Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE REGULAR MEETING MINUTES Wednesday, November 13, 2019 I. CALL TO ORDER Vice Chairman Dan K. Shaw called the City of Henderson Audit Committee meeting to order at 4:01 p.m. in the Mayor and Council Boardroom, 4th Floor, City Hall, 240 Water Street, Henderson, Nevada 89015. 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 Emailing List. PRESENT: Vice Chairman Dan K. Shaw Bryan Allison ABSENT: John F. Marz, Chairman (excused) STAFF: Jennifer Bessette, Internal Auditor Victoria Dasis, Deputy City Clerk Richard Derrick, City Manager/CEO Bristol Ellington, Chief Operations Officer/Deputy City Manager Jennifer Fennema, Director of Human Resources Jim McIntosh, Chief Financial Officer Paul McPhee, Senior Internal Auditor Brian Reeve, Assistant City Attorney III Javier Trujillo, Director of Government/Public Affairs Melissa Wright, City Auditor Nicholas Vaskov, City Attorney GUESTS: Thedrick Andres, Chief of Police Michael Denning, Deputy Police Chief Timothy Fassette, Senior Forensic Toxicologist David Furber, Manager of Police Financial Services Lori Grossman, Senior Administrative Analyst Tim O’Neill, Police Captain Kathleen Richards, Senior Public Information Officer Marc Schifalacqua, Senior Assistant City Attorney Rick Workman, Criminalistics Administrator Audit Committee Page 2 of 5 Wednesday, November 13, 2019 – Minutes III. PUBLIC COMMENT There were no public comments presented. IV. ACCEPTANCE OF AGENDA (Motion) Mr. Allison introduced a motion to accept the agenda as presented. The vote favoring approval was unanimous. Vice Chairman Shaw declared the motion carried. V. NEW BUSINESS NB-1 MINUTES AUDIT COMMITTEE MEETING AUGUST 21, 2019 INTERNAL AUDIT Audit Committee meeting minutes of August 21, 2019. (Motion) Mr. Allison introduced a motion to adopt the Audit Committee meeting minutes of August 21, 2019, as presented. The vote favoring approval was unanimous. Vice Chairman Shaw declared the motion carried. NB-2 DRAFT FOLLOW-UP AUDIT REPORT CITYWIDE TRAVEL AND TRAINING INTERNAL AUDIT Receive and approve draft follow-up audit report of Citywide Travel and Training. Melissa Wright, City Auditor, gave a PowerPoint presentation titled Citywide Travel and Training Follow-up Audit and stated the review period was from July 1, 2018, through October 31, 2019. She said 35 travel claims were reviewed for the follow-up audit and further explained the testing was primarily conducted after January 2019, due to the implementation of the new travel policy. Audit Committee Page 3 of 5 Wednesday, November 13, 2019 – Minutes Ms. Wright reviewed the following findings from the October 1, 2018, audit report and whether the recommendations for corrective action were implemented:  Travel and P-Card Policy  implemented  Travel Request and Authorization  implemented by Finance Department, not implemented by all City Departments  Per Diem Calculations  implemented by Finance Department, not implemented by all City Departments  Review of Claim Forms  not implemented  Car Rental Justification  implemented  Personal Vehicle Approval  implemented  Additional Fees  implemented by Finance Department, not implemented by all City Departments  Group Travel  implemented  Claim Form Signature  implemented. Richard Derrick, City Manager/CEO, recommended Bristol Ellington, Chief Operations Officer/Deputy City Manager, work with the City departments to improve their practices with the new travel policy. Mr. Derrick requested this item be brought back before the Committee at a later time so staff can work on implementing the above-mentioned findings. (Motion) Mr. Allison introduced a motion to approve the draft follow-up audit report of Citywide Travel and Training audit and to have the Citywide Travel and Training item brought back before the Audit Committee in nine months for review. The vote favoring approval was unanimous. Vice Chairman Shaw declared the motion carried. NB-3 DRAFT AUDIT REPORT HENDERSON POLICE DEPARTMENT CRIME LAB INTERNAL AUDIT Receive and approve draft audit report of the Henderson Police Department Crime Lab. Melissa Wright, City Auditor, gave a PowerPoint presentation titled Henderson Police Department Crime Lab Audit and stated the audit period was from July 1, 2016, through October 17, 2019. She said the audit objectives were to evaluate the efficiency and effectiveness of the Crime Lab’s operations for timely processing, appropriate documentation, and reporting of evidence; assess the adequacy of internal controls in the vault to collect, securely store, inventory, and return police evidence and personal property; and determine if the chain of custody for evidence is maintained in accordance with department policy, applicable best practices, and professional standards. Audit Committee Page 4 of 5 Wednesday, November 13, 2019 – Minutes After the presentation, Ms. Wright summarized various recommendations for improvement in the following areas:  Reporting structure  Case backlog/interlocal agreements  Crime Lab statistics and reporting  Communication between the Crime Lab and Prosecution  Property and evidence inventory  Physical environment of the vault. Regarding interlocal agreements, Vice Chairman Shaw inquired if the needs of Henderson takes priority over other entities. Thedrick Andres, Chief of Police, said the Police Department management will research and determine the best practice for this instance. He stated he is unaware of any conflicts or complaints of delayed evidence; however, he believes a process is necessary for efficiency. Vice Chairman Shaw inquired how staff calculates the services conducted by the Henderson Police Department to other entities. Tim O’Neill, Police Captain, stated the costs for services are detailed in a memorandum of understanding. He said there are hourly rates for analyses of controlled substances, latent prints, footwear, and tire tracks, which are well-above the pay of a full-time City employee with benefits. Following an inquiry by Vice Chairman Shaw regarding how much time the Police Department will need to implement the above-mentioned recommendations, Chief Andres requested 18 months. Chief Andres noted the organizational (reporting) structure recommendation will be implemented within six to nine months. Chief Andres commented that the physical environment of the vault will take time to assess. Bristol Ellington, Chief Operations Officer/Deputy City Manager, explained that the improvement recommendations will be applied within the 18-month time frame, and a status of the implementations will be presented to the Audit Committee. He stated he will be working closely with Chief Andres to establish an action plan to proceed with the implementations. (Motion) Mr. Allison introduced a motion to approve the draft audit report of the Henderson Police Department Crime Lab and to have a follow-up audit report in 18 months regarding the status of the implementations. The vote favoring approval was unanimous. Vice Chairman Shaw declared the motion carried. Audit Committee Page 5 of 5 Wednesday, November 13, 2019 – Minutes VI. CHAIRMAN\MEMBER COMMENTS There were no Chairman\Member comments presented. VII. SET NEXT MEETING The next meeting was set for a Tuesday in February of 2020. VIII. PUBLIC COMMENT There were no public comments presented. IX. ADJOURNMENT There being no further business to be discussed, Vice Chairman Shaw adjourned the meeting at 4:36 p.m. Respectfully submitted, ________________________ Victoria Dasis, Deputy City Clerk