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HomeMy WebLinkAbout03/23/2021 - Regular Minutes - City Council - Audit CommitteeMayor Council members Karl Moony Linda Harvell Mayor Pro Tem John Nichols Bob Brick Dennis Maloney Interim City Manager John Crompton Jeff Capps Elizabeth Cunha Minutes CITY COUNCIL AUDIT COMMITTEE Via Teleconference Tuesday, March 23, 2021 at 3:00 pm Audit Committee Members Present: Karl Mooney, Mayor Linda Harvell, Councilmember Elizabeth Cunha, Councilmember Mike Ashfield, Committee Member Michelle McMillin, Committee Member City Staff: Ty Elliott, Internal Auditor Jeff Capps, Interim City Manager Jeff Kersten, Assistant City Manager Jennifer Prochazka, Assistant City Manager Brian Piscacek, Assistant to the City Manager/ Special Projects Barbara Moore, Assistant to the City Manager/ Special Projects Mary Ann Powell, Deputy City Attorney Mary E. Leonard, Finance Director Ian Whittenton, Deputy City Secretary 1. Call meeting to order and Announce a Quorum is Present. With a quorum present, the Audit Committee of College Station was called to order by Mayor Mooney at 3:01 p.m. on March 23, 2021 via Teleconference. 2. Hear Visitors There were no visitors. 3. Agenda Items 3.1 Presentation, discussion, and possible action of minutes for the City Council Audit Committee meeting held on December 1, 2020. MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Cunha, the Audit Committee voted five (5) for and zero (0) opposed, to approve the December 1, 2020 Audit Committee minutes. The motion carried unanimously. 3.2 Presentation, discussion, and possible action regarding the Annual External Audit and CAFR. Mary Ellen Leonard, Finance Director, introduced Amanda Eaves and Shekita Rawls from the external auditing firm BKD who worked with city staff on the annual external audit and CAFR. Mrs. Rawls presented reports related to the annual audit reports and the 2020 CAFR as follows: Results of the Audit  Unmodified "clean" opinion  No scope limitations  No unresolved audit issues  Open and effective communication with management Results of Federal Single Audit Federal Program  Report on internal control over financial reporting  Unmodified opinion on compliance  No findings Audit Adjustment Recorded and Unrecorded Recorded Audit Adjustment  Recognize revenue in fiscal year 2020 in government-wide financial statements. Unrecorded Proposed Audit Adjustments  Adjust deferred inflow of resources and beginning fund balance in the General Fund.  Eliminate interfund receivable/payable reported in the General Fund. Ms. Rawls went on to explain that the audit resulted in the Financial Statement Opinion and the Internal Control over Financial Reporting and on Compliance and Other Matters being “unmodified,” providing the highest level of assurance that the City’s financial statements are properly stated, and all material grant requirements have been complied with. She also noted that staff did a great job in the work performed and working with the outside Auditor preparing the financial statements. MOTION: Upon a motion made by Councilmember Harvell and a second by Committeemember Ashfield, the Audit Committee voted five (5) for and zero (0) opposed, to accept the annual external audit and CAFR. The motion carried unanimously. 3.3 Presentation, discussion, and possible action regarding the Fiscal Year 2022 Internal Audit Budget. Ty Elliott, Internal Auditor, provided the committee with information related to the FY22 Internal Auditor’s Office budget. Mr. Elliot emphasized that aside from the restoring the professional services budget to the level prior to the cuts made in FY 21, there are not proposed increases to the Internal Auditor’s budget for FY22. MOTION: Upon a motion made by Councilmember Harvell and a second by Councilmember Cunha, the Audit Committee voted five (5) for and zero (0) opposed, to accept the report on the Fiscal year 2022 Internal Audit Budget. The motion carried unanimously. 3.4 Presentation, discussion, and possible action regarding a Fiscal Year 2021 Audit Plan update. Ty Elliott, Internal Auditor, updated the Audit Committee on modifications the FY21 audit plan. He noted that the IT Asset Management Audit was moved to the end of the fiscal year due to departmental staffing and COVID-19 concerns. MOTION: Upon a motion made by Councilmember Harvell and a second by Mayor Mooney, the Audit Committee voted five (5) for and zero (0) opposed, to accept the changes to the Fiscal year 2021 Audit Plan. The motion carried unanimously. 3.5 Presentation, discussion, and possible action regarding the implementation of a policy specific to management responses to audit report recommendations. Ty Elliott, Internal Auditor, updated the Audit Committee on the implementation of a policy specific to management responses to audit report recommendations. Highlighted was the percentage of recommendations implemented, ways implementation rates may be increased, the audit report review and management response process, and comparisons and best practices of other Texas local government audit offices. He stated that this item will return at a future meeting for additional review and direction. The committee gave general direction to include the implementation date for changes suggested in the report, provide updates to management during the audit process as appropriate, provide risk assessments for recommendations, and return to some incomplete recommendations and assigning an implementation date. 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 4:13 p.m. on Tuesday, March 23, 2021. ___________________________________ Karl Mooney, Mayor ATTEST: ____________________________________ Ian Whittenton, Deputy City Secretary