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CHUCK ENGELKEN, CHAIR <br />Councilmember District 2 <br />DARYL LEONARD <br />Councilmember District 3 <br />TOMMY MOSER <br />Councilmember District 4 <br />JOHN ZEMANEK <br />Councilmember At -Large A <br />Alternate Member 1 <br />JAY MARTIN <br />Councilmember District 5 <br />Alternate Member 2 <br />MINUTES OF MEETING OF FISCAL AFFAIRS COMMITTEE <br />AUGUST 2, 2011 <br />The Fiscal Affairs Committee met on August 2, 2011, at 3:00 p.m. in the La Porte City Hall Council <br />Chambers, 604 West Fairmont Parkway, La Porte, Texas, to consider the following items of business: <br />1. Call to Order <br />Chairman Chuck Engelken called the meeting to order at 3:01 p.m. Committee Members present <br />were Councilmember Tommy Moser; Councilmember Jay Martin, Alternate Member 2; and <br />Councilmember John Zemanek, Alternate Member 1. Absent: Councilmember Daryl Leonard. <br />Councilmember Dottie Kaminski was also present at the meeting. <br />2. Conduct interviews of Auditing Firms for Independent Auditor Services — M. Dolby <br />The Fiscal Affairs Committee interviewed the following firms for independent auditor services: <br />Null - Lairson, BKD, Weaver - Tidwell, Sandersen, Knox and Company, and Hereford, Lynch, Sellars <br />and Kirkham. The firms were asked the following questions: <br />1. Size of firm; number of CPAs; number of CPAs with municipal experience; diversity of <br />staff; and background of those assigned to the engagement. <br />2. Explain the testing of transactions for accounts receivable, cash, payroll and accounts <br />payable. Explain some of the tests that auditors perform to ensure revenues and <br />expenditures are accurate. <br />3. For how many municipalities has the firm performed a financial audit and expressed an <br />independent auditor's opinion. <br />4. How will the firm handle audit staff and client conflicts, explaining the philosophy for <br />issuing letters to management addressing significant deficiencies, material weaknesses <br />and other control deficiencies. <br />5. Does the firm have a software program to assist the client in preparation of the CAFR? <br />6. Explain how GASB 54 affects the City of La Porte and what steps should be taken to <br />implement the new standard. <br />The committee took a break at 4:39 p.m. and reconvened at 4:43 p.m. <br />Interviews concluded at 5:40 p.m. <br />Per Chairman Engelken, the recommendation of the Fiscal Affairs Committee is to contract with <br />Null - Lairson as the auditing firm for independent auditing services. <br />Page 1 of 2 <br />August 2, 2011, Fiscal Affairs Committee Minutes <br />