07-22-2002 Special Called Regular Meeting

Browse Search

• • Page 2 -Audit Committee Minutes -July 22, 2002 The committee questioned as to why there was not a credit card policy. Mr. Dolby advised he was not sure why there was not a policy and he understood these cards had been used since 1986. He further stated the guidelines were never developed by the purchasing department and they would be the appropriate department to develop such policy. This type of policy is a purchasing policy that would be enforced by the finance department once implemented by purchasing. The committee questioned Ms. Alexander and Mr. Dolby if any receipts were lost or misplaced by the finance department. They replied to their knowledge they had never lost any receipts and had never been written up by the auditors for losing any documentation or receipts. They noted they handle over 100,000 transactions per year and to their knowledge they have never lost any related documents. It was noted that the audits would reflect if they had lost documents. 4. Consider retaining an independent audit firm to review credit card transactions, and submit a report with recommendations. Council member Warren noted he felt there were questionable transactions noted in the report and the City should hire an outside independent auditor to review this matter. Chairman Chuck Engelken noted he agreed with Mr. Warren. Mr. Engelken noted he had talked with HGAC and they provided him with a list of independent auditors (see attached list). Mr. Engelken noted he feels the committee needs to identify any problems, if there is a problem lets address it promptly and professionally. He wants to make sure the citizens of La Porte are proud of the process followed. Mr. Engelken noted the audit should identify weaknesses, review current policies, put policies in place and the travel policy be reviewed. It was also noted that staff should respond to some of the questionable transactions. Mr. Beasley noted we should interview and meet with audit firms to show them what the City has done to date and let them provide us with a recommendation for the scope of work. Bruce Meismer suggested that we consider having the Department of Public Safety review this matter. He noted they are familiar with the operations of local government. He noted this might be a less expensive options since they are not a for profit organization. Bruce Meismer also suggested the committee consider hiring an outside person to oversee the work of staff rather than having the consultant do all the work. This might be a more cost effective means. Ms. Alexander noted that Mr. Dolby is a C.P.A. and has extensive audit experience. He would be very capable of conducting an internal audit and prepare recommended policies. Mr. Dolby noted his only concern is he would not be independent since he is an employee of the City of La Porte. The committee questioned whether or not a bid processed need to be followed to hire an auditing firm. The City Attorney advised this process did not have to be bid since the City would be hiring an auditor to perform a professional service. He noted the committee should interview firms and then select the appropriate firm based on the scope of work agreed upon and costs.