Loading...
HomeMy WebLinkAbout03/02/2022 - Regular Minutes - City Council - Audit CommitteeMayor Karl Moony Mayor Pro Tem John Nichols City Manager Bryan C. Woods (*ff" CITY OF COT.T.FGE STATION Home of Texas AerM University' Council members Linda Harvell Bob Brick Dennis Maloney John Crompton Elizabeth Cunha Minutes CITY COUNCIL AUDIT COMMITTEE IN -PERSON WITH TELECONFERENCE PARTICIPATION Wednesday, March 2, 2022, at 3:00 pm Audit Committee Members Present: Karl Mooney, Mayor Linda Harvell, Councilmember Elizabeth Cunha, Councilmember Michelle McMillin, Committee Member Rick Price, Committee Member City Staff: Ty Elliott, Internal Auditor Anna Mizmishvili, Assistant City Internal Auditor Bryan Woods, City Manager Jeff Capps, Deputy City Manager Jeff Kersten, Assistant City Manager Jennifer Prochazka, Assistant City Manager Barbara Moore, Assistant to the City Manager/ Special Projects Adam Falco, Sr. Assistant City Attorney II Mary E. Leonard, Finance Director Michael Dehaven — Assistant Finance Director Brian Piscacek — Economic Development Manager Tim Neeley — Business Development, Economic Development Yvette Dela Torre, Deputy Local Registrar 1. Ca11 meeting 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 3:01 pm on March 2, 2022, in the 1938 Executive Conference Room of the City of College Station City Hall. 2. Hear Visitors There were no hear visitors. 3. Agenda Items 3.1 Presentation, discussion. and possible action of minutes for the City Council Audit Committee meeting held on December 15, 2021. MOTION: Upon a motion made by Councihnember Linda Harvell and a second by Committee Member Michelle McMillin, the Audit Committee voted five (5) for and zero (0) opposed to approving the December 15, 2021, Audit Committee minutes. The motion carried unanimously. 3.2 Presentation, discussion, and possible action regarding the Annual External Audit and ACFR. Assistant City Manager Jeff Kersten reported that the Audit and ACFR are not complete and will need to be delayed. Staff should have the work completed within the next few weeks. An additional meeting will need to be scheduled to bring the audit and ACFR back at a Special Audit Committee meeting. 3.3 Presentation, discussion, and possible action regarding the Internal Audit Office's strategic initiatives and budget. Internal Auditor Ty Elliott presented a five year strategic initiative plan to improve audit functions and asked the committee for direction for his office. Mr. Elliott found three areas where functions could be improved, specialized expertise, and ethics hotline that would be open to the public, and audit coverage. The audit committee directed Mr. Elliott to begin with specialized expertise in 2022 and revisit the following two items in the corning years in anticipation of other city needs in the near future. 3.4 Presentation, discussion, and possible action regarding the Viasat economic development agreement. City Manager Bryan C. Woods presented the Viasat economic development agreement findings. Brazos Valley Economic Development Corporation (BVEDC) returned the grant funds and has taken steps to correct their reporting. The committee does not feel the need to have Mr. Elliott and his staff conduct a formal inquiry into the matter. 4. Discussion and possible action on future agenda items. There were no future agenda items discussed. 5. Adjourn. There being no further business, Mayor Mooney adjourned the meeting at 4:27 pin on Tuesday, March 2, 2022. ATTEST: ette Dela Torre, Deputy Local Registrar Internal Audit Office Strategic Initiatives & Budget March 2, 2022, Audit Committee Meeting Five Year Strategic Initiatives PLANNING FOR THE NEED OF SPECIALIZED EXPERTISE OPENING THE ETHICS HOTLINE TO CITIZENS IMPROVING AUDIT COVERAGE Specialized Expertise Advantages •Improves audit quality •Decreases scope limitations •Improved recommendation implementation rate Disadvantages •Professional network unavailability •Staff reliance/independence •Consultant costs Recommendation: Increase consultation budget with ongoing and one-time funds Ethics Hotline (open to citizens) Advantages •Increases fraud detection •Vendors •Employees of vendors •Ex-partners of city employees •Can track citizen complaints for other departments Disadvantages •Increase of frivolous complaints •Need additional audit staff •Increase hotline costs •Diversion of audit resources Recommendation: Consider implementing in future years Audit Coverage (technology vs. staff) Staff •Potentially more audits •May reduce some need for expertise •Customize analytics/automated testing/risk assessment in house •Ongoing technology costs Technology •More focused audits with greater risk reduction •Analytics/automation could be used by other departments •Vendor maintained •Quick implementation Recommendation: Consider investment in analytics/automation technologies