ppa and that's the value of the savings for posigen and sl1 and sl2 is we know what the power that's being generated we're um applying the utility rates that we're getting from cura and then we're subtracting out what their monthly expenses are the lease payment or their loan payment straight forward we've taken this and we've embedded this with pura and with deep and have their brain and i think they were relatively impressed at uh coral's uh thoroughness and his ability to sort through the pure dockets to distill this information um so ultimately what we would like you to do is review this and i think the resolution is asking for your recommendation to the board to approve this is our official methodology for um quantifying energy burden reductions um with regard to these programs and we start to use this in our impact reporting in things such as the catherine non-financial statistics or in our green bond reporting for other things going forward okay thanks eric any uh questions comments from mike and lonnie so does this ultimately lead to a dollar value it does ultimately lead to a dollar value so if we just taking the here go back to the commercial or the next slide sorry the commercial savings um if we had let's say a project generated 100 um kwh in a month um the difference between the utility rate and the ppa rate let's say is two cents um uh because it's a kilowatt hour it's a for multiplication so times 100 kwh is with 20 cents that they've saved ideally it's going to be more than that um but bear with my bad example gotcha okay i i guess i'm just i i guess i'm a little hung up on the sort of like use of the term energy burden because you know from my like everything that i see energy burden is usually a percentage um right so we don't have any insight into what every family is making so we can say look on average we've reduced somebody's energy burden by x amount of dollars and we know what averages are in specific areas and we can talk about hey the typical family in this census tract here's the area mean income and our projects have been reducing by this amount of assuming the area income across the board the average family here has saved x so there's a week we can get back to that percentage by it do some extrapolation yeah eric to mike's point maybe just a chart that uses 60 80 100 120 of ami uh and and has that that's a pretty simple chart uh yeah i i have a concern i guess i i wonder if these equations aren't too simple um you know it seems like there's other savings secondary savings that may be hidden in uh our solar installs you know capacity charges um we require energy efficiency uh upgrades so there's reductions in consumption uh you know it seems like we're leaving some of that on the table i like the simplicity of it and we won't get accused of you know coming up with you know hedonistic values but um i i just wonder if if this is going to be our official methodology i think we need to explain go ahead and i i 100 agree with you matt we i would love to have something that um captures all that we we went down the road of looking at some of that um it's not that easy and straightforward to quantify so things like the demand charges and reduction in demand charges or is that being offset by new demand charges for standby it wasn't a straightforward way to do this i think we're best when we caveat this by saying this is this is a minimal estimation we expect more due to the changes in demand charges or due to the test program that we were acquired um the participants in glycogen sm1 and slt partake in the s card and stays on average um i don't remember the number off the top of my head but we can we can include that but specifically going back to just the purest filler and the value of where they're procuring that power um i think this is a good estimation of that all right well we're a little over the hour so i don't want to assume everyone can stay on um i guess i would just that's that's my concern that once we put this number out there we're kind of stuck with it a little um if so we i would like to see some heavy you know other language around it that there are other values but we were conservative or something like that um mike lonnie any other comments do we want to vote on this resolution or are people you know it basically would be adopted the resolution would be that we're adopting this uh methodology uh as our uh or i'm sorry we're recommending to the board that the method the proposed methodology and the fact sheet so we'll get to see it again at the board level uh so do we want to move that motion so i would say i think i need more time um but i'm fine if you all want to vote well it's up to you i'm ready to move but i mean i think i think um i mean this has always been a very elusive this date these data points have always been very elusive and as a legislator and a committee chair trying to sell it to fellow legislators i mean it was always wait a minute how much how much so i think it's probably going to be a living ongoing process but i think it's very important that we begin to pursue this in more detail and if we're working with deep and pura i think that's going to be helpful as well so i i would i would move to uh adopt it okay uh i'll second and mike i i understand i kind of agree but remember you'll get a chance we'll get a chance to comment at the board meetings uh motion is uh moved and seconded so all those in favor say aye aye aye and uh opposed abstentions okay mike mike one abstention okay so um the uh the recommendation resolution uh passes and we'll thank you uh carl and eric and everyone who worked on it and uh i know matt you're always the last guy here so why don't i say this there's no resolution i'm gonna stay on i'd like to hear the update but if anybody has to jump off because we're over time uh you know feel free to do so and i'll turn it over to matt if we don't have that i could do this um i mean you might be primed to do it faster how about that all right um i'll do it really quick with the caveat that i no longer have legislative uh responsibilities at the green bank um so obviously with the two uh major storm with the with the major storms that we had and the delay in uh response or it's perceived delayed in responses um by both eversource and um ui uh eversource in particular there was a strong political push before the elections to get some type of utility accountability bill passed this was something that um created additional um flexibility for pira for example in their rate review process to give them more time additional time to review those i think in the past they would kind of run out of time before they had to you know potentially opine and then if that time ran out then the bill would get passed um there also is additional i would say sticks and carrots to use a word from our old chairperson captain smith uh included in the bill um and then services out which is over 96 hours results in monetary customer compensation uh i think my personal opinion on this the the intent of this bill is is good in the sense that you're trying to hold your utilities to a higher standard um i think the continued problem with this legislation is that when fines and additional penalties are applied i don't know if we have a regulatory regime in place that can ensure that those costs are not going to be passed back to the ratepayer so at the end of the day people want to kind of like get at the utilities for when the mistake is made and they don't want that they want them to come out of profit margin they don't want to cut that to be added to ratepayer cost the reality is now i think this is going to provide the utilities the ability to basically say hey if you want us to meet all these standards we need to do x y and z and that's going to cost additional funding and that funding is going to come from the ratepayer so in the long term this will probably lead to increased rate payer cost but um this will hopefully uh address some of the perceived or real uh misgivings that we've seen in the utilities any questions or matt i'll turn it over to you if anyone has any questions no i don't have any questions uh lonnie mike i guess i wouldn't want to talk over the chair go ahead lonnie why don't you go first and then mike i don't know i said i i don't have any questions i'm muting myself mike no questions here okay yeah if i was mike i wouldn't touch this one [Laughter] all right well uh thanks everybody for staying on and thanks for that update you know this is obviously an important issue to rate payers and us i guess if there's no other business brian or brian or anyone else bert you guys anybody want to make a comment before we adjourn good here upset all right thanks everybody for making time and see you at the board meeting and uh have a good day oh we need a motion to adjourn so moved okay uh second and all those in favor i i i opposed abstentions hearing none we're adjourned thanks everybody everyone have a great day this conference will now be recorded