Audit Committee

AUDIT COMMITTEE MEETING MINUTES Wednesday, September 7, 2023 Committee Members Present: Visiting: Commissioner Dexter Fisher, Committee Chair Blaine Williams, Manager Commissioner Carol Myers Christine Howard, Executive Assistant Dr. Xernona Thomas Beth Higgins Carl Blount Member(s) Absent: None Staff: Gavin Hassemer, Internal Auditor A. Call to Order: Internal Auditor Hassemer called the meeting to order at 10:32 am. B. Attendance Role Introductions were made by all committee members, including the Internal Auditor. C. Review and Approval of Meeting Minutes There were no previous meeting minutes to consider. D. Review of Charter, Ordinances, Policies, Procedures, Roles, & Responsibilities  Mayor’s Charge to the Audit Committee The committee members reviewed the Mayor’s charge, in particular, choosing to elect a Chair. Upon the motion by Commissioner Myers to nominate Commissioner Fisher to serve in this capacity, with a second by Ms. Higgins, the vote was unanimous. The Audit Committee Charter was discussed by committee members. Ms. Higgins asked for clarification on the role and responsibility of the Audit Committee, expressing some concern over the perceived narrowness of their defined focus. Commissioner Myers commented that a separate, previous study was recently conducted that reviewed the purpose of the ACCGov Audit Committee. Internal Auditor Hassemer explained that the charter is subject to the direction granted by the Mayor & Commission (M&C), and changes may require their approval; but, that the annual workplan could be broadened to include a more expanded review of audit topics, studies, and practices, should the Audit Committee choose to make that recommendation. Chair Fisher also confirmed that the M&C could consider a more expansive definition for the charter, as it does appear narrow in focus; however, that would be up to the M&C as a whole. Page 1 of 3 Ms. Higgins elaborated on other organizations with similar audit responsibilities, and how they perform various types of analysis, or are at least involved with the review of documents produced directly by departments, entities, or consultants. Manager Williams offered his viewpoint of the Audit Committee’s responsibility, stating that he would work to make available any documents that would assist the committee, if requested. Further conversation surrounding the three typical components of an audit system took place, with attention given to ACCGov internal controls. Briefly, the committee reviewed the role and ordinances pertaining to the Internal Auditor, and how that position also functions as the Public Safety Civilian Oversight Board (PSCOB) Monitor. Commissioner Myers requested regular updates from the Internal Auditor regarding his workload with respect to PSCOB, in an effort to appropriately measure and balance both efforts. She also asked that any additional information from the previous Operational Analysis Office transition team be passed along to the Audit Committee. E. Audit Committee Meeting Schedule Internal Auditor Hassemer asked if the current day/time that is booked for the remainder of 2023 would also be acceptable for the committee going forward into year 2024, which all were agreeable to. F. Review of Audit Work Flow An overview of the existing audit work flows approved in 2020 for both Manager’s and Constitutional Officers’ departments/programs was given by Internal Auditor Hassemer, who highlighted slight differences between the two. Commissioner Myers indicated her preference for empowering the Internal Auditor to make slight deviations from the normal work flows, as appropriate. G. FY24 Audit Work Plan Activity Internal Auditor Hassemer presented a broad overview of the draft FY24 Audit Workplan Topic Scoring Matrix, including details on specific areas of focus as outlined in the narrative of Proposed Audits for FY24. Group discussion took place, with comments pertaining to duplication of efforts, as well as potentially combining two of the preliminary topics into one, and the reasoning for it. Mr. Blount stressed the importance of showing progress, completing audits efficiently, and avoiding areas of focus that will otherwise impact success this fiscal year. He also brought up the potential for conflicts of interest with selected audit topics. Internal Auditor Hassemer confirmed the preference for assigned projects to follow the fiscal year timeline, as able, which also spurred conversation about outsourcing some audits. The committee asked for clarification on how the draft list was formulated, which Internal Auditor Hassemer provided explanation. Ms. Higgins requested the group consider what expectations exist for regularly scheduled auditing; therefore, emphasizing an environment in which ACCGov departments can confidently predict an assessment at more frequent intervals. Commissioner Myers added that such a strategy can help mitigate risk. Page 2 of 3 Examples of an annual workplan that includes a division of small, medium, and larger sized audits was discussed. The committee seemed amenable to conducting one or two comprehensive, detail-oriented projects annually, in addition to a few quick, focused internal control examinations of various departments/divisions for basic confirmation of sound finance, performance, and compliance measures. In all, the committee decided to conduct additional research and analysis of the draft topics list in preparation for discussion at the next meeting. Chair Fisher inquired about the staffing progress for the Operational Analysis Office, which Internal Auditor Hassemer briefed the committee. Mr. Blount asked if any of the draft topics presented to the committee could be outsourced this fiscal year, but Mr. Hassemer clarified that no funds exist in this year’s budget for that to be an option. Dr. Thomas requested an updated list of all ACCGov departments, and also stressed the importance of community or organizational-wide audits with the greatest impact. Chair Fisher shared his preferred topics and agreed with the idea of choosing those with the most benefit. Commissioner Myers provided insight into her reasoning for choosing some audit topics over others, quickly moving through the draft list while providing comments for consideration. Chair Fisher assigned to the committee that each member review the list of topics for October’s meeting, and come prepared to debate their top 2-3 selections, as well as those departments that should be subject to an internal control analysis. Ms. Higgins asked for additional information on whether departments are subject to other, external audits, which Internal Auditor Hassemer stated he would do his best to find out. H. Internal Auditor’s Update I. Next Meeting Date – October 5, 2023 @ 10:30-12:00 pm. Dr. Thomas motioned to adjourn the meeting. Commissioner Myers seconded the motion. The meeting adjourned at 12:05 p.m. Page 3 of 3