Audit Committee

MINUTES Audit Committee of Roanoke City Council Location: Emergency Operations Center Noel C. Taylor Municipal Building, Room 159 North Date: December 21, 2020 Time: 1:00 p.m. to 1:36 p.m. Attendees: Audit Committee Member Present (Y/N) Anita Price (Chair) Y Joseph Cobb (Vice-Chair) Y Michelle Davis (Member) Y Sherman Lea (Ex-Officio) Y Drew Harmon, Municipal Auditor Tim Spencer, City Attorney Sherman Stovall, Deputy City Manager Brent Robertson, Assistant City Manager Amelia Merchant, Director of Finance Dawn Hope Mullins, Assistant Municipal Auditor Neil Holland, Building Commissioner 1. Call to Order: Ms. Price called the meeting to order at 1:00 p.m. and welcomed everyone. 2. Approval of the Minutes from the September 2, 2020 Meeting: Ms. Price asked if there were any comments on or corrections to the September 2, 2020, meeting minutes. Hearing none, Mr. Cobb made a motion to file the minutes as written; Ms. Davis seconded. The minutes were received and filed. 3. Council Expenditures Audit: This was the annual review of City Council expenditures for Fiscal Year 2020. Mr. Harmon noted there were no findings and expenditures were within budget. He opened the floor to questions or comments. Hearing none, the report was received and filed. 4. Building Inspections Audit: Mr. Harmon began by recognizing Neil Holland, the City’s Building Inspector. He continued by noting that this is a fairly technical report and expressing his appreciation for the expertise needed by the December 21, 2020 Page 2 of 4 City’s inspectors and plan reviewers. They serve an important public safety function. Overall, audit results were very good. One area of concern was expired permits, which also seems to be an issue nationally. Additionally, elevators and cross-connection inspections are also challenging, as building owners and third-party inspectors play a large role. Management provided action plans to address these concerns given work volume and staffing levels. Mr. Cobb asked if there is an in-house way to track outstanding work by the person who has requested services or if there is a mechanism to track progress. Mr. Harmon responded that there is a system which allows for customer interaction. Mr. Holland added that once a request is submitted, employees can monitor progress in the system. The 10-day deadline starts once an inspection is scheduled. Ms. Price thanked Mr. Holland and his department for the service they provide in keeping citizens safe. She asked if the department is currently fully staffed. Mr. Holland responded that they are not and the office has been consistently understaffed for the past three years. It has been a struggle to find applicants who will accept job salary. Once trained, employees can leave for better paying positions. Ms. Price noted that she has heard similar comments from other City departments. Mr. Harmon reported that Auditing worked with Building Inspections and Human Resources to look at this issue. It is a difficult issue to address as it is hard to find applicants with the required knowledge who are not already working in construction. Additionally, more complex projects in the City make the job more difficult than in surrounding localities. Mr. Cobb asked how long the current available positions have been open. Mr. Holland responded that there is currently one vacant position. He has hired two employees this year and one person resigned shortly afterwards, going to another locality. Mr. Stovall noted that turnover is a constant challenge due to a variety of reasons, including the shift in generational views on long-term employment. This has affected the ability to retain employees across all areas. Compensation is an ongoing concern and management has tried to maintain salary equity as much as possible by looking at certifications, etc. The defined benefit pension plan is the best benefit the City has to offer; however, employees often trade that for a small salary increase elsewhere. Ms. Price encouraged management to continue promoting awareness of the many benefits available to City employees. Mr. Cobb asked how understaffing affects inspection schedules and departmental goals. Mr. Holland responded that turnover effects everything they do. It can be a struggle to meet demand, keep on schedule, and maintain certified staff legally required to perform the work. As a result, supervisors who should be reviewing work are instead acting as inspectors. Ms. Price commented that the work is vital to public safety and again thanked Mr. Holland and his staff. Mr. Holland expressed his appreciation for Mr. Harmon and Brian Pendleton, who performed the audit. He stated that Mr. Pendleton listened to his concerns and went the extra mile to learn departmental processes in order to provide a fair evaluation. December 21, 2020 Page 3 of 4 Hearing no further questions or discussion, the report was received and filed. 5. Transportation Landscape Maintenance Follow-Up: The original landscape maintenance audit was undertaken a few years ago and this was the second follow-up engagement. These audits provide a greater appreciation for everything involved in maintaining the right-of-way and streets. All remaining findings were cleared, in large part based on the successful implementation of ViewWorks, a new work-order system. He noted that the new system brings their data management into the 21st century. Additionally, the department hired a Geographic Information Specialist to make sure the system is used to its fullest ability. By the end of the period under review, much more data was being captured and the department was on their way to having reliable data with which to manage the function. Mr. Harmon then spoke about the challenges associated with providing full-time and seasonal employees all of the safety training required by OSHA. The pandemic prompted development of video presentations for new employee orientation. Once videoed, employees can view the training at a time convenient to their starting date and schedule. Management plans to video required OSHA training so that new employees can view the videos on their first day and understand how to work safely before going into the field. Ms. Price commented that this is another crucial behind-the-scenes aspect of daily work. Hearing no further questions or discussion, the report was received and filed. 6. APA Review of FY20 Collections and Remittances: This is an annual audit undertaken by the Virginia Auditor of Public Accounts (APA). Mr. Harmon noted that he is always in close contact with the Treasurer’s Office on items as they arise. Three concerns were noted this year. Management’s responses appeared appropriate and were included with the report. Ms. Price asked if the findings have been addressed; Mr. Harmon confirmed that they had. Mr. Cobb asked if there was any penalty related to the Sheriff’s fees not being remitted timely. Mr. Harmon responded that he did not believe there was and that he would double check after the meeting and get back to him. Ms. Price asked if there were any other questions or comments. Hearing none, the report was received and filed. 7. Delay in Filing Required FY20 Financial Reports: Mr. Harmon explained that the City’s audited financial statements were due to the Auditor of Public Accounts (APA) by December 15th. The FY20 financial statements are not yet finished and the City is required to provide public notice and inform the Audit Committee. December 21, 2020 Page 4 of 4 Ms. Merchant noted that the current goal is to complete the statements by December 31st, depending on auditor availability. Mr. Harmon added that if the audit is completed prior to December 31st, a virtual meeting of the Audit Committee might be scheduled before the new year. Ms. Price asked if this is the first time the City has missed the APA deadline. Mr. Harmon responded that the City was also late in 2017, when the Accounting Supervisor and Director of Finance resigned. Ms. Price asked if there are any negative consequences associated with missing this date. Mr. Harmon responded that the city will be noted as having been late in the APA annual report to the General Assembly. Mr. Lea asked if there is anything of which the committee should be aware as the calendar year-end approaches. Mr. Harmon explained he prepares the annual audit risk assessment in the January through March timeframe, and that he had no concerns to report at the moment. Mr. Lea asked if Auditing is still receiving support at the schools. Mr. Harmon stated that Auditing’s relationship with School management is very productive and that the School Audit Committee is very supportive. Mr. Lea commented that this is important to know, especially with the upcoming City Council committee transitions. He thanked Mr. Harmon and his staff for their work, especially given the challenging issues that came up during the year. Mr. Lea also thanked Ms. Price for her work as Audit Committee Chair. Hearing no further questions or discussion, the report was received and filed. 8. Other Business: End of terms in office for Ms. Price and Ms. Davis Ms. Davis expressed her amazement at the amount of daily work City staff managed during her four years on City Council. She appreciates everyone’s hard work and the dignity and respect with which staff treat the City, and she feels the City is in good hands. Mr. Cobb and Ms. Price concurred. Mr. Harmon thanked Ms. Price and Ms. Davis for their service on the Audit Committee. He added that Ms. Price has been the chairperson for the last three years and Ms. Davis was appointed when she first started on Council. Mr. Harmon conveyed appreciation for their support. Ms. Price expressed her gratitude, thanked everyone and noted that she was saddened that people do not have a better appreciation for how well the City works. The next regularly scheduled Audit Committee meeting is slated for March 3, 2021, at 4:00 PM. 9. Adjournment: Ms. Price adjourned the meeting at 1:36 p.m.