Audit Committee Meeting

MINUTES Audit Committee Meeting Thursday, October 12, 2023 at 3:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 1. Call To Order Present: Committee Chair David Barranco, Committee Member Tony Goettsch, Committee Member Rich Merkouris, Committee Member Greg Neitzert, Committee Member Karla Quarve, Committee Member Eric Walser Absent: Committee Member Alex Jensen Audit Committee Chair David Barranco welcomed the two new citizen members, Eric Walser and Karla Quarve. 2. Approval of Minutes A. Wednesday, May 17, 2023 A motion was made by Committee Member Neitzert and seconded by Committee Member Goettsch to approve the Minutes of Wednesday, May 17, 2023. Voice vote to approve. 6 Yes: Barranco, Goettsch, Merkouris, Neitzert, Quarve, Walser; 0 No: (None). Motion Passed. 3. Reports and Updates A. 22-04 Vendor Setup and Maintenance by Ryan Lauseng, Internal Auditor Ryan Lauseng, Internal Auditor, presented the 22-04 Vendor Setup and Maintenance report (presentation attached). Discussion followed regarding: vendors; fraud and fraud prevention; ACH transfers and release of information from banks; scam awareness. A motion was made by Committee Member Neitzert and seconded by Committee Member Merkouris to approve Audit Report 22-04. Voice vote to approve. 6 Yes: Barranco, Goettsch, Merkouris, Neitzert, Quarve, Walser; 0 No: (None). Motion Passed. B. Internal Audit Co-Source Firm Selected by Ryan Lauseng, Internal Auditor  Lauseng presented the Internal Audit Co-Sourcing report (presentation attached). Discussion followed regarding: the process being a change for the department; location of the Co-Sourcing firm Clifton Larson Allen and their access to City's Munis system; risk assessments and the Audit Plan for next year; the City Council's and Audit Committee's approval of Audit Plans; how the audit process will be different next year; the formation of the Audit Plan; the Request for Proposal (RFP) process; the difficulty in choosing between the top two Co-Sourcing applicants. A motion was made by Committee Member Merkouris and seconded by Committee Member Quarve to recommend that the City Council move foward with a Co- Sourcing agrement with CLA (Clifton Larson Allen). Voice vote to recommend. 6 Yes: Barranco, Goettsch, Merkouris, Neitzert, Quarve, Walser; 0 No: (None). Motion Passed. 4. Committee Member Remarks Greg Neitzert welcomed the two new members. He expressed his gratitude for them being willing to serve and for their audit expertise. Karla Quarve asked about the tracking process for audit follow-ups. Tony Goettsch thanked Lauseng for all of his work. Rich Merkouris spoke about onboarding the new members; and the 2023 Audit Plan, which Lauseng is following. Barranco referenced a comment that Merkouris made at the Tuesday's night City Council Meeting, regarding the importance of telling family member's that you love them, because it shows them that we're doing the right thing in a loving and ethical manner. He said that is a great purpose of the Audit Committee to act for the City Council as something that is a force for openness and transparency . 5. Public Comment There was none. 6. Adjournment A motion was made by Committee Member Merkouris and seconded by Committee Member Neitzert to adjourn at 3:23 p.m. Voice vote to adjourn. 6 Yes: Barranco, Goettsch, Merkouris, Neitzert, Quarve, Walser; 0 No: (None). Motion Passed. Denise D. Tucker, Assistant City Clerk