Audit Committee Meeting

MINUTES Tuesday, May 17, 2011 Audit Committee Meeting 4:00 PM Sioux Falls City Council Carnegie Town Hall 235 West 10th Street Members Present: Sue Aguilar, James Entenman, Greg Jamison, Rex Rolfing, Anne Oppegard, and Jason Forbes Members Absent: Joseph Marsh Staff Present: Debra A. Owen, City Clerk/Chief of Council Operations; Jamie L. Palmer, CMC, Assistant City Clerk; Rich Oksol, Lead Internal Auditor; and Tim Buseman, Internal Auditor Guests: Donn Hill and Michelle Erpenbach 1. Call To Order Greg Jamison called the meeting to order at 4:00 p.m. 2. Review and approve minutes from last committee meeting A. April 26, 2011 A motion was made by Rex Rolfing and seconded by James Entenman to approve the meeting minutes from April 26, 2011. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 3. Welcome New Committee Member A. Jason Forbes 4. Selection of New Committee Chair A motion was made by Sue Aguilar and seconded by Rex Rolfing to nominate Greg Jamison as Audit Committee Chair. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 5. Discussion on Procurement of External Audit Services for 2011-2013 (current agreement with Eide Bailly is expiring) Discussion followed regarding the External Auditor agreement which has expired. A new agreement must be issued. Discussion followed regarding opening an RFP process for services. Oksol stated that he will email a copy of the proposed RFP to the committee members for their review before he meets with Purchasing to finalize the document. A motion was made by Rex Rolfing and seconded by Anne Oppegard to begin the RFP Process for External Audit Services for 2011-2013. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 6. Review audit report: A. 11-06 Fraud Hotline Activity Oksol briefly reviewed the Fraud Hotline Audit Report. Discussion followed regarding allowing vendors and/or the public access to the fraud hotline. It is currently only available to city employees at this time. Oksol said that he could call the liaison at The Network to inquire what the additional cost would be to open the hotline to the public and vendors. He will report the information, regarding additional cost and the scope of the service, back to the committee at the next meeting. A motion was made by James Entenman and seconded by Sue Aguilar to approve the 11-06 Fraud Hotline Activity Report. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 7. Update to committee members on status of current audit projects. Oksol reported that Internal Auditor Tim Buseman is currently working with the Arena Orpheum Management Audit report and Internal Auditor Jeff Weber is currently working with the Police Cash Handling Audit report. Both reports should be available to the Audit Committee members at their next meeting in July. 8. Request from Lead Internal Auditor to attend Association of Certified Fraud Examiner's Training in Council Bluffs, IA on June 20, 2011 for purposes of continuing education. Oksol reviewed the travel request information. A motion was made by Council Member Rex Rolfing and seconded by Council Member Anne Oppegard to approve travel request. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 9. Executive Session A. Personnel Issue under SDCL 1-25-2(1) A motion was made by Rex Rolfing and seconded by Sue Aguilar to enter Executive Session at 4:25 p.m. for the purpose of a Personnel Issues under SDCL 1-25-2(1). Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. Discussion followed regarding a Personnel Issue under SDCL 1-25-2(1). A motion was made by Rex Rolfing and seconded by Anne Oppegard to exit Executive Session at 5:08 p.m. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 10. Open Discussion There was none. 11. Adjournment A motion was made by James Entenman and seconded by Rex Rolfing to adjourn at 5:08 p.m. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. Jamie L. Palmer, CMC Assistant City Clerk