Audit Committee Meeting

Note: Minutes are considered ‘draft’ minutes until approved or amended at the next scheduled meeting MINUTES Tuesday, July 26, 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, Joseph Marsh, and Jason Forbes. Members Absent: None. Staff Present: Debra A. Owen, City Clerk/Chief of Council Operations Tamara Jorgensen, CMC, Assistant City Clerk Rich Oksol, Lead Internal Auditor Guests: Michelle Erpenbach, Vernon Brown, Scott Rust, Tracy Turbak 1. Call To Order Committee Chair Jamison called the meeting to order at 4:00 p.m. 2. Review and approve minutes from Tuesday, May 17, 2011 A motion was made by James Entenman and seconded by Rex Rolfing to approve the minutes dated Tuesday, May 17, 2011. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 3. Review Report 11-02 - Street Operational Audit Lead Internal Auditor Rich Oksol reviewed the report, detailed responses, recommendations and management responses. Owen asked for additional information regarding costs. Discussion followed. A motion was made by Sue Aguilar and seconded by Anne Oppegard to accept this audit report and recommend it for presentation to the City Council. Jamison called for a voice vote and all members present voted yes. Motion Passed. 4. Review Report 11-04 - Arena/Orpheum Theater Contract Audit Lead Internal Auditor Rich Oksol reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by Rex Rolfing and seconded by Sue Aguilar to accept this audit report and recommend it for presentation to the City Council. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 5. Review Report 11-05 - Police Cash Handling Audit Lead Internal Auditor Rich Oksol reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by Anne Oppegard and seconded by Rex Rolfing to accept this report and recommend it for presentation the City Council for review. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 6. Review Report 11-07 - CAFR Review Lead Internal Auditor Rich Oksol reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by James Entenman and seconded by Sue Aguilar to accept this audit report and recommend if to presentation to the City Council. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. 7. Discussion on Fraud, Waste and Abuse Hotline Protocol Lead Internal Auditor discussed the protocol for the Fraud, Waste and Abuse Hotline. He said that not many calls are received but thought it would be a good time to assess the need for a city wide fraud policy or protocol. Discussion followed. Discussion followed about referring this item to a city council committee for further review so that a protocol and policy can be developed. Aguilar recommended that it be sent to the Fiscal Committee. Jamison asked Oksol to provide copies of the draft versions of the protocol and policies to the Fiscal Committee. Oksol stated that he would talk to Vernon Brown, Fiscal Committee Chair, to get this item added to a future Fiscal agenda. 8. Request For Proposals for External Audit Services Oksol gave an update on the RFP process for external audit services. Proposals were received from McGladderly and Eide Bailey. Discussion followed about making a final decision between the two proposals. Scott Rust, Finance, reviewed the process for handing an RFP with the committee. Aguilar, Oppegard, Jamison, Owen, Oksol, Rust and the Finance office will work together to review the proposals. Discussion followed about the process to make the final decision which will be made by resolution at a city council meeting. 9. Open Discussion Oksol said that Elected Official guide books were ordered for the audit committee members to be used as a resource. Owen asked about the current Eide Bailly contract regarding additional charges. Discussion followed regarding the process for handling additional charges in the future. 10. Adjournment A motion was made by Sue Aguilar and seconded by Anne Oppegard to adjourn at 5:08 p.m. Jamison called for a voice vote on that motion and all members voted yes. Motion Passed. Tamara Jorgensen, CMC Assistant City Clerk