Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE MINUTES December 3, 2014 I. Call to Order Chairman John Marz called the City of Henderson Audit Committee meeting to order at 3:32 p.m. in the Mayor and Council Board Room, 240 Water Street, Henderson, Nevada. II. Confirmation of Posting and Roll Call Melissa Wright, City Auditor, 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: Chairman John F. Marz Mayor Andy Hafen Bryan Allison EXCUSED: None STAFF: Nechole Garcia, Assistant City Attorney I April Parra, Council and Commission Services Reporter Melissa Wright, City Auditor John Tennert, Utility Management Specialist John Day, Utility Engineering/Asset Manager Priscilla Howell, Director of Utility Services Development Services Center Advisory Committee Page 2 December 3, 2014 – Minutes III. Public Comment There were no comments presented by the public. IV. Acceptance of Agenda (Motion) Mayor Hafen introduced a motion to accept the agenda as submitted. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. V. New Business 1 MINUTES SEPTEMBER 24, 2014, AUDIT COMMITTEE MEETING INTERNAL AUDIT Approval of Minutes for Audit Committee on September 24, 2014. (Motion) Chairman Marz introduced a motion to approve the minutes for the September 24, 2014, as submitted. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 2 DRAFT AUDIT REPORT DEPARTMENT OF UTILITY SERVICES WASTEWATER COLLECTIONS OPERATION INTERNAL AUDIT Receive and Approve Draft Audit Report for the Department of Utility Services Wastewater Collections Operation. Melissa Wright, City Auditor, reviewed the Draft Audit Report for the Department of Utility Services Wastewater Collections Operation. Areas of discussion included: Background; Objectives, Scope, and Methodology; Results in Brief; Detailed Results: Asset Maintenance, Collection System Maintenance Schedules, Staffing Levels, Plant and Field Operator Licenses and Certifications, and Reclaimed Water. Responding to a question by Mayor Hafen regarding overtime expenses, Ms. Wright stated that they were less than five percent, which is the recommended best practices benchmark ratio for maintenance overtime. Regarding proper certification and licenses, Ms. Wright stated there were two individuals who had just been promoted and have not acquired their certifications for their new positions; however, they have a set period of time in Development Services Center Advisory Committee Page 3 December 3, 2014 – Minutes which to obtain the certification. Chairman Marz commended the Utility Services Department on their ability to exceed the standards and increase the facilities with a smaller staff. Mayor Hafen commented that the attitude and culture are working. Chairman Marz said that other departments can learn from this department on ways to be more efficient. A discussion ensued regarding the installation of purple pipe in all the new City parks. (Motion) Mayor Hafen introduced a motion to approve the Draft Audit Report for the Department of Utility Services Wastewater Collections Operation. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. VI. Public Comment There were no comments presented by the public. VII. Chairman/Member Comments Chairman Marz commented that he reread the Pcard audit and had a lot of concerns. He inquired what authority the Committee has regarding the implementation of the recommendations made in the audit. Ms. Wright responded to Chairman Marz’s concerns stating that Finance is actively working on the recommendations and making corrections. She noted that after recommendations are made, a follow-up review will be conducted within nine months to a year. She said if changes are not made, then the Committee can take action. Responding to a question by Chairman Marz regarding the action that can be taken by the Committee, Nechole Garcia, Assistant City Attorney I, said the ordinance is not clear on the action that can be taken and she will get clarification from the City Attorney as to what action the Committee can take if the recommendations are not followed. Chairman Marz commented that he feels the Finance Department is not taking the recommendations seriously. Ms. Wright said she will follow up on those concerns. Development Services Center Advisory Committee Page 4 December 3, 2014 – Minutes VIII. Set Next Meeting The next meeting of the Audit Committee was scheduled for March 18, 2014, at 3:30 p.m., in the Mayor and Council Board Room, City Hall, Henderson, Nevada, 89015. VIII. Public Comment There were no comments presented by the public. IX. Adjournment There being no further business to come before the Committee, the meeting was adjourned at 4:37 p.m. Respectfully submitted, _______________________ April Parra, Council and Commission Services Reporter