Audit Committee Meeting

Note: Minutes are considered ‘draft’ until approved at the next meeting. MINUTES Thursday, July 21, 2016 Audit Committee Meeting 4 PM Sioux Falls City Council Carnegie Town Hall 235 West 10th Street Members Present: Council Member Rex Rolfing, Audit Committee Member Jason Forbes, Audit Committee Arnold Martens, Council Member Rick Kiley, Council Member Greg Neitzert, and Council Member Michelle Erpenbach (arrived at 4:15 p.m.) Members Absent: Audit Committee Member Seth Peterson Staff Present: Rich Oksol, Internal Audit Manager; Ashley Stroschein, Internal Auditor; Kim Schroeder, Internal Auditor; Tamara Jorgensen, MMC, Assistant City Clerk; and Jim David, Legislative/Operations Manager Note: The audio for the first 84 seconds was inadvertently muted. 1. Call To Order Committee Chair Rex Rolfing called the meeting to order at 4 p.m. 2. Approval of Minutes A. Meeting held on Thursday, April 28, 2016 A motion was made by Council Member Rick Kiley and seconded by Council Member Jason Forbes to approve the minutes. Vote to approve: Roll Call: Yeses, Rex Rolfing, Jason Forbes, Arnold Martens, Rick Kiley, Greg Neitzert, 5. Noes, 0. Motion Passed. 3. Reports and Updates A. External Audit Results - City of Sioux Falls 2015 Financial Statements Keith Severson, Communication Partner For Eide Bailly LLP, provided opening remarks and introductions of their Audit Service team. Derek Flanagan, Presentation Partner For Eide Bailly LLP, reviewed the following PowerPoint slides: Audit Recap/Standards; Financial Statements; and Federal Audit. Discussion followed. B. Review Audit Report 16-02 - Information Technology General and Application Controls Ashley Stroschein, Internal Auditor, reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by Committee Member Arnold Martens and seconded by Council Member Rick Kiley to accept this audit report and recommend it for presentation to the City Council. Rolfing called for a voice vote and all members present voted yes. Motion Passed. C. Review Audit Report 15-06 - Citywide Accounts Receivable Kim Schroeder, Internal Auditor, reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by Council Member Greg Neitzert and seconded by Council Member Rick Kiley to accept this audit report and recommend it for presentation to the City Council. Rolfing called for a voice vote and all members present voted yes. Motion Passed. Section 3E was heard at this time, see item for action taken. D. Review Audit Report 15-05 - Storm Drainage Rich Oksol, Internal Audit Manager, reviewed the report, detailed responses, recommendations and management responses. Discussion followed. A motion was made by Council Member Michelle Erpenbach and seconded by Council Member Rick Kiley to accept this audit report and recommend it for presentation to the City Council. Rolfing called for a voice vote and all members present voted yes. Motion Passed. E. Special Audit Request: City Agreement with the Sioux Falls Development Foundation Rich Oksol, Internal Audit Manager, reviewed the report, detailed responses, recommendations and management responses. Discussion followed.  A motion was made by Council Member Michelle Erpenbach and seconded by Committee Member Jason Forbes to accept this audit report and recommend it for presentation to the City Council. Rolfing called for a voice vote and all members present voted yes. Motion Passed. 4. Open Discussion Discussion was held regarding the Audit Committee meeting schedule for the rest of the year. The process for determining the 2017 Audit Schedule was discussed. 5. Adjournment Committee Chair Rex Rolfing adjourned the meeting at 5:05 p.m. Tamara Jorgensen, MMC Assistant City Clerk