Texas State Library and Archives Commission
Monday, September 22, 2003
The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Monday, September 22, 2003, at 12:30 p.m. at the Lorenzo de Zavala State Archives and Library building in Austin, Texas.
Audit Committee Present:
Elizabeth Sanders, Audit Chairman
Chris A. Brisack
Sandra J. Pickett
Peggy D. Rudd, director and librarian
Michael Heskett, acting assistant state librarian; director, State and Local
Manuel Alvarez, director, Information Resources Technologies
Ava Smith, director, Talking Book Program
Deborah Littrell, director, Library Development
Beverley Shirley, director, Library Resource Sharing
Diana Houston, acting director, Archives and Information Services
Erica McKewen, communications officer
Regina Miles, executive assistant
Gwen Land, internal auditor, Jefferson Wells International
Pat Tuohy, Central Texas Library System
Martha Doty Freeman, Texas Historical Records Advisory Board
Chris LaPlante, TSLAC retiree
Linda Buie, TSLAC retiree
Doris Drummond, TSLAC retiree
Ed Seidenberg, TSLAC retiree
Peggy Oakley, TSLAC retiree
Mary Thames Bundy, South Texas Library System
A quorum being present, Audit Chairman Sanders convened the meeting at 12:37 p.m.
1. DISCUSS AND APPROVE THE INTERNAL AUDIT OF THE TSLAC GRANTS MADE TO THE CENTRAL TEXAS LIBRARY SYSTEM.
Gwen Land addressed the commission and summarized the scope and objectives of the internal audit, as well as the results, including:
Areas for Improvement:
- The accuracy of statistical information (entered into the CTLS statistics worksheet) might be enhanced if more staff reviewed it. Currently, only the preparer reviews the data entered for accuracy.
- CTLS has an inadequate method of recording consultants' time related to various projects.
- CTLS consultants have conducted workshops with as few as one participant. CTLS should develop measures to determine the most cost-effective way to provide training.
- CTLS hasn't documented internal procedures for preparing various TSLAC reports, or the procedures have not been updated for the current processes.
- CTLS has not researched discrepancies in indirect costs charged by the City of Austin.
- Documented procedures for the physical inventory and subsequent reconciliation of fixed assets have not been developed by CTLS.
- Appropriate budgeting and budget monitoring systems for the TSLAC grants have been established. There is documentation of amounts purchased, as well as documentation of the budget transfers requiring TSLAC approval.
- CTLS submits the USRs and quarterly FSRs in a timely manner.
- An adequate segregation of duties has been established for all areas within CTLS as well as for the accounting process. Existing mitigating controls, including the City of Austin/CTLS account reconciliation, have been established, and a review and approval by someone other than the preparer has enhanced the control environment.
Audit Chairman Sanders thanked Ms. Land for the internal audit report. Ms. Land noted that they're in the process of compiling and preparing an annual report to send to the Office of the State Auditor. They've also begun work on the first audit for FY2004 (Indirect Administrative Costs Charged by Grants and Direct Administration Project Costs for Library Systems).
Commissioner Holland moved to accept the internal audit report; Commissioner Brisack seconded. Motion passed.
2. REPORT ON THE POST-PAYMENT AUDIT CONDUCTED BY THE TEXAS COMPTROLLER OF PUBLIC ACCOUNTS.
Audit Chairman Sanders tabled this agenda item.
With no further business, Audit Chairman Sanders adjourned the meeting at 12:50 p.m.
Peggy D. Rudd
Director and Librarian