Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE REGULAR MEETING MINUTES Wednesday, September 27, 2017 I. CALL TO ORDER Chairman John F. Marz called the City of Henderson Audit Committee meeting to order at 3:02 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 Councilman Dan Shaw Bryan Allison EXCUSED: None STAFF: Greg Blackburn, Assistant City Manager (arrived at 3:16 p.m.) Richard Derrick, Chief Financial Officer Bristol Ellington, Assistant City Manager (arrived at 3:06 p.m.) Tedie Jackson, Official Records Reporter Jim McIntosh, Finance Director Bob Murnane, City Manager (arrived at 3:28 p.m.) Brian Reeve, Assistant City Attorney III Josh Reid, City Attorney (arrived at 3:14 p.m.) Laura Shearin, Business Manager Melissa Wright, City Auditor GUESTS: Jenifer Bessette, Internal Auditor Scott Vivier, Deputy Fire Chief Shawn White, Fire Chief Bill Zihlmann, Court Administrator City of Henderson Audit Committee Page 2 of 4 Wednesday, September 27, 2017 – Minutes III. PUBLIC COMMENT There were no comments presented by the public. IV. ACCEPTANCE OF AGENDA (Motion) Councilman Shaw introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Chairman Marz welcomed Councilman Shaw to the Audit Committee. V. NEW BUSINESS NB-1 MINUTES AUDIT COMMITTEE MEETING JUNE 14, 2017 INTERNAL AUDIT Audit Committee Meeting Minutes of June 14, 2017. (Motion) Chairman Marz introduced a motion to adopt the minutes of June 14, 2017, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-2 DRAFT AUDIT REPORT FIRE DEPARTMENT CONTRACTING AND PURCHASING ACTIVITIES INTERNAL AUDIT Receive and Approve Draft Audit Report of Fire Department Contracting and Purchasing Activities. Melissa Wright, City Auditor, presented a summary of this item. Via PowerPoint presentation, she reviewed the following slides: Background; Objectives, Scope, and Methodology; Expenditure Trends; Service and Supplies Expenditures; Trend Analysis; Audit Observations; Purchasing Policy and Procedure; Purchase Orders; City Council Approval; and Summary. Responding to a question as to why incidents are increasing, Chief White said the increase is attributed to more population, medical facilities increased, and aging population. A brief discussion ensued regarding vendors who supply specialty equipment, and that blanket purchase orders are now in place for those vendors. City of Henderson Audit Committee Page 3 of 4 Wednesday, September 27, 2017 – Minutes Chairman Marz suggested there should be a procedure to give departments flexibility to allow the Chief Financial Officer or City Manager to sign off on certain amounts, knowing the cumulative spending for the year. Mr. McIntosh noted they are working on a policy to address this issue. (Motion) Councilman Shaw introduced a motion to approve the Draft Audit Report of the Fire Department Contracting and Purchasing Activities. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-3 IN-HOUSE COLLECTION RESULTS UPDATE HENDERSON MUNICIPAL COURT INTERNAL AUDIT Provide an update on Henderson Municipal Court's in-house collection results. Melissa Wright, City Auditor, reported a follow-up of the Municipal Court audit on internal collection results, and reviewed a spreadsheet showing collections tracked on a monthly basis. Mr. Zihlmann explained that clerical staff was assigned to conduct outreach to people in an effort to collect fines. They intend to provide additional data regarding traffic cases, percentages of adjudications, financial penalties, and time frames. Councilman Shaw asked staff to obtain data showing improvements of not utilizing outside collection services. Chairman Marz asked how many hours of community service do people get, and what type of community service they are doing. Mr. Zihlmann replied that this data can be provided at a future meeting. Staff will work with Laura Shearin to create measurements. NB-4 PROPOSED CHANGE TO FISCAL YEAR 2017 AUDIT PLAN INTERNAL AUDIT Approve Proposed Change to the Fiscal Year 2017 Audit Plan by Postponing the Police Department Audit to another Fiscal Year. City of Henderson Audit Committee Page 4 of 4 Wednesday, September 27, 2017 – Minutes Melissa Wright, City Auditor, presented a summary of this item, and noted the Police Department audit has been postponed due to the appointment of the new police chief. Staff recommends the Police Department audit be presented in the 2019 Audit Plan, which will give the new police chief time to evaluate the department. Councilman Shaw suggested coordinating with the new police chief regarding focusing the audit on certain areas. VI. CHAIRMAN\MEMBER COMMENTS Chairman Marz thanked staff for their hard work. VII. SET NEXT MEETING The next meeting was set for December 7, 2017, at 2:00 p.m. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to come before the Committee, the meeting was adjourned at 3:35 p.m. _______________________ Tedie Jackson, Official Records Reporter