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HomeMy WebLinkAbout12/07/2017 - Regular Minutes - City Council - Audit Committee //, CITY OF COL],EGE STATION Mayor Home of Texas AerMUniversief Council Members Karl Mooney Jerome Rektorik Mayor Pro Tern Bob Brick James M. Benham Linda Harvell City Manager Barry Moore Kelly Templin John Nichols Minutes CITY COUNCIL AUDIT COMMITTEE Thursday, December 7, 2017 at 3:30 PM City Hall Administrative Conference Room 1101 Texas Avenue College Station, Texas 77840 Audit Committee Members Present: Karl Mooney, Mayor Linda Harvell, Councilmember Jerome Rektorik, Councilmember Mike Ashfield, Committee Member Nathan Sharp, Committee Member City Staff: Ty Elliott, Internal Auditor Madison Rorschach, Assistant Internal Auditor Kelly Templin, City Manager Chuck Gilman, Deputy City Manager Jeff Kersten, Assistant City Manager Jeffrey Capps, Assistant City Manager Carla Robinson, City Attorney Ian Whittenton, Deputy City Secretary Mary E. Leonard, Finance Director Regular Agenda Item No. 1 —Call to Order and Announce a Ouorum is Present. With a quorum present, the Audit Committee of College Station was called to order by Mayor Mooney at 3:03 p.m. on December 7, 2017 in the Administrative Conference Room of the City of College Station City Hall. Regular Agenda Item No. 2 - Presentation, possible action, and discussion of minutes for the Audit Committee meeting held on June 12. 2017. MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Rektorik, the Audit Committee voted three (3) for and zero (0) opposed, to approve the October 23, 2017 Audit Committee minutes. The motion carried unanimously. Regular Agenda Item No. 3 - Presentation, possible action, and discussion regarding the Research Valley Partnership audit. Ty Elliott, Internal Auditor, presented the audit of the internal controls of Research Valley Partnership audit. He stated that the RVP maintains effective financial controls over financial accounts in fiscal year 2017. The staff of the RVP was complementary on the audit team's approach to conducting the audit and Mr. Elliott was complementary on the responsiveness of RVP staff to inquiries by Mr. Elliott and his staff. Also highlighted was the management letter sent to the RVP which he stated was received very positively. MOTION: Upon a motion made by Mayor Mooney and a second by Councilmember Rektorik, the Audit Committee voted three (3) for and zero (0) opposed, to approve the Research Valley Partnership audit. The motion carried unanimously. Regular Agenda Item No. 4 - Presentation, possible action, and discussion regarding the Purchasing Card audit. Madison Rorschach, Assistant Internal Auditor, presented the Purchasing Card audit. The processes for applying, setting monetary purchase limits, system fraud protections, coding and approving transactions, and monitoring of the program were highlighted. Some transactions were noted as high-risk, largely due to a Munis system error which allowed purchases to be approved without departmental review. This has been remedied through a workflow change. Also noted was a review of the number of cards issued by the Fiscal department which resulted in an overall reduction in the number of cards issued to users. Ty Elliot, City Auditor, stated that the audit found the controls adequate and appropriately scaled for the organization which he emphasized was a positive finding. MOTION: Upon a motion made by Councilmember Rektorik and a second by Councilmember Harvell, the Audit Committee voted three (3) for and zero (0) opposed, to move to accept the Purchasing Card audit. The motion was unanimous. Regular Agenda Item No. 5 - Presentation, possible action, and discussion regarding the update of the review of the City's internal control framework to comply with Uniform Guidance. Ty Elliott, Internal Auditor, provided an update of the assessment of the City's internal control framework to comply with Uniform Guidance. Detailed were educational endeavors by himself and the assistant auditor to help raise their knowledge of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) framework. An audit program to assess compliance with the COSO framework has been established and along with key members of management Mr. Elliott will work on a schedule for beginning work. He emphasized the requirement for compliance to continue to receive federal money. Regular Agenda Item No. 6 - Presentation, possible action and discussion regarding follow up audit work. Internal Auditor, Ty Elliott proposed that his office choose key audits done in the past to follow-up on findings and recommendations made by his department. The office will be peer-reviewed this year and the lack of follow-up will be a finding against it. He intends to begin addressing this matter now in an effort to improve its operations. Regular Agenda Item No. 7 - Presentation, possible action and discussion regarding future agenda items. No discussion Regular Agenda Item No. 8 - Presentation, possible action, and discussion regarding 2018 Ouarterlv Audit Committee meetings. • March 5, 2018 • June 26, 2018 • September 25, 2018 Regular Agenda Item No. 9 - Adjourn. There being no further business, Mayor Mooney adjourned the meeting at 4:36 p.m. on Monday, December 07, 2017. / ar1&1oor ey, Mayo ATTEST: Ian Whittenton, D+rtyy Secretary