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HomeMy WebLinkAbout05-09-11 Regular Meeting of Fiscal Affairs Committee 2 CHUCK ENGELKEN, CHAIR JAY MARTIN Councilmember District 2 O A Councilmember District 5 0 DARYL LEONARD JOHN ZEMANEK Councilmember District 3 ca l ^� Councilmember At Large A TOMMY MOSER Councilmember District 4 _✓ MINUTES OF REGULAR MEETING OF FISCAL AFFAIRS COMMITTEE MAY 9, 2011 The Fiscal Affairs Committee met in regular meeting on May 9, 2011, at 5:00 p.m. La Porte City Hall Council Chambers, 604 West Fairmont Parkway, La Porte, Texas, to consider the following items of business: 1. Call to Order Chairman Chuck Engelken called the meeting to order at 5:03 p.m. Members present were: Councilmember District 3 — Daryl Leonard, Councilmember District 4 — Tommy Moser, Councilmember District 5 — Jay Martin, and Councilmember At -Large A — John Zemanek 2. Consider approval of minutes of the Regular Meeting held on March 28, 2011, of Fiscal Affairs Committee — P. Fogarty Committee member Zemanek moved to approve the minutes of the Regular Meeting held on March 28, 2011, of the Fiscal Affairs Committee as presented. Committee member Leonard seconded. MOTION PASSED. Ayes: Chairman Engelken, Committee members Moser, Leonard and Alternate members Martin and Zemanek. Nays: None 3. Receive and review Second Quarter (FY 2011) Investment Report — M. Dolby Finance Department Treasurer Shelley Wolny presented the Second Quarter FY2011 Investment Report. 4. Receive and review months of November and December (FY 2010) and January and February (FY 2011) Purchasing Card Expenditures — M. Dolby Finance Director Michael Dolby presented the Purchasing Card Expenditures for the months of November and December of 2010 and January and February of 2011. Chairman Engelken remarked that he likes the breakdown of the vendors in the report. Chairman Engelken indicated he would like to see staff follow up on any Committee questions and provide answers to the entire Fiscal Affairs Committee. The Committee finds this report informative, and they would like to continue having it for their review. Page 1 of 2 May 9, 2011, Fiscal Affairs Committee Minutes 5. Review and discuss proposed changes to the Investment Policy of the City of La Porte — S. Wolny Finance Department Treasurer Shelley Wolny presented a summary of the proposed changes to the Investment Policy and stated they will present the proposed changes to City Council at the May 23, 2011, Council Meeting. The four proposed changes which were discussed are as follows: 1) Address requirements or acceptance, substitution and release of collateral; 2) Reference of independent third -party safekeeping for investment securities; 3) Outline reporting requirements for the quarterly investment securities; and 4) Guaranteed Investments (GIC's) as an authorized investment. 6. Consider approval or other action regarding March 2011 mileage reimbursement for Mayor Rigby — Chairman Engelken Committee member Leonard moved to approve the March and April 2011 mileage reimbursement for Mayor Rigby as presented. Committee member Zemanek seconded. MOTION PASSED. Ayes: Chairman Engelken, Committee members Moser, Leonard and Alternate members Martin and Zemanek. Nays: None 7. Administrative Reports — R. Bottoms City Manager Ron Bottoms said it is a good idea to go out for RFP for auditors, and that the Fiscal Affairs Committee should begin the interviewing process as soon as possible. 8. Committee comments A. Matters appearing on agenda B. Recognition of community members, city employees, and upcoming events C. Inquiry of staff regarding specific factual information or existing policy 9. Adjourn There being no further business, Committee Member Leonard moved to adjourn the meeting. Seconded by Committee Member Moser. The Meeting was adjoumed at 5:28 p.m. • - ctfully submitted, to• cam Patrice Fogarty, City $ cretary Passed and approved on the 13 day of June, 2011. Chairman Chuck E elken Page 2 of 2 May 9, 2011, Fiscal Affairs Committee Minutes 4 BIDDERS LIST Sealed RFP #11509 - Professional Auditing Services Pattillo, Brown and Hill, LLP KPMG Peat Marwick, LLP 401 West Highway 6 700 Louisiana #3100 Waco, TX 76710 Houston, TX 77002 Attn: Chris Pruitt Attn: Craig Collins Ph: 254 - 772 -4901 Ph: 713- 319 -2000 Fax: 254 - 772 -4920 Fax: 713- 319 -2041 cpruitt(a�pbhcpa.com craigcollins(a7kpmg.com Belt Harris Pechacek, LLLP Null - Lairson, P.C. 3210 Bingle Rd #300 3411 Richmond #500 Houston, TX 77055 Houston, TX 77046 Attn: Robert Belt Attn: Tom Pedersen Ph: 713- 263 -1123 Ph: 713- 621 -1515 Fax: 713- 263 -1550 Fax: 713- 621 -1570 rbelt @txauditors.com tedersen @null- Iairson.com McCall Gibson and Company, PLLC Weaver - Tidwell 13100 Wortham Center Dr 24 Greenway Plaza #1800 Houston, TX 77065 Houston, TX 77046 Attn: Michael McCaII Attn: Mark Lund Ph: 713 -462 -0341 Ph: 713- 850 -8787 Fax: 713 -462 -2708 Fax: 713- 850 -1673 mgsb @mgsbplIc.com mark.Iund(cr�weaverllp.com Deloitte and Touche, LLP Sanderson, Knox and Company, LLP 1111 Bagby #4500 130 Industrial Blvd #130 Houston, TX 77002 Sugarland, TX 77478 Attn: Renee Vega Attn: Alan Sandersen Ph: 713- 982 -2000 Ph: 281 - 242 -3232 Fax: 713- 982 -2001 Fax: 281 - 2423252 rvega(a�deloitte.com asandersen @sktx.com Meeting Handout EVALUATION WORKSHEET AUDIT RFP NAME OF AUDIT FIRM: SCORE MAX PTS 1. Demonstrated technical expertise and experience 30 2. Adequacy of staffing, sampling techniques, analytical procedures, etc. 25 3. References and qualifications 25 4. Completeness and conformity of the reply of the RFP 10 5. Cost 10 F inal Score /Result 0 (Highest Possible Final Score = 100) Evaluator Certification: 1 certify the above point values reflect my best independent judgment of the merits of the noted audit firm's proposal. Printed Name Signature Position Auditor Interview Questions 1. Tell us a little about your firm? a. Size? b. Number of CPAs? c. Number of CPAs with municipal experience? d. Diversity of Staff? e. Background of those assigned to our engagement? 2. Explain the testing of transactions for accounts receivable, cash, payroll and accounts payable. Explain some of the tests that auditors perform to insure that the revenues and expenditures are accurate. 3. For how many municipalities has your firm performed a financial audit and expressed an independent auditor's opinion? 4. How will you handle audit staff and client conflicts? Explain your philosophy for issuing letters to management addressing significant deficiencies, material weaknesses and other control deficiencies. 5. Do you have a software program to assist the client in preparing the CAFR? 6. Explain how GASB 54 affects our city and what steps should we take to implement the new standard?