Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE MINUTES December 9, 2015 I. Call to Order Chairman John Marz called the City of Henderson Audit Committee meeting to order at 5:00 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 and the Nevada Public Notice Website. 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: Roy Borsellino, Accounting Manager Richard Derrick, Chief Financial Officer Fred Horvath, Assistant City Manager Priscilla Howell, Director of Utility Services Erin Flynn, Assistant City Attorney Bob Murnane, City Manager April Parra, Council and Commission Services Reporter Josh Reid, City Attorney Melissa Wright, City Auditor Audit Committee Page 2 December 9, 2015 – 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 AUDIT COMMITTEE MEETING ON 9/16/15 INTERNAL AUDIT (Motion) Chairman Marz introduced a motion to adopt the minutes, as submitted. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 2 DRAFT AUDIT FOLLOW-UP REPORT DEPARTMENT OF UTILITY SERVICES WASTEWATER OPERATIONS INTERNAL AUDIT Receive and Approve Draft Audit Follow-up Report for the Department of Utility Services Wastewater Operations Melissa Wright, City Auditor, briefly summarized the Draft Audit Follow-up Report for the Department of Utility Services Wastewater Operations. She reviewed the findings and the improvements that have been made as a result of the audit. (Motion) Mayor Hafen introduced a motion to receive and approve the Draft Audit Follow-up Report for the Department of Utility Services Wastewater Operations, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 3 DRAFT AUDIT FOLLOW-UP REPORT CITYWIDE PURCHASE CARD PROGRAM INTERNAL AUDIT Receive and Approve Draft Audit Follow-up Report for the Citywide Purchase Card Program Audit Committee Page 3 December 9, 2015 – Minutes Ms. Wright briefly summarized the Draft Audit Follow-up Report for the Citywide Purchase Card Program. She detailed the numerous changes the Finance Department has made to their policies and procedures as a result of the audit process. Ms. Wright noted that transactions are still occurring during off hours and there have been instances of transactions being split in order to stay within the spending limit. Responding to a question by Chairman Marz regarding whether the department heads were informed of the audit and the areas that needed to be corrected, both Mr. Murnane and Mr. Horvath said no. Mr. Borsellino explained that every department was assigned a liaison to work with the Finance Department to work on corrective action. Chairman Marz said this is an issue that needs to be addressed directly with the department head and not a department representative. He said the issues are troublesome and it appears that the department heads are not managing this issue properly. A discussion ensued regarding employees making transactions on the weekends. Mr. Murnane suggested that if the behavior continues, then P cards could be revoked. Mr. Derrick suggested issuing a warning and if the behavior continues, then the card be revoked. Mayor Hafen commented that they have seen improvement since the audit took place and deficiencies are still being addressed. Discussion ensued regarding training as well as communication of the new policies that have been implemented. Chairman Marz said his concern is that the process needs to be as transparent as possible. He suggested additional follow-up should take place in six months to determine if progress has been made. Mr. Derrick suggested the warning be made as an executive meeting and then start revocation if there is not compliance. Ms. Wright suggested this occur after a year so there is 12 months of data that can be analyzed. The Committee was agreeable to this. Ms. Wright noted that P cards have been reduced by ten percent since the audit. (Motion) Mayor Hafen introduced a motion to receive and approve the Draft Audit Follow-up Report for the Citywide Purchase Card Program, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Audit Committee Page 4 December 9, 2015 – Minutes 4 AUDIT COMMITTEE BY-LAW CHANGES INTERNAL AUDIT Discuss Amending the Audit Committee By-Laws to be Consistent with Changes to Henderson Municipal Code Title 2, Chapter 2.50 Erin Flynn, Assistant City Attorney II, gave a brief summary of this item. She suggested amending the bylaws to add the election of a vice chairman to serve in the chairman’s absence. She noted that the changes will be reviewed at the meeting next month, and voted on at the subsequent meeting. 5 TERM EXPIRATION FOR AT-LARGE MEMBER FROM THE PUBLIC, BRYAN ALLISON INTERNAL AUDIT Discuss Need for Appointment of an At-Large Member from the Public with Term to Expire January 7, 2018 Mr. Allison agreed to serve on the Committee for another term. VI. Chairman/Member Comments There were no comments presented by the Chairman or Members. VII. Set Next Meeting The next meeting was set for March 16, 2016. VIII. Public Comments 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 5:32 p.m. Respectfully submitted, _______________________ April Parra, Council and Commission Services Reporter