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<br />M <br /> <br /> <br />KR <br /> <br />PRINCIPALS <br />Kenneth W Malloy, CPA <br />Thomas M. Montague, CPA <br />Thomas A. Karnowski, CPA <br />Paul A. Radosevich, CPA <br />William J. Lauer, CPA <br />James H. Ejchren, CPA <br /> <br />CERTIFIED PUBLIC <br />ACCOUNTANTS <br /> <br />Board of Police Commissioners and Administration <br />Centennial Lakes Police Department <br /> <br />This letter is in response to your request for us to review the police department's liability <br />for compensated absences and provide possible suggestions to address concerns <br />regarding this liability. Understand that your request placed limits on time and fees <br />allowed for this project, and thereby limited the scope and extent of research of the study. <br /> <br />Background <br /> <br />The department's compensated absences liability consists of vacation, sick leave, holiday <br />pay, and compensatory time. The following chart shows the history of the liability over <br />the past four years: <br /> <br />Vacarion $ <br />Sick leave <br />Holiday pay <br />Compensatory time <br /> <br />12/31/98 12/31/99 12/31/00 8/10/01 <br />(*) $ (*) $ 46,971 $ 43,725 <br />(*) (*) 187,904 156,033 <br />(*) (*) 5,804 15,193 <br />(*) (*) 5,181 5,212 <br />(*) (*) 245,860 220,163 <br />(*) (*) (93,952) (78,016) <br />115,380 $ 125,391 $ 151,908 $ 142,147 <br /> <br />Total liability <br /> <br />Less 50% sick leave <br /> <br />Total vested liability $ <br /> <br />(*) - The individual components of the liability for 12/31/98 and 12/31/99 are not available. <br /> <br />The following is a summary of the benefits provided to the police officers, which is the <br />primary employee group and focus of this study: <br /> <br />Vacation is earned monthly by the employee, on a rate based on years of service. <br />Employees may accumulate up to one and one half times the amount they may <br />earn in one year, with any excess being loss. Currently, the department is not <br />enforcing the loss of vacation when exceeding this limitation. <br /> <br />Sick leave accumulates at a rate of 8 hours per month to a maximum of 960 hours. <br />Upon termination of employment, 50% of an employee's unused sick leave is <br />paid as severance. The commission modified this benefit by allowing a 2 to 1 <br />conversion of hours over the limit into vacation accrual. <br /> <br />Malloy, Montague, Karnowski, Radosevich, & Co., P.A. <br />5353 Wayzaca Boulevard' Suire 410 . Minneapolis, MN 55416 . Telephone: 952-545-0424 . Telefax: 952-545-0569 . www.mmkr.com <br />