07-22-2002 Special Called Regular Meeting

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• • MINUTES OF THE SPECIAL CALLED MEETING OF THE LA PORTE AUDIT COMMITTEE JULY 22, 2002 1. Call to Order The meeting was called to order by Chairman Chuck Engelken at 4:10 p.m. Members of Committee Present: Chairman Chuck Engelken, Howard Ebow and James Warren. Members of Committee Absent: None Members of City Council Present: Bruce Meismer and Barry Beasley. Members of City Executive Staff and City Employees Present: City Attorney Knox Askins, City Secretary Martha Gillett, Finance Director Cynthia Alexander and Assistant Finance Director Michael Dolby. Others Present: Louis Rigby. 2. Consider approval of minutes of Regular Meeting of City of La Porte Audit Committee held on June 12, 2002. Motion was made by Howard Ebow to approve the minutes as presented. A second by James Warren. The motion carried unanimously. 3. Receive report from Director of Finance on Credit Card transactions and travel policies. Director of Finance Cynthia Alexander provided the Committee with a report as outlined In her memorandum dated July 19, 2002 and attached spreadsheet report (see attached copy). In addition Ms. Alexander noted that she had received receipts totaling $614.00 since her report was provided to City Council. Ms. Alexander was questioned as to whether or not these transactions had been tested by the City's current auditing firm Null and Associates. Ms. Alexander indicated they had not due to the manner in which transactions are selected. She informed the committee these transactions had not been reviewed by the auditor. She further explained the auditor calls before the audit to request the beginning and ending check number for the entire year. They load the check numbers to a computer program that distributes a random sample list of transactions to be tested. None of these transactions showed up on the sample the auditor pulled. Ms. Alexander further explained the Finance department could request certain areas be reviewed if they feel they are questionable areas. Ms. Alexander was questioned as to whether or not the City had a credit card policy. She informed them, the City does not have a credit card policy but we should. She further stated that normal business practice would be to turn in documented receipts with credit card expenditures. Mr. Dolby noted that any purchases should follow the purchasing policy and procedures. He stated that credit card purchases do not mean you can bypass the purchasing policy and procedures. The committee questioned as to whether or not the purchasing guidelines stated there must be written documentation on purchases. Mr. Dolby informed the committee written documentation was required per the purchasing policy and procedures.