Texas State Library and Archives Commission
Monday, September 17, 2001
The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Monday, September 17, 2001, at 11:05 a.m. at the Sam Houston Regional Library and Research Center in Liberty, Texas.
Audit Committee Present:
Sandra Pickett, Chairman
Chris A. Brisack
Peggy D. Rudd, director and librarian
Edward Seidenberg, assistant state librarian
Manuel Alvarez, director, Information Resources Technologies
Ava Smith, director, Talking Book Program
Michael Heskett, director, State and Local Records Management
Deborah Littrell, director, Library Development
Donna Osborne, director, Administrative Services
Chris LaPlante, director, Archives and Information Services
Regina Miles, executive assistant
Russell Gregorczyk, Jansen & Gregorczyk
Chairman Pickett convened the meeting at 11:05 a.m.
1. AUDIT REPORT ON THE GRANT AND CONTRACT MANAGEMENT SYSTEM.
Russell Gregorczyk, certified public accountant, Jansen & Gregorczyk, gave an overview of the Grant and Contract Management System. The following were some key findings:
• Texas State Library has an equitable and fair procurement process.
• They did not find any non-compliance with federal grant requirements.
• They do not think there is an effective way to ensure that all grant funds are expended in the way they are supposed to be, which may be because there is not a reporting system where grantees report in detail what they spend funds on.
• Possible solution: On-site monitoring program.
Donna Osborne and Peggy D. Rudd provided further information on the System. Commissioner Carr noted the following discrepancy in Mr. Gregorczyk's report: TexTreasures scoring in files did not match scoring distributed by staff in final grant list; Beverley Shirley commented, stating that her staff are working to locate the discrepancy. Chairman Pickett noted the following discrepancy in the report: A TexTreasures grant applicant was marked as "ineligible" but the grant was still issued; Ms. Shirley commented, stating that the issue has been resolved. Mr. Carr asked for an elaboration and Ms. Osborne responded with further information.
Carolyn Palmer moved that the Audit Committee make a recommendation to the Full Commission to accept the audit report; Carr seconded. Motion passed.
2. AUDIT REPORT ON THE READER SERVICES DEPARTMENT OF THE TALKING BOOK PROGRAM.
Russell Gregorczyk explained that since he and his staff did not have the resources or time to do a complete audit of the Talking Book Program, his staff did a comprehensive audit of the Reader Services department of the Program. Mr. Gregorczyk noted that a redraft of the audit was done in order to correct some information that was deemed to be invalid.
Mr. Gregorczyk discussed details of the audit. Ava Smith, director, Talking Book Program, further elaborated on the activities of the Program.
Commissioner Carr asked about the Program's backlog problem; Ms. Smith addressed his concern, stating that her staff will be working additional hours over the next few months to improve the situation. In response to further questions from Mr. Carr, Ms. Smith explained that she plans to meet with staff to prioritize problems.
Commissioner Carr asked whether the Talking Book Program could work with the Lighthouses for the Blind. Ms. Smith explained that the Talking Book Program's new public awareness coordinator is in the process of establishing contacts with outside entities.
Commissioner Carr moved that the Audit Committee make a recommendation to the Full Commission to approve the audit report; Commissioner Palmer seconded. Motion passed.
3. AUDIT REPORT ON GRANTS TO THE NORTH TEXAS REGIONAL LIBRARY SYSTEM.
Mr. Gregorczyk and Deborah Littrell, director, Library Development Division, gave an update on the grants to the North Texas Regional Library System. A few key findings were:
• The system had an effective budget monitoring system.
• The system's financial reports were very accurate.
• The system's business plan was not up-to-date.
Commissioner Sanders asked for clarification about the "cash reserve requirement" issue. Mr. Gregorczyk responded, stating that the reserve is there in case funds are needed (due to a delay in the receipt of federal funds, for example).
Commissioner Melton asked about the fundamental relationships between the Board and its staff and the Texas State Library and Archives Commission. Ms. Rudd and Ms. Littrell addressed the questions that were raised.
Commissioner Palmer moved that the Audit Committee recommend to the Full Commission the approval of the audit report; Commissioner Carr seconded. Motion passed.
4. REPORT ON THE STATUS OF FY 2000 INTERNAL AUDIT RECOMMENDATIONS.
Mr. Gregorczyk reported on the recommendations. There were four audits, three of which were presented in the packets. For the fourth audit (El Paso), a separate follow-up report was issued earlier in the year.
This item required no action.
5. RECOMMENDATION ON THE INTERNAL AUDITING SERVICES CONTRACT AWARD FOR FY02.
Donna Osborne, director, Administrative Services Division, explained that the agency had posted a request for proposal for an internal audit services for FY02, and the agency received three proposals. One of the three did not sign their offer and was therefore considered "non-responsive." This prevented the agency from accepting their offer. The agency asked the remaining two to give their best and final offer. In the evaluation of the two proposals, there was a four-point difference in the scoring and a $10,280 difference in fees. Ms. Osborne recommended Jefferson-Wells to the commission, due to the firm's strong proposal.
Commissioner Sanders raised a question about the qualifications of Jefferson-Wells. Chairman Pickett concurred with Ms. Sanders, stating that the issue should be addressed before the commission accepts the recommendation.
Commissioner Brisack asked for clarification on the "realistic time estimates of each major segment." Ms. Osborne explained that the Gregorczyk proposal was scored lower because the firm (which has more experience with the agency than does Jefferson-Wells), did not allocate their hours as efficiently as Jefferson-Wells.
Mr. Gregorczyk mentioned to the group that he was unaware that Jefferson-Wells performed auditing services.
Commissioner Carr moved that the Audit Committee recommend to the Full Commission the acceptance of the Jefferson-Wells proposal; there was no second. Motion failed.
Commissioner Palmer moved that the Audit Committee table a recommendation to the Full Commission until the concerns that were raised earlier are addressed, and then bring the issue back at the next commission meeting; Commissioner Pickett seconded. Commissioners Palmer and Pickett voted in favor of the motion; Commissioner Carr voted against the motion. Motion passed.
With no further business, Chairman Pickett adjourned the meeting at 1:00 p.m. and called for a short break before the Full Commission meeting.
Peggy D. Rudd Director and Librarian