AGENDA Board of Wildlife Resources

Finance, Audit, and Compliance Committee 7870 Villa Park Drive

Henrico, Virginia 23228

August 18, 2021 1:00 pm

Committee Members: Mr. G. K. Washington, Chair, Ms. Catherine Claiborne, Mr. Frank Adams, Mr. John Daniel, Ms. Karen Terwilliger DWR Staff Liaison: Mr. Darin Moore

1. Call to Order and Welcome Mr. G. K. Washington

2. Approval of the May 20, 2021 Meeting Minutes Final Action Mr. G. K. Washington

3. Public Comments – Non Agenda Items

Mr. G. K. Washington

4. Annual Finance Report for FY 2021 Mr. Darin Moore

5. Federal Audit Update Mr. Darin Moore

6. New Normal Employee Survey Report Mr. Darin Moore

7. Director’s Report Mr. Ryan Brown

8. Chairman’s Report

Mr. G.K. Washington

9. Additional Business/Comments Mr. G. K. Washington

10. Next Meeting Date: To be Announced Mr. G. K. Washington

11. Adjournment Mr. G. K. Washington

1

Teleconference and Virtual

Draft Meeting Minutes

Finance, Audit, and Compliance Committee Board of Wildlife Resources

7870 Villa Park Drive, Board Room Richmond, Virginia 23228

May 20, 2021

1:00 pm

Present: Mr. Brian Vincent, Chair, Dr. Mamie Parker; Mr. Rovelle Brown; Mr. Tom Sadler; Board Members in attendance: Mr. G. K. Washington; Executive Director: Mr. Ryan Brown; Director’s Working Group: Mr. Gary Martel, Ms. Becky Gwynn, Mr. Darin Moore, Dr. Mike Bednarski, and Ms. Paige Pearson, Colonel John Cobb The Committee Chair welcomed everyone and call the Virtual meeting to order at 1:00 pm. The Chair noted for the record that a quorum was present for the meeting. The Chair read the meeting procedure notice. This meeting is proceeding under Item 4-0.01; subsection G of the Appropriation Act and sections 2.2-3708.2 of the Code of Virginia. It is being held by electronic communication, as the COVID-19 virus has made a physical meeting of the Committee impracticable. This emergency imposed by COVID-19 is observed by Executive Orders issued by the Governor of Virginia. The Board’s actions today shall be solely limited to those matters included on the agenda; all of these proposed actions are statutorily required or necessary to continue operations and discharge lawful purposes, duties, and responsibilities of the Board. The Chair called on the Board Secretary for a Roll Call Vote: Ayes: Vincent, Parker, Brown, Sadler and Washington. Approval of the March 16, 2021, Meeting Minutes: The Chair called for a motion to approve the minutes of the March 16, 2021 Finance, Audit, and Compliance Committee meeting. Mr. Sadler made a motion to approve the minutes of the March 16, 2021 Committee meeting. Mr. Brown seconded the motion. The Board Secretary called the roll. Ayes: Vincent, Parker, Brown, Sadler Public Comments- Non Agenda Items: The Chair called for Public Comments, hearing none, he moved on with the Agenda. FY 21- Third Quarter Financial Report: The Chair called on Mr. Darin Moore for a report. Mr. Moore gave a report on the Agency’s finances for the Third Quarter of the Fiscal Year.

2

After discussion and comments, the Chair thanked Mr. Moore for his report. FY22 Budget Proposal: Operating and Capital: The Chair called on Mr. Darin Moore to present to the 2021-2022 Budget. Mr. Moore presented the 2021-2022 Operating and Capital Budget. After comments and questions, the Chair thanked Mr. Moore for his presentation. The Chair called for a motion. Mr. Brown made a motion, Mr. Chair, I move that the Finance, Audit, and Compliance Committee recommend adoption to the Board of the FY22 Operating Budget and Capital Budget, as presented. It was seconded by Mr. Vincent. Ayes: Vincent, Parker, Brown, Sadler Federal Audit Update: The Chair called on Mr. Darin Moore for an update. Mr. Moore gave an update on the Completed Federal Audit. After discussion and comments, the Chair thanked Mr. Moore for his update. Director’s Report: The Chair called on Mr. Ryan Brown for the Director’s Report. The Director reported:

• Thanked Mr. Moore and the whole Budget TEAM for their work and efforts putting together the Budget.

Chair’s Report: The Chair thanked everyone for attending the Finance, Audit, and Compliance Committee Meeting and thanked staff for their work on all the excellent presentations. The Chair asked if anyone had any additional comments or business, hearing none, he announced the next Finance, Audit, and Compliance meeting would be determined. The meeting was adjourned at 2:15 am. Respectfully submitted, Frances Boswell /s/

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 1

Board of Wildlife ResourcesFinance, Audit, & Compliance Committee

August 18, 2021

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 2

Financial Report as of 30 June 2021

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 3

FY17-21 Sales Comparison - HuntingJul 1 – Jun 30

530.9

521.4

492.2

432.2

423.4

41.0 41.1

40.4

42.145.8

$14.31 $14.12

$13.66 $13.81

$14.51

-

100

200

300

400

500

600

$9.00

$9.50

$10.00

$10.50

$11.00

$11.50

$12.00

$12.50

$13.00

$13.50

$14.00

$14.50

$15.00

2017 2018 2019 2020 2021

Resident Non Resident Sales

$ In MillionsLicense Sold In Thousands

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 4

FY17-21 Sales Comparison - FishingJul 1 – Jun 30

$ In MillionsLicense Sold In Thousands

359.2 352.5 354.0

419.1 419.9

69.8 69.8 69.8

71.6 86.9

$10.16

$9.35 $9.62

$10.96

$11.66

-

100

200

300

400

500

600

$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

2017 2018 2019 2020 2021

Resident Non Resident Sales

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 5

FY17-21 Revenue Comparison - BoatJul 1 – Jun 30

$3.18 $3.34 $3.29

$3.62

$3.89

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

2017 2018 2019 2020 2021

Revenue

$ In Millions

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 6

FY18-21 Federal Revenue & ReimbursementsJul 1 – Jun 30

Federal Grant Program FY18 FY19 FY20 FY21

Wildlife Restoration (PR) $19,668 $12,792 $10,304 $6,986

Sport Fish Restoration (DJ) $3,087 $3,693 $3,515 $3,241

Boating Safety $2,049 $2,008 $1,592 $2,103

State Wildlife Grant (SWG) $1,519 $1,208 $1,145 $966

$ In Thousands

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 7

FY18-21 Total Revenue and TransfersJul 1 – Jun 30

64.3

51.8 52.4 52.3

17.1

15.5 15.5 16.5

$0.00

$10.00

$20.00

$30.00

$40.00

$50.00

$60.00

$70.00

$80.00

$90.00

FY2018 FY2019 FY2020 FY2021

Revenue Transfer

$67.9$67.3 $68.8

$81.4

$ In Millions

*FY18 includes Mitigation funds and additional PR funds for land purchases.

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 8

FY21 Budget PerformanceJul 1 – Jun 30

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

FY21 Budget YTD FY21 Actual Expenditures Annual Budget

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 9

FY2020-21 Operating Budget vs Expenditures Jul 1 – Jun 30

$5.008%

$60.4192%

Fiscal Year 2020Remaining Expenditures

FY20 Operating Budget$65,408,706

$7.51 11%

$60.27 89%

Fiscal Year 2021Remaining Expenditures

FY21 Operating Budget$67,785,037

$ In Millions

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 10

FY2020-21 Operating Expenditures by Division Jul 1 – Jun 30

EO$2,010,097

3%FISH

$10,269,000 17%

HR$690,287

1%

LAW$19,548,961

33%

OUTREACH$6,670,253

11%

P&F$8,330,324

14%

WILDLIFE$12,888,023

21%

Fiscal Year 2020

EO FISH HR LAW OUTREACH P&F WILDLIFE

EO$2,028,633

4%

FISH$10,145,026

17%

HR$715,006

1%

LAW$18,255,447

30%

OUTREACH$6,125,992

10%

P&F$8,532,291

14%

WILDLIFE$14,469,358

24%

Fiscal Year 2021

EO FISH HR LAW OUTREACH P&F WILDLIFE

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 11

FY17-21 Expenditure Trends by Division

$ In Millions $0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

Exec Office BWR HR LAW Outreach P&F

FY17

FY18

FY19

FY20

FY21

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 12

FY2020-21 Operating Expenditures by Account Jul 1 – Jun 30

CONT CHRGS$4,268,674

7%

CONTRCL SRVCS

$10,369,41417%

EQUIP$1,948,291

3%

PERS SERVs$38,727,039

64%

PLNT & IMPRV$19,940

0%

PROP & IMPRV$27,340

0%

SUPS & MATS$4,453,999

8%TRNSFR PYMNTS$457,057

1%

Fiscal Year 2021

CONT CHRGS$1,947,771

3%

CONTRCL SRVCS

$11,603,082 19%

EQUIP$1,916,860

3%

PERS SERVs$39,836,928

66%

PLNT & IMPRV$-

0%

PROP & IMPRV$10,483

0%

SUPS & MATS$4,699,452

8%

TRNSFR PYMNTS$392,370

1%

Fiscal Year 2020

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 13

FY2021 Capital Budget vs Expenditures Jul 1 – Jun 30

$18,767,746 94%

$1,210,217 6%

Fiscal Year 2021

Remaining

Expended

FY21 Capital Budget$19,977,963

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 14

FY2021 Capital Expenditures by Project Jul 1 – Jun 30

Land Acquisition$103,503

9%

WMA Improve$2,866

0%

Boat Access Improve$1,050

0%

Dam Safety$487,175

40%

High Hazard Dams (Bond)

$262,370

Maint. Reserve$353,253

Fiscal Year 2021

Land Acquisition WMA Improve Boat Access Improve Dam Safety High Hazard Dams (Bond) Maint. Reserve

FY21 Capital Budget$19,977,963

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 15

FY2017-21 Agency Expenditure Trends

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 16

FY2017-21 Capital Budget to Actual Trend

$ In Millions $0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

FY17 FY18 FY19 FY20 FY21

Budget

Actual

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 17

FY2017-21 Capital Expenditures by Project

$ In Millions $0

$2,500,000

$5,000,000

$7,500,000

$10,000,000

$12,500,000

Maintenance Reserve Boating Access Dam Safety Acquisitions WMA Improvements High Hazard Dam

FY16

FY17

FY18

FY19

FY20

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 18

FY2017-21 Year End Cash Balance

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

FY17 FY18 FY19 FY20 FY21

Boat

Non Game

Lifetime

Game Protection

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 19

FY21 Operating Budget Decision Points/Considerations: Looking Back

License & Boat Revenue

“First of Year” July Sales

Fishing Licenses Sales June—August

Hunting License Sales September --November

Non-Resident Licenses July—December

New Boat Registrations May—August

Boat Renewals April—September

Federal Aid Rule Changes (Future Stimulus)

Extended timeframe for current Federal projects

Change in WSFR Match rate: 25% to 10%

Extended Timeframe to obligate WSFR Funds: 2 to 3 years

Removed penalty for failure to obligate WSFR funds

Stimulus Funds

Program Evaluations

Program Narrative Review June--September

Funding Stability & Constituent Review

Strategic/Future Planning

Special Legislative Session

General Assembly activity

--August

--January

--August

Fleet and Travel Evaluation

Vehicle Assignment Review

Training Assessment

Travel Needs (monitor conference and training schedules)

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 20

2020 Federal Audit

Federal Expenditures/Activities during SFY 2019 -2020 (July 1, 2018 – June 30, 2020)

Findings and Recommendations:

1. Ensuring the correct sub-recipient vs. contractor determinations for all third -party agreements

2. Treating Program funds correctly as pass-through for subawards or contracts

3. Ineligible Federal expenditures claimed by the University of Tennessee for the National Bobwhite Conservation Initiative (NBCI)

4. Ensuring the proper recording of equipment disposal

Exit Interview occurred on August 10 th

V i r g i n i a D e p a r t m e n t o f W i l d l i f e R e s o u r c e s • w w w . d w r . v i r g i n i a . g o v 21

New Normal Employee Survey Report

Recent survey of all DWR employees to help inform our policies and other decisions with regards to telework, training, professional development, communication, and other workforce support considerations.

Survey says…..