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HomeMy WebLinkAbout03/24/2025 - Regular Minutes - City Council - Audit CommitteeMayor John Nichols Mayor Pro Tem Mark Smith City Manager Bryan C. Woods Crry or COI LE.GE STATION Home of Texas A&M Univeerirr' Councilmembers William Wright David White Bob Yancy Melissa Mcllhaney Scott Schafer Minutes CITY COUNCIL AUDIT COMMITTEE IN -PERSON WITH TELECONFERENCE PARTICIPATION Monday, March 24, 2025, at 3:00 pm Audit Committee Members Present: John Nichols, Mayor Melissa Mcllhaney, Councilmember Mark Smith, Mayor Pro Tem Michelle McMilin, Committee Member Nicolo Logalbo, Committee Member City Staff: Ty Elliott, City Internal Auditor Matthew Ragaglia, Program Internal Auditor Bryan Woods, City Manager (Absent) Jeff Capps, Deputy City Manager (Absent) Jeff Kersten, Assistant City Manager Jennifer Prochazka, Assistant City Manager Adam Falco, City Attorney Allison Pond, Human Resources Director Michael Dehaven, Assistant Finance Director Kimberly Dickey, Records Management Administrator 1. Call 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 Nichols at 3:00 pm on March 24, 2025, 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 March 6, 2025. MOTION: Upon a motion made by Councilmember Melissa Mcllhaney and a second by Committee Member Nicolo Logalbo, the Audit Committee voted five (5) for and zero (0) opposed to approve the March 6, 2025, Audit Committee minutes. The motion carried unanimously. 3.2 Presentation. discussion, and possible action regarding a potential amendment to the Fisical Year 2025 Audit Plan. Ty Elliott provided a synopsis of the prior Audit Committee discussion concerning emerging risks related to the Northgate District, the Macy's acquisition, and the Texas Independence Ball project. He emphasized that, as City Auditor, it is his responsibility to inform the Committee of potential risks that may warrant inclusion in the audit plan and would require a possible amendment. He outlined several factors that may justify amending an audit plan, including the emergence of new risks, the need for deeper review based on findings from ongoing audits, regulatory or organizational changes that impact risk exposure, direction from City Council or management, and resource constraints that necessitate reprioritization. Ty Elliott also provided example audit objectives that could be explored if the Committee decides to amend the plan. He noted that he would not offer a recommendation on the outcome —only that the Committee consider and discuss the matter. The five Audit Committee members discussed their views on whether to amend the current audit plan in response to the emerging risks identified by Ty Elliott. Committee members acknowledged that while the Northgate District, Macy's acquisition, and Texas Independence Ball project represent areas of heightened public interest, active steps are already being taken by City management and Council to address these issues. These efforts include the Greater Northgate Planning Stakeholder Engagement, the ongoing Study on the Economic Development Master Plan, and updates related to the Midtown development. Committee members expressed that, although they understand public concerns regarding transparency and accountability, they believe City staff has acted transparently throughout the progression of these projects. As such, they felt an audit would likely have limited influence on public perception. Michelle McMillin further noted that much of the subject matter under consideration —specifically, public dissatisfaction with City Council's decisions —may not fall within an auditable scope, making it difficult to frame a practical or objective audit. However, there could be an audit to investigate if there could be improvements in the Economic Development process. Nicolo Logalbo emphasized that the current audit topics —Roadway Maintenance and Drainage Utility —still involve operational risks that warrant continued audit focus. He also pointed out that the City is already allocating resources to respond to community concerns related to the aforementioned projects. Melissa Mcllhaney suggested that the Audit Committee consider revisiting the risks associated with Northgate, Macy's, and the Texas Independence Ball project during development of the Fiscal Year 2026 audit plan, along with broader audits related to the City's Economic Development process, should those risks continue to persist. Ultimately, the Audit Committee agreed to proceed with the current audit plan, concluding that no amendment is necessary at this time. As no adjustments to the audit plan were proposed, no vote was required. 3.3 Presentation, discussion, and possible action regarding the Human Resources Audit. Matthew Ragaglia, Program Auditor, presented the completed Human Resources: Administration of Family and Medical Leave Audit. Ty Elliott, City Internal Auditor, addressed any questions from the committee. As management had concurred with all presented recommendations, Ty Elliott advised the audit committee to accept the report, which in turn would direct the audit team to conduct follow-up on recommendation implementation once the expected completion dates have passed. MOTION: Upon a motion made by Council Member Mark Smith and a second by Committee Member Nicolo Logalbo, the Audit Committee voted five (5) for and zero (0) opposed to approve the Human Resources Audit. The motion carried unanimously. 4. Discussion and possible action on future agenda items. There were no future agenda items discussed. 5. Adiourn. There being no further business, Mayor adjourned the meeting at 4:11 pm on Monday, March 24, 2025. Nichols, Mayor ATTEST: /cAA‘t• . \. Kimberly A.Pickey, Records Management Administrator