Texas State Library and Archives Commission
Monday, July 28, 2003
The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Monday, July 28, 2003, at 11:30 a.m. at the Lorenzo de Zavala State Archives and Library building in Austin, Texas.
Audit Committee Present:
Elizabeth Sanders, Audit Chairman
Chris A. Brisack
Sandra J. Pickett
Commissioners Absent: None
Peggy D. Rudd, director and librarian
Edward Seidenberg, assistant state librarian
Manuel Alvarez, director, Information Resources Technologies
Ava Smith, director, Talking Book Program
Michael Heskett, director, State and Local Records Management
Deborah Littrell, director, Library Development
Chris LaPlante, director, Archives and Information Services
Beverley Shirley, director, Library Resource Sharing
Wendy Clark, Library Development
Kathleen Walls, Library Development
Ann Mason, Library Resource Sharing
Erica McKewen, communications officer
Regina Miles, executive assistant
Gwen Land, internal auditor, Jefferson Wells International
Sandra Vice, Office of the State Auditor
Kathryn Sturtz, Alamo Area Library System
Pat Tuohy, Central Texas Library System
Jennifer Fox, Legislative Budget Board
Martha Doty Freeman, Texas Historical Records Advisory Board
Audit Chairman Sanders convened the meeting at 11:30 a.m.
1. DISCUSS AND APPROVE THE INTERNAL AUDIT OF TSLAC'S LIBRARY DEVELOPMENT DIVISION.
Gwen Land addressed the commission and reviewed the results of the internal audit, including:
Areas for Improvement:
- The systems/libraries aren't required to submit to the Library Development division supporting documentation for their performance measures.
- Performance measures for site visits for the Library Development grant management personnel haven't been formally adopted.
- A lot of information is tracked on different Excel spreadsheets rather than through a more centralized repository, or database, of information.
- There is an inadequate segregation of duties in the administration and monitoring of Loan Star Library grants. At the time of the audit, only one staff person was performing these duties.
The Library Development division file management process could be more efficient and consistently handled.
- The division's files were complete at the time of the audit.
- The division's Policy and Procedures manuals are in the process of being updated and reviewed.
- Though a centralized database would be more efficient, the Excel spreadsheets that the division uses to track information provide some automation of reporting and ensuring data is electronically captured.
Deborah Littrell addressed the commission and discussed management's responses to the internal audit, including the following:
- The division has begun work with the Information Resources Technologies division on developing a database plan, and expects to have a completed plan by November 30, 2003.
- The division will work with the grants accounting staff as well as records management staff to improve and enhance the organization, accessibility and security of grant program files. This will be completed by August 31, 2003.
Audit Chairman Sanders thanked Ms. Land for the internal audit, and thanked Ms. Littrell for her work in the audit process.
Commissioner Carr asked why management only partially concurred with internal audit recommendation 3A. Littrell responded that determining whether to do a full audit of systems/libraries' supporting documentation should be determined based on risk analysis factors. In between scheduled on-site visits, grant managers will use previous internal audits and grant monitoring information to determine the need to audit the systems/libraries' supporting documentation. Peggy D. Rudd added that systems' supporting documentation for performance measures do not change appreciably enough over a three- to five-year period of time to warrant an audit of those measures during each on-site visit.
Audit Chairman Sanders asked how TSLAC will know (in between site visits) if there are changes or new developments that would warrant an audit of the supporting documentation. Ms. Littrell responded that the program managers' day-to-day involvement with the systems would enable them to determine whether an audit of the supporting documentation would be necessary.
Commissioner Holland moved to approve the internal audit as presented; Commissioner Brisack seconded. Motion passed.
2. DISCUSS AND APPROVE THE INTERNAL AUDIT PLAN, RISK ASSESSMENT, AND INTERNAL AUDIT GUIDELINES FOR FISCAL YEAR 2004.
Ms. Land addressed the commission and discussed the TSLAC Risk Assessment, including the following key findings:
- Ms. Land recommended combining the audits of the agency's grants management and accounting system and controls functions because they are interrelated and are being performed by the same people. A combined audit would provide better information for the agency.
- Based on numeric metrics, the following audit topics were identified as high risk:
- Grants Management/Accounting Systems and Controls
- Talking Book Program
- State and Local Records Management
- Archives and Information Services
- Library Development
- Purchasing/Inventory System and Controls
Taking into consideration the fact that some of those six identified topics have been audited in the last few years and others will experience significant changes in Fiscal Year 2004, the internal auditor proposes auditing those topics at a later time. The following four audits are proposed for Fiscal Year 2004:
- Grants Management/Accounting Systems and Controls
- Indirect Administrative Costs Charged by Grants and Direct Administration Project Costs for Library Systems
- Texas Panhandle Library System
- West Texas Library System
Commissioner Brisack asked why the State and Local Records Management division would not be audited in Fiscal Year 2004. Ms. Land responded that since the division will be going through some structural changes in Fiscal Year 2004, she anticipates auditing that function in Fiscal Year 2005.
Commissioner Holland moved to approve the Internal Audit Plan, Risk Assessment, and Internal Audit Guidelines for Fiscal Year 2004; Commissioner Brisack seconded. Motion passed.
With no further business, Audit Chairman Sanders adjourned the meeting at 11:55 a.m.
Peggy D. Rudd
Director and Librarian