On the agenda: Chesterfieldcova Audit and Finance Committee — data center (Aug 26)

Audit and Finance
Committee of the
Board of Supervisors

DATE:
Time:
Location:

August 26th, 2026
9:00 a.m.
Room 502

Attendees:
Kevin Carroll
Jim Ingle
Dr. Kevin Catlin
Matt Harris
Gerard Durkin

Khara Durden
Steve Sanderson
Mary Martin Selby
Consuela Wilson
Stephanie Brown

Item

Person Responsible

Outcome

Matt Harris
1. Healthcare Update
David Johnson
2. Risk Management
Matt Harris/ Gerard
Durkin

3. Budget Update
4. Internal Audit:
a. FY27 Audit Plan and Hotline Activity Update
b. Periodic Reports:
 FY25 APA Comparative Report Analysis, June 17,
2026

Khara Durden/
Steve Sanderson

MEETING NOTES
AFC Members in Attendance: Mr. Kevin Carroll, Mr. Jim Ingle
Staff in Attendance: Dr. Kevin Catlin, County Administrator; Matt Harris, Deputy County
Administrator, Finance and Administration; Gerard Durkin, Budget Director; Khara Durden, IA Director;
Steve Sanderson, IA Assistant Director; Mary Martin Selby, Human Resources Director; Consuela Wilson,
Accounting Director; Stephanie Brown, Procurement Director.
School Board in Attendance: Lisa Hudgins, Midlothian Chair; Steven Paranto, Matoaca Vice Chair; Dr.
John Murray, Superintendent.
Call to Order: The meeting was called to order at 2:00 p.m.
1. Health Care Update: Matt Harris, Deputy County Administrator
a. Renewing with United Healthcare and Alliance.

b. GLP-1 coverage is under consideration.
c. More to come in September as continued consultation is received.
2. Risk Management: David Johnson, RM Director; Kyle Campbell, RM Assistant Director, Stacy
McCarter, Manager to the Chief of Administrative Services, Trent Jones, RM Assistant Director.
a. FY26 Quick Facts: RM Manages over 3,500 total insurance claims.
i. Over 2,900 vehicles covered,
ii. Nearly 20,000 County and School employees covered,
iii. 1,360 County Buildings, Parks, Towers and other Structures
iv. Hundreds of field trips, sporting and other events
b. Total Cost of Risk Per $1000 of County Revenue. Based on Workers Compensation, Auto
Liability, General Liability and Property Claims paid in FY For County and Schools.
i. Approximate 19% reduction in total cost of Risk over the past 5 years.
ii. Overall trend is maintaining cost.
iii. Workers Compensation reported claims in FY2022-2026, based on actual number
of workers compensation claims opened in FY. Increase partially due to growing
workforce, encouraged reporting for injuries to analyze and reduce risk.
iv. Variables: Fitness level of applicants, age of employees, physicality of the job tasks.
c. Workers Compensation – Total money spent in FY2022-2026, based on actual money paid
out in each fiscal year for Workers Compensation Claims (Incurred Current & Prior FYs)
i. Increase shown in 2026 for CCPS primarily due to two previous incidents.
ii. Root causes: Slip, trip and fall incidents. Severe winter icing resulting in
approximately 70 claims.
d. Average Cost of Workers Compensation Claims: Graph of County and Schools– FY20222026. Cost in process control; increases due primarily to inflation. Key systems, controls
and components that bring collaboration to enhance safety protocols.
e. OSHA Recordable Case Rate Charts – County and Schools, Reflected as Cases Per 100
Full time employees working for one year. Both rates are better than national peer
groupings.
f. Risk and Insurance Macro Trends:
i. Shrinking capacity and premium rate increases, with larger retentions,
ii. Liability underwriters concerned by nuclear verdicts, social inflation, and litigation
funding schemes.
iii. Global property losses, (Weather related and Man-made catastrophic losses)
negatively impacting local insurance rates,
iv. Law enforcement liability concerns: Media attention, high profile cases, increases
in importance of officer training SOPs, de-escalation techniques, mental health
approaches.
g. Headwinds:
i. Litigation Challenges,
ii. Elevated Risk Complexity Across Key Lines of Insurance,
iii. Strategic Implications for our organizations.
h. Initiatives:
i. RMIS,
ii. Targeted Workplace Safety Intervention,
iii. Cyber Coverage & Response,
iv. Voluntary Protection Program Participation,
v. Enhanced Claims Communication,
vi. Simplify Events Insurance,
vii. Workers Compensation Education.
i. Culture of safety is established, and a strategy is in place to proactively drive continuous
improvement. (Strong, Stable and Resilient)
3. FY27 Budget Update: Matt Harris, Deputy County Administrator; Gerard Durkin, Budget Director

a. Matt shared the Community Outreach and Engagement Efforts
www.chesterfield.gov/1forschools
b. Gerard shared the FY2027 Budget Amendments
i. Estimated net increase for Schools: $15.0 million
ii. Appropriate Year-end reserved funds from State funds received in FY2026 for
CCPS one-time bonus to use in FY2027 (approximately $6.9 million)
iii. County: Reallocate funding from the dissolution of CCHASM to Colonial Heights
Food Pantry ($5,000) and The Underground Kitchen ($7,500) to continue food and
nutrition assistance programs in Chesterfield and the region.
iv. Technical adjustment to appropriate $600k in reserved year-end funds from June
BOS meeting for Housing Services supplement pilot approved during FY2027
budget adoption.
c. GFOA distinguished budget presentation award: 41 consecutive years.
d. Finance Public Hearings:
i. Consider amendment for business license tax threshold (From up to $550K to up
to $750K)
ii. Consider amendment to tax relief for senior program for additional 15% tier as
adopted with FY2027 budget
iii. Consider amendment to County Code related to annual allocation of data centerderived tax revenue
4. Internal Audit: Khara Durden, IA Director; Steve Sanderson, IA Assistant Director
a. Khara shared the FY27 Audit Plan Update (County, Schools and joint)
i. Six projects have been completed.
ii. Fourteen projects are in progress in various stages.
iii. Ten projects not started.
a. Steve shared the Hotline Activity Update
i. Six Allegations received YTD.
ii. 0% Internal / 100% External (County).
iii. Three allegations have been closed since prior update; one substantiated.
b. FY27 Audit Report Review
i. FY25 APA Comparative Report Analysis – June 17, 2026.
ii. Nineteen different data areas reviewed FY24 and FY25.
iii. Local Revenue Per Capatia graph shows Chesterfield has the lowest revenue per
capita both fiscal years.
iv. Operating Cost Per Capita graph shows Chesterfield has the lowest operating cost
per capita both fiscal years.
Meeting adjourned at 10:15 a.m.