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05-21-2024 Work Session Agenda Packet BOARD OF SUPERVISORS WORK SESSION Tuesday, May 21, 2024 - 3:00 PM Board Meeting Room 39 Bank Street, SE, Chatham, Virginia 24531 AGENDA 1. CALL TO ORDER (3:00 PM) 2. ROLL CALL 3. AGENDA ITEMS TO BE ADDED 4. APPROVAL OF AGENDA For the citizens’ convenience, all Work Session and Committee Meetings are now being recorded and can be viewed on the County's Facebook and the same YouTube location as the Board of Supervisor’s Business Meetings. Please remember that the Board’s Work Session is designed for internal Board and County Staff communication, discussion, and work. It is not a question and answer session with the audience. Accordingly, during the Work Session, no questions or comments from the audience will be entertained. Respectfully, any outbursts or disorderly conduct from the audience will not be tolerated and may result in the offending person’s removal from the Work Session. As a reminder, all County citizens, and other appropriate parties as designated by the Board’s Bylaws, are permitted to make comments under the Hearing of the Citizens’ Section of tonight’s Business Meeting. 5. PRESENTATIONS a. Potential Board Bylaws Revisions (Section IV; Board Committees); (10 minutes); (Staff Contact: Kenneth Bowman) b. Salaries and Compensation for Various Boards and Commissions for FY 2021-2025 Draft Resolution (10 minutes); (Staff Contact: Kenneth Bowman) 6. STAFF, COMMITTEE, AND/OR CONSTITUTIONAL OFFICER REPORTS a. County Charitable Donations Policy (10 minutes); (Staff Contact: Dave Arnold) b. Finance Updates (Literary Loan Applications; Financial 7. 8. 9. 10. Management Policy Revisions); (10 minutes); (Staff Contact: Kim VanDerHyde) c.EMS Drug Box Requirements Update (10 minutes); (Staff Contact: Christopher Key, Kasey Seay) BUSINESS MEETING DISCUSSION CLOSED SESSION a.Closed Session (Legal); (Staff Contact: Vaden Hunt) b.Closed Session (Economic Development Projects General Update); (Staff Contact: Matthew Rowe) c.Closed Session (Personnel); (Staff Contact: Board of Supervisors) RETURN TO OPEN SESSION & CLOSED SESSION CERTIFICATION a.Closed Session Certification (Staff Contact: Kaylyn McCluster) ADJOURNMENT 5.a. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Information Only Agenda Title: Potential Board Bylaws Revisions (Section IV; Board Committees); (10 minutes) Staff Contact(s): Kenneth Bowman Agenda Date: May 21, 2024 Item Number: 5.a. Attachment(s): 1. Revised BOS Bylaws 2024 Reviewed By: Supervisor Bowman will lead Board discussion about potential revisions to Section 4.1 (Board Committees) of the attached Board Bylaws. 1 Page 1 of 12 PITTSYLVANIA COUNTY BOARD OF SUPERVISORS’ BYLAWS AND RULES OF PROCEDURE (B.S.M. 2/02/04, 4/15/08, 2/02/09, 2/01/10, 4/20/10, 9/20/11, 6/19/12, 2/4/13, 7/01/13, 10/06/14, 11/03/14, 6/06/16, 2/6/17, 3/20/18, 1/03/19, 3/17/20, 05/19/20, 2/16/21) PURPOSE. To establish and set forth certain rules to provide for the orderly conduct of Pittsylvania County, Virginia (“County”), business, to prescribe the manner and procedure by which the Pittsylvania County Board of Supervisors (“Board of Supervisors” or “Board”) shall conduct matters of business, and to provide for the efficient handling thereof. ARTICLE I. BOARD OFFICER ELECTION, COMPOSITION, FUNCTION, COMPENSATION, AND BENEFITS. 1.1. Board Composition. The Board shall be composed of seven (7) members, who shall be elected by the qualified voters of the County for four (4)-year terms; one (1) member shall be elected from each of the seven (7) election districts. Pursuant to § 24.2-219, Code of Virginia, 1950, as amended, beginning with the November 2015 General Election, the Board was elected to staggered terms as follows: the voters in the Banister, Callands-Gretna, and Dan River Election Districts shall elect a member of the Board for a two (2)-year term, and the voters in the Chatham- Blairs, Staunton River, Tunstall, and Westover Election Districts shall elect a member of the Board for a four (4)-year term. At the November 2017 General Election, the voters in the three (3) Election Districts in which a Supervisor was elected for a two (2)-year term, elected a Supervisor for a four (4)-year term, and thereafter elections for all Supervisors are held on a biennial basis for four (4)- year terms. 1.2. Chairman; Election and Duties. At the Regular Board Meeting in January each year (“Reorganizational Meeting”), or at any other time as determined by a majority of the Board, there shall be elected a Chairman to serve for a period of one (1) year expiring on December 31st, or until replaced by Board Membership. The County Administrator, serving as temporary Chairman, shall take nominations. Nominations require a second, and the vote will be taken in the order the nominations are made. A majority vote is required. It shall be the Chairman’s duty to preside at all Board meetings, and to maintain the orderly conduct thereof. He/she shall sign all voucher warrants of the County; and when the Board is not in session, he/she shall provide policy guidance to the County Administrator and the County Attorney. The Chairman shall continue to be a voting member of the Board. The Chairman, with guidance from County Staff and consultation with other Board Members, can authorize the advertisement and conducting of Public Hearings. 1.3. Vice-Chairman; Election and Duties. The Board shall also elect a Vice-Chairman to serve a concurrent term with the Chairman. In the absence or incapacity of the Chairman, the Vice- Chairman shall assume all the duties and functions of the Chairman. In the case where the Chairman and Vice-Chairman are absent from a Meeting, the remaining Members present shall choose one (1) of their number as temporary Chairman. 2 Page 2 of 12 1.4. Board Function. The Board shall have both administrative and legislative responsibilities, some of which shall be discharged in their role as governing body, and some of which they derive as an administrative political subdivision of the Commonwealth. The powers and duties of the Board shall include, but not be limited to, the following: preparation and adoption of the County Budget, levying of taxes, appropriating funds, constructing and maintaining County buildings, making and enforcing Ordinances, providing for the general health, safety, and welfare of the public, and generally exercising all other powers and functions normally attributed to government and permitted by the laws of the Commonwealth. 1.5. Board Compensation. Board compensation shall be governed by §§ 15.2-1406, 15.21414.1, 15.2-1414.2, and/or 15.2-1414.3, Code of Virginia, 1950, as amended. 1.6. Board Benefits. Board benefits shall be governed by governed by §§ 15.2-1414.2 and/or 15.2-1414.3, Code of Virginia, 1950, as amended. Board benefits shall include all applicable fringe benefits available to other County employees, including health and dental insurance. Upon receipt of an itemized report by the Deputy Clerk, Board Members shall be reimbursed up to $350.00 monthly for in-County travel, while performing official duties related to their office. Board Members shall not receive dedicated internet service at their residence. Upon County separation, Board Members shall be able to purchase their assigned County-owned electronic devices for fair market value. ARTICLE II. MEETINGS. 2.1. Regular Meetings. The Board shall meet regularly on the third (3rd) Tuesday of each month for a Work Session and a Business Meeting for the purpose of discharging their administrative and legislative responsibilities. The start time and location of the Work Session and Business Meeting shall be determined at the Board’s Reorganizational Meeting or identified in the Notice of the same. The Board shall also be authorized to set other dates for Regular Meetings, and all other Meetings, at the Reorganizational Meeting, or at any other appropriate time(s). 2.2. Parliamentary Procedure. All such Meetings shall be open to the public and shall be conducted in an orderly fashion with the most recent edition of Robert’s Rules of Order being used for parliamentary procedure. 2.3. Sergeant of Arms. The County’s Sheriff, or his/her designee, shall act as “Sergeant of Arms” at all Board Meetings, and shall, when so directed by the Chairman, expel any person or persons from such Meetings. 2.4. Meeting Seating. The Chairman shall sit in the middle of the dais, the Vice-Chairman shall sit to the Chairman’s immediate right, and all other seats shall be selected by Board Members based on longevity of Board membership. 2.5. Agendas. Agendas shall be prepared by the Clerk and used at all Meetings. All items requested to be placed on the Agenda shall be submitted in writing to the Clerk, or his/her designee, ten (10) working days before the Meeting; however, Board Members may make oral requests. Any 3 Page 3 of 12 items received after that time shall appear on the next Regular Meeting Agenda, unless a majority of the Board present vote to place such items on the current Agenda. 2.6. Meeting Order. The Meeting Order of all the Board’s Work Sessions and Business Meetings shall be as follows: (a) Work Session Meeting Order: Call to Order Roll Call Agenda Items to be Added Approval of Agenda Presentations Staff, Committee, and/or Constitutional Officer Reports Business Meeting Discussion Items Closed Session (if any) Return to Open Session and Closed Session Certification (if required) Adjournment (b) Business Meeting Order: Call to Order Roll Call Moment of Silence Pledge of Allegiance Agenda Items to be Added Approval of Agenda Consent Agenda Presentations Hearing of the Citizens Public Hearings A. Zoning Public Hearings B. Other Public Hearings Unfinished Business New Business Matters from Work Session (if any) Board Member Reports County Administrator/County Attorney Reports Adjournment 2.7. Presentations. All presentations to the Board shall be limited to a maximum of ten (10) minutes. 2.8. Appointments. All initial non-Chairman appointments to boards, committees, and other entities shall occur during the Board’s Business Meeting’s New BusinessConsent Agenda Section. All non-Chairman reappointments to boards, committees, and other entities shall occur during the 4 Page 4 of 12 Boards’ Business Meeting’s Consent Agenda Section, unless a Board Member, following a second and an affirmative majority vote, removes the same to the Board’s New Business Agenda Section for more discussion and/or potential action. 2.9. Recognitions. The particular method of recognition (i.e., Certificate, Resolution, and/or plaque) shall be governed by the Board’s Policy on Recognitions formally adopted on October 15, 2019, and made a part hereof. 2.10. Public Hearings. All Public Hearings on Business Meetings shall be conducted as follows: Each person addressing the Board under a Public Hearing shall step up, give his/her name and district, and/or his/her place of residency for non-County citizens, in an audible tone of voice for the record, and, unless further time is granted by the Chairman, shall limit his/her address to three (3) minutes; speakers for a group shall be limited to ten (10) minutes. Speakers shall conclude their remarks at that time, unless the consent of the Board is affirmatively given to extend the speakers allotted time. All remarks shall be addressed to the Board as a body and not to any individual member thereof. No person, other than the Board and the person having the floor, shall be permitted to enter into any discussion, either directly or indirectly or through a Board Member, without first being recognized by the Chairman. No question shall be asked a Board Member except through the Chairman. 2.11. Hearing of the Citizens. All Hearing of the Citizens on Business Meetings shall be conducted as follows: Each person addressing the Board under Hearing of the Citizens shall be a resident or landowner of the County, or the registered agent of such resident or landowner. Each person shall step up, give his/her name and district in an audible tone of voice for the record, and unless further time is granted by the Chairman, shall limit his/her address to three (3) minutes. No person shall be permitted to address the Board more than once during Hearing of the Citizens. All remarks shall be addressed to the Board as a body and not to any individual Member thereof. Hearing of the Citizens shall last for a maximum of forty-five (45) minutes. Any individual that is signed up to speak during said section who does not get the opportunity to do so because of the time limit, shall be given speaking priority at the next Board Meeting. 2.12. Special Meetings. The Board may from time-to-time hold special, called, adjourned, and/or informational meetings in accordance with the laws of the Commonwealth. 2.13. Motions/Resolutions. Each oral Motion or Resolution shall be recorded by the Deputy Clerk and may be read back to the whole Board by the Deputy Clerk, if so requested, before any vote is taken. 2.14. Board Member Reports. Board Member Reports shall be used for individual Board Members to share information with other Board Members and/or the public. No official action may take place during Board Member Reports. 2.15. Closed Meetings. Closed Meetings of the Board shall be requested in the same manner as prescribed in Section 2.5 or added as allowed by the Virginia Freedom of Information Act. 5 Page 5 of 12 2.16. Quorum and Method of Voting. At any Board Meeting, a majority of the Supervisors present shall constitute a quorum. A majority of the Board shall mean four (4). All questions submitted to the Board for decision shall be determined by a viva voce vote or approved electronic voting method of a majority of the Board present voting on any such question, unless otherwise provided by law. The name of each Member voting and how he/she voted must be recorded. The Board has elected not to have a tie breaker as provided for by the Code of Virginia, and a tie vote on any Motion shall be considered defeated as provided for in § 15.2-1420, Code of Virginia, 1950, as amended. Each Board Member present when a question is put shall vote “yes” or “no.” No Board Member shall be excused from voting, except on matters involving the consideration of his/her own official conduct, where his/her own financial interests are involved, or where he/she may have a conflict of interest, pursuant to the Virginia State and Local Government Conflict of Interests Act. 2.17. Roll Call Procedure. Board Members shall either cast votes in District order on a rotating basis, or simultaneously if using an approved electronic voting method. The Board Chairman shall cast the last vote, unless using an approved electronic voting method. 2.18. Remote Participation in Board Meeting. As authorized by § 2.2-3708.2, Code of Virginia, 1950, as amended, the Board shall allow the participation of Board Members in a Meeting through electronic communication means from a remote location that is not open to the public subject to complying with all parts of the following written policy: (a) On or before the day of a Meeting, the Supervisor shall notify the Board Chairman that the Supervisor is unable to attend the meeting due a personal matter, and the Supervisor shall identify with specificity the nature of the personal matter, or the Supervisor shall notify the Board Chairman that the Supervisor is unable to attend a meeting due to a temporary or permanent disability or other medical condition that prevents the Supervisor’s physical attendance. The Board shall record the specific nature of the personal matter or fact of temporary or permanent disability, and the remote location from which the absent Supervisor participated in its minutes. (b) If the absent Supervisor’s remote participation is disapproved because such participation would violate the strict and uniform application of this written policy, such disapproval shall be recorded in the Board’s Minutes. (c) Such participation by the absent Supervisor shall be limited in each calendar year to two (2) meetings. (d) A quorum of the Board shall be physically assembled at the primary or central meeting location. (e) The Board shall arrange for the voice of the absent Supervisor to be heard by all persons in attendance at the primary or central meeting location. ARTICLE III. COUNTY ADMINISTRATOR. 6 Page 6 of 12 3.1. The Board may appoint a County Administrator who shall serve at the pleasure of the Board. Once appointed, the County Administrator shall be the Chief Administrative Officer of the County and shall perform his/her duties in accordance with the laws of the Commonwealth and the policies of the County as established by the Board for that purpose. ARTICLE IV. BOARD COMMITTEES. 4.1. The Board Standing Committees shall be as follows: (a) Finance/Insurance: To aid and advise in the preparation of the County Budget and make recommendations concerning Fiscal Policy. (b) Personnel: To review policies and practices and make recommendations regarding the same. (c) Property/Building: To view buildings and grounds and make recommendations regarding the same. (d) Legislative Committee: The Legislative Committee, in collaboration with the County Attorney, shall review, propose changes, and maintain current versions of the Board’s Bylaws and Rules of Procedure; review, propose changes, and maintain current revisions to the Board’s Policies and Procedures Manual; and review, propose changes, set public hearings for any proposed changes, and maintain current revisions to the County Code. 4.2. At the Board’s Reorganizational Meeting, or at any other appropriate time(s), membership to the above-Standing Committees and the following entities shall be appointed by the Board Chairman for a specific term of office as determined by the Chairman: (a) Computer/Radio/Telecommunications (b) Board of Supervisors/School Joint Liaison (c) Economic Development (d) Solid Waste (e) Dan River Business Development Center (f) Danville-Pittsylvania Regional Facility Authority (g) Fire and Rescue Commission (h) Local Elected Officials (i) Metropolitan Planning Organization (j) Pittsylvania County Community Action Agency (k) Pittsylvania County Planning Commission (l) Roanoke River Basin Association (m) SARA Title III/D-PC Local Emergency Planning (n) Pittsylvania County Social Services Board (o) Virginia Association of Counties Committee (p) West Piedmont Planning District Commission (q) Community Policy Management Team (r) Staunton River Regional Facility Authority 7 Page 7 of 12 (s) Tri-County Lake Advisory Committee (t) Danville Utility Commission 4.3. The Board may, from time-to-time, direct that the Board Chairman appoint other Committees for a specific purpose with a limited duration. 4.4. The Board Chairman shall be authorized to temporarily participate, including voting, in any Committee for the purpose of creating a quorum. 4.5. The Board and/or Board Chairman shall be authorized, to the extent allowed by law, to remove any of its/his appointee(s) to any committee or other entity. All full-Board appointments require a majority vote of the Board to remove said appointee. 4.6. The Board shall strive to require all potential committee or other entity appointees to submit a letter of interest, resume, and/or application prior to appointment. Prior to the Board Chairman appointing Board Members to Committees, the Board’s Deputy Clerk shall solicit Committee preferences from Board Members. Said preferences shall be considered but are not binding on the Board Chairman. 4.7. The Board shall strive to create a uniform stipend policy for all appointed Committees and other entities. ARTICLE V. CERTAIN ORDINANCES AND RESOLUTIONS TO LIE OVER. 5.1. No Ordinance or Resolution imposing taxes or appropriating money from General Fund balances, not included in the adopted Budget, in excess of $50,000, shall be passed until after ten (10) days from the introduction thereof. This shall not restrict the appropriation of State, Federal, or other funds not in the current General Fund balances. ARTICLE VI. RECORDATION OF ORDINANCES AND RESOLUTIONS. 6.1. Every Resolution upon its final passage shall be recorded in a book kept for that purpose and shall be authenticated by the signature of the Chairman and the County Administrator. 6.2. Every Resolution shall be authenticated and recorded in the same manner as in 6.1 above. 6.23. Every Motion appropriating funds or adopting an Ordinance shall be by Roll Call vote. 6.34. Every Ordinance passed by the Board shall be incorporated into the County Code. ARTICLE VII. AMENDMENTS AND ADOPTIONS. 7.1. Amendments to these Bylaws and Rules of Procedure may be made at any Board Meeting by a majority vote of the Board present, after a notice of intent to amend has been given to each Board member not less than ten (10) days prior to such Meeting. 8 Page 8 of 12 7.2. Adoption of the Bylaws and Rules of Procedures shall be by simple majority vote of the Board present and shall be in force and effect on the day after their passage. 9 Page 9 of 12 PITTSYLVANIA COUNTY BOARD OF SUPERVISORS CODE OF ETHICS Preamble County citizens and businesses are entitled to have fair, ethical, and accountable local government, which has earned the public’s full confidence for integrity. The effective functioning of democratic government requires that public officials, both elected and appointed, comply with both the letter and spirit of the laws and policies affecting the operations of government; that public officials be independent, impartial, and fair in their judgment and actions; that public office be used for the public good, not for personal gain; and that public deliberations and processes be conducted openly, unless legally confidential, in an atmosphere of respect and civility. To this end, the Board has adopted this Code of Ethics for Board Members and for Members of the County’s boards, commissions, and committees (collectively “Members”), to assure public confidence in the integrity of local government and its effective and fair operation. 1. Act in the Public Interest. Recognizing that stewardship of the public interest must be their primary concern, Members will work for the common good of the people of County and not for any private or personal interest, and they will assure fair and equitable treatment of all persons, claims, and transactions coming before the Board, boards, commissions, and committees. 1. Comply with the Law. Members shall comply with the laws of the nation, the Commonwealth of Virginia, and the County in the performance of their public duties. These laws include but are not limited to, the United States and Virginia Constitutions; the County Code; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer restrictions, and open processes of government; and County ordinances and policies. 2. Conduct of Members. The professional and personal conduct of Members must be beyond reproach and avoid even the appearance of impropriety. Members shall refrain from abusive conduct, personal charges, or verbal attacks upon the character or motives of other Board Members, boards, commissions, and committees, County Staff, or public. 3. Respect for Process. Members shall perform their duties in accordance with the processes and rules of order established by the Board and boards, committees, and commissions, and commissions governing the deliberation of public policy issues, meaningful involvement of the public, and implementation of policy decisions of the Board by County Staff. 4. Conduct of Public Meetings. Members shall prepare themselves for public issues; listen courteously and attentively to all public discussions before the body; and focus on the business at hand. They shall refrain from interrupting other speakers; making personal comments not germane to the business of the body; or otherwise interfering with the orderly conduct of meetings. 10 Page 10 of 12 5. Decisions Based on Merit. Members shall base their decisions on the merits and substance of the matter at hand, rather than on unrelated considerations. 7. Communication. Members shall publicly share substantive information that is relevant to a matter under consideration by the Board or boards, committees, and commissions, which they may have received from sources outside of the public decision-making process. 8. Conflict of Interest. To assure their independence and impartiality on behalf of the common good, Members shall not use their official positions to influence government decisions to which they have a material financial interest and shall disclose any substantial organizational responsibility or personal or business relationship to the parties in any matter coming before them. This paragraph is not intended to unduly restrict Members who have minor business or professional dealings with clients whose matters come before them. 9. Gifts and Favors. A Member should never accept for himself or herself or for family members, favors, or benefits under circumstances which might be construed by reasonable persons as influencing the performance of governmental duties. 10. Confidential Information. Members shall respect the confidentiality of information concerning the property, personnel, or affairs of the County. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial, or other private interests. 11. Use of Public Resources. Members shall not use public resources that are not available to the public in general, such as County Staff time, equipment, supplies, or facilities, for private gain or personal purposes. 12. Representation of Private Interests. In keeping with their role as stewards of the public interest, Board Members shall not appear on behalf of the private interests of third-parties before the Board or any board, committee, commission, or proceeding of the County, nor shall Members of boards, committees, or commissions appear before their own bodies or before the Board on behalf of the private interests of third-parties on matters related to the areas of service of their bodies. 13. Advocacy. Members shall represent the official policies of the Board, boards, commissions, or committees to the best of their ability when designated as delegates for this purpose. When representing their individual opinions and positions, Members shall explicitly state they do not represent their body or the County, nor will they allow the influence/inference that they do. 14. Policy Role of Members. The Board determines the policies of the County with the advice, information, and analysis provided by the public, boards, commissions, committees, and County Staff. The Board delegates authority for the administration of the County to the County Administrator. Therefore, Members shall not interfere with the administrative functions of the County or the professional duties of County Staff; nor, shall they impair the ability of County Staff 11 Page 11 of 12 to implement Board policy decisions. Inquiries to County Staff shall be made through the County Administrator or the appropriate Department Manager or Director. 15. Independence of Board and Commissions. Because of the value of the independent advice of boards, committees, and commissions to the public decision-making process, Board Members shall refrain from using their positions to unduly influence the deliberations or outcomes of board, committee, or commission proceedings. 16. Positive Workplace Environment. Members shall support the maintenance of a positive and constructive workplace environment for County employees and for citizens and businesses dealing with the County. Members shall recognize their special role in dealings with County employees and in no way create the perception of inappropriate direction to County Staff. 17. Implementation. As an expression of the standards of conduct for Members expected by the County, this Code of Ethics is intended to be self-enforcing. Therefore, it becomes most effective when members are thoroughly familiar with and embrace its provisions. For this reason, ethical standards shall be included in the regular orientations for Board candidates, applicants to boards, committees, commissions, and newly elected and appointed officials. Members entering office shall sign a Statement affirming they have read and understood the Code of Ethics. Additionally, the Board, boards, committees, and commissions, shall annually review the Code of Ethics and the Board shall consider recommendations from boards, committees, and commissions to update it as necessary. 18. Compliance and Enforcement. This Code of Ethics expresses standards of ethical conduct expected of Board Member, boards, committees, and commissions. Members themselves have the primary responsibility to ensure that ethical standards are understood and met, and that the public can continue to have confidence in the integrity of government. The Chairs of boards, committees, and commissions and the Boad Chairman have the additional responsibility to intervene when actions of Members that appear to be in violation of the Code of Ethics are brought to their attention. The Board may impose sanctions on Members whose conduct does not comply with the County’s ethical standards, such as public or private reprimand, formal censure, loss of seniority or committee assignment, or budget restrictions. Where allowed by law, the Board also may remove members of Board-appointed boards, committees, and commissions from office. A violation of this Code of Ethics shall not be considered a basis for challenging the validity of a Board, board, committee, or commissions’ decision. 12 Page 12 of 12 MODEL OF EXCELLENCE PITTSYLVANIA COUNTY BOARD OF SUPERVISORS, BOARDS, COMMITTEES, AND COMMISSIONS MEMBER STATEMENT As a Member of the Pittsylvania County Board of Supervisors, or of a Pittsylvania County board, committee, or commission, I, the undersigned, agree to uphold the Code of Ethics for elected and appointed officials adopted by the Board of Supervisors and conduct myself by the following model of excellence. I will: • Recognize the worth of individual Members and appreciate their individual talents, perspectives, and contributions; All Members are equal; • Help create an atmosphere of respect and civility where individual Members, County Staff, and the public are free to express their ideas and work to their full potential; • Conduct my personal and public affairs with honesty, integrity, fairness, and respect for others; • Respect the dignity and privacy of individuals and organizations; • Keep the common good as my highest purpose and focus on achieving constructive solutions for the public benefit; We are not here to be served, but to serve; • Avoid and discourage conduct which is divisive or harmful to the best interests of Pittsylvania County; and • Treat all people with whom I interact in the manner I wish to be treated. I affirm that I have read and understand the Pittsylvania County Code of Ethics. Signature: ___________________________________________________ Date: ________________________________________________________ Name (printed): ________________________________________________ Office(s) held: _______________________________________________________ 13 5.b. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Information Only Agenda Title: Salaries and Compensation for Various Boards and Commissions for FY 2021-2025 Draft Resolution (10 minutes) Staff Contact(s): Kenneth Bowman Agenda Date: May 21, 2024 Item Number: 5.b. Attachment(s): 1. Bowman Proposal Salaries and Compensation Reviewed By: Supervisor Bowman will lead Board discussion regarding the attached draft Board Resolution (Salaries and Compensation for Various Boards and Commissions; Fiscal Year 2024-2025). 14 Page 1 of 2 PITTSYLVANIA COUNTY BOARD OF SUPERVIOSRS RESOLUTION # 2024-0___ - ___ _____________________________________________________________ SALARIES AND COMPENSATION FOR VARIOUS BOARDS AND COMMISSIONS FISCAL YEAR 2024-2025 VIRGINIA: At the Pittsylvania County Board of Supervisors’ (“Board”) Business Meeting held on ________, the following Resolution was presented and adopted: WHEREAS, the Board desires to provide reasonable compensation for service on various County boards and commissions; and WHEREAS, the current annual salary of Board Members, in addition to mileage as detailed in Board Bylaws Section 1.6, is as follows: Chairman ($10,800.00); Vice- Chairman ($10,200.00); and regular Board member ($9,000.00). NOW, THEREFORE, BE IT RESOLVED that the Board does hereby amend as follows the following salaries and compensation for the stated boards and commissions for the period beginning July 1, 2024, and ending June 30, 2025: 1. Board members’ annual salary shall be considered as compensation for regularly scheduled Board meetings (i.e., Regular Work Sessions and Regular Business Meetings) per the annual Meeting Calendar, and attendance at the same will be ineligible for additional compensation beyond a Board members’ annual salary. 2. Board members attending Special Meetings and Budget Work Sessions will be compensated at a rate of $___ per meeting. Board members will be compensated $____ for attendance at other Chairman appointed board, authority, or committee meetings (detailed in Board Bylaws Section 4.2) they have been appointed to, and not already compensated by the same. Attendance at Chairman appointed meetings will not be reimbursable to Board members who are not appointed to those boards, unless the Board member is requested to attend by the Board appointee, who is unable to attend, or at the request of the Board. 3. For purposes of reimbursement, eligible meetings would include those in which the Board members serve and participate by virtue of their position and/or in representation of their position as a Board member and/or are an invited participant by the staff or agency/department, and may include Association Ad Hoc Committee meetings, Ground Breakings, and Ribbon Cuttings, or any meeting at the request of the Board in the Board member’s official capacity. 4. The following are not reimbursable expenses: Attendance of social occasions (banquets, meals, entertainment, sports, galas, fundraisers, clubs, etc.), or informal or 15 Page 2 of 2 telephonic conversations. Also, alcoholic beverages, political contributions, tips greater than twenty percent (20%), parking or traffic violations/fines, entertainment expenses, such as tickets to sporting events or theaters, and in room movies. For any fundraisers the Board member decides to attend, the County will pay for the ticket, if the Board agrees that the event benefits County residents and serves a public purpose. 5. Board members shall receive a payment of $125.00 per day (plus mileage, hotel expenses, and meal expenses) for any meeting lasting more than three (3) hours, and out of the County (defined as a ninety (90) mile radius of the Courthouse in Chatham, Virginia). 6. Board members are required to submit in writing a payment request in the form of an expense report (via created internal form) to the Deputy Clerk. Instructions on the process will be provided by the Deputy Clerk. The report will contain all expenses, including compensation, along with a description of the meeting, date, time, and place. 7. Additional meeting payment requests by a Board member that exceed seven (7) in a month will require Board approval. Given under my hand this ___ day of ______, 2024. ____________________________________ Darrell W. Dalton (Chairman) Pittsylvania County Board of Supervisors ____________________________________ _______ (Clerk) Pittsylvania County Board of Supervisors Vote Darrel W. Dalton ___ William V. (“Vic”) Ingram ___ Robert M. Tucker, Jr. ___ Timothy W. Dudley ___ Eddie L. Hite, Jr. ___ Kenneth L. Bowman ___ Murray W. Whittle ___ Ayes __ Nays __ Abstentions __ 16 6.a. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Information Only Agenda Title: County Charitable Donations Policy (10 minutes) Staff Contact(s): Dave Arnold Agenda Date: May 21, 2024 Item Number: 6.a. Attachment(s): None Reviewed By: David F. Arnold, Assistant County Administrator, will lead Board discussion regarding the potential drafting of a County Charitable Contributions Policy. Related documentation is attached and/or may be distributed at the Work Session. 17 6.b. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Staff Report Agenda Title: Finance Updates (Literary Loan Applications; Financial Management Policy Revisions); (10 minutes) Staff Contact(s): Kim VanDerHyde Agenda Date: May 21, 2024 Item Number: 6.b. Attachment(s): 1. FMA adopted 05-02-1994 REVISED 5_21_24 2. Financial Management Policy-Summary of Changes.5.21.24 3. 2024-05-01 Literary Funds of Virginia Resolution Authorizing Applications with Certification Reviewed By: Kimberly G. Van Der Hyde, Finance Director, will review with the Board the attached documents regarding potential County Literary Loan Fund Applications and revisions to the County's Financial Management Policy. 18 FINANCIAL MANAGEMENT POLICIES PITTSYLVANIA COUNTY, VIRGINIA ADOPTED: MAY 2, 1994 REVISED: NOVEMBER 20, 2012 REVISED: JULY 21, 2015 REVISED: SEPTEMBER 18, 2018 REVISED: FEBRUARY 15, 2022 REVISED: MAY 21, 2024 19 TABLE OF CONTENTS POLICY I RESERVES....................................................................................................3-4 POLICY II ANNUAL FISCAL PLAN ............................................................................5-6 POLICY III REVENUES ...................................................................................................7-8 POLICY IV CAPITAL IMPROVEMENT PROGRAM....................................................9 POLICY V CAPITAL ASSETS POLICY……………………………………………... 10-12 POLICY VI DEBT MANAGEMENT ...............................................................................13 POLICY VII CASH MANAGEMENT ...............................................................................14 POLICY VIII ACCOUNTING AND FINANCIAL REPORTING .....................................15 POLICY IX PROCUREMENT ..........................................................................................16 POLICY X RISK MANAGEMENT.................................................................................17 POLICY XI ECONOMIC DEVELOPMENT ....................................................................18 POLICY XII FEDERAL AWARDS ADMINISTRATION………………………………19-33 POLICY XIII POLICY REVIEW.........................................................................................34 20 Policy I Reserves and Fund Balance Fund balance is the difference between the assets and liabilities reported in a governmental fund. Pittsylvania County’s General Fund balance provides the County with sufficient working capital and some ability to address emergencies without borrowing. The following five fund balance classifications describe the relative strength of the spending constraints placed on the purposes for which the resources can be used: o Nonspendable fund balance – amounts that are not in spendable form (such as inventory and prepaids) or are required to be maintained intact (corpus of a permanent fund); o Restricted fund balance – amounts constrained to specific purposes by their providers (such as grantors, bondholders, and higher levels of government), through constitutional provisions, or by enabling legislation; o Committed fund balance – amounts constrained to specific purposes by a government itself, using its highest level of decision-making authority; to be reported as committed, amounts cannot be used for any other purpose unless the government takes the same highest level action to remove or change the constraint; o Assigned fund balance – amounts a government intends to use for a specific purpose; intent can be expressed by the governing body or by an official or body to which the governing body delegates the authority; for all funds except the general fund, assigned fund balance is the residual fund balance classification; o Unassigned fund balance – amounts that are available for any purpose; positive amounts are only reported in the general fund. To further provide the stable management of County services, maintain the County’s fiscal integrity, a stable and equitable tax rate and a high credit rating to minimize borrowing costs, the County shall establish the following minimum General Fund Balance elements: o Committed Fund Balance Policy: The Board of Supervisors is the County’s highest level of decision-making authority and the formal action that is required to be taken to establish, modify, or rescind a fund balance commitment is a resolution approved by the Board of Supervisors. The resolution must either be approved or rescinded, as applicable, prior to the last day of the fiscal year for which the commitment is made. The amount subject to the constraint may be determined in the subsequent period. o Assigned Fund Balance Policy: The Board of Supervisors has authorized the County’s Finance Director as the official authorized to assign fund balance to a specific purpose as approved by this fund balance policy. o An Unassigned General Fund Balance of not less than 20% of the most current audited General Fund expenditures to address natural and manmade disasters and to offset budget fluctuations. o This General Fund Balance shall not be used to support recurring operating expenditures outside of the current budget year and this shall be done only on the basis of a shortfall in revenues. In the ensuing year the County will increase its 3 21 General Fund revenues or decrease its expenditures to prevent using this General Fund Balance two years in a row to subsidize General Fund Operations. o Funds in excess of the General Fund Balance “target” at the close of the fiscal year shall be considered to address mid-year request for critical expenditures. o Resource Flow Policy: when fund balance resources are available for a specific purpose in more than one classification, it is the County’s policy to use the most restrictive funds first in the following order: restricted, committed, assigned, and unassigned as they are needed. o In the event the Unassigned General Fund Balance is used to provide for temporary funding of unforeseen emergency needs, the County shall restore the Unassigned General Fund Balance to the minimum level of twenty percent (20%) of the most current audited General Fund expenditures within two (2) fiscal years following the fiscal year in which the event occurred. 4 22 Policy II Annual Fiscal Plan The County’s annual operating budget must continue to show fiscal restraint with the objective of providing public services at the lowest possible cost. However, delivering services economically is not sufficient; the quality of service delivery is expected to remain high. Therefore, to receive maximum benefit from the dollars spent, the County must integrate performance measurement and productivity indicators where possible within the annual budget process. Duplication of services and inefficiency in delivery should be eliminated wherever they are identified. The County will fund current expenditures with current revenues and other recurring funding sources such as the projected under expenditure of current budget appropriations. The County will avoid budgetary procedures that balance current expenditures at the expense of meeting future years’ expenses, such as postponing expenditures, accruing future years’ revenues or rolling over short-term debt. If a deficit is subsequently projected during any fiscal year, the County will reduce expenditures or increase revenues to the extent necessary to ensure a balanced budget at the close of the fiscal year. The County shall establish a Contingency Appropriation as part of the annual General Fund budget process not to exceed 1% of the adopted County budget, excluding transfers, to meet unexpected expenditure increases for General Fund supported agencies. Equipment (e.g., vehicles) should be replaced on a cost-effective basis (i.e., whenever they become unsafe or too expensive to maintain). To address this objective, the County will maintain a comprehensive replacement program comprised of a schedule of capital assets to be replaced and the scheduled expenditures by fiscal year. These scheduled expenditures will be programmed into future budget periods to provide a more consistent approach to the replacement of capital assets; thereby contributing to the stability of the County’s tax rate. The amount of annual School Funding as evidenced by the Transfer from the General Fund to the School Operating Fund shall be determined as follows: o Local Tax Revenues Local taxes are used to fund the required transfer to the School Operating Fund. This Calculation shall be based on revenue estimates used in the budget process. o Standards of Quality The County shall meet the “Standards of Quality” (SOQ) requirements, as defined by the Commonwealth of Virginia, as the minimum funding requirements for School use. In order to assist with financial planning decisions, the County will prepare a five year projection of General Fund revenues and expenditures. This projection will use detailed analyses and economic forecasts. These analyses and forecasts will enable the County to focus on the long-range financial impact of proposed program expenditures and future revenue trends that may affect the delivery of services. To monitor the status of the current years’ fiscal plan, a formal budget review process shall be implemented. The objectives of this review are twofold: 5 23 1. The review shall highlight the expenditure of funds against budget by function and revenue trends. 2. The review shall provide a status report on the major programs and project initiatives contained in the adopted fiscal plan. This report shall be presented at the conclusion of the second, third and fourth quarters of the current fiscal year. The County will continue to annually prepare a budget consistent with the guidelines established by the Government Finance Officers Association under its Distinguished Budget Award Program. In order to receive this award, a governmental unit must publish a budget document that meets rigorous program standards as a policy document, as an operations guide, as a financial plan, and as a communication tool. This award, along with the Certificate of Achievement for Excellence in Financial Reporting, would help Pittsylvania County present a quality financial image. 6 24 Policy III Revenues The County will establish and maintain a diversified and stable revenue base to protect it from short-run fluctuations in any one revenue source. The County will estimate its annual revenues by an objective, analytical process and project revenues for the next five years; updating this projection annually. Each existing and potential revenue source will be re-examined annually as part of this process. Charges for Services: The County will establish all user charges and fees at an appropriate level after recognition of the cost of providing the services. Periodically, the County will recalculate the full costs of activities supported by user fees to identify the impact of inflation and other cost increases. It is recognized that occasionally competing policy objectives will result in user fee levels that recover only a portion of service costs. Intergovernmental Aid: Pittsylvania County should pursue intergovernmental aid for only those programs and activities that address a recognized need and are consistent with the County’s long-range objectives. Any decision to pursue intergovernmental aid should be preceded by the consideration of the following fiscal consideration: 1. Present and future funding requirements; 2. Cost of administering the funds; and 3. Costs associated with special conditions or regulations attached to the grant award. The County should attempt to recover all allowable costs – direct and indirect – associated with the administration and implementation of programs funded through intergovernmental aid. In the case of State and federally mandated programs, the County should attempt to obtain as much funding as possible from the governmental entity requiring that the service be provided. Assessments: Through sound appraisal practices, the County will ensure that real property is assessed every four years and personal property is assessed annually on a fair and equitable basis within standards established by the International Association of Assessing Officers regarding the level of assessment and assessment equity. Real and personal property will be enforced to ensure that the tax burden is shared equitably among all taxpayers. The level of assessment on January 1st will be the legally mandated ratio of 100% of market value. The achievement of the requirement for real estate shall be measured against the Virginia Department of Taxation’s annual study which reports each local government’s assessment to sales ratio. The County’s goal is to achieve an annual assessment to sales ratio of at least 94%, under current real estate market conditions, when January 1st assessment is compared to sales in the succeeding calendar year. A report on assessment ratios shall be submitted annually to the Board of Supervisors by the Commissioner of Revenue. 7 25 Property Tax Collections: The County must continue to strive toward increasing its property tax collection ratio by taking advantage of all available legal enforcement powers (liens on bank accounts, attachment of property, public sale of real property, etc.). The County’s total collections each year of current taxes, delinquent taxes and late penalties should equal the full tax levy for the current year. 8 26 Policy IV Capital Improvement Program The County will adopt an annually updated multi-year capital improvement program that sets forth desired capital improvements and the sources of funding for such improvements. Where general obligation bonds or other types of long-term debt are proposed, their impact on the County’s debt ratios and real property tax rate will be examined. The expenses of operating proposed facilities and any new programs associated with them are vital and will be included in the annual capital budgeting process. The revenues necessary to fund these expenditures are to be estimated and provided as part of the overall financial impact of the capital improvement program. The utilization of this process will result in an orderly approach to meeting capital requirements and a manageable schedule for the payment of debt service and operating costs. A contribution from current revenues to the County’s capital improvement program reduces future debt services requirements and provides a safety margin to protect the County from revenue shortfalls. It shall be the County’s objective to dedicate the required amount of the annual General Fund revenues allocated to the County’s operating budget to fund projects included in the County’s Capital Improvement Plan (CIP). 9 27 Policy V Capital Asset Policy Capital assets are tangible or intangible assets that are obtained for use in operations. The Pittsylvania County (the County) capitalizes assets that have an individual cost that exceeds the thresholds in the table below and an expected useful life of more than two years. If federal and/or state capital asset policies and regulations conflict with the policy of the County, the federal and state policies and regulations will prevail. However, if federal and/or state policies and regulations are less restrictive than the County policy, then the County policy will prevail. Capital assets can be purchased, constructed, or donated, and fall into one of the categories below: Capital Asset Category Capitalization Threshold Land $ 20,000 Buildings & Improvements 20,000 Furniture, Fixtures, and Equipment 20,000 Vehicles 20,000 Right-to-use leased assets 20,000 Construction in Progress based on anticipated final asset cost Capital Asset Categories A. Land Land is real property that provides a foundation for structures or produces crops, trees, and other forms of shrubbery. Land has an indefinite useful life. Expenses to prepare the land for its intended use are capitalized. Capitalizable costs for land include purchase price, legal and title fees, easements, grading, etc. B. Buildings Buildings are permanent structures, which include warehouses, plant facilities, and office buildings. Capitalizable costs for buildings include purchase price, legal fees, reconditioning, materials, labor, professional fees, etc. The County capitalizes all components of a building as one asset and depreciates them over the useful life of the building. Replacement of components of the building, such as replacement of a roof, is expensed as incurred. C. Building/Land Improvements Land improvements add value to the land and can be inexhaustible or exhaustible. • Inexhaustible Inexhaustible land improvements include costs that are necessary to bring the land to its intended condition for use. Initial improvement costs, such as clearing, filling, grading, and leveling of land, are included in the cost of the land. 10 28 • Exhaustible Land improvements that are exhaustible, or deteriorate over time, are capitalized separately and depreciated. Examples include, but are not limited to, parking lots, fences, and landscaping. Building improvements are capitalized if they prolong the useful life of the asset or increase the value or future economic benefit of the individual asset. Regular maintenance or minor renovations, however, are not capitalized by the County. D. Furniture, Fixtures, and Equipment Furniture, fixtures, and equipment are assets that include machinery, furnishings, software, and similar items. Capitalizable costs include net purchase price, taxes, transportation, installation, etc. a. Software Software is considered an intangible asset and should be capitalized if purchased or developed for internal uses. Acquisition costs and other costs incurred to customize the software are also capitalized. Major software upgrades that provide a significant increase in functionality or exceed the aggregate capitalization threshold are capitalized. Internally generated computer software has additional qualifications for capitalization. Internally generated software development is considered to occur in three phases: i. Preliminary Project Stage: conceptual formulation, evaluation of alternatives, determination of existence of needed technologies, and final selection from alternatives ii. Application Development Stage: design of the chosen path, coding, installation to hardware, testing, and data conversion needed to make software operational iii. Post-Implementation/Operations Stage: application training and software maintenance Costs are only capitalized in the application development stage once the preliminary project stage is complete. Costs can only be capitalized once management authorizes and commits to funding. Costs in the preliminary project stage and post-implementation/operations stage are not capitalized. E. Vehicles Vehicles include cars, trucks, ambulances, etc. used by the County in its normal operations. Capitalizable costs for vehicles include net purchase price, taxes, transportation, etc. Vehicles are capitalized individually and tracked in coordination with the Department of General Properties. F. Construction in Progress Construction in progress is used for costs incurred to construct capital assets before they are substantially complete. Costs during construction are tracked throughout the construction period in an effort to represent reliable information on the County’s financial statements. 11 29 Capitalizable Costs Capital assets are recorded at historical cost. Historical costs include: • Purchase price • Costs needed to place the asset at its intended location, i.e. freight • Costs needed to place the asset in its intended condition for use, i.e. installation and site preparation costs All costs must be directly identifiable with a specific asset to be capitalized. Costs incurred after the asset acquisition is considered to be probable are capitalized. Internal costs that directly relate to the acquisition or construction of a specific asset are also capitalized. Assets donated by third parties are recorded at fair market value. Depreciation Depreciation is a method to distribute the cost of a capital asset over its useful life in a systematic and rational manner. The County uses the straight-line method to depreciate capital assets. Assets are assumed to have no salvage value at the end of their useful lives. Depreciation is prorated by month in the year of acquisition and disposal. Depreciation begins the month following the acquisition date. Capital assets are depreciated based on the useful life schedule below: Capital Asset Category Useful Life Land and Land Improvements (Inexhaustible) Indefinite Buildings and Improvements 10-40 years Furniture and Office Equipment 5-10 years Machinery & Equipment 5-10 years Computer-related Equipment 5-10 years Vehicles 5 years Garbage and Dump trucks 10 years Fire and Rescue Vehicles 10-20 years Right-to-use leased assets Life of the lease Depreciation expense must be reported as a reduction of net assets in the government-wide statement of activities. Accumulated depreciation reduces the carrying amount of capital assets as reported in the government-wide statement of net assets. Dispositions It is at the discretion of the department to determine when an asset is considered for disposition. Once an item has been disposed, the department should notify the Finance Department so the item can be removed from the capital asset system. A capital asset report is sent to departments annually to verify that all assets are correct. This policy shall be effective July 1, 2023. 12 30 Policy VI Debt Management Debt ratios must be maintained at the following levels: 1. Outstanding General Fund Debt as a percentage of the estimated market value of all taxable property (real and personal) in the County should not exceed 3%; and 2. Annual debt and lease purchase financing for capital facilities will be used in computing debt ratios for financial planning and reporting purposes. Debt service as a percentage of General Fund Expenditures should not exceed 10%. 3. School debt and lease purchase financing for capital facilities will be used in computing debt ratios for financial planning and reporting purposes except for financed School projects where debt service is paid specifically from the 1% School Sales Tax Revenue stream. 13 31 Policy VII Cash Management Effective cash management is an essential part of good financial management, particularly at a time when rising costs place mounting pressures on local revenues. Maximization of County investment returns on funds not immediately required for County operations can help offset this pressure. The County investment program must meet four criteria which are listed in the order of their importance: 1. Legality, 2. Safety, 3. Liquidity, and 4. Yield The legality and safety of public investments are crucial. To allow for unforeseen expenditures, it must be possible to liquidate investments quickly without loss of principal. Only after these criteria are met should the maximization of investment yield be pursued. Investment performance will be based upon the comparison of the County’s investment yield to the average yield on the 91 day U. S. Treasury Bill; Donoghue’s Money Market Fund Average and the average annual rate of return experienced by other jurisdictions. Within the constraints of normal trade practices, the County should increase the amount of funds available for investment by rapid collection of money owed to the County and decelerated payment of obligations. At all times total cash invested shall at a minimum equal 100% of total book cash balances. A timely report of this information should be prepared by the Treasurer and submitted to the Board of Supervisors monthly. 14 32 Policy VIII Accounting and Financial Reporting The County will comply with generally accepted accounting principles (GAAP) in its accounting and financial reporting system, as contained in the following publications: o Codification of Governmental Accounting and Financial Reporting Standards, issued by the Governmental Accounting Standards Board (GASB). o Governmental Accounting, Auditing, and Financial Reporting (GAAFR), issued by the Governmental finance Officers Association of the United States and Canada. o Uniform Financial Reporting Manual for Virginia Counties and Municipalities, prepared by the Commonwealth of Virginia Auditor of Public Accounts. o Audits of State and Local Governmental Units, an industry audit guide published by the American Institute of Certified Public Accountants. The County will annually prepare its financial report in compliance with the principles and guidelines established by the Government Finance Officers Association’s Certificate of Achievement for Excellence in Financial Reporting Program. The Certificate of Achievement, which is issued for excellence in financial reporting, provides national recognition for jurisdictions that qualify and increases the marketability of their debt offerings. Conformance with the Association’s standards also increases the comparability of the County’s reports to those of other jurisdictions following the same standards. The County’s annual financial statements, federal grant reports, and Uniform Financial Reports will be audited yearly by a qualified, independent public accounting firm. An independent audit provides objective evidence that the County’s financial transactions are properly handled, recorded, and reported. This assurance increases the confidence of third parties (banks, bond-holders, bond rating agencies, etc.) and the general public in the County’s annual financial reports. The County must never resort to unsound fiscal practices to achieve a balanced budget or to provide needed capital improvements. Such things as moving tax payment dates forward to produce one- time “windfalls” or using fund balance for recurring expenditures are examples of such unsound financial practices which must be avoided. 15 33 Policy IX Procurement The primary objectives of the County’s procurement process center upon economy and efficiency. One objective is to obtain supplies, equipment, and services as economically as possible. A second objective is to purchase materials that are best suited to the specific needs of operating departments. Most importantly, needed materials should be available in a timely manner to avoid any interruptions in the delivery of services to the public. To achieve these objectives, five essential components are necessary: 1. Sufficient and competent personnel, 2. Centralized organization, 3. Formal regulations, 4. Standardization and specifications, and 5. Effective operating procedures Finally, the procurement process must guard against fraud, waste, and favoritism in the purchase of goods and services. Additional information regarding procurement procedures can be found the Procurement Policy. 16 34 Policy X Risk Management Pittsylvania County is to be protected against accidental loss or losses which would significantly affect personnel, property, the budget, or the ability of the County to continue to fulfill its responsibilities to taxpayers and the public. Potentially hazardous situations, practices, and conditions will continue to be evaluated and where feasible and cost effective, reduced or eliminated. Since 1992, the County has been self-insured with respect to certain insurance programs. The County must therefore maintain actuarially sound insurance reserves that will indemnify the County and its employees against potential loss. The maintenance of an actuarially determined self-insurance fund serves to further enhance the professional financial management image of the County. 17 35 Policy XI Economic Development Pittsylvania County shall continue to expand and diversify its economic base by attracting industrial and commercial firms to the County. Special emphasis should be given to industrial and commercial enterprises that will employ the local labor force. In addition, the County will continue to utilize a network of public facilities which links planned industrial and commercial areas with its growing residential areas. Further diversification of the County’s tax base through industrial and commercial development will serve to provide employment stability in the area and tend to reduce the tax burden of individual taxpayers. 18 36 Policy XII Federal Grants Administration GRANT ADMINISTRATION Pittsylvania County does not have a centralized grants department; therefore, it is the responsibility of each department obtaining a grant to care for and be familiar with all grant documents and requirements. If a grant is Federal, the department should immediately notify the Finance Director for inclusion in the Pittsylvania County’s Single Audit. For the purpose of this policy “Program Director” applies to the individual within a given department who will be responsible for the grant. 1. Grant Development, Application, and Approval – a. Legislative Approval – The point at which legislative approval is required is determined by the requirements of the grant program. If the grant must be submitted by “an individual authorized by the legislative body”, then Board approval is required prior to submitting the application. If such legislative approval is not specifically required by the written terms of the grant, then the department head may, at his or her discretion, approve grant applications. In this case, a copy of the application shall be sent to the County Administrator’s office. If an award is given, a copy of the agreement shall also be furnished to the County Administrator’s office. Electronic copies are preferable. b. Matching Funds – Grants that require cash local matches must be coordinated through the County Administrator’s office. At a minimum, funds must be identified within the existing budget to provide the match, or a budget adjustment will be required. Depending on the nature of the grant, there may also be some policy implications that will bear discussion. (For example, will the grant establish a level of service that cannot be sustained once the grant funds are depleted?) c. Grant Budgets – Most grants require the submission of an expenditure budget. The department head should review this portion of the grant request prior to submission. The Finance Director will need to be contacted regarding personnel projections. 2. Grant Program Implementation – a. Notification and Acceptance of an Award – Official notification of a grant award is typically sent by a funding agency to the program director and/or other official designated in the original grant proposal. However, the authorization to actually spend grant funds is derived from the Board through the approval of a grant budget. This is done with the adoption of the Government-wide operating budget, as the grant budget is a component of such. b. Establishment of Accounts – The department that obtained the grant will provide the Finance office with information needed to establish revenue and expense accounts for the project. Ordinarily, this information will include a copy of a summary of the project and a copy of the full project budget. c. Purchasing Guidelines – All other Pittsylvania County purchasing and procurement guidelines apply to the expenditure of grant funds. The use of grant funds does not exempt any purchase from normal purchasing requirements. All typical 19 37 paperwork, staff approvals, and bidding requirements apply. When in doubt, the Program Director should contact the County Administrator’s office for further assistance. 3. Financial and Budgetary Compliance – a. Monitoring Grant Funds – Departments may use some internal mechanism (such as a spreadsheet) to monitor grant revenues, expenditures and budgetary compliance, however all such financial information will also be maintained in the Pittsylvania County’s finance software at some level. The finance software is considered to be Pittsylvania County’s “official” accounting system. Ultimately, the information in this system is what will be audited and used to report to governing boards, not information obtained from offline spreadsheets. Program Directors are strongly encouraged to use inquiries and reports generated directly from the finance software to aide in grant tracking. If any “off-system” accounting records are maintained, it is the responsibility of the Program Director to ensure that the program’s internal records agree to the Pittsylvania County’s accounting system. b. Fiscal Years – Occasionally, the fiscal year for the granting agency will not coincide with the Pittsylvania County’s fiscal year. This may require adjustments to the internal budget accounts and interim financial reports as well as special handling during fiscal year-end close. It is the responsibility of the department head to oversee grant budgets within his/her department and to bring such discrepancies to the attention of the Finance office at the time the grant accounts are established. c. Grant Budgets – When the accounting structure for a grant is designed, it will include the budget that was prepared when the grant application was submitted. The terms of each specific grant will dictate whether any budget transfers between budgeted line items will be permitted. In no case will the Program Director be authorized to exceed the total budget authority provided by the grant. If grant funds have not been totally expended by fiscal year-end, it is the responsibility of the Program Director to notify the Finance Director that budget funds need to be carried forward to the new fiscal year, and to confirm the amounts of such carry-forwards. This can be done during the Pittsylvania County’s normal annual budgeting process. Carry-forwards of grant funds will be subjected to maximum allowable amounts/percentages based on the grant award agreement and/or the Uniform Guidance compliance supplement. d. Capital Assets – Pittsylvania County is responsible for maintaining an inventory of assets purchased with grant monies. The Pittsylvania County is accountable for them and must make them physically available for inspection during any audit. The Finance Director must be notified immediately of any sale of these assets. 20 38 Customarily, the proceeds of the sale can only be used on the grant program that purchased them. In most cases, specific governing regulations can be found in the original grant. The individual department overseeing the grant will coordinate this requirement. All transactions that involve the acquisition or disposal of grant funded fixed assets must be immediately brought to the attention of the Finance Director. 4. Record Keeping – a. Audit Workpapers – The Pittsylvania County’s external auditors audit all grants at the end of each fiscal year. The department who obtained the grant will prepare the required audit workpapers. These will then need to be sent to the Finance Director within a reasonable time following year end. b. Record Keeping Requirements – Grant record keeping requirements may vary substantially from one granting agency to another. Consequently, a clear understanding of these grant requirements at the beginning of the grant process is vital. The Program Director in the Finance Department will maintain copies of all grant draw requests, and approved grant agreements (including budgets). Records shall be retained for a minimum of 5 years from the date on which the final Financial Status Report is submitted, or as otherwise specified in the requirements of the federal award, unless a written extension is provided by the awarding agency, cognizant agency for audit or cognizant agency for indirect costs. Uniform Guidance Compliance Supplement - General Information Board Policies. The Board of Supervisors has adopted various financial policies independent of those now required for federal awards under the Uniform Guidance. These policies may be incorporated into this document by reference. All of the established board policies also apply to federal grants where appropriate. These policies include: • Pittsylvania County Procurement Policy • Personnel Policy 21 39 Uniform Guidance Compliance Supplement - Activities Allowed/Unallowed and Allowable Costs/Cost Principles The requirements for allowable costs/cost principles are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. All grant expenditures will be in compliance with the Uniform Guidance, State law, Pittsylvania County policy, and the provisions of the grant award agreement will also be considered in determining allowability. Grant funds will only be used for expenditures that are considered reasonable and necessary for the administration of the program and treatment will be consistent with the policies and procedures the Pittsylvania County would apply to non-federally financed work. 2. Grant expenditures will be approved by the department head when the bill or invoice is received. The terms and conditions of the Federal Award will be considered when approving. The approval will be evidenced by the department head’s initials on the original bill or invoice. Accounts payable disbursements will not be processed for payment until necessary approval has been obtained. 3. Payroll costs will be documented in accordance with the Uniform Guidance. Specifically, compensation for personal services will be handled as set out in §200.430 and compensation for fringe benefits will follow §200.431 of the Uniform Guidance. 4. An indirect cost rate will only be charged to the grant to the extent that it was specifically approved through the grant budget/agreement. Part 200 examines the allowability of 55 specific cost items (commonly referred to as Selected Items of Cost) at 2 CFR 200.420-200.475. These cost items are listed in the chart below along with the citation where it is discussed whether the item is allowable. Pittsylvania County personnel responsible for spending federal grant funds and for determining allowability must be familiar with the Part 200 selected items of cost section. Pittsylvania County must follow these rules when charging these specific expenditures to a federal grant. When applicable, staff must check costs against the selected items of cost requirements to ensure the cost is allowable. The selected item of cost addressed in Part 200 includes the following (in alphabetical order): Item of Cost Citation of Allowability Rule Advertising and public relations costs 2 CFR § 200.421 Advisory councils 2 CFR § 200.422 Alcoholic beverages 2 CFR § 200.423 Alumni/ae activities 2 CFR § 200.424 Audit services 2 CFR § 200.425 Bad debts 2 CFR § 200.426 Bonding costs 2 CFR § 200.427 Collection of improper payments 2 CFR § 200.428 22 40 Commencement and convocation costs 2 CFR § 200.429 Compensation – personal services 2 CFR § 200.430 Compensation – fringe benefits 2 CFR § 200.431 Conferences 2 CFR § 200.432 Contingency provisions 2 CFR § 200.433 Contributions and donations 2 CFR § 200.434 Defense and prosecution of criminal and civil proceedings, claims, appeals and patent infringements 2 CFR § 200.435 Depreciation 2 CFR § 200.436 Employee health and welfare costs 2 CFR § 200.437 Entertainment costs 2 CFR § 200.438 Equipment and other capital expenditures 2 CFR § 200.439 Exchange rates 2 CFR § 200.440 Fines, penalties, damages and other settlements 2 CFR § 200.441 Fund raising and investment management costs 2 CFR § 200.442 Gains and losses on disposition of depreciable assets 2 CFR § 200.443 General costs of government 2 CFR § 200.444 Goods and services for personal use 2 CFR § 200.445 Idle facilities and idle capacity 2 CFR § 200.446 Insurance and indemnification 2 CFR § 200.447 Intellectual property 2 CFR § 200.448 Interest 2 CFR § 200.449 Lobbying 2 CFR § 200.450 Losses on other awards or contracts 2 CFR § 200.451 Maintenance and repair costs 2 CFR § 200.452 Materials and supplies costs, including costs of computing devices 2 CFR § 200.453 Memberships, subscriptions, and professional activity costs 2 CFR § 200.454 Organization costs 2 CFR § 200.455 Participant support costs 2 CFR § 200.456 Plant and security costs 2 CFR § 200.457 Pre-award costs 2 CFR § 200.458 Professional services costs 2 CFR § 200.459 Proposal costs 2 CFR § 200.460 Publication and printing costs 2 CFR § 200.461 Rearrangement and reconversion costs 2 CFR § 200.462 Recruiting costs 2 CFR § 200.463 Relocation costs of employees 2 CFR § 200.464 Rental costs of real property and equipment 2 CFR § 200.465 Scholarships and student aid costs 2 CFR § 200.466 Selling and marketing costs 2 CFR § 200.467 Specialized service facilities 2 CFR § 200.468 Student activity costs 2 CFR § 200.469 Taxes (including Value Added Tax) 2 CFR § 200.470 Termination costs 2 CFR § 200.471 Training and education costs 2 CFR § 200.472 23 41 Transportation costs 2 CFR § 200.473 Travel costs 2 CFR § 200.474 Trustees 2 CFR § 200.475 Uniform Guidance Compliance Supplement - Cash Management Source of Governing Requirements – The requirements for cash management are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions or the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Most of the Pittsylvania County’s grants are awarded on a reimbursement basis. As such, program costs will be expended and disbursed prior to requesting reimbursement from the grantor agency. If Federal grant funds are received first, care will be taken in order to minimize the time elapsing between receipt of Federal funds and disbursement to contractors/employees/subrecipients according to §200.302 (6) of the Uniform Guidance. Expenditures will be compared with budgeted amounts for each Federal award. 2. Cash draws will be initiated by the Program Director who will determine the appropriate draw amount. Documentation of how this amount was determined will be retained. Payments and travel costs will be handled in a manner consistent with the Pittsylvania County’s existing Accounts Payable policies and in accordance with §200.305 (payments) and §200.474 (travel costs) of the Uniform Guidance. 3. The physical draw of cash will be processed in the Pittsylvania County’s finance software, or through the means prescribed by the grant agreement for other awards. 4. Supporting documentation or a copy of the cash draw paperwork will be filed along with the approved paperwork described above and retained for audit purposes. Uniform Guidance Compliance Supplement - Eligibility Source of Governing Requirements – The requirements for eligibility are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Additional Policies and Procedures. The following policies and procedures will also be applied: 1. Federal grants will only benefit those individuals and/or groups of participants that are deemed to be eligible. 2. Initial eligibility determinations will be made by the Program Director based on the grant award/contract. Sufficient documentation to support these determinations will be retained and made available to administration, auditors, and pass-through or grantor agencies, upon request. It is the department’s responsibility to maintain complete, accurate, and organized records to support eligibility determinations. 24 42 Uniform Guidance Compliance Supplement - Equipment and Real Property Management Source of Governing Requirements – The requirements for equipment are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Additional Policies and Procedures. The following policies and procedures will also be applied: In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. All equipment will be used in the program for which it was acquired or, when appropriate, in other Federal programs. 2. When required, purchases of equipment will be pre-approved by the grantor or pass- through agency. The Program Director will be responsible for ensuring that equipment purchases have been previously approved, if required, and will retain evidence of this approval. 3. Property/Equipment records will be maintained, a physical inventory shall be taken every two years, and an appropriate system shall be used to safeguard assets. 4. When assets with a current per unit fair market value of $5,000 or more are no longer needed for a Federal program, a request for written guidance shall be made from the grantor agency as to what to do with the property/equipment prior to sale or relocation. The Pittsylvania County shall abide with the requirements set out in §200.311 and §200.313 of the Uniform Guidance in this regard. If a sale will take place, proper procedures shall be used to provide for competition to the extent practical and result in the highest possible return. Uniform Guidance Compliance Supplement - Matching, Level of Effort and Earmarking Source of Governing Requirements – The requirements for matching are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for level of effort and earmarking are contained in program legislation, Federal awarding agency regulations, and the terms and conditions of the award. Pittsylvania County defines “matching”, “level of effort”, and “earmarking” consistent with the definitions of the Uniform Guidance Compliance Supplement: Matching or cost sharing includes requirements to provide contributions (usually non- Federal) or a specified amount or percentage of match Federal awards. Matching may be in the form of allowable costs incurred or in-kind contributions (including third-party in- kind contributions). 25 43 Level of effort includes requirements for (a) a specified level of service to be provided from period to period, (b) a specified level of expenditures from non-Federal or Federal sources for specified activities to be maintained from period to period, and (c) Federal funds to supplement and not supplant non-Federal funding of services. Earmarking includes requirements that specify the minimum and/or maximum amount of percentage of the program’s funding that must/may be used for specified activities, including funds provided to subrecipients. Earmarking may also be specified in relation to the types of participants covered. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Compliance with matching, level of effort, and earmarking requirements will be the responsibility of the Finance Director. 2. Adequate documentation will be maintained to support compliance with matching, level of effort, and earmarking requirements. Such information will be made available to administration, auditors, and pass-through or grantor agencies, as requested. Uniform Guidance Compliance Supplement - Period of Performance Source of Governing Requirements – The requirements for period of performance of Federal funds are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Costs will be charged to an award only if the obligation was incurred during the funding period (unless pre-approved by the Federal awarding agency or pass-through grantor agency). 2. All obligations will be liquidated no later than 90 days after the end of the funding period (or as specified by program legislation). 3. Compliance with period of performance requirements will initially be assigned to the Program Director. All AP disbursements are subject to the review and approval of accounts payable staff and the Board as part of the payment process. 26 44 Uniform Guidance Compliance Supplement - Procurement, Suspension and Debarment Source of Governing Requirements – The requirements for procurement are contained in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. The requirements for suspension and debarment are contained in OMB guidance in 2 CFR part 180, which implements Executive Orders 12549 and 12689, Debarment and Suspension; Federal agency regulations in 2 CFR implementing the OMB guidance; the Uniform Guidance; program legislation; Federal awarding agency regulations; and the terms and conditions of the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Purchasing and procurement related to Federal grants will be subject to the general policies and procedures of Pittsylvania County, and to the provisions of the uniform guidance as detailed below. (See Pittsylvania County procurement policy.) 2. Contract files will document the significant history of the procurement, including the rationale for the method of procurement, selection of the contract type, contractor selection or rejection, and the basis of contract price. 3. Procurement will provide for full and open competition. 4. No employee, officer, or agent may participate in the selection, award, or administration of a contract supported by a Federal award if he or she has a real or apparent conflict of interest. Such a conflict of interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. The officers, employees, and agents can neither solicit nor accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. If the financial interest is not substantial or the gift is an unsolicited item of nominal value, no further action will be taken. However, disciplinary actions will be applied for violations of such standards otherwise. 5. Pittsylvania County will avoid acquisition of unnecessary or duplicative items. Consideration will be given to consolidating or breaking out procurements to obtain a more economical purchase. Where appropriate, an analysis will be made of lease versus purchase alternatives, and any other appropriate analysis to determine the most economical approach. Pittsylvania County will also analyze other means, as described in §200.318 of the Uniform Guidance, in order to ensure appropriate and economic acquisitions. 6. Pittsylvania County is prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred or whose principals are suspended or debarred. “Covered transactions” include those procurement contracts for goods and services awarded under a nonprocurement transaction (i.e., grant or cooperative agreement) that are expected to equal or exceed $20,000 or meet certain other specified criteria. All nonprocurement transactions (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions. 27 45 7. Pittsylvania County will include a suspension/debarment clause in all written contracts in which the vendor/contractor will certify that it is not suspended or debarred. The contract will also contain language requiring the vendor/contractor to notify the Government immediately upon becoming suspended or debarred. This will serve as adequate documentation as long as the contract remains in effect. The Program Director or designee will be responsible for running a year-to-date transaction report from the Pittsylvania County’s accounting system. Any vendor with accumulated transactions equaling or exceeding $20,000 that is not subject to a written contract including a suspension/debarment clause or for which a signed statement or suspension or debarment is not on file will be subject to additional procedures. The Program Director or designee will check the Excluded Parties List System (EPLS), https://www.sam.gov/portal/public/SAM/ maintained by the General Services Administration (GSA) for the vendor name. A potential match will be followed-up on immediately. Each vendor searched on EPLS will be initialed on the vendor transaction report and the report will be signed and dated on the first or last page. The vendor transaction report will be retained as evidence of the control. 8. If a vendor is found to be suspended or debarred, the Pittsylvania County will immediately cease to do business with this vendor. 9. Executed contracts and signed quarterly vendor transaction history reports will be retained and filed by the Program Director. 10. When a request for purchase of equipment, supplies, or services for a federal program has been submitted the procurement method to be used will be determined based on the total cost of the purchase as further outlined below. This procedure outlines how the cost thresholds for determining when the quote or formal bidding procedures that are required by state law must be modified when making purchases for federally funded purposes to which the Uniform Grant Guidance regulations apply. A. Micro-purchases not requiring quotes or bidding (up to $10,000) For purposes of this procedure, micro-purchase means a purchase of equipment, supplies, or services for use in federally funded programs using simplified acquisition procedures, the aggregate amount of which does not exceed a base amount of $10,000. The micro-purchase dollar threshold is adjusted periodically by the federal government, and the threshold most recently published and published in the Federal Register shall apply if other than $10,000. The micro-purchase method is used in order to expedite the completion of its lowest dollar small purchase transactions and minimize the associated administrative burden and cost. Procurement by micro-purchase is the acquisition of equipment, supplies or services, the aggregate dollar amount of which does not exceed the micro-purchase threshold. To the extent practicable, the Pittsylvania County distributes micro-purchases equitably among qualified suppliers when the same or materially interchangeable products are identified and such suppliers offer effectively equivalent rates, prices and other terms. 28 46 Micro-purchases may be awarded without soliciting competitive quotations if the Pittsylvania County considers the price to be reasonable. Evidence will be maintained of this reasonableness in the records of all micro-purchases. Reasonable means that sound business practices were followed and the purchase is comparable to market prices for the geographic area. Such determinations of reasonableness may include comparison of the price to previous purchases of the same item or comparison of the price of items similar to the item being purchased. Even if the cost of a purchase qualifies it as a micro-purchase, bidding or small purchase procedures may be used optionally when those procedures may result in cost savings. B. Small Purchase Procedures (Between $10,000 and $250,000). For purposes of this procedure, small purchase procedures are those relatively simple and informal procurement methods for securing equipment, services, or supplies that cost more than the amount qualifying as micro- purchase and do not exceed $250,000. Small purchase procedures cannot be used for purchases of equipment or supplies for construction, repair or maintenance services costing between $50,000 and $250,000 because the Pittsylvania County purchasing policy requires formal competitive bidding at that level of cost. If small purchase procedures are used, written or telephonic price or rate quotations are obtained from at least three (3) qualified sources and records of quotes are maintained. C. Publicly Solicited Sealed Competitive Bids (Purchase between $50,000 and $250,000) For purchases of equipment or supplies, or of services for construction, maintenance or repairs of facilities, sealed competitive bids are publicly solicited and awarded to the lowest responsive and responsible bidder as provided in the Pittsylvania County’s procurement policy. D. Competitive Proposals (Purchase between $50,000 and $250,000) For purchases of qualifications-based procurement of architectural/engineering professional services whereby competitors’ qualifications are evaluated and the most qualified competitor is selected, subject to negotiation of fair and reasonable compensation. If this method is used, the following requirements apply: 1. Requests for proposals must be publicized and identify all evaluation factors and their relative importance. Any response to publicized requests for proposals must be considered to the maximum extent practical; 2. Proposals must be solicited from an adequate number of qualified sources; and 3. Contracts must be awarded to the responsible firm whose proposal is most advantageous to the program, with price and other factors considered. 29 47 E. Noncompetitive Proposals (Sole Source) Procurement by noncompetitive proposals is procurement through solicitation of a proposal from only one source and may be used only when one or more of the following circumstances apply: 1. The item is available only from a single source; or 2. The public exigency or emergency for the requirement will not permit a delay resulting from competitive solicitation; or 3. The Federal awarding agency or pass-through entity expressly authorizes noncompetitive proposals in response to a written request from the non-Federal entity; or 4. After solicitation of a number of sources, competition is determined inadequate. 11. Pittsylvania County must use the micro-purchase and small purchase methods only for procurements that meet the applicable criteria under 2 CFR sections 200.320(a) and (b). Under the micro-purchase method, the aggregate dollar amount does not exceed $10,000. Small purchase procedures must be used for purchases that exceed the micro-purchase amount but do not exceed the simplified acquisition threshold of $250,000. Micro-purchases may be awarded without soliciting competitive quotations if the Pittsylvania County considers the price to be reasonable (2 CFR section 200.320(a)). If small purchase procedures are used, price or rate quotations must be obtained from an adequate number of qualified sources (2 CFR section 200.320(b)). 30 48 Uniform Guidance Compliance Supplement - Program Income Source of Governing Requirements – The requirements for program income are found in the Uniform Guidance, program legislation, Federal awarding agency regulations, and the terms and conditions of the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Program income will include (but will not be limited to): income from fees for services performed, the use or rental of real or personal property acquired with grant funds, the sale of commodities or items fabricated under a grant agreement, and payments of principal and interest on loans made with grant funds. It will not include interest on grant funds, rebates, credits, discounts, refunds, etc., or interest earned on any of these items unless otherwise provided in the Federal awarding agency regulations or terms and conditions of the award. It will also not include proceeds from the sale of equipment or real property. 2. Pittsylvania County will allow program income to be used in one of three methods: a. Deducted from outlays b. Added to the project budget c. Used to meet matching requirements Absent specific guidance in the Federal awarding agency regulations or the terms and conditions of the award, program income shall be deducted from program outlays. 3. Program income, when applicable, will be accounted for as a revenue source in the same program code as the Federal grant. Uniform Guidance Compliance Supplement - Reporting Source of Governing Requirements – Reporting requirements are contained in the following documents: Uniform Guidance, Performance reporting, 2 CFR section 215, Performance reporting, 2 CFR section 215.51, program legislation, ARRA (and the previously listed OMB documents and future additional OMB guidance documents that may be issued), the Transparency Act, implementing requirements in 2 CFR part 170 and the FAR, and previously listed OMB guidance documents, Federal awarding agency regulations, and the terms and conditions of the award. In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: 1. Reports will be submitted in the required frequency and within the required deadlines. 2. Reports will be completed using the standard forms (as applicable) and method of delivery (i.e., e-mail, grantor website, postal service, etc.). 3. Regardless of the method of report delivery, a copy of the submitted report will be retained along with any documentation necessary to support the data in the report. The report will evidence the date of submission in order to document compliance with timeliness requirements. This may be done either physically or electronically.31 49 4. Financial reports will always be prepared based on the general ledger using the required basis of accounting (i.e., cash or accrual). In cases where financial data is tracked outside of the accounting system (such as in spreadsheets or paper ledgers), this information will be reconciled to the general ledger prior to report submission. 5. Any report with financial-related data will either be prepared or reviewed by the Program Director and will have the appropriate review based on specific grant guidelines. 6. Preparation of reports will be the responsibility of Program Director and Department responsible receiving grant funding. All reports (whether financial, performance, or special) must be reviewed and approved (as applicable) prior to submission. This will be evidenced by either physical signatures or electronic timestamps of approval. 7. Copies of submitted reports with preparer and reviewer signatures and data will be filed with supporting documentation and any follow-up correspondence from the grantor or pass-through agency. Copies of all such reports will be made available to administration, auditors, and pass-through or grantor agencies, as requested. Uniform Guidance Compliance Supplement – Subrecipient Monitoring Source of Governing Requirements – The requirements for subrecipient monitoring are contained in 31 USC 7502(f)(2)(B) (Single Audit Act Amendments of 1996 (Pub. L. No. 104-156)), Uniform Guidance, program legislation, 2 CFR parts 25 and 170, and 48 CFR parts 4, 42, and 52 Federal awarding agency regulations, and the terms and conditions of the award. The Pittsylvania County will review and oversee subrecipient activity and obtain a copy of their single audit. Additionally, Pittsylvania County will evaluate the subrecipient’s risk of noncompliance with Federal statutes, regulations, and the terms and conditions of the subaward for purposes of determining the appropriate monitoring procedures as required by the Uniform Guidance Title 2 CFR 200.331. Other oversight processes and procedures will be established on a case by case basis, dependent on grant requirements and the level of activity of the subrecipient. Uniform Guidance Compliance Supplement - Special Tests and Provisions Source of Governing Requirements – The laws, regulations, and the provisions of contract or grant agreements pertaining to the program. Additional Policies and Procedures. The following policies and procedures will also be applied: In order to ensure compliance with these requirements, Pittsylvania County has implemented the following policies and procedures: The Program Director will be assigned the responsibility for identifying compliance requirements for special tests and provisions, determining approved methods for compliance, and retaining any necessary documentation. 32 50 Uniform Guidance– Federal Program Travel Costs Pittsylvania County shall reimburse administrative, professional, and support employees, and officials, for travel costs incurred in the course of performing services related to official business as a federal grant recipient. For the purposes of this policy, travel costs shall mean the expenses for transportation, lodging, subsistence, and related items incurred by employees who are in travel status on official business as a federal grant recipient. Employees shall comply with the applicable Pittsylvania County policies and administrative regulations established for reimbursement of travel and other expenses. The validity of payments for travel costs for all employees shall be determined by the Program Director. Travel costs shall be reimbursed on a mileage basis for travel using an employee’s personal vehicle and on an actual cost basis for meals, lodging and other allowable expenses, consistent with those normally allowed in like circumstances in the Pittsylvania County’s nonfederally funded activities, and in accordance with the Pittsylvania County’s travel reimbursement policies and administrative regulations. Mileage reimbursements shall be at the rate approved by Administration for other Pittsylvania County travel reimbursements. Actual costs for meals, lodging and other allowable expenses shall be reimbursed only to the extent they are reasonable and do not exceed the per diem limits established by the Board of Supervisors. If travel reimbursement costs are charged directly to a federal award, documentation must be maintained that justifies that (1) participation of the individual is necessary to the federal award, and (2) the costs are reasonable and consistent with the Locality’s/Organization’s established policy. 33 51 Policy XIII Policy Review Policies will be reviewed every 2 years by the Board of Supervisors. 34 52 Summary of Revisions to the Financial Management Policy Policy I (Pages 3-4) Reserves and Fund Balance: Current Policy regarding Unassigned Fund Balance: o An Unassigned General Fund Balance of not less than 20% of the average actual most current audited General Fund Expenditures for the preceding three flscal years to address natural and manmade disasters and to offset budget fiuctuations. o In the event the Unassigned General Fund Balance is used to provide for temporary funding of unforeseen emergency needs, the County shall restore the Unassigned General Fund Balance to the minimum level of twenty percent (20%) of the average actual most current audited General Fund Expenditures for the preceding three flscal years within two (2) flscal years following the flscal year in which the event occurred. Policy V Capital Asset Policy (Pages 10-12): This is a new policy that is being incorporated into this policy to provide guidance when capitalizing assets for the County. Prior to implementation of this policy Finance Staff followed the general guidelines of the County Auditor. Information provided in this policy was recommended by our current County Auditor, Robinson, Farmer, Cox, and Associates. Please note this policy will be effective starting July 1, 2023. Policy V Debt Management (Page 13): Debt ratios must be maintained at the following levels: 1. Outstanding General Fund Debt as a percentage of the estimated market value of all taxable property (real and personal) in the County should not exceed 3%; and 2. Annual debt and lease purchase flnancing for capital facilities will be used in computing debt ratios for flnancial planning and reporting purposes. Debt service as a percentage of General Fund Expenditures should not exceed 10%. 3. School debt and lease purchase flnancing for capital facilities will be used in computing debt ratios for flnancial planning and reporting purposes except for School projects where debt service is paid speciflcally from the 1% School Sales Tax Revenue stream. 53 PITTSYLVANIA COUNTY BOARD OF SUPERVISORS RESOLUTION # 2024-05-01 _____________________________________________________________________________ RESOLUTION AUTHORIZING THE SCHOOL BOARD OF PITTSYLVANIA COUNTY, VIRGINIA, TO FILE APPLICATIONS TO THE LITERARY LOAN FUND OF THE COMMONWEALTH OF VIRGINIA REQUESTING LOANS IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $26,486,278 VIRGINIA: At the Pittsylvania County Board of Supervisors’ (“Board”) May 21, 2024, Business Meeting, the following Resolution was presented and adopted: WHEREAS, the School Board of Pittsylvania County, Virginia (the “School Board”), has presented on the date hereof to the Board of Supervisors of Pittsylvania County, Virginia (the “Board of Supervisors”), a resolution authorizing one or more applications addressed to the Virginia Board of Education for the purpose of borrowing from the Literary Fund an aggregate principal amount not to exceed $26,486,278 for various capital improvements for its public school system, including costs to acquire, construct, develop, expand, renovate and equip the projects and schools described on Exhibit A attached hereto (collectively, the “Projects”); BE IT RESOLVED BY THE BOARD OF SUPERVISORS OF PITTSYLVANIA COUNTY, VIRGINIA: 1. The applications of the School Board to the State Board of Education of Virginia (the “State Board”) for one or more loans in an aggregate principal amount not to exceed $26,486,278 from the Literary Fund is hereby authorized, and authority is hereby granted to the School Board to borrow such amount for the purposes set out in such applications. It is understood that each such loan will be repayable over a term determined by the School Board and the State Board (not to exceed 30 years) and that the interest rate thereon will be determined pursuant to applicable Virginia law and the regulations established by the State Board (not to exceed 3.35% per annum). 2. The Board of Supervisors agrees each year during the life of the loans, at the time the Board fixes the regular levies, to fix a rate of levy for schools or make a cash appropriation sufficient for operation expenses and to pay such loans in annual installments and the interest thereon, as required by law regulating loans from the Literary Fund. 3. This resolution shall take effect immediately. I hereby certify that the foregoing is a true and correct extract from the minutes of a regular meeting of the Board of Supervisors of Pittsylvania County, Virginia, held in Pittsylvania County on the 21st day of May, 2024, and of the whole thereof so far as applicable to the matters referred to in such extract. WITNESS my signature and seal of the Pittsylvania County, Virginia this 21st day of May, 2024. ________________________________________________ Darrell W. Dalton Chairman, Pittsylvania County Board of Supervisors ________________________________________________ David F. Arnold Assistant County Administrator 54 ATTEST: _______________________ J. Vaden Hunt, Esq. Pittsylvania County Attorney 55 EXHIBIT A PROJECTS Name of School Project Description Amount of Loan Requested Kentuck Elementary School 12 Classroom Addition $10,792,290 Southside Elementary School Replace HVAC system and windows $9,388,584 Union Hall Elementary School Replace HVAC system and windows $6,305,404 Total $26,486,278 56 6.c. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Information Only Agenda Title: EMS Drug Box Requirements Update (10 minutes) Staff Contact(s): Christopher Key, Kasey Seay Agenda Date: May 21, 2024 Item Number: 6.c. Attachment(s): 1. Agency Notification - FDA Drug Supply Act 1- 23-2024 2. Drug Box Update 5-6-24 Reviewed By: Christopher T. Key, Public Safety Director, and/or Kasey Seay, Public Safety Division Chief, will update the Board on EMS Drug Box issues. Related documentation is attached and/or may be distributed at the Work Session. 57 58 59 60 61 8.a. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Closed Session Agenda Title: Staff Contact(s): Vaden Hunt Agenda Date: May 21, 2024 Item Number: 8.a. Attachment(s): None Reviewed By: Consultation with legal counsel employed or retained by a public body regarding specific legal matters requiring the provision of legal advice by such counsel. Nothing in this subdivision shall be construed to permit the closure of a meeting merely because an attorney representing the public body is in attendance or is consulted on a matter. (1) Legal Authority: Virginia Code § 2.2-3711(A)(8) Subject Matter: Employment Matter Regarding Former Sheriff's Employee Purpose: Consultation with Legal Counsel/Legal Advice and Discussion Regarding the Same Closed Session (Legal) 62 8.b. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Closed Session Agenda Title: Closed Session (Economic Development Projects General Update) Staff Contact(s): Matthew Rowe Agenda Date: May 21, 2024 Item Number: 8.b. Attachment(s): None Reviewed By: Discussion concerning a prospective business or industry or the expansion of an existing business or industry where no previous announcement has been made of the business' or industry's interest in locating or expanding its facilities in the community. (1) Legal Authority: Virginia Code § 2.2-3711(A)(5) Subject Matters: Unannounced Prospective Businesses/Industries Purpose: General Economic Development Projects Update/Discussion on the Same 63 8.c. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Closed Session Agenda Title: Closed Session (Personnel) Staff Contact(s): Board of Supervisors Agenda Date: May 21, 2024 Item Number: 8.c. Attachment(s): None Reviewed By: Discussion, consideration, or interviews of prospective candidates for employment; assignment, appointment, promotion, performance, demotion, salaries, disciplining, or resignation of specific public officers, appointees, or employees of any public body. (Contact: Board of Supervisors) (1) Legal Authority: Virginia Code § 2.2-3711(A)(1) Subject Matter: County Administrator/Interim County Administrator Hiring/Search Purpose: Review and Discussion of Related Next Steps 64 9.a. BOARD OF SUPERVISORS EXECUTIVE SUMMARY Action Item Agenda Title: Closed Session Certification Staff Contact(s): Kaylyn McCluster Agenda Date: May 21, 2024 Item Number: 9.a. Attachment(s): None Reviewed By: PITTSYLVANIA COUNTY BOARD OF SUPERVISORS’ CLOSED MEETING CERTIFICATION BE IT RESOLVED that at the Pittsylvania County Board of Supervisors’ (“Board”) Work Session on May 21, 2024, the Board hereby certifies by a recorded vote that to the best of each Board Member’s knowledge, only public business matters lawfully exempted from the Open Meeting requirements of the Virginia Freedom of Information Act (“Act”) and identified in the Motion authorizing the Closed Meeting were heard, discussed, or considered in the Closed Meeting. If any Board Member believes that there was a departure from the requirements of the Act, he shall so state prior to the vote indicating the substance of the departure. The Statement shall be recorded in the Board's Minutes. Vote Kenneth L. Bowman Yes/No Timothy W. Dudley Yes/No Eddie L. Hite, Jr. Yes/No William V. ("Vic") Ingram Yes/No Murray W. Whittle Yes/No Robert M. Tucker, Jr. Yes/No Darrell W. Dalton Yes/No 65