Texas State Library and Archives Commission Meeting
Audit Committee
Minutes

August 2, 2024

The Texas State Library and Archives Commission Audit Committee met in person on Friday, August 2, 2024, 8:30 a.m. at the Lorenzo de Zavala State Archives and Library Building, 1201 Brazos Street, Austin, Texas.

1.    Welcome and Introductions

Chairman Bradley Tegeler welcomed everyone and called the meeting to order at 8:30 a.m. He noted that notice of this meeting was filed with the Secretary of State on July 24, 2024, and that the notice indicated the meeting would be conducted via videoconference and provided a phone number and web link for the public to use to access the meeting.

2.    Roll Call for Members

Chairman Tegeler took a roll call of committee members and established a quorum. In addition to Chairman Tegeler, Commissioners Darryl Tocker and David Garza were present.  Chairman Tegeler reported that Commission Chair Martha Wong and Commissioners David Iglesias and Arthur Mann were also present.  Chairman Tegeler noted that commissioners not on the Committee who joined the meeting would attend only for information-gathering purposes and would not vote on any action item of the Committee, nor would any action of the Commission be taken.

3.    Approval of Minutes of Audit Committee Meeting of November 3, 2023

Commissioner Tocker moved to approve the minutes of the November 3, 2023, Audit Committee meeting. Commissioner Garza seconded the motion. The minutes were approved unanimously.

4.    Public Comment

No public comments were received.

5.    Internal Audit Status Report

Chairman Tegeler reported that the Committee would review and discuss the internal audit reports for FY 2024.  Donna Osborne introduced Daniel Graves and Michael Karnes—both representing Weaver, the agency’s outsourced internal audit vendor—who would provide updates on TSLAC’s internal audit plan and follow-up audits.

Mr. Karnes reported that three of the four outstanding findings in the Records Center services audit have been remediated. One finding, which is partially remediated and related to standard operating procedures, needs updating to match current processes. The findings result in an overall satisfactory rating.  Gloria Meraz noted that staff is working to update the related internal procedures by the end of the calendar year.

Mr. Karnes noted that the one outstanding finding from the 2021 preservation audit was remediated.  This audit was related to badge access, which was resolved with help from the Texas Facilities Commission.  The overall audit had a strong rating.

Mr. Graves reported that, for the ITS audit, there were technical issues from the auditor’s portal that prevented a review to be completed in time for the Audit Committee meeting. These documents were received by Weaver the day before the meeting, and the ITS follow-up audit is anticipated to be completed within the next couple weeks.  More details on the findings will be shared in a future meeting.

6.    FY 2025 Internal Audit Plan

Mr. Graves then gave a brief status update on the payroll, facilities and maintenance, and risk management audits, and noted that the payroll audit is almost completed.

As part of the facilities and maintenance audit, a team of auditors made a site visit at the Sam Houston Center and are reviewing documentation for a better understanding of facilities and maintenance processes there.

As part of the risk management audit, Weaver has completed planning and interviews and is now reviewing documentation.

These three audits are anticipated to be completed by October 31 to be presented at the next Commission meeting.

Mr. Graves then noted that Weaver and the agency met to review the risk assessment and developed a proposed FY 2025 Internal Audit Plan, which he shared with the Committee. Weaver is proposing to perform an internal audit of information security, resource sharing, and broadband grants. The audit on broadband grants is likely to be an advisory audit.  Weaver also anticipates having follow-ups reports for the facilities maintenance, risk management, and payroll audits.

Mr. Graves added that Weaver must submit the annual internal audit report as required by the Texas Internal Audit Act, and the FY 2025 Audit Plan must be included in that report. This report is reviewed by the Legislative Budget Board, Governor’s Office, and the State Auditor’s Office. The guidance for this report is anticipated to come out the first Monday of August.

Responding to a question posed by Commission Chair Wong, Mr. Graves noted that risk assessment levels are defined by the baseline of inherit risk.  

Commissioner Garza made a motion to approve the FY 2025 Internal Audit Plan.  The motion was seconded by Commissioner Tocker. The motion carried unanimously.

7.    Executive Session

The Audit Committee did not go into Executive Session.

8.    Action Items from Executive Session

As the Committee did not call for an Executive Session, there were no action items.

9.    Adjournment

Commissioner Tocker made a motion to adjourn the meeting. Commissioner Garza seconded the motion.  The motion carried, and the meeting adjourned at 8:49 a.m.