Texas State Library and Archives Commission

Monday, August 6, 2007 11:00 a.m.

Audit Committee Minutes

The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Monday, August 6, 2007 at 11:00 a.m. in room 314 of the Lorenzo de Zavala State Archives and Library Building, 1201 Brazos Street, in Austin, Texas.


Audit Committee Present:
Cruz G. Hernandez, vice chairman

Sally Reynolds
Audit Committee Absent:
Sandra G. Holland, chairman
Commissioners Present:
Sandra Pickett, chairman

Diana Rae Hester Cox

Sharon T. Carr

Martha Doty Freeman
Commissioners Absent:
None
Staff Present:
Peggy D. Rudd, director and librarian

Edward Seidenberg, assistant state librarian

Ava Smith, director, Talking Book Program

Deborah Littrell, director, Library Development

Beverley Shirley, director, Library Resource Sharing

Chris LaPlante, director, Archives and Information Services

Michael Heskett, director, State and Local Records Management

Manuel Alvarez, director, Information Resources Technologies

Erica McKewen, communications officer

Tracy Kuhn Lash, executive assistant

Chris Jowaisas, systems grants administrator, Library Development
Guests Present:
Carleton Wilkes, Jefferson Wells, Inc.

Robert DuPuy, Jefferson Wells, Inc.

Pat Tuohy, Central Texas Library System

Peggy Gibson, secretary, Central Texas Library System

Connie Perdue, Austin Genealogical Society

Gaylon Powell, Williamson County Genealogical Society

Kay Boyd, Austin Genealogical Society

Deanna Frazee, Killeen City Library System

Cindy Foreman, Austin Genealogical Society

Elizabeth Swan, Houston Area Library System

 

A quorum being present, Vice Chairman Hernandez convened the meeting at 11:00 a.m.

1. Review and approve Internal Audit of the Central Texas Library System.

Carleton Wilkes addressed the commission and presented findings of an internal audit his firm conducted of the Central Texas Library System (CTLS) that receives grant funding from the Texas State Library and Archives Commission. This audit did not find any significant weaknesses but identified the following areas that warrant the CTLS management and Board of Directors’ attention:

  • CTLS should improve governance processes related to the Board of Directors’ oversight of grant contracts.
  • CTLS should improve the grant reporting process for operational and financial data.
  • CTLS should document existing budget procedures, improve the process used to identify yearend encumbrances, formally review and approve bank reconciliations, improve record retention practices and improve the monitoring of significant relationships with outside contractors.

Commissioner Reynolds moved to approve the audit. Commissioner Hernandez seconded.

2. Review and approve Internal Audit of the Houston Area Library System.

Carleton Wilkes addressed the commission and informed them that his firm recently conducted a compliance audit of grants administered by the Houston Area Library System (HALS) and the Houston Public Library. The audit review identified areas of weakness and areas for improvement, as follows:

  • The City of Houston should assure that the Houston Public Library makes appropriate improvements to the process of preparing and approving contractually required Financial Status Reports (FSRs). Supporting documentation used for report preparation was not retained and the Final FSR for Fiscal Year 2006 (ILL Grant) was not reconciled with the underlying accounting records.
  • HALS should assure that FSRs are reconciled with underlying accounting records and subsequently preserved. The Final FSR for Fiscal Year 2006 (SYSTEM Grant) was not reconciled with underlying accounting records.
  • TSLAC can improve instructions to Systems as contained in the Texas Library System Plan of Service Guidelines for State Fiscal year 2008. An opportunity exists to provide greater clarity, and to change some "advice" to a "requirement" in order to create benefits for more library systems and also at the member library level.
  • It is recommended that HALS improve its existing practices to follow Uniform Grant Management Standards (UGMS) requirements for the reconciliation of its biennial physical inventory. Generally, the City of Houston’s existing documented policy and procedures on reconciliations can help with this grant requirement.
  • Both HALS and Houston Public Library can improve their respective oversight processes involving recommendations from previous grant contract audits.

Commissioner Reynolds moved to approve the audit. Commissioner Hernandez seconded.

3. Review EEO audit of Human Resources by Texas Workforce Commission.

Karen Drabek addressed the commission and informed them that a Texas Workforce Commission audit of the agency’s personnel policies and procedures found that the agency is compliant in all categories. Commissioner Reynolds moved to approve the audit findings.

There being no further business before the Audit Committee, Vice Chairman Hernandez adjourned the meeting at 11:19 a.m.

Respectfully submitted,

Peggy D. Rudd

Peggy D. Rudd

Director and Librarian


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