Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE MINUTES November 20, 2013 I. Call to Order Josh Reid, City Attorney, called the City of Henderson Audit Committee meeting to order at 3:42 p.m. in the Mayor and Council Board Room, 240 Water Street, Henderson, Nevada. II. Confirmation of Posting and Roll Call Josh Reid, City Attorney, confirmed the agenda was posted three working days prior to the meeting in accordance with the Open Meeting Law by posting in the four Official Bulletin Boards within the City Limits of the City of Henderson. In addition, copies of the agenda were mailed to each person having an item on the agenda and to all those on the Agenda Master Mailing List. PRESENT: Mayor Andy Hafen Councilman John F. Marz EXCUSED: None STAFF: Josh Reid, City Attorney Mark Jacobs, Chief Marshall Alternative Sentencing April Parra, Minutes Clerk Melissa Wright, Assistant Internal Auditor Development Services Center Advisory Committee Page 2 November 5, 2013 – Minutes III. Acceptance of Agenda (Motion) Mayor Hafen introduced a motion to accept the agenda as submitted. The vote favoring approval was unanimous. Mr. Reid declared the motion carried. IV. Public Comment There were no comments presented by the public. V. New Business 1. Select Audit Committee Chair (Motion) Mayor Hafen introduced a motion to elect Councilman Marz as Chairman of the Audit Committee. The vote favoring approval was unanimous. Mr. Reid declared the motion carried. Note: Chairman Marz presided over the remainder of the meeting. 2. Develop and Approve Audit Committee Bylaws Mr. Reid distributed and briefly reviewed the proposed bylaws. (Motion) Mayor Hafen introduced a motion to approve Audit Committee Bylaws as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 3. Approve Fiscal Year 2014 Audit Plan Melissa Wright, Assistant Internal Auditor, reviewed the 2014 Audit Plan. Areas of discussion included: Overview, Methodology, Results, Proposed 2014 Projects, and Proposed Five-Year Audit Cycle. Ms. Wright noted that the plan can be amended. Responding to a question from Mr. Reid regarding how the Committee will handle irregularities, Ms. Wright explained that the auditor would bring any irregularity before the Committee for discussion and action. A discussion ensued regarding the various audits and what they entail. Audits discussed included: Financial audits, performance audits, and management support/consulting audits. Ms. Wright noted that the Cultural Arts and Tourism audit is currently in progress. Development Services Center Advisory Committee Page 3 November 5, 2013 – Minutes Mr. Reid noted that the City Auditor recently left the City and Ms. Wright is currently serving in an “acting” role. He said there is an ongoing recruitment to fill the position and the goal is to have it permanently staffed by the beginning of the fiscal year. (Motion) Mayor Hafen introduced a motion to accept the Fiscal Year 2014 Audit Plan as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 4. Receive and Approve Completed Audit of the Alternative Sentencing Division Chairman Marz requested that completed audits be forwarded to Committee members prior to the meeting to allow time for review. Ms. Wright briefly reviewed the Audit Report for the Alternative Sentencing Division dated November 2013. Areas of discussion included: Objectives, Scope, and Methodology; Revenues and Expenditures; Performance Measures; Comparison of Program to Best Practices, Benefits of Program; Recidivism; Identify Outcomes; Impact on Court Workload; and Noteworthy Accomplishments. Mark Jacobs, Chief Marshall Alternative Sentencing, gave a brief history of the division and gave a summary of the Alternative Sentencing program. Mr. Reid noted that there are no problems with the Alternative Sentencing program and the audit was initiated as a result of the Sparks case and whether this program would be maintained under the City Manager’s office or the courts. Ms. Wright said the program is effective and has positively impacted the workload on the court system. She said Henderson is setting the bar for best practices and there were very few areas of concern. Responding to Mayor Hafen’s question regarding the Audit Committee’s boundaries and responsibilities, Mr. Reid stated the Committee determines and approves the audit report as well as requests further investigations, status updates, and/or accepts the presented report. (Motion) Chairman Marz introduced a motion to accept the Audit Report for the Alternative Sentencing Division, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. VI. Public Comment Development Services Center Advisory Committee Page 4 November 5, 2013 – Minutes There were no comments presented by the public. VII. Chairman/Member Comments Chairman Marz suggested that recommendations be brought before the Committee for approval prior to presenting them to the department for implementation. Ms. Wright explained that currently the draft is provided to the department head who then makes a response. A final audit is completed based on the recommendations and response. Mr. Reid suggested draft audits be submitted to the Committee asking for opinion and review. Chairman Marz said he feels the Committee needs to hear the recommendations and approve them prior to their implementation. It was noted that the Audit Committee will meet on a quarterly basis. VIII. Set Next Meeting The next meeting of the Audit Committee was scheduled for February 19, 2014, at 3:30 p.m., in the Mayor and Council Board Room, City Hall, Henderson, Nevada, 89015. VIII. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 4:28 p.m. Respectfully submitted, _______________________ April Parra, Minutes Clerk