Audit Committee

AUDIT COMMITTEE MINUTES DATE: July 26, 2017 LOCATION: CITY HALL FOURTH FLOOR CONFERENCE ROOM TIME: 3:00 PM I. CALL TO ORDER – Audit Committee Chairman The meeting was called to order by Joyce Norris at 3:02 pm. II. ANNOUNCE MEMBERS IN ATTENDANCE (VERIFY QUORUM) Audit Committee members present: Joyce Norris, Wilbur Berry, and Jerry Weatherspoon Lynn Stokes joined meeting in progress. Audit Committee members absent: Jeff Henley Quorum verified? Yes Internal Audit attendees: Rodney Wright, Stephanie Fox, Cassie Wheeler Other Attendees: None III. ADOPTION OF MINUTES: May 24, 2017 Audit Committee Meeting Joyce asked the Audit Committee members to review the minutes and called for a motion for approval. Wilbur made the motion, and Jerry seconded. The minutes were approved as presented. After Lynn entered the meeting and before the adjournment of the public meeting, Lynn requested an amendment to the minutes. She requested a sentence under IV. Department Report, B. Update on Internal Activity, iii. NASACT / ALGA Conference be reworded to remove the appearance that city paid for her to go. It originally stated, “The NASACT Government Auditing Seminar was attended by Rod, Stephanie, Ginger and Lynn.” Lynn moved to amend the minutes to say: “The NASACT Government Auditing Seminar was attended by Rod, Stephanie and Ginger. Lynn attended as a private citizen at no expense to the City.” Wilbur Berry made a motion to amend the minutes. Jerry seconded. The amendment to the minutes was approved. IV. DEPARTMENT REPORT A. Introduce Cassie Wheeler i. Rod introduced Cassie by saying the Internal Auditor II position was posted internally first, and Cassie interviewed for the position. She worked as the Senior Accountant for Clarksville Gas & Water for 8 years, with 10 years total at CGW. Cassie started with Internal Audit on Monday, July 24th. Cassie was welcomed by everyone.  B. Budget Report i. FY 2017 – Rod explained the $3,434.37 overage in line 4111 Full-Time Employees was due to Ginger’s vacation payout, which wasn’t originally anticipated. The rest of the budget was pretty normal to close out the fiscal year. ii. FY 2018 – Rod presented the new fiscal year budget. For the previous fiscal year, $28,500 was budgeted in 4334 Accounting/Auditing line for three risk assessments. For the new fiscal year, $19,000 was budgeted for two risk assessments. Human Resources and IT Departments have requested a HIPAA review of possible changes to health care/clinic structure. Rod responded to Wilbur’s inquiry regarding possible changes. C. Peer Review Results – Rod congratulated the team and everyone on passing the peer review with no management comments. They had one matter to discuss, but it didn’t end as a management comment. No questions or discussion. (Lynn Stokes joined the meeting at 3:07 pm) D. Annual Report – Drafted - Rod presented a draft of Internal Audit’s annual report for FY17 as required by City Code Section 6-615(b) summarizing audits, investigations and other activities completed in FY17, and ongoing in FY18. He stated it was a pretty successful year. He will send the final report to the Mayor and City Council shortly after the meeting. E. Update on Internal Audit Activity i. Sole Source Purchase Audit – Rod explained that this audit was Ginger’s before she left. It is still in the Planning phase, but will move into Fieldwork phase soon. Cassie will be working on it, with Rod’s assistance. ii. Fleet Maintenance and Safety Audit – Rod stated that the main focus is on this audit currently, trying to finish as much of it as possible before Stephanie is out on leave around the beginning of September. Discussion continued regarding the Fleet Policy, misinterpretations of the policy and some departments not following the policy. Rod said these issues will be addressed in the audit. iii. Follow ups – Will resume with the follow ups of other audits once the Fleet Audit is materially complete. F. Secondary Employment Disclosure – real estate license i. Rod wanted to make the Audit Committee aware that he has his real estate license and that there is potential for secondary income. The proper paperwork was submitted to the Mayor and discussed with HR. V. COMMITTEE ACTION REQUIRED A. Approve remaining audit plan for FY18 Rod requested that the I-9 / E-verify audit and HR/IT risk assessment be added to the FY18 audit plan. Other audits listed were previously approved by the Audit Committee. Rod explained the available audit hours calculation and he confirmed all audits are city wide, which also covers CDE and CGW. Wilbur made a motion to approve. Lynn seconded. The motion passed. B. Approve Annual Report No approval required.