Audit Committee Meeting

MINUTES Audit Committee Meeting Thursday, August 25, 2022 at 4:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 1. Call To Order Present: Committee Member David Barranco, Committee Member Dean Buckneberg, Committee Member Tony Goettsch, Committee Chair Alex Jensen, Committee Member Rich Merkouris, Committee Member Greg Neitzert Absent: Committee Member Rose Grant Committee Chair Alex Jensen called the meeting to order at 4 p.m. 2. Approval of Minutes A. Monday, March 28, 2022 A motion was made by Committee Member Neitzert and seconded by Committee Member Goettsch to approve the minutes. Roll call vote to approve. 6 Yes: Barranco, Buckneberg, Goettsch, Jensen, Merkouris, Neitzert; 0 No: (None). Motion Passed. 3. Reports and Updates A. Intro to Audit/Audit Committee Handbook by Emily Newell Newell provided an overview of the Office of Internal Audit for the benefit of new members. She explained what Internal Audit is; the differences between internal and external audits; history of the City's Office of Internal Audit; key components of the Internal Audit program; and the Office's mission and vision. A short discussion followed and Newell stated that she would furnish examples of Internal Controls at a future meeting. B. 21-07 340B Pharmacy Agreement by Ryan Lauseng A motion was made by Committee Member Neitzert and seconded by Committee Member Buckneberg to submit the report to the City Council. Roll call vote to submit. 6 Yes: Barranco, Buckneberg, Goettsch, Jensen, Merkouris, Neitzert; 0 No: (None). Motion Passed.  C. 21-06 Damage Recovery Billing by Emily Newell A motion was made by Committee Member Neitzert and seconded by Committee Member Buckneberg to submit the report to the City Council. Roll call vote to submit. 6 Yes: Barranco, Buckneberg, Goettsch, Jensen, Merkouris, Neitzert; 0 No: (None). Motion Passed. D. 21-03F Midco Cash Handling Follow-Up by Ryan Lauseng The objective of the follow-up audit is to assess the status of audit recommendations and management action plans previously noted in the Midco Aquatic Center Cash Handling Audit Report 21-03, which was issued July 2021. Four of the five recommendations made in the original audit have been implemented, with the remaining recommendation in progress. E. 20-02F Bid-Tax Follow-Up by Emily Newell There were three objectives to the follow-up audit: 1) Determine if adequate controls are in place to ensure the accuracy of the BID tax collection and remittance processes from the hotels in the Business Improvement District; 2) Evaluate the City of Sioux Falls’ BID tax collection and remittance processes; and, 3) Determine if adequate controls are in place to ensure expenditures of BID tax revenue are appropriate and align with the purpose of the BID tax. Four of five recommendations evaluated were implemented; one is in progress. F. 21-04F Travel Expenditures Follow-Up by Emily Newell The purpose of the follow-up Audit was to assess the status of management action plans for the recommendations previously noted in the Travel Expenditures Audit Report 21-04, which was issued in June 2021. Five of the recommendations have been implemented and one is partially implemented. G. Audit Plan Update by Ryan Lauseng Lauseng provided an update on the 2022 Audit Plan by showing which audits were completed, those expected to be complete by the end of the year, and those which will likely be listed as carryover audits on the 2023 plan. Facility Security, Vendor Setup and Maintenance, Reconciliation of AR Systems into Munis, Construction Project, and Employee Reimbursements are expected to be carryover audits for the 2023 Audit Plan. The remaining items will be complete this year or early in 2023. Discussion followed about the feasibility and need of outsourcing some audits to complete the plan. 4. Committee Member Remarks Newell was congratulated for receiving the Certified Internal Auditor designation. Committee Member Rich Merkouris asked about the development of the 2023 Audit  Plan and possibly auditing of the multicultural center as it will be transitioning to a new management structure. Committee Member Dean Buckneberg stated that he will include cyber security as a recommendation for the 2023 Plan. 5. Public Comment There was none. 6. Adjournment Committee Chair Alex Jensen adjourned the meeting at 5:10 p.m. Thomas M. Greco, City Clerk