Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE REGULAR MEETING MINUTES WEDNESDAY AUGUST 21, 2019 I. CALL TO ORDER Chairman John F. Marz called the City of Henderson Audit Committee meeting to order at 4:00 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 and emailing a copy of the Agenda to everyone appearing thereon on the Agenda Master Mailing and Email List. PRESENT: Chairman John F. Marz Bryan Allison ABSENT: Councilman Dan Shaw (excused) STAFF: Thedrick Andres, Police Chief Jennifer Bessette, Internal Auditor Stacey Brownfield, Assistant City Clerk Michael Denning, Deputy Police Chief Richard Derrick, City Manager/CEO Bristol Ellington, Chief Operations Officer/Deputy City Manager Stephanie Garcia-Vause, Chief Strategy Officer/ Assistant City Manager Lori Grossman, Sr. Administrative Analyst Itzhak Henn, Captain Priscilla Howell, Director of Utility Services John Lotito, Lieutenant Jim McIntosh, Chief Financial Officer Paul McPhee, Senior Internal Auditor Russ Nelson, Acting Chief Information Officer Alyssa Perea, Deputy City Clerk Brian Reeve, Assistant City Attorney III Alyssa Rodriguez, Assistant Director of Public Works Javier Trujillo, Director of Gov./Public Affairs Melissa Wright, City Auditor Nicholas Vaskov, City Attorney Audit Committee Page 2 of 6 Wednesday, August 21, 2019 – Minutes GUESTS: David Furber, Manager of Police Financial Services Sandra McKinley, Archives and Records Operation Coordinator Nick McLemore, Administrative Manager John Moran, Fleet Ops and Maintenance Manager Joe Rajchel, General Services Maintenance Manager Laura Shearin, Manager Performance/Innovation III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (For Possible Action) (Motion) Mr. Allison 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 MARCH 6, 2019 INTERNAL AUDIT Audit Committee meeting minutes of March 6, 2019. (Motion) Chairman Marz introduced a motion to adopt the minutes of March 6, 2019, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-2 DRAFT FOLLOW-UP AUDIT REPORT CITY CLERK'S OFFICE CONTRACTS AND AGREEMENTS INTERNAL AUDIT Receive and approve draft audit report of the City Clerk's Office Contracts and Agreements. Melissa Wright, City Auditor, gave a PowerPoint presentation and provided a summary of the draft follow-up report the City Clerk’s Office Contracts and Agreements. She said the Audit Committees recommendation is that the City Manager’s Office remind City Departments to submit contract and agreement information in a timely manner. Audit Committee Page 3 of 6 Wednesday, August 21, 2019 – Minutes Responding to Chairman Marz’s inquiry regarding a database to keep track of all contracts and agreements for the City Clerk’s Office to easily follow up, Stacey Brownfield, Assistant City Clerk, and Sandra McKinley, Archives and Records Operation Coordinator, advised that there is a database to keep track, and they follow up with departments but do not always get responses back and in the eDocs system. (Motion) Mr. Allison introduced a motion to approve the draft follow-up audit report of City Clerk’s Office Contracts and Agreements, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-3 DRAFT AUDIT REPORT HENDERSON POLICE DEPARTMENT TRAFFIC CITATIONS INTERNAL AUDIT Receive and approve draft audit report of Henderson Police Department Traffic Citations. Melissa Wright, City Auditor, gave a PowerPoint presentation and provided a summary of the draft audit report for the Henderson Police Department Traffic Citations. She acknowledged that the Henderson Police Department has had no material deficiencies or non-compliance for the last three years of audits. Chairman Marz inquired about the 46-percent increase in traffic citations from the 2017 calendar year, to this 2018 calendar year. Thedrick Andres, Police Chief, advised the increase is due to having more officers back on patrol and targeting areas that are more problematic. Responding to an inquiry from Chairman Marz regarding the revenue generated from traffic citations, Jim McIntosh, Chief Financial Officer, stated for fiscal year 2018, $4.6 million dollars was generated, and a million-dollar increase is expected for fiscal year 2019. (Motion) Chairman Marz introduced a motion to approve the draft audit report of Henderson Police Department Traffic Citations, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Audit Committee Page 4 of 6 Wednesday, August 21, 2019 – Minutes NB-4 DRAFT AUDIT REPORT CITYWIDE PAYMENT CARD INDUSTRY (PCI) COMPLIANCE INTERNAL AUDIT Receive and approve draft audit report of Citywide Payment Card Industry (PCI) Compliance. Melissa Wright, City Auditor, gave a PowerPoint presentation and provided a summary of the draft audit report for the Citywide Payment Card Industry (PCI) Compliance. She said that the Audit Committee’s recommendation is that Information Technology continue to invest in adequate resources and work towards full compliance by the anticipated December 2020 date. Chairman Marz inquired when to expect to be in full compliance. Ms. Wright advised December 2020 is when they anticipate full compliance, and that compliance is a continual process and requires constant oversight even after full compliance is achieved. (Motion) Mr. Allison introduced a motion to approve the draft audit report of Citywide Payment Card Industry (PCI) Compliance, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-5 DRAFT AUDIT REPORT DEPARTMENT OF PUBLIC WORKS CITY FLEET INTERNAL AUDIT Receive and approve draft audit report of the Department of Public Works City Fleet. Melissa Wright, City Auditor, presented a PowerPoint presentation and provided a summary of the draft audit report for the Department of Public Works City Fleet. Responding to a question from Chairman Marz, Ms. Wright said special purpose vehicles include fire suppression vehicles and dump trucks. She also gave examples that transportation vehicles include: passenger vehicles, light duty trucks, vans, and every day vehicles used by City employees. Alyssa Rodriguez, Assistant Director of Public Works, advised on Public Works process regarding under-utilized vehicles. Audit Committee Page 5 of 6 Wednesday, August 21, 2019 – Minutes Chairman Marz inquired which department was responsible for the majority of the accidents. Ms. Wright advised she believes it is the Police Department as they have the bulk of the vehicles and are on the roads more often than other vehicles. Responding to an inquiry by Chairman Marz, Ms. Wright advised the City of Henderson towing bill was $43,000.00 for the audit period of fiscal years 2016 through March of 2019. Chairman Marz asked if there is a process to evaluate older vehicles in the fleet to show if those older vehicles are more expensive to maintain and would be smarter to sell or replace them. Alyssa Rodriguez, Assistant Director of Public Works, advised that there is a scoring process when vehicles are evaluated, and a specific report can be accessed so that if a vehicle needs to be replaced, they can speak with that department specifically. Chairman Marz suggested vehicles with less than 2,500 miles should not be purchased, but potentially leased. (Motion) Chairman Marz introduced a motion to approve the draft audit report for Department of Public Works City Fleet, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. NB-6 PROPOSED FISCAL YEAR 2020 AUDIT PLAN INTERNAL AUDIT Receive and approve proposed Fiscal Year 2020 Audit Plan. Melissa Wright, City Auditor, said the Audit Committee will be trying a new approach for the upcoming audit by doing a preliminary analysis, meet with City management team and assess which areas in the departments pose a higher risk. She advised they will be auditing the following areas in the upcoming year: Grant administrations city wide, software licensing within IT, purchasing returns and credits, and traffic citations. (Motion) Chairman Marz introduced a motion to approve the proposed Fiscal Year 2020 Audit Plan, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Audit Committee Page 6 of 6 Wednesday, August 21, 2019 – Minutes NB-7 AUDIT COMMITTEE BY-LAWS INTERNAL AUDIT Adoption of changes discussed at Audit Committee meeting of March 6, 2019, amending language for Audit Committee By-Laws. (Motion) Mr. Allison introduced a motion to adopt the Audit Committee bylaws, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. VI. CHAIRMAN\MEMBER COMMENTS There were no Chairman\Member comments presented. VII. SET NEXT MEETING The next meeting was set for November 20, 2019, at 4:00 p.m. VIII. PUBLIC COMMENT There were no public comments presented IX. ADJOURNMENT There being no further business to be discussed, Chairman Marz adjourned the meeting at 4:53 p.m. Respectfully submitted, ________________________ Alyssa Perea, Deputy City Clerk