Audit Committee Meeting

MINUTES Audit Committee Meeting Wednesday, October 29, 2025 at 2:00 PM Carnegie Town Hall, 235 West 10th St., Sioux Falls, South Dakota 57104 1. Call To Order Present: Committee Chair David Barranco, Committee Member Miranda Basye, Committee Member Karla Quarve, Committee Member Doug Reed, Committee Member Jennifer Sigette, Committee Member Eric Walser (via telecom) Absent: Committee Member Rich Merkouris Meeting called to order at 2 p.m. by Audit Committee Chair David Barranco. The committee members and presenters introduced themselves at this time. 2. Approval of Minutes A. Wednesday, April 2, 2025 A motion was made by Committee Member Sigette and seconded by Committee Member Quarve to approve the Wednesday, April 2, 2025 Audit Committee Meeting Minutes. Voice vote to approve. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. 3. Reports and Updates A. 25-02 Landfill Cash Handling Ryan Lauseng, Internal Auditor, presented the report on the cash handling audit of the landfill (presentation and report attached to the agenda). He provided background of the landfill and its services, and covered the scope, methodology results of the audit; and some recommendations that were shared with Landfill Management and their response. A motion was made by Committee Member Sigette and seconded by Committee Member Reed to approve the 25-02 Landifill Cash Handling Report. Voice vote to approve. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. B. 25-03 Capital Improvement Program Lauseng introduced Lisa Kretz, Internal Audit and Compliance Director, CliftonLarsonAllen (CLA). Kretz (via telecom) presented the report on the Capital Improvement Program (presentation and report attached to the agenda). Kretz gave a brief background on the program, and spoke on the objectives and scope of the audit, and the solitary finding. She also reviewed the recommendations and an area of opportunity for improvement. Following the presentation, question asked by the committee were answered by Kretz and Scott Rust, Procurement Officer, Finance. A motion was made by Committee Member Quarve and seconded by Committee Member Reed to approve the 25-03 Capital Improvement Program report. Voice vote to approve. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. C. Eide Bailly Master Service Agreement Cody Papke, Chief Accountant, Finance, gave a brief overview of the Master Services Agreement, and explained that the contract is not necessarily for a dollar amount, but more procedural. He then introduced John Hagen, Audit Manager, Eide Bailly. Hagen (via telecom) gave a detailed explanation of the service agreement. He also mentioned that the contract would be a "one-time" signing, but then there would be a statement of work to be signed annually for the audit. Papke commented that contract did not need to go to the full Council, but maybe approval from the Audit Committee so that the contract could be advanced. Sigette commented that the agreement had been reviewed by the Legal Department. Papke concurred and mentioned that Attorney Graham Oey had reviewed the agreement. Questions asked by the committee were answered by Lauseng and Hagen. A motion was made by Committee Member Basye and seconded by Committee Member Sigette to approve the Eide Bailly Master Service Agreement. Voice vote to approve. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. D. Audit Committee Involvement with Internal Audit Proposal Sigette gave a background on the current internal audit process, and gave a detailed explanation of the proposed process and intent.  Committee Member Eric Walser commented that the audit calendar should be based on risk. Jake Taylor (via telecom), Principal, CLA, gave his perspective of the proposed process and how he thinks more can be achieved in a year. Committee Member Miranda Basye spoke about the proposed process being an operational commitment and the Audit Committee possibly voting on the proposed process. Committee Member Doug Reed gave kudos to Sigette and others for putting the proposed process together, and stated that once the process is finalized, it should be published on the Audit Committee website. Sigette spoke about transparency and wanting to public to be able to see what audits were being conducted and the results. Barranco thanked the Audit Committee members for their participation on the Audit Committee, and then he spoke on some benefits of the proposed process, and his thoughts on it being appropriate to vote on the proposed process. A motion was made by Committee Member Sigette and seconded by Committee Member Basye to approve the proposed Audit Committee Internal Audit Process. Voice vote to approve. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. 4. Committee Member Remarks There were none. 5. Public Comment There was none. 6. Adjournment A motion was made by Committee Member Reed and seconded by Committee Member Basye to adjourn the meeting at 2:40 p.m. Voice vote to adjourn. 6 Yes: Barranco, Basye, Quarve, Reed, Sigette, Walser; 0 No: (None). Motion Passed. Jermery J. Washington, City Clerk