Audit Committee

CITY OF HENDERSON AUDIT COMMITTEE REGULAR MEETING MINUTES Wednesday, September 22, 2021 I. CALL TO ORDER Chairman John F. Marz called the City of Henderson Audit Committee meeting to order at 3:03 p.m. in the Westgate Conference Room, 1st Floor, City Hall, 240 South 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. PRESENT: Chairman John F. Marz Bryan Allison Councilman Dan K. Shaw STAFF: Jenifer Bessette, Senior Internal Auditor Bristol Ellington, Chief Operating Officer/Deputy City Manager David Furber, Senior Internal Auditor Robert Herr, Chief Infrastructure Officer/Assistant City Manager Jonathan Lal, Internal Audit Intern Jim McIntosh, Chief Financial Officer Paul McPhee, Senior Internal Auditor Janet Sandifer, Deputy City Clerk Brooke Stream, Human Resources Director Nicholas Vaskov, City Attorney Melissa Wright, City Auditor GUESTS: Adrian Edwards, Water/Wastewater Operations Manager Lori Grossman, Senior Administrative Assistant Priscilla Howell, Department of Utility Services Director Bryan Mortensen, Water/Wastewater Operations Manager Russell Nelson, Information Technology Assistant Director Harvey Starrett, Utility Maintenance Manager Gregory Sutter, Water/Wastewater Manager - Field Operations Stuart Swapp, Acting Water Operations Manager III. PUBLIC COMMENT There were no public comments presented. Audit Committee Meeting Page 2 of 5 Wednesday, September 22, 2021 – Minutes 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 1 MINUTES AUDIT COMMITTEE MEETING JUNE 16, 2021 INTERNAL AUDIT Audit Committee meeting minutes of June 16, 2021. (Motion) Councilman Shaw introduced a motion to adopt the minutes of June 16, 2021, as presented. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. 2 DRAFT AUDIT REPORT DEPARTMENT OF INFORMATION TECHNOLOGY SOFTWARE LICENSES INTERNAL AUDIT Receive and approve draft audit report of Department of Information Technology Software Licenses. Melissa Wright, City Auditor, gave a PowerPoint presentation and provided a summary of the draft audit report of Department of Information Technology Software Licenses. Ms. Wright provided recommendations for the Department of Information Technology Software Licenses, which included: reviewing all department policies and procedures to determine which ones are applicable to City employees outside of the department and update accordingly; work with the Human Resources Department to ensure all City employees are made aware of any department polices and procedures determined to be applicable to them and sign an acknowledgement form confirming they have read and understand them; and have managed software assets audited annually by the Department of Information Technology to ensure the software list is up to date. Audit Committee Meeting Page 3 of 5 Wednesday, September 22, 2021 – Minutes Following an inquiry from Mr. Allison regarding whether iPhone and Android applications were reviewed, Ms. Wright said this audit was strictly limited to computer software licenses. Responding to an inquiry from Councilman Shaw regarding whether cell phones fall under the Department of Information Technology’s (DoIT) area of control, Russell Nelson, DoIT Assistant Director, stated his department assists other departments by purchasing cell phones in bundles to reduce costs; however, the individual cell phone accounts are not monitored. Mr. Nelson said the DoIT loads some software onto iPad devices that connect to the City’s network, which is monitored by the DoIT. Mr. Nelson said policies are in place regarding the proper use of department-owned devices, which is managed by the departments. Following an inquiry from Chairman Marz regarding ways we could eliminate reoccurring non-compliance throughout the departments, Ms. Wright said when a department is made aware of areas in which they are lacking, corrective steps are made. She also said administrative policies are reviewed on a consistent basis and employees are required to electronically sign to acknowledge they have read and understood the document. Brooke Stream, Human Resources Director, stated some DoIT policies may have been applicable to some employees outside of the department but may not have been provided to other employees; therefore, Human Resources determines the best way to ensure the full workforce is aware of the polices as well. (Motion) Councilman Shaw introduced a motion to approve the draft audit report of Department of Information Technology Software Licenses. The vote favoring approval was unanimous. Chairman Marz declared the motion carried. Audit Committee Meeting Page 4 of 5 Wednesday, September 22, 2021 – Minutes 3 DRAFT AUDIT REPORT DEPARTMENT OF UTILITY SERVICES WATER SERVICES INTERNAL AUDIT Receive and approve draft audit report of Department of Utility Services Water Services. Melissa Wright, City Auditor, gave a PowerPoint presentation, provided a summary of the draft audit report of Department of Utility Services Water Services. Ms. Wright provided recommendations for the Department of Utility Services Water Services, which included: reviewing Water Operations work orders periodically to ensure they are accurate and complete; investigate any variances noted between work orders and the fiscal year master asset summary, document causes, and make corrections; establish a standard for closing work orders; management review weekly Maximo reports and ensure work orders are closed timely; management to periodically review Maximo asset listing to ensure inspections and preventative maintenance (PM) are performed or include documentation that no PM is required; ensure staff are current on all City training requirements; and develop additional standard operating procedures, as needed. Priscilla Howell, Department of Utility Services Director, explained how the work orders are configured in relation to parent and child work orders, which are one unit comprised of different components. She said the outcome of this audit made her confident that all the work is being completed; however, without a consistent approach to how they’re reporting the work that has been done, knowledge transferability may be lost as new employees are hired. (Motion) Councilman Shaw introduced a motion to approve the draft audit report of Department of Utility Services Water Services. 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 January 20, 2021, at 3:00 p.m. Audit Committee Meeting Page 5 of 5 Wednesday, September 22, 2021 – Minutes 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 3:26 p.m. Respectfully submitted, ________________________ Janet Sandifer, Deputy City Clerk