HomeMy WebLinkAbout06-23-2005 Audit Committee Minutes0'12. I tOoD. o. ;27. 'i
Minutes
AUDIT COMMITTEE MEETING
City of Orange - WeimerRoom Thursday,
June 23, 2005 4:00 p.m.ATTENDEES:
AUDIT
COMMITTEE Voting
Members)Present
David
E. Sundstrom CPA, Chair Dwight
Nakata CPA David
Piper, CPA John
Sibley, Interim City Manager Jeanne
Arehart, CPA, Internal Audit Mgr.Absent
Eric
Woolery, CPA CITY
STAFF Richard
Jacobs, Finance Director EXTERNAL
AUDITORS Steve
Larson, CPA, Caporicci & Larson 1.
Call to Order - Chairman David Sundstrom called the meeting to order at 4: 1 0 p.m.2. Approval
of Minutes of December 16. 2004: Reviewed and approved as submitted.3. Status
of 2004-05 Financial Audit: Steven Larson, Caporicci & Larson. Mr. Larson reported
on status of the 04-05 audit. Interim audit work has begun. One of the
recommendations that will be made is that the City prepare a formal fraud policy,
which would detail the philosophy of the City, responsibilities of management and
staff, how staff would go about reporting the fraud, and what would be done upon the
report.
Mr. Larson said a recommendation will be made for the City to implement a
formalized written disaster contingency plan which details the actions required should
a disaster occur that affects critical computer operations.
Mr. Larson also informed the committee that this is the year that GASB 40 IS
implemented.
4. Status of 2005-06 Audit Plan: Jeanne Arehart. The Fair Labor Standards Act
Audit has been completed. This audit showed 70 findings but when placed into
categories of high, medium or low risk, only 20 of them were high or moderate risk. Fifty
were low or very low risk items. Of the 20 high or moderate findings, 10 of them
have been remedied or were remedied before the audit was over. Rich Jacobs stated
that we are moving forward with our on-line time and attendance
software, that employees complete, which should help alleviate payroll
Audits underway include the financial audit, a consultant who is doing a review of
our telephone bills, and an audit by the Transportation Corridor Agency for which we
collect fees on their behalf.
Jeanne has come up with a six month audit plan. During that time, the risk
assessment will be done and at the next meeting, the audit plan for the rest of the year
will be ready. The Public Works Department requested help with an audit process
regarding their sewer systems management plan. Lastly, Dave Rudat had asked the
Internal Auditor to help with an audit of the Orange County Division of the League of
California Cities. They had concerns regarding financial procedures and a few other
issues. Due to their limited financial resources, our Internal Auditor was volunteered
for this process. About 112 hours was spent doing a limited review procedure, which
was presented to their Executive Steering Committee.
An attachment was distributed showing a breakdown of where the Internal Auditor's
hours were spent.
5. 2005-06 Audit Plan: Jeanne Arehart. The time period of this plan is from July
to December. Audits in process are the Community Services Department procedures
for collecting donations at Concerts in the Park. The second one is the review of the
Fire Department's procedures for issuing permits for hazardous materials. The third
one is the review of the Community Development Department's process for
calculating and collecting fees on behalf of other departments and agencies. As far as
follow-up on prior year audits, the Internal Auditor is looking at the
Economic Development and Redevelopment Agency's performance based agreements, Police
false alarms billings and property tax
audit procedures.A breakdown of the Internal Auditor's hours and how they're proposed to
be spent during the six month period
was distributed.6. Draft of Audit Committee's Report to Council: The committee approved
the draft report as is. The report will be finalized and presented by Chairman Sundstrom
at the August
Council meeting.7. Public Comment: There was no
public comment.8. Adjournment: 4:55