Texas State Library and Archives Commission
October 12, 2010
The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Tuesday, October 12, at the Ringer Public Library, 1818 Harvey Mitchell Parkway South, College Station, Texas.
Larry G. Holt
Sharon T. Carr
Martha Doty Freeman
Edward Seidenberg, assistant state librarian
Jelain Chubb, director, Archives and Information Services
Ava Smith, director, Talking Book Program
Deborah Littrell, director, Library Development
Beverley Shirley, director, Library Resource Sharing
Jan Ferrari, director, State and Local Records Management
Manuel Alvarez, director, Information Resources Technologies
Vince Houston, director, Administrative Services
Tracy Kuhn Lash, executive assistant
Derick Hackett, communications officer
Sarah Jacobson, government information analyst
Larry Koeninger, director, Bryant-College Station Public Libraries
Clara Mounce, retired director, Bryant-College Station Public Libraries
Chairman Waters convened the meeting at 9:00 a.m.
1. Review and approve Internal Audit of the Archives and Information Services Division.
Susan Van Hoozer presented an internal audit of the Archives and Information Services Division conducted to determine if the division has adequate controls over fee collection, if reporting of performance measures is accurate and if the agency has adequate controls in place over the collection and reporting of its performance measures. The audit found that fees are generally collected in accordance with statutes and administrative rules governing how customers may be charged for services and that reported amounts collected were accurate. The audit recommended the agency consider charging customers for scanning services to provide an additional revenue source.
Ms. Van Hoozer reported that the division�s performance reports are accurate, reliable and calculated in accordance with applicable regulations as well as its own procedures but may not be well-aligned with the agency�s goal of improving the availability and delivery of information services. The audit recommended that ARIS consider developing additional performance measures that better measure its achievement this goal.
After discussion, Commissioner Holt moved to approve the audit. Commissioner Waters seconded. Motion passed.
2. Review and approve the Limited Scope Desk Reviews of Selected Loan Star Grantees.
Susan Van Hoozer presented findings of the Limited Scope Desk Audits of Selected Loan Star Grantees for SFY 2009 that examined grants to 20 libraries and their management of purchases and expenditures in accordance with contract provisions, laws and regulations. The audit found that eight libraries showed inaccuracies in their reporting of items purchased. In response to the audit, agency staff revised existing training programs for reporting and implemented new ones to communicate best practices for grantees in reporting purchases. Commissioner Holt moved to accept the audit. Commissioner Waters seconded. Motion passed.
3. Review and approve the Audit of Grants to the City of Fort Worth, Fort Worth Public Library.
Susan Van Hoozer presented findings of the Audit of Grants to the City of Fort Worth, Fort Worth Public Library that examined Interlibrary Loan Center and Loan Star Libraries grant expenditures and performance measures for SFY 2009. The audit found that the library generally managed purchases and expenditures in accordance with contract provisions, laws and regulations and its budget and plan and found that the amounts reported in the library�s financial status reports were allowable and accurately reported. However, the audit found that the library did not have adequate controls in place to ensure performance status reports are accurate, reliable and calculated in accordance with contract provisions, laws and regulations.
The audit recommended that Fort Worth Public Library develop and implement policies and procedures to ensure accurate reporting of materials purchased with Loan Star funds and include retention of documentation that reconciles the reported performance to financial records showing the materials or services were purchased with grant funds. Additionally, the library should implement a management review to ensure the accuracy of reports submitted to TSLAC. It was also recommended that Fort Worth Public Library develop and implement policies and procedures to ensure accurate reporting of ILL performance measures and for any ILL transactions that occur outside of the ILLiad System.
According to the audit, Fort Worth Public Library management agreed with all audit findings and indicated it would achieve full compliance by December 31, 2010.
Commissioner Holt moved to accept the audit. Commissioner Waters seconded with the stipulation that future grant payments may not be made without the assurance that deficiencies have been corrected. Motion passed.
4. Review and approve the Audit of Grants to the City of Dallas, Dallas Public Library System.
Susan Van Hoozer presented findings of the Internal Audit of Grants made to the City of Dallas, Dallas Public Library, to determine if Dallas Public Library is managing Interlibrary Loan, Loan Star Libraries and Special Projects grants in compliance with laws, regulations and contract provisions. She said Dallas Public Library managed most purchases and expenditures in accordance with contract provisions, laws and regulations, including its submitted budget and plan. However, the audit identified some unallowable expenses and problems with retention of supporting documentation.
The audit also examined Dallas Public Library�s performance status reports for the three grant areas. No exceptions were found in the review of the ILL grant and one exception was identified in the Loan Star Libraries grant. The audit found discrepancies in the Special Projects grant reporting and maintenance of supporting documentation and recommended that Dallas Public personnel review and obtain training on allowable costs and record retention requirements for federally funded grants programs and ensure compliance with regulations in the future. Additionally, the audit recommended developing further checks and balances in Dallas Public Library�s performance measures reporting process such as supervisory review or a second-person review of the performance status report against the supporting documentation to ensure that errors are identified and corrected prior to submission to TSLAC and to maintain supporting documentation for all performance metrics reported.
Edward Seidenberg reported that staff are in negotiation with Dallas Public personnel to correct the audit findings and if negotiations fall through, the library will be put on high risk.
Commissioner Holt moved to accept the audit with concerns. Commissioner Waters seconded. Motion passed.
5. Review and approve the Self-Assessment of the Internal Audit Activity.
Susan Van Hoozer presented a Self-Assessment of the Internal Audit Activity of the agency and found that the internal audit activity is generally in conformance to The Institute of Internal Auditors� International Standards for the Professional Practice of Internal Auditing. Commissioner Holt moved to accept the report. Commissioner Waters seconded. Motion passed.
6. Review and approve the Audit Report for FY2010, includes the annual review of the charter, activities and organizational structure of the Audit Committee
Susan Van Hoozer presented the Audit Report for FY2010 which set forth internal audit activities within the agency for that year. After discussion, Commissioner Holt moved to approve. Commissioner Waters seconded. Motion passed.
7. Review and approve the Annual Risk Assessment and Audit Plan for FY 2011.
Susan Van Hoozer presented the Annual Risk Assessment and Audit Plan for the agency for FY 2011. Commissioner Holt moved to accept plan. Commissioner Waters seconded. Motion passed.
There being no further business before the Audit Committee, Chairman Waters adjourned the meeting at 10:25 a.m.
Peggy D. Rudd
Director and Librarian