ITEM TITLE:
#18-15 - Amending the City of Valdez 2018 Budget by Transferring $225,000 from Council Contingency Reserve to Valdez Senior Center for Settlement of Liabilities Arising from the 2012 Medicaid Audit.
SUBMITTED BY: Brian Carlson, Finance Director
FISCAL NOTES:
Expenditure Required: $250,000
Unencumbered Balance: $316,000
Funding Source: Council Contingency Reserve
RECOMMENDATION:
Approve Resolution No. 18-15 Amending the City of Valdez 2018 Budget by Transferring $225,000 from Council Contingency Reserve to Valdez Senior Center for Settlement of Liabilities Arising from the 2012 Medicaid Audit.
SUMMARY STATEMENT:
• This Resolution reflects Council’s direction to staff whereby the City will pay the State of Alaska to settle liabilities arising from their 2012 audit of the Senior Center.
• The original finding from the State dictated a payment of $274K, via interest-free, multi-year payment schedule.
• State subsequently agreed to a reduced lump-sum payment of $225K.
• Staff proposes using Council Contingency Reserve as a funding source, leaving $66K unencumbered in that reserve fund.
• There is a separate New Business item on the May 2nd agenda for Council to approve the remittance, as this item exceeds staff signing authority. That agenda item contains an agreement between Senior Center and State of AK memorializing the payment terms. Legal has reviewed this document, and approved its form.