Texas State Library and Archives Commission
Audit Committee
October 13, 2011

Minutes

 

The Texas State Library and Archives Commission Audit Committee met on Thursday, October 13, 2011, in the Lorenzo de Zavala State Archives and Library Building, 1201 Brazos Street, Austin, Texas.

 

Committee Present:                  Michael C. Waters, chairman

                                              Larry G. Holt

                                               

Commissioners Present:             Sandra J. Pickett

                                               Sharon T. Carr

                                                Martha Doty Freeman

                                                Sally Reynolds

 

Commissioners Absent:                Wm. Scott McAfee

 

Staff Present:                           Peggy D. Rudd, director and librarian

                                                Edward Seidenberg, deputy director

                                                Jelain Chubb, director, Archives and Information Services

                                                Sarah Jacobson, manager, Records Management Assistance

                                                Michael Reagor, government information analyst

                                                Tracy Kuhn Lash, executive assistant

                                                Stacey Million, communications officer

                                                Deborah Littrell, director, Library Development and Networking

                                                Ava Smith, director, Talking Book Program

                                                Vincent Houston, director, Administrative Services

                                                Manuel Alvarez, director, Information Resources Technologies

 

Guests:                                     Frank Vito, Clifton Gunderson, LLC

                                                Tressie Landry, Clifton Gunderson, LLC

                                                Pat Tuohy, Central Texas Library System

                                               

Audit Committee Chairman Waters called the meeting to order at 9:00 a.m.

1.      Review and Approve the Limited Scope Desk Reviews of Selected Loan Star Grantees.

Deborah Littrell presented the findings of the Limited Scope Desk Reviews of Selected Loan Star Grantees, a desk review of eight libraries receiving Loan Star Libraries grant funds. The sampled libraries were found to be maintaining sufficient documentation to support their purchases and payroll expenditures.  Some libraries were found to have errors in reporting purchases.  All errors have been accounted for and reconciled.  Commissioner Holt moved to approve the audit. Commissioner Waters seconded. Motion passed.

2.      Review of the Audit of Grants to the City of Houston.

Deborah Littrell presented the Audit of Grants to the City of Houston which received five grants from the agency in FY2010. Three of the grants, Technical Assistance Negotiated Grant (TANG), the System grant and the Interlibrary Loan (ILL) Center Grant, are federally funded while the Loan Star Libraries grant and the TexTreasures grant are state funded. The audit found that purchases and expenditures are made in accordance with contract provisions, laws and regulations. Also, the audit found that amounts reported in the city’s financial status reports are allowable and accurately reported.  The audit recommended the city implement policies and procedures to ensure the retention of documentation that reconciles the reported performance to financial records, showing materials or services purchased with grant funds.  Commissioner Holt moved to accept the audit. Commissioner Waters seconded. Motion passed.  

3.      Annual review of the charter, activities and organizational structure of the Audit Committee.

Edward Seidenberg presented the agency’s annual review of the Audit Committee charter, activities and organizational structure.  Frank Vito and Tressie Landry responded to questions from the committee.  Commissioner Holt moved to approve the review. Commissioner Waters seconded. Motion passed.

4.      Review and approve the Audit Report for FY2011.

Tressie Landry presented the agency’s Audit Report for FY2011 as prepared by Clifton Gunderson in accordance with State Auditor’s Office guidelines.  After discussion, Commissioner Holt moved to accept the report.  Commissioner Waters seconded.  Motion passed.

5.      Review and approve the Annual Risk Assessment and Audit Plan for FY2012

Tressie Landry presented the agency’s Annual Risk Assessment and Audit Plan for FY2012 and responded to questions.  Commissioner Holt moved to approve the plan.  Commissioner Waters seconded.  Motion passed.

6.      Review and approve the Contract for Internal Audit Services for FY2012.

After discussion, Commissioner Holt moved to approve the Contract for Internal Audit Services for FY2012 with Clifton Gunderson, LLC. Commissioner Waters seconded.Motion passed.

7.      Review the report on Employee Investigation.

Frank Vito informed the committee that Clifton Gunderson was asked to conduct a review of allegations made by a former employee regarding safety issues, falsification of time sheets, drug use on the job, sexual harassment conduct displayed by another employee and inappropriate use of state-owned property.  Mr. Vito said that all safety issues had been addressed and that no evidence existed to support the allegations.  No action required.

Chairman Waters adjourned the committee at 10:09 a.m.

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