Audit Committee Meeting

MINUTES Audit Committee Meeting Thursday, October 13, 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 Member Rose Grant, Committee Chair Alex Jensen Absent: Committee Member Rich Merkouris, Committee Member Greg Neitzert Committee Chair Alex Jensen called the meeting to order at 4 p.m. 2. Approval of Minutes A. Thursday, August 25, 2022 A motion was made by Committee Member Buckneberg and seconded by Committee Member Barranco to approve the minutes. Voice vote to approve. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. 3. Reports and Updates A. 21-01F Spectra Food Service Agreement Follow-Up by Ryan Lauseng The follow-up audit assessed the status of four recommendation made in the original Audit 21-01. Findings from the follow-up show that all four recommendations have been implemented. No action was taken on the follow-up audit. B. 21-05 ASM Global Management Agreement by Ryan Lauseng The objective of the audit is to determine if ASM Global is compliant with the major requirements of the Facilities Management Agreement 17-4229. To complete the audit, staff: interviewed ASM management and staff; interviewed City staff involved in the contract monitoring process; documented and evaluated current management contract monitoring; reviewed established City of Sioux Falls ordinances; reviewed written policies and procedures over ASM’s management and monitoring  processes; reviewed the 2019 External Audit performed by Eide Bailly; and, reviewed items in Munis and Tyler Content Management (TCM). The audit finds no deficiencies in account, budget, reporting, and insurance requirements. A motion was made by Committee Member Barranco and seconded by Committee Member Buckneberg to submit Audit Report 21-05 to the City Council. Voice vote to submit. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. C. 21-06F Damage Recovery Follow-Up by Emily Newell The follow-up audit assessed the status of four recommendation made in the original Audit 21-06. Findings from the follow-up show that two of the three recommendations have been implemented, with the last being in progress. No action was taken on the follow-up audit. D. 22-01 Golf Management Agreement by Ryan Lauseng The objectives of the audit are to determine: 1) if LGM is compliant with the scope of services requirements; 2) if LGM is compliant with the permit and insurance requirements; 3) if LGM is compliant with the funding, budget, and reporting requirements; and, 4) if the City is compliant with the scope of services requirements. The audit recommends: that LGM begin the insurance renewal process earlier in the year, so an insurance certificate or other evidence of renewal can be sent to the City within the required timeframe; the City implement an exit box notification on any of its website links that takes users to LGM’s websites, stating that the user is leaving the City’s website; and, the City adds LGM as an additional certificate holder so they will receive a certificate of the City’s property insurance each year it is renewed. A motion was made by Committee Member Goettsch and seconded by Committee Member Buckneberg to submit Audit Report 22-01 to the City Council. Voice vote to submit. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. E. 22-02 Utility Billing Cash Handling by Emily Newell The objective of the audit is to determine if cash collections are safeguarded, deposited in a timely manner and accurately recorded. The audit makes five recommendations. First, that Finance and Utility Billing develop a specific policy or procedure document to govern credit card transactions for the department which includes specific dollar amount thresholds for credit card signatures as well as records retention guidelines for storing signed receipts. Next, a written policy or procedure be established which dictates a regular timeframe to update the safe combination, including verifying the appropriate individuals have access to the combination and room. Third, the safe should be locked whenever it is not in use to  comply with best practices and strengthen internal controls over the physical security of cash assets. During the day, items that are utilized regularly but of lower risk could be potentially stored outside the safe. Fourth, an approval process for refunds and adjustments should be developed based upon the dollar amount of the transaction, segregating the duty of the cashier processing the adjustment and a second individual to review the documentation and approve. This process should also be formally documented in department procedures. Lastly, management reviews for change funds and cash drawers should be conducted on the schedule required by the Utility Billing “OTC Cash Receipts and Cash Drawers” procedure and the “Cash Transaction – Change Fund” procedure. A motion was made by Committee Member Barranco and seconded by Committee Member Buckneberg to submit Audit Report 22-02 to the City Council. Voice vote to submit. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. 4. Public Comment There was none. 5. Executive Session A. Discussing information listed in subdivisions 1-27-1.5(8) and 1-27-1.5(17) pursuant to SDCL 1-25-2(6). A motion was made by Committee Member Barranco and seconded by Committee Member Buckneberg to enter Executive Session at 4:32 p.m. Roll call vote to enter Executive Session. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. A motion was made by Committee Member Goettsch and seconded by Committee Member Barranco to exit Executive Session at 5:07 p.m. Voice vote to exit Executive Session. 5 Yes: Barranco, Buckneberg, Goettsch, Grant, Jensen; 0 No: (None). Motion Passed. 6. Adjournment The meeting adjourned at 5:08 p.m. Thomas M. Greco, City Clerk