Texas State Library and Archives Commission
November 1, 2013
The Texas State Library and Archives Commission Audit Committee met on Friday, November 1, in the Lorenzo de Zavala State Archives and Library Building, 1201 Brazos Street, Austin, Texas.
Wm. Scott McAfee, chairman
Sharon T. Carr
F. Lynwood Givens
Michael C. Waters
Martha Doty Freeman
Larry G. Holt
Sandra J. Pickett
Mark Smith, director and librarian
Edward Seidenberg, assistant state librarian
Manuel Alvarez, director, Information Resources Technologies
Jelain Chubb, director, Archives and Information Services
Craig Kelso, director, State and Local Records Management
Deborah Littrell, director, Library Development and Networking
Donna Osborne, director, Administrative Services
Ava Smith, director, Talking Book Program
Alana Inman, manager, Sam Houston Regional Library and Research Center
Erica McCormick, grants administrator, Library Development and Networking
Cesar Garza, communications officer
Tracy Kuhn Lash, executive assistant
Joe Thrash, Office of the Attorney General
Marty Parker, Myers and Stauffer
Kim Gonzales, Garza/Gonzalez & Associates
Rene Gonzalez, Garza/Gonzalez & Associates
Heather Reynolds, Central Texas Library System, LLC
Gretchen Pruett, New Braunfels Public Library
Lisa Charbonnet, Pflugerville Public Library
- Annual review of the charter, activities and organizational structure of the Audit Committee.
Edward Seidenberg asked the committee to review and approve the Audit Committee’s Internal Audit Activity Charter, Audit Committee Charter, Organizational Structure of the Internal Audit Function and to complete self disclosure forms, a process that the agency’s auditing firm recommends be conducted on an annual basis. Commissioner Carr moved to accept the Audit Committee Charter. Commissioner Givens seconded. Motion passed.
- Review and approve the Internal Audit of Limited Scope Desk Reviews of Selected Grantees.
Marty Parker informed the committee that Myers and Stauffer performed desk audits of financial status and performance measure reports for four recipients of Special Project, Cooperation, Impact and Texas Reads Grants for the first two quarters of SFY 2013. Ms. Parker reported that generally grant recipients are managing purchases and expenditures in accordance with contract provisions, laws and regulations including their submitted budgets and plans and that no material issues were found. One grant recipient reported some expenses in the wrong quarter and had variances between amounts reported in Financial Status Report categories and the supporting general ledger. The grant recipient’s management agreed with the finding and has taken corrective action.
Another grant recipient was found to have not submitted the second quarter FSR. No monetary impact was found because the library did not expend funds during that quarter. Ms. Parker noted that the recipient, Houston Community College, did not respond to the findings. Responding to questions from Commissioners McAfee and Freeman, Deborah Littrell said the college had some personnel turnover that contributed to this situation and that TSLAC does training and site visits to address such issues. Commissioner Carr moved to accept the audit. Commissioner Givens seconded. Motion passed.
- Review and approve the Follow-up to the Internal Audit of the Sam Houston Regional Library and Research Center.
Marty Parker presented findings of the Follow-up to the Internal Audit of the Sam Houston Regional Library and Research conducted in June 2011. The follow-up audit found that of the 16 original findings, four had been fully implemented, eight are incomplete and/or ongoing, multi-year projects and four have not been implemented. Additionally, the auditor identified an issue of the sale of private items in the Center lobby for TSLAC to consider. Commissioner Holt said the security and safety issues are of the highest priority and following resolution of those recommended that Recommendation 12 or conducting a comprehensive inventory of the Center’s holdings should be a very high priority. Commissioner McAfee asked staff to prepare an inventory of private holdings for sale to determine a baseline risk assessment for those items.
After further discussion of audit findings, Commissioner Carr moved to accept the follow-up audit. Commissioner Givens seconded. Motion passed.
- Review of the Texas Workforce Commission Review of Personnel Policies and Procedural Systems.
Donna Osborne presented findings of the Texas Workforce Commission Review of Personnel Polices and Procedural Systems which certified TSLAC as being in compliance with all requirements of Chapter 21 of the Texas Labor Code. Responding to a question from Commissioner McAfee, Ms. Osborne said that there is no requirement to post the certification on the agency website. No action required.
- Review and approve the Annual Internal Audit Report for Fiscal Year 2013.
Marty Parker presented the Annual Internal Audit Report for Fiscal Year 2013 as required by the State Auditor’s Office. Commissioner Carr moved to accept the report. Commissioner Givens seconded. Motion passed.
- Review and approve the Internal Audit Plan for FY 2014.
Rene Gonzalez and Kim Lopez Gonzales presented the proposed plan for the agency’s Internal Audit Plan for FY 2014 and responded to questions from the commission. The audit plan includes the following areas to be audited:
- Records Center Services/Document Imaging Services
- Fixed Assets
- Information Resources Technologies compliance with TAC 202.21
- Grants Management audit to include a selection of grant recipients
Commissioner Carr moved to approve the plan. Commissioner Givens seconded. Motion passed.
There being no further business before the committee, Commissioner McAfee adjourned the meeting at 12:10 p.m.