Audit Committee

AUDIT COMMITTEE MINUTES DATE: May 23, 2018 LOCATION: CITY HALL FOURTH FLOOR CONFERENCE ROOM TIME: 4:00 PM I. CALL TO ORDER – Audit Committee Chairman The meeting was called to order by Joyce Norris at 4:01pm. II. ANNOUNCE MEMBERS IN ATTENDANCE (VERIFY QUORUM) Audit Committee members present: Wilbur Berry, Joyce Norris, Lynn Stokes and Jerry Weatherspoon Audit Committee members absent: Jeff Henley Quorum verified? Yes Internal Audit attendees: Rodney Wright, Stephanie Fox and Cassie Wheeler Other Attendees: None III. ADOPTION OF MINUTES: January 31, 2018 Audit Committee Meeting Joyce asked the Audit Committee members to review the minutes and called for a motion for approval. Wilbur made a motion to accept the minutes, Lynn seconded. The minutes were approved as presented. IV. DEPARTMENT REPORT A. Budget Report i. FY 2018 – Rod explained the Salaries and Wages spend is less this year due to a more experienced, higher paid employee leaving and also because one employee was on leave for part of the year. The ALGA conference and CPA privilege taxes are not yet reflected on the report, but the Operating Expenditures will also be below budget for the fiscal year. ii. FY 2019 – Rod presented the projected FY 2019 budget. Rod requested additional funds for this budget to include an intern from Austin Peay. There were no other significant changes to the new budget. B. Update on Internal Audit Activity i. Audit schedule status – Rod reported the Sole Source Audit field work is almost complete. Payroll Audit is in the testing phase. Senior Management Expense audit is in the testing phase.  1. The Fleet Audit is complete and was released on April 4th. Stephanie gave a brief summary of the report. ii. Audit metrics – Rod summarized the metrics by saying it wasn’t the greatest year to implement metrics due to having a new auditor and Stephanie was on leave for four months. The utilization rate for Rod is 41%, Stephanie is at 72%, and Cassie is at 50%. V. NEW BUSINESS A. Approve third year of Crosslin Contract – Vote on approval of third year of Crosslin contract. Joyce called for a motion for approval of renewing Crosslin contract. Wilbur made the motion, and Lynn seconded. The renewal was approved. B. Audit Services RFP – Rod asked the Audit Committee if they want to put out the RFP for audit services. The RFP process and the length of the contract was discussed. Professional Services contracts were also discussed. Wilbur made a motion to proceed with the auditing services RFP with a term of three years with the option to renew one- two years and Lynn seconded. Issuing an RFP for audit services was approved. C. Internal Audit Facebook page – Rod told the committee he was considering creating an Internal Audit Facebook page and asked their thoughts. The goal is to get information out to the public. Posts would contain links to audit reports, reminders about the fraud hotline, and other information. The page would be set up to not allow comments. It is for information sharing purposes only. There were no objections to starting the Facebook page for Internal Audit. D. Standards Change – Rod told the committee that he wants to switch from Yellow Book to Red Book. He explained some of the differences in the standards and the reasons why he wants to switch. The Red Book is the minimum requirement for the State of Tennessee. Wilbur made a motion to begin transitioning towards Red Book standards. Lynn seconded. Changing to the Red Book standards was approved. VI. COMMITTEE ACTION REQUIRED A. Vote on approval of third year of Crosslin contract – see New Business above. B. Sign ethics acknowledgement – All members present signed the ethics acknowledgement. VII. CITY COUNCIL ACTION REQUIRED A. None VIII. ADJOURNMENT OF PUBLIC MEETING Wilbur made a motion to adjourn regular session. Jerry seconded. Public meeting adjourned at 5:27pm. IX. PUBLIC COMMENTS (5 minutes each) – None X. NEXT MEETING - July 25, 2018 – 4:00 PM XI. EXECUTIVE SESSION – None