nk You did a tremendous amount to help for that um In terms of the goals again, I think Procurements a long process. You're still working on that. I think there were substantial strides made.  I can say that uh with the utmost sincerity and Bringing on a newbie can't be that easy and you have made it seamless for for a new commissioner to come on board Um to make sure that we get all the information and I've gotten all the information that I've needed And that's been very impressive Impressive I too I give you very very high marks. Um in your position as our executive director I have talked to many of my former colleagues and and certainly Many of my friends in state government And I actually hold you up as somebody that all of state government Should want to be This agency is one of the most professional Agencies I've ever seen and I do believe that in part it's because of the leadership that you have shown I've been so impressed with your communication skills and your ability to build good relationships with the entire staff You have been very precise In your directors and you effectively communicate What I think you expect from your team members And from what I can see from the team members They look up to you They they don't feel uncomfortable Coming before you And your willingness to listen to every point of view I think is so important I think it's not only appreciated by the entire gaming commission staff, but As one commission and I hope I speak for all We of course appreciate that as well You always gather I believe the necessary facts and information before finding solutions to what can be And has been this year from what I have seen and from what I've heard very difficult problems I think one of your best qualities is our executive director Is that when you're faced with a problem you listen first Take into account all the information And then you try and come up with a solution And practical solutions, which you have done time and time again just in my short time But from what I can gather From the time before me You've done a tremendous job in that fact You continue to display a very Highly consistent level of performance in your work. I mean, I I can't think of a negative and and I tried You try you give these exceeds expectations and you have exceptional and you you want to be able to say But you need to work on this and I and again I've only been here a short time I haven't been able to find one of those things that I could criticize you on Which I think is great and you've always you're seeking opportunities. I think to be more productive and your positive attitude Which is what I love Encourages others to perform well as well So, you know, I feel like a very detailed individual and You really it reflects positively on all the work that you do Um, and finally, I think Karen shares her knowledge of the industry trends and best practices to achieve Enhanced outcomes in your job and I as a commissioner and I think all the employees feel The same way. So again, nothing but high marks. I'll think of something negative maybe in a week or two But for for today's purposes I'm so proud to be able to work side by side Thank you. I really appreciate it Karen before we go into the further discussion Do you Do you want to comment Eileen? I didn't mean to To was that on your Are you planning on asking Karen to do that? I didn't mean to go out of line. I'm sorry No, I didn't want to put her on the spot. I figured she would speak up if I wanted to say something, but um, it's fine I think I think I I want to convey my genuine Gratitude to the commissioners for their support. This has this has been a tough year. It's been a tough two years um, so I could not have done that without the supportive of the commissioners and uh, they've been tremendously helpful to me So thank you to all of them And then as I think anyone in management knows you are only as good as your team And I think as brad has picked up right away. We have exceptional people that work at this agency Uh, the management staff the senior staff I've never seen anything like it across the board and they just continue to excel in in all their areas Not only substantively But also just proactively working with each other We have not only intelligent people and As sophisticated people, but they're nice people and that I've been so grateful for that And I am really grateful for the support of that team Over this past year in the year before So I really just wanted to say thank you to them for helping me because you really did excellent, um So, uh, I don't know if gail or brad Um Are going to have an opportunity to discuss the evaluation. I don't think there's any formal process You know, we have the opportunity to chat with you all the time, but certainly that's available to you always You know, even if it's an adjustment of goal setting or whatever, um, all of us are open to that But I lean we do need to discuss compensation to by statute We must do this and in in public at our open meeting Brad, you're familiar with it from your days, particularly as a select person, right? So, um We had the opportunity to review a memo I mean, where do you want to start with this discussion? So if you want I can I had asked tripti to pull Last year, um, you know karen was newly appointed and with the uncertainty of covet We didn't change the salary. We when she shifted to permanent There was a discussion of salary and then we didn't do adjustments shortly thereafter when we did the review Um, I asked her to update what she had done for us then to sort of give us an internal historical picture about this position And then go look out look at other eds Within the commonwealth looking at some of the other gaming jurisdictions as well I believe everyone's Had a chance. I think tripti gave it to all of you and you've had a chance to look at it If you haven't let me know but Just to briefly go over that again The tripti comes up with a range that she calls them bans in terms of Numbers salaries that are positioned particular position falls within The band that she calculated most recently for executive director at our agency would be anywhere from 129 6 up to 207 400 That would be the range. Um, I believe the existing salary is 185 That was consistent with the departing Ed prior to when Karen came that was ed when he left Looking at other agencies We took higher education out of the analysis It's sort of a different creature and the money pay that comes from them that scale is sort of beyond the pale for most agencies in the commonwealth There was I believe an outlier at Division of licensure. I didn't know what them What the information was behind that that was pretty substantially also off the scale from other agencies, but I think a couple of the relevant comparisons would be You know Enrique Zuniga going leaving Austin going and taking executive director over at the new post commission, which is getting up and running um His annual salary that was recently set was 190 um, and then the executive director over at cannabis created, you know, somewhat contemporaneously with this commission Is I believe currently at 201 880? um, and I don't know whether they they have been giving bumps of about 3 and if they were to do that Again, and they reviewed their ed this year that annual could go up to as close as almost 208 I think 207 936 Would be the potential for the ed over at cannabis um the Ranges for the other jurisdictions are really there more for informative purposes every commission in other states is so different from what we have Um, so it was there To see if there was any uniformity that there really isn't there should have a cluster down in one area, you know, Nevada not surprisingly is you know Standing alone in another direction, but um, none of the numbers we're talking about here I think are beyond the pale when you look at other jurisdictions So I don't know if people want to comment on that or whether you know, we want to talk about numbers I I think you know at a minimum What Karen does looking at her experience and then looking at Post and cannabis in particular You know, I have a sense of sort of a tighter range of where I think she should be going effective 2022 but You know, I don't know if we want to talk individually about ideas and ranges before I throw numbers out So, sorry I think also I can't remember if it's in the memo if truth be advised on it, but just a reminder that The staff did have an increase but can did not so if you could just clarify that and then i'm sorry So there was um For the mgc Last year for 2021 The somewhat marrying what There was a retroactive and a one-time pay that executive employees received The mgc did something similar. There was a pay increase of four percent for staff retroactive to the start of the fiscal year Her calculations were that as applied to Karen salary that would have put her up to 192 four Had she been given that bump? Uh, and then there was also just a one-time Flat 350 bonus that was given out So had she been given that it would have been 192 750 for last year And she wasn't given it because because she had She was less than the time frame for consideration from going from acting To full-time executive director. So she'd already gotten the salary Change and title change within that zone. So she was not given that I couldn't remember if brad if you were here when we did the 4.0 percent retroactive increase. So that was just an important um Important clarification But honestly, I think I thought that Karen had gotten it. So I was um, this helped remind me of where Karen was at that time so If I could comment on this, um You know, I I I understand the technical rationale there with with acting But when you're acting you're doing the job. In fact, you're you're doing it to the extent where You're kind of in a trial mode and to do it the way Karen did it And I know last year we we were cognizant of our licensees not Having their full capacity. So we were not we were being very serious about our budget But I I'd be willing and I think it's appropriate frankly to consider both years not just one here Although we did hold her but the reason for that was was really related to Our sensitivity to the casino. So I I I'm very willing and I think it's appropriate to get her up to the very top of that um more experience than other executive directors who are making more money and In taking into consideration didn't get the four percent. I'd be I I'd be Advocating to get her up to the very top of that limit. I think she deserves it Um, I can't imagine we'd have another executive director come in and do Do what Karen has done. So that's just my thought on the matter And if I could just clarify tripped you just let me know she reminded me to part of it was Because of the annual basis Karen is on Other employees aren't necessarily tied into the timing of performance review and salary discussion the ways Karen's is stash tourally um, so it's not like Talking about that was deemed off limits last year. It's just we didn't They didn't put it in there because it wasn't something that they would have done with regular staff So I would agree with you gail in terms of looking at both years as we're talking about coming out of today in this number You elaborate. Um, gail. Are you saying at the top of the range that? troop D is established are you talking about the top of the range of the The other comparables. Are you talking about doubling like presuming that she Quite honestly, we we did pay Karen the same amount as the former executive director and I think we all acknowledged that She probably came in with with more relevant experience. Um, and it was a covet um A fact covet factor that Karen agreed to Agree generous on her part. It's the right on that, right? Um, and it was our recognition not Karen who said we understand that she came with a different Um, uh set of skills and experience. Um So but we kept it at 185 Am I hearing you I guess I'm seeing there's a few different ways to think about it The 4% didn't apply then but that would have brought her up to 192 I think I've been saying to Karen when you like Nick when 192 is laughing like no chair I don't but she never didn't want to correct you my point. My point I love that. I have an example right there Karen. So thank you. So, um, so 192 She got the four and then another four on top of the 192 which I'm not now my friend beyond my last skills. Um 97 would have been giving the 4% and the 350 that everyone was given No, that would be the 192 750 for last year but if we had given her the If if she had come in At an amount that was more appropriate. Let's just presume it was 4% higher Then we would give another 4% on that one 192 7 minus 350 400 right right Then that would be basically an 8 increase over time or I mean that's just one option I'm thinking of uh gale as you were going through what's going on in your mind because of two years thing Are we thinking in terms of the overall spectrum? I'm not really sure how to think about The cannabis executive director how long that person's been in office or whatever, but I just wanted to know what we're where we're thinking. I'm open to all options right now Well, I mean if the top of our band is 207 and You know with the appropriate not that we have to compare cannabis and skill sets and anything because that's probably not You know, we just that was a good it's a good right It's a good way of just knowing where the rest of the state is but it doesn't have to be It's not apples to apples with us, right? So but I just think um and and and I would think that probably next year We have to revisit bands right because they were made at a time when salaries were less that top band but But I didn't I didn't have a Other than to think in my mind that she should go to the the very top of that band I did not do the numbers like you just tried to do chair and 4% plus this I just I just believe she should be right at the top of that band Because of the last two years and the extraordinary circumstances and the the performance, frankly Oh, so sorry and the band was again 207 at top 207 for is the top band number currently So if we were to do the two years at four and four, I believe she'd be making just under 200,199 It's a change or not if I'm not mistaken with my Calculator if I did it right Right. Thanks, Brad. So she would do making just under 200,000 if if we've done 4% of 4% Which I think gail is asking right? Well, no, I'm actually thinking it should be higher than that because I do appreciate the chair's comments on the additional experience To start at 185 with that additional experience. I'm actually thinking I'd be willing to go higher than that closer to the top of that band because Of all of the circumstances we've each mentioned here today Well, and I think there's also the option of two conversations, which is one is you know effective January of 22 What are we going to bump it up to and then is there a retro discussion that we have that acknowledges That we were in an You know settled picture when she took over And so we were going off of historic numbers and then everything kind of froze Waiting to see how we came out of it and staff came out of it So I do think there's an adjustment to be had going back And then there's the conversation about and then where's the base going to go from here? So That's a more appropriate way to look at this To think about last year is last year and this year is a new year and separating the two out and and the retro so We have I have gotten a little bit of intel so 200,000 416 includes the 350 bonus and the 4 above the 192 What was that number again? I'm sorry 200 and brad is and crystal is helping here too. Thank you, crystal brad 200,460 includes the 350 dollar bonus, which she didn't get that was a coveted bonus gave more for those who are Out in the public feeling like our horse racing community and the The gaming agents brand in case I can't remember when you came on that And we had an amount That was limited that we distributed um And so that would be the 350 So that That would be going into the third year if we would add four percent She'd be right up at that right around give or take That's what I was getting at. Yeah, I wondered if it about a 12 percent overall. Yep So All we could do is maybe make it retro active Yeah, I mean, I guess I was conceptualizing a retro figure going back to last january and then another new going forward salary as of gen 1 22 And it takes into account the percentages we've all been talking about those four percentages and and the Looking at some of the comps in terms of where some of the other agencies are that haven't That they weren't in our position of sort of freezing salaries the way we did We can we can go back to january 2021. That's what you're saying, right? um so what um I mean uh gill and I have sort of spoken if you have um Ideas brad what you're thinking Well, I If i'm understanding everybody correctly Do we go back to january of last year 2021 so which would bring I think bring your up to almost 200 000 And then you had another four percent going forward Who would bring a rate around and I don't have exact numbers the 207 400 I'm okay with that Now the only the only comment I have is the four percent is pretty standard And I actually look at the work is is far above standard Um, and that's my only thought on making it a little bit higher because you're really We're in a position where we can value the work that was done not just the percentage that Seems to be the going rate around the state I think it's eight percent though if you do it twice it would be a if you went back like that eight. Yeah That's the difference gail. I think I because I appreciate that that's where um But it's one year four percent the next right and then four percent again. I think I understand we're talking about three times I'm missing explain that one to me eileen. Yeah, I'm trying to do the math right now. So If you were at 84 and did the four percent it's the 7400 to 92 four Another four percent on that Um Would have been assuming she had been given that during the year and then If we hadn't held off when she became full and not acting and then you gave her the four percent everybody else got Then she would be closing out the year at I know right. You said 99. I got 98 696 Um, and then to me it's a conversation not necessarily tied in percentages as much as Um, to me that would be the retro acknowledgement and adjustments And then I'm thinking going forward, you know Not just percentages based on it But what do I think are appropriate corrections going forward looking at some other agencies and looking at what she's done And I come down at that upper end, you know 206 207 I think is a more appropriate number Going into 22 and then doing the retro that would have made up the difference of 98 696 for last year So the eight percent would be the retro right then rather than The highest amount going retro gale. Does that I think I think As usual commissioner brian was able to really articulate what I was thinking And just compensating this year for Not just four percent because we were stuck on the 185 but really recognizing Where the number should be moving forward. So I fully support The recommendation by commissioner brian And to be clear I think we all know the 185 was the wrong number. So I think The four percent was just kind of a number. Um, but I think it really gets to eight percent to sort of bring it up Where it should have been and then the retro back to just january 2021 but because it's eight The four percent is it is just was a kind of a Right place to start the conversation Um, and then so then that would take care of the retro And then now we just want to get the set amount Going forward and that would be back to january 2021 2022 Of this month, right the calendar year, right calendar year of this year Okay, so what's that that number we I'm hearing different ones So the upper range on the bands we have is 2074 Um, and I think it should be at least 205 and I'm fine going up to 2074 But that was the number as I was going through all of this myself that I came up with I think it's in that range Yeah, I had the same analysis not to the penny, but certainly But the top of that band was was appropriate for this year and we'll be forward I'm fine either. I guess I wonder what you what the 205 was versus to What made you think 205 nothing? I'm just defaulting to I don't like 202. I think it's too low And then I'm looking at comparatively where it is 205, but the band 2074 to me maxed is To your point. I mean she came in with a tremendous amount of experience Not only internally with ieb and then the acting period, but you know undersecretary ddub She came it not to diminish You know Edward dorsion's experience. He had tremendous experiences as well But I do think she had a lot of relevant experience that she brought into this position So if we want to go to the cap of 2074 for this year To your point we talk about ranges needing to be revisited anyway We had a hesitancy. I know I did earlier talking with salary ranges for anybody While we were in covet because we didn't know what was happening But I think everyone you know Karen was no small part of that Worked with them. They seem to be coming out of it quite well And so I don't think it's beyond the pale to set ahead of the Agency the executive director and for staff that way at all I agree. I can support that Let's do it. We have a motion right All right So madam chair, I would move and we may need to clarify this if HR Derek is on and telling me we can't do the math this way Yeah, I was looking for Derek. He just doesn't happen to be on right now I think we can do this. I do too. And I think we just decided very well the treasurer here She's saying we can I I think I know I'll take that responsibility. I think we did it appropriately a lot of Discussion around the reasons for this. It wasn't a thin air conversation It's yeah, the retroactive only goes back to january One first of 2021 But it's rounds out to about 8% And then starting january 1 2022 the number that you're proposing Is 207 for so If I can make a motion on it your honor and we can your honor chair Having a time work I would move that we adjust the executive director's salary starting january 1 2022 to 207 400 and that we also implement a retroactive adjustment of 8 going back to january 1 of 2021 And I believe that adjustment figure then comes out to About 11,096 dollars. So just in case there's any Math errors we need to clean up after the fact I believe that with that's the intent of the 350 Delta does that include I know that is not inclusive of the 350 But you want to add the 350 in for the um retron right? Yep, so that would be 11,446 would be the retro I believe I second that motion and I I appreciate Commissioner bryan's map and I went to law school for a reason so don't The math numbers if we need to come back and adjust everything to make it work with what we've intended Well, I just want to comment that this um salary discussion is is um Wasn't difficult for us to do in public karen It it's easy in terms of your qualifications and your experience. I will also note That it does not mean any successor 30 years, right? Would necessarily be compensated the same way you have earned this as an individual Based on your experience based on what you do based on what the expectations are for next year Which could include a significant expansion of responsibilities? so With all that I note that Um, but this is a reflection of karen wells as our executive director not as a position that's That is now salary defined. Is that fair commissioners? Yes, yes And that's an important An important observation and important statement Um, so with that commissioner hill, do you have any questions or edits? Okay, excellent Do I have a second on that? I seconded that how you did before I I I interjected. Thank you. Commissioner camera. I commissioner hill I commissioner bryan I And I vote yes for zero Congratulations karen on an excellent excellent year and we look forward to You know your continued excellence going forward next year in this year and in your leadership So thank you for all that you do and all that you will do Thank you Okay Anything else commissioners I know we have one item for commission I'm gonna get out my constant here Lots of paper here it is Karen anything that you want to add before we turn to I know that we've also consulted with you on this next matter anything else you want to add Before we turn to Just just my gratitude. I think you're being extremely kind and generous and uh You can save this tape What's funny is I my father texted me yesterday that you know, I see on the agenda that you're doing a performance review So I don't I don't know if he's watching but I'm like My daddy If he's watching he's very proud. He should be very proud. He should be very proud You know, it's and the and also I'm sure he appreciates. It's a difficult process but it's in public for a reason it holds all of us accountable and You know, I can say that all four of these commissioners are independent thinkers right we're all independent thinkers and And hold our responsibilities very seriously and so the fact that we I think we're very aligned on that demonstrates that This is not something that is anything but fully earned Thank you All right, we do have another matter And I think um commissioner cameron and commissioner hill you received a copy of a job description As everyone knows um the executive assistant to the commissioners Um position is vacant because our long beloved jamie ennis has gone on to a new position But we've had the benefit of jacklyn net Excellent help But it's not her job forever And so we need to fill that position and thank you to truthy and Natasha for giving us a good draft I mean and I had a chance to go over it Karen too looked at it and We're we haven't resolved the salary range, but apparently in order to post we have to have that I mean, what do you want to add right now? And then we'll go Find out what the commission other commissioners are thinking I think I don't think I really have anything to add other than I know they've looked at the draft You and I had gone through that in terms of really trying to think about what jamie had done For us, you know, there's been a little bit of you know Restructuring in terms of how we're getting support, but trying to make sure it captured everything I don't think we missed anything, but I'm most interested to hear if um Either gala rad feels like there's some support in there that's not in the description for the posting Um, I I was sent this I read it and couldn't think of a thing I thought it was very well done really captured all of the even the smallest responsibilities none of them are small right, but just Really it was a thoughtful job description that really captures everything I agree Okay, so um, we do want to post it, but we've got to nail down that salary. I think if if um, you all agree To allow I mean, and I work with Karen and trooping on that because ultimately as you can see the way we've said the salary For this position was set by the executive director in coordination with recommendations from the commissioners I think if you if I like to hear from you in terms of How you view this position It's executive assistant to the commissioners for a reason Because it is a confidential position um It's an elevated position uh because This person supports the five commissioners so When we're thinking about salary, I want to make sure that Our team takes that into consideration. Are there other things you want gail?  What other things do you think of that? Shouldn't you know We've all worked with so many wonderful executive assistants and they come in with different levels and they have different responsibilities Can't feel this is a big one Commissioner Cameron. I agree and I think um with the advent of two new commissioners coming on board. This will be Someone who really has to um Be able to support Someone that doesn't have the routine down yet and and is looking for that level of support. So it's I agree it's a very important position with a In particular with all the current responsibilities But the ability to support two new people who are going to have to really learn their positions and will be relying on that support so That's I agree with you Commissioner hill you You know you had the benefit of both christen and jamie's assistants coming in as well as of course carons and team but what I was just going to Agree with gail and say how important this position has been for me um And like you said two new commissioners are coming on board and without that assistant Things would have been a little rougher for me to be honest. So I I agree. This is a very very important position It's also one that we really have to rely on integrity. Um, I rely on on This position to do my time Accurately and and you have to gail. I know Yeah, and and expenditures, you know down to the penny keeping track of anything that we're re-inverse for so that We are impeccable in terms of our accountability and ethics um Anything else you want to add because this is helpful guidance for karen and in truth is they think about That range karen. This is something you want to ask us, sir No, I mean, I think that you know, we we did some research and There is a wide range depending on the the person and the uh and the position So, uh, it is helpful to get some feedback I guess what might be helpful Do you want a broad range in the posting or should we try to narrow with narrow the range in the posting? Because you could put a post in with a broad range or you may want to narrow because the problem is if you put a broad range You could get you know the superstar with tons and tons of relevant experience and then years of work experience That you'd want in the high end But then are you setting expectations if someone sees the posting that they think they're going to be In that end and then they would be coming into a job a little disappointed if if they're not getting that salary So it's it's it's tricky you know, I think the suggestion that That the chair and commissioner o'brien work with the team. I'm very comfortable with that They know they know what it takes. They they understand the position very well And I think that may be other than us just throwing kind of throwing out an answer right now um You've all been in the weeds with this one and I'd be very comfortable Delegate well, it's not even a delegation. It's just I'd be I'd be grateful if the two of you would work with them and come up with that number that you think is appropriate If we get stuck or something we're reconvening in february 10th, but I think our hope is to get this up, you know in advance, so I think we'll come up with a range, but Karen's point is a good one um So thank you for that. I think that's probably an efficient way to go about it and I I have um Complete confidence that Karen Tripti will give us some great guidance. I mean, are you okay with that? Yep, that's fine Okay, good. All right, so we'll get that going. Um again Kudos to hr. They've had a lot of fun, you know Different positions to bill and You know as as mentioned before um with Really the entire commission's intentionality in karen's leadership. We really Are doing well on the diversity end and we're also just Really fortunate at this time that We're getting some wonderful candidates, you know, things are you know, they're in flux right now across the across the country as to Employment opportunities and you know, I just want if anyone's listening about this position. This is a great team to join. So you know, we're We're excited as new members come on and very excited about The opportunities ahead for everyone so Karen anything you want to add Oh, thank you Okay quarter two Crystal, you did a great job timing this out today. Thank you. Um Need a motion to adjourn Todd's so ready And there's Judy, thank you Um, all right to our legal team. Thank you We know you have an obligation to stick with us and we appreciate it Got a a motion to adjourn on the table. I'll take the vote. Commissioner karen. I Michelle bryan I Krishna hill. Hi And I vote yes, excellent meeting. Thank you everyone for all your efforts and thank you karen


You have gotten the two scariest cards in the deck My name is Tommy. I am your swami Swammy tummy swammy tummy swammy tummy swammy tummy. Swammy tummy. Swammy tummy. I'm here for my two clock reading brother Yes, my dear loved one. What questions would you like swammy tummy to answer from the divine?   But you stay at home and watch the Wheel of Fortune all day long Instead of looking for a better job The divine concurs you are a fool All right.  Let me ask you this my relationship sucks with my girlfriend Is there any hope for us?   Dump her wait. Oh wait You got the lever's card Don't dump her don't dump her. I think she likes I think she likes that blindfold You know what I'm saying? You have time for one more question. Okay, Swami Tommy, dude I'm about to lose my job. Are there any other jobs on the horizon for me? Let me shuffle the cards and we'll look into it Hit me the card on your head Well, you got the devil card Maybe you're supposed to be a cook or a chef and your specialty is deviled eggs Maybe you need to get into the music business and become an actor so you can worship the devil Or maybe you should go into politics. Yeah, they love the devil Same time next week same time next week


As you get older, man, that changes. You got to know the lay of the land. You got to know what's going on. You got to know grips. You got to know lit. You got to know signs. If you got his pants leg up on this side, if you got his hat this way or something, you got to know all that, right? To get you to be able to come through here. That's first off, right?


We do have a couple of work trucks and stuff. We got two 2022's that are are right over there Those are RAM regular calves.  We got to go check out that lot too, and this is highway 41 and we have This RAM pro master. This is new That's a 2022 great rebates and incentives on that one. Here's a 19 with 46,000 miles. This thing is really nice condition I just did a video on that This is a big squirt as they call it Used to be used to spray off the vehicles in summer. We'll probably get him going pretty soon. Here's a regular cab Part of our plow truck fleet. Here's the old plop truck. There's the new plow truck those are strictly for winter pretty much right now they're just sitting and This is all of our incoming new vehicles So when they come off the truck from new they get parked over here before service can do their thing And then we can picture them actually pretty cleared out right now, which is crazy and then we have our Used SUV row Right here. So we have an alpha Romeo Stelvio and That's all-wheel drive only 7,000 miles that car is perfect. There's a 17 equinox We got to get that one all buffed up yet and cleaned up getting dense taken out today Here is a Buick Envision can you envision yourself in a Buick? Anyways, that one's only got 19,000 miles or nine. It's a 19 with 7,000 miles. My bad. Here's a 19 armada SL with 58,000 miles. That's a nice vehicle as well. Here's a 2022 Chevy Suburban With 28,000 miles. We got that going in for dense today. This is a Chevy Trax. We just got this through our shop We got to do pictures and videos on that yet Here's a 23 Yukon with only 860 miles. There is a video up of that one Here's an edge that is one of the next ones to come into detail. We got to do videos on that's a 19 with only 48,000 miles SL all-wheel drives got panel roof really nice. Here is a premier 18 Chevy Tahoe that's in really nice condition as well not a dent on that one. That one's perfect Here's a 20 Cadillac Escalade. It's only got 46,000 miles. This is a manager special right here. You want to get a deal on a vehicle That's the one to buy right there 2022 Ford Explorer. This is a platinum and it's a hybrid Really nice vehicle local one owner on that one. Here's a Honda CR-V 15 with 111,000 miles four-wheel drive That's in really nice shape. Here is a Toyota four-runner I did a video on this one and that's a really nice ride as well It's got a little bit of a lift on it. You don't see too many forerunners with lifts This is 13781Z all of our paperwork's down in it. I think This is a suburban might have just got this one through the shop or it's waiting to get into the shop I just did a video on this XTERRA yesterday. That's in really nice shape brand new tires 111,000 miles Go check that video out 21 Pacifica with 19,000 miles on it. Here's a 2022 Pacifica with 8,000 miles on it That's a manager special to want a nice vehicle at a great price. That's the one. This is a brand new Pacifica Here is a 20 Subaru. I think that's an old back. It's a limited whatever it is And it's got 14,000 miles. That's a nice ride. Here's our 13 Honda This is CRV. This is a CRV. That's Wisconsin buyers guide So why you should buy from Wisconsin? Anyways, that CRV is only got 13,000 miles on it. It's really sweet This Toyota Highlander, I believe is sold. That's going out today We have an Equinox front-wheel drive LT2 with 52,000 miles on it. That's a 14. Here's a 20 SLT Yukon XL with 54,000 miles on it. Just did a video on that one too. This is service service service service And then we get to our sports cars. So on to the next video


Hi, this is Mitch Mitchell and I'm doing this video from my hotel room in Memphis, Tennessee See I'm not worried about telling people where I am now because I only have one more week here, and I'm done one more week So this is the last week coming up of my last two weeks down here And I gotta tell you last week was miserable not necessarily at work, but I was sick The last video I talked about going to Orlando and then the San Diego Well, I pretty much got sick after that I got worn down and I have to say most of it is my fault because I Started the entire trip by not going to bed at all because I had to be at the airport at 4 a.m You know a friend of mine was picking me up So I never went to bed and I just never caught up so I was exhausted all the time I was walking tons of steps I don't know how many miles where I could actually go back and calculate it because of the Fitbit Fitbit, I could go back and calculate it, but I'm not going to I was just walking tons and I was keeping some of the worst hours And I can't sleep on a plane So I was just exhausted that came home and went to bed and I was cold and sick for a while I lost my voice people could hear me but barely, you know, it's just a horrible voice I was coughing a lot. I couldn't get warm. I was just miserable and then yesterday, which was Saturday Some of it finally broke. Now. I pretty much just have a cough But at least overall my body doesn't hurt anymore. Oh my goodness some of the pain I've been on so much medication trying to take care of pain more than anything else I mean forget about not really being able to sleep although I spent tons of hours in bed, but I was just always in pain Right now I'm feeling pretty good as a matter of fact one of the strange things seems to be that I Don't have any back issues right now Before I left on my trip I had all kind of back issues and leg issues and I guess because I spent so much time in bed this past week Not eating all that much or whatever. I guess really I gave the rest of my body some time to rest So I traded one pain for another pain and right now I feel pretty good. So I'll take that anyway, I Wanted to talk about some things that I'm gonna miss about Memphis and this may seem kind of cruel But it's not tons of things. I've been here 18 months if I actually stayed one more week It would be exactly 18 months and I've been in Memphis and yes I've gone back and forth the home and you know had some time off here and there but overall 18 months Getting on the plane and it's not just one plane It's you know playing to somewhere and then somewhere else, you know I've been to Philly and I've been to Charlotte and I've been to New York and I've been Somewhere else a Washington DC where I did that one video When I had to stay overnight in the airport Washington DC. So I've been to some, you know places Along the way and had some interesting adventures, but I want to talk about just Memphis for a quick minute here I don't know if I've ever talked about any of this stuff some of it I might have but you know just like I said a few things. I'm gonna miss about Memphis first thing I'm gonna mention is the people the people here at the Homewood Suites on Poplar have just been wonderful I've gotten to know them all and I've enjoyed meeting every single one of you meet some people some interesting names for instance, there's one young lady named Malaysia and Then there's two guys one is named lucky. That's his real name lucky and other guys name is Colossus Yes, like the statue And you know, I've met some people with some other interesting names, but it's been wonderful Okay, it wasn't wonderful when they lost my dress shirts But I got to buy a whole bunch more and they had to give me money for it. So it was all good So that's been great. It's been nice pretty much working with the people I've had to work with at Hospital and I haven't really been in a hospital. I've been in the office park And you know, it's not that we've always totally gotten along but for the most part, you know what? It's been friendly I have laughed a lot Not intentionally Tons and I think I've made an impact forget that I know I've made my own impact I made a financial impact and I made a personal impact and some of those folks have made an impact on me as well So it's always good when you work with people who you know At least make it so that it's relatively comfortable So I will miss those folks as well I'm gonna miss a place called Fresh Market. They got a place down here called Fresh Market We don't have that at home and they've got these spectacular cakes I've taken some pictures of them and put them on Instagram. They've got something called a chocolate Napoleon Oh my god, and they have these other things that they call a tuxedo Napoleon and a tiger Napoleon And they're these you know pretty thick cakes Varying flavors, but most of them all of them have chocolate in it and they're just absolutely wonderful and For a while they had this shrimp salad which they used to sell at Wegmans many many years ago And then Wegman stopped selling it and they were selling it down here and then they stopped selling it Oh, come on really?  This is interesting banana nut and peanut butter cake with chocolate frosting. Are you kidding me?  I'm diabetic, but they had this one donut. It was basically The way it was initially described to me and then they changed the description later on but the exact same thing a cake icing filled glazed donut Goodness You can you can you can feel the sugar rush just by that and then it came out with a longer one. Oh my Had to stop eating donuts. They were just bothering me So I'm gonna miss those things now. I did have trouble finding food to eat down here It turns out that me and barbecue a lot of barbecue.  And so I had trouble digesting this and I spent a lot of nights In distress, they don't have a lot of great Italian down here That's terrible. They don't have good pizza. What are you gonna do? You know, I mean you live in New York and you've been in New York, New Jersey, and you've had pizza You just spoiled for almost anywhere else They don't have good Chinese down here either But what they have Japanese Japanese is Japanese food almost anywhere in this place I always went called red koi right across the street from this hotel. Well, okay It's a five-lane highway, but still it's basically across the street. Those folks have been wonderful They got to know what I liked they made certain recommendations that turn out to be good They've always been wonderful. I'm gonna miss them a lot and I'm gonna miss red koi because I eat there twice a week So I'm gonna miss that. I'm gonna miss this thing called Chicken pot pie soup at a restaurant called Jason's deli You can't get that everywhere. I found a Campbell soup that is called chicken pot pie horrible Absolutely horrible just forward stuff, but this chicken pot pie at Jason's deli Wonderful, but we don't have Jason's deli at home. So I'm gonna miss that Kind of think well I did finally make it to Beale Street and I don't remember I ever talked about it But if I didn't I made it to Beale Street and that was kind of interesting When I went on a Saturday late afternoon There were tons of people because I'd been there before Briefly and didn't see anything it turns out you got to go down further and In the middle of it all a gay pride parade broke out absolutely Probably the most fun I've ever had in this town. That was just marvelous I'd always wanted to see one and I got to see it. It was everything. I thought it would be so that was fun And I also got to see them at Memphis Botanical Gardens. That was interesting that led to my eventually ending up with my fitness pal and the Fitbit because I Got myself hurt We'll just say that I had a major drop on Glucose and then the next day I had major rise and I did a video on that a long time ago talking about Why I went to use the Fitbit? And One of the things I'm gonna miss is not necessarily the traveling But the fact is that by traveling as much as I did I was getting my cards at national And I am now an executive elite member which basically says you show up you just walk over to a lot Say I'm an executive elite member. They say take any car from there And I've gotten the drive some pretty nice cars I can't remember any of as a matter of fact the other day. I guess I said that I was driving Nissan Acura and someone stared at me saying, you know, you're not driving a Nissan Acura because those are two car brands So I'm driving a Nissan Acura For these last two weeks red reds my favorite color, but I've driven a lot of marvelous cars I drove some lousy cars early on But I've driven a whole ton of cars But at least now I would have some kind of idea if I want to buy another car And I don't really need to right now, but if I do I now at least have some ideas about that and Probably the only other thing that I'm going to miss is Sometimes the temperature is actually pretty nice I can't stand really hot things and they had a ton of days in the 90s Couldn't stand that and over the winter when everyone was telling me oh, we have naturally warm winters Well last year the temperatures got down in the single digits and these people freaked as a matter of fact They freaked when the weather when they said we may have snow on a day They canceled school because they might have snow Are you kidding? But that's how it is when you're down in the south and they don't have the snow removal equipment They don't have the salt and everything else to put down on the road salt or sand So it's kind of a unique thing to deal with when you're from the north and You know it is what it is But that's pretty much it I mean I'm not missing tons I mean I have to admit people have been really nice But there's been some things I really haven't necessarily like to haven't liked the fact that almost anywhere you go in Memphis Almost anywhere you go at some point.  I don't know if I'll do another one before I leave I'm in an interesting spot because I've been here for 18 months in a home with sweets which means I've been accumulating tons and tons of stuff and Three weeks ago. I sent a whole bunch of stuff home already Because I knew I would be home for a couple of days Well now I've got to send everything else that I own has to go home And I can can make sure I take one bag with me But everything else is just going to get thrown into basically two gigantic boxes and one travel bag that I bought After my clothes got lost here to store clothes in because I always had to store clothes when I went home So I have to find out if FedEx will send that as is maybe just wrap it in some tape or whatever so This is gonna be interesting leaving this place I've told you the things I'm gonna miss not that I hated tons of stuff here, but you know what I'm ready to be home Ready to be back in Syracuse. I'm ready to reintroduce myself to a whole lot of people Ready to start trouble at home and get back to my Syracuse blog and all my other blogging and social media stuff Ready to get some rest and then we'll see what the next adventure is So this is it. I just wanted to get that down on here Probably no one's gonna watch and no one's gonna care, but you know what at least I'll know You know, maybe in 20 years when I'm trying to remember anything someone to say, you know used to record videos Yes, you used to record videos and you ought to see what you said Okay, that's my impression of what my voice would be in about 20 years I hope not. Anyway, this is Mitch Mitchell. Hope y'all having a wonderful weekend and Let's see where I am next time I do a video. Take care


Hello and welcome to this session in which we will discuss GASP 87 or governmental leases. This topic is covered on the CPA exam as well as governmental accounting course. In this topic specifically is important because leases is an important topic on the CPA exam and there was a recent change. So usually they will ask you about some recent changes. So what I would do in presenting this topic, I'm going to show you the old rules real quick, then the new rules for after GASP 87. This will give you an idea about what to expect for the CPA exam. Now before we start, I would like to remind you whether you are an accounting student or a CPA candidate. I want you to take a look at my website, farhatlectures.com. I don't replace your CPA review course. So if you have a CPA review course, you can keep it. You need it to pass the exam. I am a useful addition. I'm a supplemental resource to your CPA review course. My material would work whether you are using Becker, Gleam, Roger Whaley or any other course. Your risk is one month of subscription. You can try me, see if it helps. I have helped hundreds, if not thousands, if not tens of thousands of students pass the exam. I strongly suggest you take a look at my website and if not for anything, take a look at my website to find out how well or not well your university doing on the CPA exam. I also have resources for other college courses, such as governmental accounting intermediates. So if you're an accounting student, I strongly take a look at my website. If you haven't connected with me on LinkedIn, please do so and take a look at my LinkedIn recommendation. Like this recording, share it with other. Connect with me on Instagram, Facebook, Twitter and Reddit. So let's talk about GASB 87 before and after. Before GASB 87, let's take a look at the old, old rules, which we have capital leases and capital leases will determine based on whether you have a bargain purchase option or a transfer of ownership at the end of the lease. The life of the lease is in excess or greater than 75% of the useful life of the asset. The total minimum lease payments are equal or greater than 90% of the fair value or we have a specialized lease. So if it meets any of these criteria, it will be a capital lease, otherwise we'll deal, we'll deal with it as an operating lease. Now for this topic leases, just gonna make sure we are all on the same page. You can go to my website and look at my FAR material or you can look at my intermediate accounting course where I cover leases in depth. So that's a different story. I've just given you an overview, a reminder, but you just want to take a look at this topic, please visit my website for those lessons. Now after GASB 87, the government will classify the leases under three categories, short-term lease, lease with a contract to transfer ownership and all other. What does it mean all other? All others, it means it's not short-term and there's no transfer of ownership. So you understand what all others are. So everything else that doesn't meet those first two criteria is all others. Now how do we define a lease or what is a lease term? Just FYI, I'm sure you are comfortable with a lease because most likely you lease an apartment. What does it mean when you lease an apartment? Most likely you'd have leased an apartment if you're a college student. It means somebody gave you the right to use this asset, to use their building, to use their apartment for a period of time. So it's a contract that gives you control and right. You can use the asset of another entity's non-financial asset, which is their apartment and everything is specific in the contract. How long you're going to stay there? How much do you have to pay? Rules and regulation. Now from a governmental perspective, you have to understand the government can be LSC or can be a LSOAR. For example, the government can own a building and they can lease this building to a third party or the government might need a building and they might lease it from a private party. So it's either or they can, there's copiers, land, equipment, so on and so forth. So that's why we have to understand the LSOAR and the LSC. The term of the lease is usually not usually it should be specified in the contract. And the term of the lease is usually the non-cancelable period, which is the original period of the lease. You can add to it any reasonable amount of time, assuming you're going to exercise to extend the lease because in the lease contract, there's an option to exercise. If there's an option to terminate prior, it should be a prior notification. It should be taken into account. And any funding or an appropriation, why? Because for a government, sometimes they might sign a lease, but in the lease they may put down subject to renewal based on funding and appropriation. Simply put, if they cannot secure the money, they cannot have the they cannot extend the lease. So just know that for the term of the lease, you could have other criterias. Now let's take a look at the three types of leases, which is the first one is the short term, which is one of three. Remember we have short term. We have all others and we have lease with the option to buy, contract to buy. Short term is simply put less than 12 months. It's pretty straightforward dealing with those leases. You're going to debit an expense or an expenditure depending on the fund you are using and you're going to credit cash. If you are the lessor, you're going to debit cash, credit revenues or inflow of resources. And let's assume just to kind of illustrate this, a government lease the copier. Well, what they would do is they debit expense or expenditure for 10,000, credit cash for 10,000, assuming that's the payment. And after the lessor, they will debit cash and they will credit revenue or inflow of resources. Now bear in mind in private accounting for not FASB, for FASB, not GASB, you have rent holidays and in the rent holidays, what we do is we kind of take all this revenue and extend it over the period of the rent holidays, not in the case for governmental accounting. If there's any rent holidays, like the first month is you don't pay anything. We don't account for any revenues or expenditure when there's free month or rent holidays. The second type of leases is lease with a contract to transfer ownership. And if you really think about it, it's a lease, but there's a contract. You're going to transfer the ownership. So what are we talking about here? We're talking about a sale. So in substance, you are buying the asset because you have the contract to buy it. So technically you are buying. So what you do when you buy something, you debit an asset. You debit the equipment for 50,000 and you credit. So when you are buying it on account, you credit notes payable. Now bear in mind, if you buy the asset, guess what? You're going to have to do depreciation. Before you depreciate the asset, the depreciation expense credit, accumulated depreciation. That's from the leases perspective. From the less sore, basically, if they purchase the asset, you are selling the asset. So you'll have a receivable assuming you sold it on account. You have to remove the accumulated depreciation. You're selling the asset of any. You credit the asset itself. And if there's a gain or a loss, this is the entry for the less sore. You could have a gain. You could have a loss depending on what the situation is. But simply put, you sold the asset. You have a receivable. You remove the asset. You remove any accumulated depreciation. And you might either have a gain or a loss. Now also, when this happens, you have to have a disclosure. You have to disclose what is the principal amount? What's the interest amount? Because you're going to be receiving payment. You're going to have to disclose the terms of the lease. Simply put, it's a sale. Think of it that way. The third type, which is all others, which is if it's not, it's a greater than 12 month and there is no transfer of ownership. So for everything else, there's a single model for lease accounting. Basically what's going to happen is we're going to finance for the right to use the asset. So it's considered finance for the right to use. For the less C, they're going to have the right to use assets. They're going to have an intangible, the right to use of the asset. This is what they're going to have as a debit because they have the right to use it. And obviously they're going to have a liability, an obligation to make those payments. For the less sore, they're going to have a receivable and they're going to have a third inflow of resources. So how does it look like from an entry perspective? Well, guess what? For the less C, when they lease it, they're going to have the right to use the asset and lease liability. So this is the debit and this is the credit. For the less sore, they're going to have a lease receivable and they're going to have a third inflow of resources. That's their debit and that's their credit. So notice for the less sore, they did not transfer the asset. What does that mean? If they don't transfer the asset, it means they still have to depreciate the asset. Now we're going to start to make payment as the less C. Well, we're going to have to credit cash for the payment and the payment will have to be split between some of it will be lease liability because we have an obligation and we're reducing our liability and some of it will be for the interest expense because we have a liability. Liability will incur interest expense. So at this point, if you are dealing with this, you should know how to deal with a loan amortization schedule. Also, you have to do amortization expense because you have an intangible. Right of use asset is an intangible and hopefully, you know, for intangibles, we have to amortize. So you debit amortize expense and you credit right to use assets. So notice you have two expenses. You have the interest expense for the lease and you have the amortize expense for the lease for the less sore. When they receive subsequent payment, they would receive the cash and the cash will have to be split between lease receivable and revenue, which is a form of interest. Then you will also start to remove the deferred inflow of resources and credit revenue. So, you know, those can become these entries be combined. Of course, they can. And as I mentioned earlier, you still have the asset. You still retain the asset. Therefore, the less sore will have to debit depreciation expense and credit accumulated depreciation. And in a nutshell, those are the three types of leases that you have to worry about when it comes to governmental accounting. Now, look, other CPA review courses, for example, Becker or Roger or Glean or Wiley, they may take two minutes to explain all of this. You know, it took me maybe around eight to nine minutes. That's the difference between what I do and what those CPA courses does for you. I explain it to you in details as if you never looked at it. Then those CPA courses, they may review it in two minutes or less than two minutes. Well, that's the difference is I can teach you the material. Then you go to your CPA review course. Your investment is $29.99, one month of subscription. Give it a try. If you don't like it, look, that's the maximum you would lose. You cancel, say this guy, you know, promises me that they will help me. He could not, and that's what you lost. OK, but there's a potential that I could really help you understand the material. Do better on your CPA review course and do better on the exam itself. Don't shortchange yourself. The CPA is a long, is a lifetime investment. Take it seriously. Good luck, study hard, and of course, stay safe.