Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE REGULAR MEETING MINUTES Monday, October 1, 2018 I. CALL TO ORDER Chairman John F. Marz called the City of Henderson Audit Committee meeting to order at 3:30 p.m. in the Mayor and Council Boardroom, 4th Floor, City Hall, 240 Water Street, Henderson, Nevada. II. CONFIRMATION OF POSTING AND ROLL CALL Melissa Wright, City Auditor, confirmed the City of Henderson Audit Committee meeting had been noticed in compliance with the Open Meeting Law by posting the Agenda three working days prior to the meeting at City Hall, the Multigenerational Center, the Whitney Ranch Recreation Center, Fire Station No. 86, the Nevada Public Notice website, and the City of Henderson website, and by mailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing List. PRESENT: Chairman John F. Marz Bryan Allison Councilman Dan Shaw STAFF: Melissa Bender, Assistant Court Administrator Jenifer Bessette, Internal Auditor Jeremy Cooley, Assistant City Attorney II Victoria Dasis, Deputy City Clerk Richard Derrick, City Manager/CEO Bristol Ellington, Chief Operating Officer/Asst. City Manger Stephanie Garcia-Vause, Chief Strategy Officer/Asst. City Manager Ashley Hanks, Assistant City Attorney Robert Herr, Chief Infrastructure Officer/Asst. City Manager Jim McIntosh, Finance Director Paul McPhee, Senior Internal Auditor Brian Reeve, Assistant City Attorney III Marc Schifalacqua, Senior Assistant City Attorney-Criminal Javier Trujillo, Director of Government Public Affairs Nicholas Vaskov, City Attorney Scott Vivier, Deputy Fire Chief Courtney Wright, Accounting Clerk Melissa Wright, City Auditor Bill Zihlmann, Court Administrator Audit Committee Page 2 of 5 Monday, October 1, 2018 – Minutes III. PUBLIC COMMENT There were no public comments presented. 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. V. NEW BUSINESS NB-1 MINUTES AUDIT COMMITTEE MEETING JUNE 20, 2018 INTERNAL AUDIT Audit Committee meeting minutes of June 20, 2018. (Motion) Councilman Shaw introduced a motion to adopt the minutes of June 20, 2018, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-2 DRAFT FOLLOW-UP AUDIT REPORT FIRE DEPARTMENT PURCHASING AND CONTRACTS INTERNAL AUDIT Receive and approve draft follow-up audit report of the Fire Department's Purchasing and Contracts. Melissa Wright, City Auditor, presented a summary of the follow-up report, and reviewed the corrective actions taken from the previous year’s audit. (Motion) Chairman Marz introduced a motion to receive and approve the draft follow-up audit report of the Fire Department’s Purchasing and Contracts. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Audit Committee Page 3 of 5 Monday, October 1, 2018 – Minutes NB-3 DRAFT AUDIT REPORT CITY ATTORNEY'S OFFICE CRIMINAL DIVISION INTERNAL AUDIT Receive and approve draft audit report of the City Attorney's Office Criminal Division. Melissa Wright, City Auditor, presented a summary of this item and stated there were no findings requiring recommendations on this audit. She commended the Criminal Division for their hard work. Ms. Wright elaborated on various technological improvements that increased the Criminal Division’s office efficiency and effectiveness, which included: a criminal case management system upgrade, Karpel; added automated processes; initiating criminal complaints; new templates for legal documents; and complete electronic case files availability. Councilman Marz requested that the Criminal Division report to Council on an annual basis for general updates. Nicholas Vaskov, City Attorney, stated he has set dates to shadow the Criminal Division to experience their daily procedures, and to establish a tighter integration with them. (Motion) Councilman Shaw introduced a motion to receive and approve the draft audit report of the City Attorney’s Office Criminal Division. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-4 DRAFT AUDIT REPORT CITYWIDE TRAVEL AND TRAINING INTERNAL AUDIT Receive and approve draft audit report of Citywide travel and training. Melissa Wright, City Auditor, presented a summary of this item and reviewed recommendations. Following a discussion regarding personal vehicle use for work-related travel, Ms. Wright stated she has expressed liability concerns with the City Attorney’s Office that should be taken into consideration for the new travel policy. Councilman Shaw inquired if there was a policy regarding travel rewards, and if the City or employee would benefit from them. Ms. Wright responded that she will find out if that should be included in the new travel policy. Audit Committee Page 4 of 5 Monday, October 1, 2018 – Minutes Jim McIntosh, Finance Director, stated they have recently created a redlined version of the new travel policy, and that it would need to be approved by Human Resources before it is final. In relation to employees using their personal vehicle for travel, Mr. Allison requested the policy regarding proof of automobile insurance be expedited. A discussion ensued regarding preferred rates with hotels and car rental businesses. Responding to a question regarding potential misuse of purchase cards, Mr. McIntosh stated that the cards have merchant category codes that are associated with the type of transaction. As an example, he said an inappropriate purchase at a liquor store or massage parlor would be denied. Chairman Marz inquired how much of last year’s travel expenses were for the legislative session. Javier Trujillo, Director of Government Public Affairs, responded that his team used about $240,000.00. Chairman Marz requested that the information learned at seminars or trainings be formally reported back to the employee’s department. He stated this would benefit fellow employees and be an overall added value to the City. Councilman Shaw inquired if there is a travel policy regarding personal add-ons or upgrades. Mr. McIntosh responded that, to his knowledge, the only instance known is early check-ins for flights. Ms. Wright noted that Finance reviews each travel expense report, and would be able to distinguish inconsistencies with the employee’s travel agenda. Regarding group travel, Chairman Marz recommended that staff review it if necessary before it occurs. Richard Derrick, City Manager/CEO, concurred and stated this matter will be discussed in the follow-up audit report. (Motion) Chairman Marz introduced a motion to receive and approve the draft audit report of the Citywide travel and training. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. VI. CHAIRMAN\MEMBER COMMENTS Melissa Wright, City Auditor, inquired if she needed to do a follow-up audit for the City Attorney’s Office Criminal Division since there were no recommendations for improvement. Chairman Marz responded that it would not be necessary. Audit Committee Page 5 of 5 Monday, October 1, 2018 – Minutes VII. SET NEXT MEETING The next meeting was set for December 19, 2018, at 4:00 p.m. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to be discussed, the meeting was adjourned at 4:23 p.m. Respectfully submitted, ________________________ Victoria Dasis, Deputy City Clerk