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From YouTube: Audit Committee – March 16, 2023
Description
Regular meeting of the City of Asheville Audit Committee.
Access the agenda and other meeting materials at the City of Asheville website: https://www.ashevillenc.gov/department/city-clerk/boards-and-commissions/audit-committee/
Participate before and during the meeting on our public engagement hub: https://publicinput.com/J2566
A
I'm
chairman
Scott
Powell
and
I
would
like
to
welcome
you
to
the
March
16th
audit
committee
meeting.
The
auto
committee
was
established
with
responsibilities
to
review
the
internal
audit
reports,
where
you
review
the
results
of
the
financial
statement.
Audit
I
reviewed
a
report
to
the
city
council
about
a
county
I
mean
city
council
about
committee
activities,
issues
and
related
recommendations
as
needed,
and
provide
an
open
Avenue
of
communications
between
internal
audit
and
external
Auditors
in
city
council.
A
A
A
I
think
the
next
thing
is
roll
call.
We
do
have
a
new
member.
Would
you
like
to
introduce
yourself
Debbie?
Yes,.
A
Here,
congratulations
and
we
appreciate
you
being
here
as
well.
Thank
you.
I
will
introduce
all
the
other
committee
members
who
are
participating
virtually
Adam
Emery,
Andrew
Emery.
Excuse
me,
hello,
Sage,
Turner,
Turner
good
afternoon.
A
Please
make
sure
you
mute
your
microphone
if
you
are
speaking
when
you
have
a
question
or
would
like
to
speak
unmute
your
microphone,
please
remember
to
mute
your
phone
after
you
have
done
speaking.
A
And
I
guess
we
can
start
our
agenda
items
to
help
our
audience
follow
along
I'll
State.
Each
section
of
the
agenda
allowed
additionally
I
would
ask
committee
members
to
raise
their
hand
to
speak
and
I
will
call
upon
them.
A
Our
first
item
is
to
approval
of
the
November
minutes
any
questions
or
changes
to
the
minutes.
A
A
Committee
members,
when
I
say
your
name,
please
say
a
or
nay
irony,
Debbie,
hi,
Andrew,
all
right,
Sage,
hi
and
I
for
us
to
always
have
it.
Our
next
item
is
the
update
on
the
selection
of
our
new
external
audit,
firm
I'll
turn
it
over
to
Finance
director
Tony
McDowell.
E
Good
afternoon,
everyone
and
thank
you,
chairman,
Powell,
just
quickly
with
Debbie
being
do
being
new
I,
did
want
to
introduce
the
staff
that
we
have
on
the
call
today
and
I.
Think
there's
three
of
us
here:
I'm
Tony,
McDowell
I'm,
the
finance
director
also
with
us
today,
is
Becky
ogles,
our
assistant
Finance
director,
as
well
as
Deborah
Campbell,
our
city
manager
and
I'm
sure
at
some
point,
both
of
them
will
probably
weigh
in
on
on
one
of
the
items
or
both
of
the
items
that
we're
talking
about
today.
E
But
the
first
item,
as
you
mentioned,
is
the
resolution
that
we're
going
to
be
taking
to
city
council
at
their
next
meeting
on
March
28th,
seeking
their
approval
to
a
contract
with
our
new.
It's
going
to
be
our
new
external
audit
firm
and
it's
going
to
be
Cherry,
beckert
and
I'll.
Just
kind
of
give
you
all
a
quick
overview
of
the
staff
report.
E
North
Carolina
General
statutes
require
that
all
local
governments
have
their
accounts
audited
each
year
by
an
external
external
firm
and
submit
a
copy
of
that
audit
report
and
the
financial
statements
to
the
local
government,
commission
or
LGC,
and
the
the
deadline
for
getting
that
done
every
year
is
October
31st
per
the
city
policies.
E
We
have
a
policy
in
place
to
rotate
our
audit
firm
every
five
years,
and
so
what
we
have,
what
it
specifically
says
that
the
policy
is
that
unless
there
is
a
lack
of
competition
among
audit
firms
fully
fully
qualified
audit
firms,
I
should
say,
then
we
are
required
to
to
make
that
rotation
to
a
new
firm
and
that's
the
point
we're
at
now.
We've
just
reached
the
end
of
A
Five-Year
Engagement,
with
PB
Mayors
they've,
been
our
external
auditor,
like
I,
said
for
the
last
five
years.
E
So
in
January
of
this
year
we
put
out
an
RFP
a
request
for
proposed
for
proposals
seeking
a
new
external
audit
firm.
We
got
five
responses
to
that
odd
or
to
that
RFP
one
of
them
was
from
PB
Mayors.
They
did
respond
in
case
there
were
no
other
qualified
firms
that
responded,
but
we
did
get
three
other
qualified
firms.
E
In
addition
to
PV
Mayors,
one
of
the
rfps
that
was
submitted
was
deemed
non-responsive,
so
we
ended
up
with
three
firms
other
than
PD
mayors
that
we
looked
at
the
proposals
from
those
companies
were
scored
by
a
group
of
folks,
a
committee
that
included
City
staff
members
as
well
as
chairman.
Powell
from
this
committee.
E
I
will
say
that
chairman
Powell
did
recuse
himself
from
consideration
of
cherry
Becker
because
he
I
don't
know
if
you
all,
if
Scott
don't
know,
if
you
all
use
them
currently
for
your
like,
if
you
do
so,
he
felt
like
it
was
best
if
he
did
not
score
their
proposal,
but
all
the
other
staff
members
did
and
when
we
did
Jerry
Becker
was
the
firm
that
scored
the
highest,
and
so
we
are
going
to
recommend
to
city
council
at
their
next
meeting
that
we
enter
into
direct
with
cherry
beckert
for
the
audit
this
year
and
assuming
that
work
is
completed
satisfactorily,
we
will
continue
on
with
them
for
the
next
four
years
after
this,
and
the
staff
report
includes
some
cost
items
as
well.
E
So
you
all
can
see
what
the
anticipated
cost
of
the
audit
is
going
to
be.
So
with
that
I
also
mentioned.
We
did
present
this
item
to
the
policy,
finance
and
Human
Resources
committee
on
Tuesday,
and
they
voted
unanimously
to
recommend
the
city
council,
and
so
we
just
wanted
to
bring
this
to
you
all
today,
I,
don't
think,
and
this
I'm
going
to
show
my
newness
to
this
committee,
even
though
it
feels
like
I've
been
working
with
you
all
for
a
while
now
I'm,
not
sure
in
the
past.
E
If
you
all
have
made
a
motion,
I
think
it's
more
just
an
Ensure
or
information.
Only
for
you
all
at
this
point,
I
don't
think
we
need
any
action
from
the
committee.
But
I
did
just
want
to
share
this
information
and
happy
to
answer
any
questions
you
all
might
have.
A
Tony,
if,
for
some
reason,
Cherry
Becker
doesn't
perform
their
audit
adequately,
the
city
does
have
the
right
to
go
out
for
rfps
if,
for
some
unforeseen
reason,
they're
not
working
well
or
meshing
well
with
staff.
Yes,.
B
E
It
is,
it
is
more
and
I
think
we
kind
of
anticipated
it
being
more,
since
we
had
been
using
the
same
firm
for
a
while
I
Becky
I.
Don't
know
if
you
recall
off
the
top
of
your
head
exactly
how
much
more
it
is
than
what
we've
been
paying.
F
So
the
fee,
the
one
149
I-
think
last
year
was
128,
so
it
is
about
twenty
thousand
dollars
more
and
there
are
a
couple
of
reasons
for
that.
So
audit
firms
are
getting
away
from
drafting
financial
statements,
and
that
is
something
that
we
have
asked
them
to
do
at
least
in
year.
One
for
us
I
definitely
do
a
review,
but
we've
always
kind
of
grafted
them
together.
F
So
our
hope
is
that
they
will
draft
one
more
year
for
us
and
then
we
can
kind
of
take
that
on
so
I
think
that's
a
big
part
of
the
increases
that
they
are
kind
of
getting
away
from
that
and
it's
not
included
in
the
normal
fee
anymore.
So
there's
an
additional
fee
for
that,
but
yeah
I
think
it's
about
twenty
thousand
dollars
more
than
last
year.
Okay,.
F
F
Oh
excuse
me,
could
all
of
their
travel
expenses
as
well.
So,
yes,
it
should
include
everything
and
we
anticipate
doing
a
little
bit
of
a
hybrid
field,
work
we're
going
to
kind
of
work
with
them
this
year.
We
do
some
of
it
remote,
but
they
do
normally
come
on
site
for
a
couple
of
days
in
June
and
then
normally
about
a
week
in
September.
So,
yes,.
F
Testing,
yes,
it
does
so.
This
includes
the
single
audit
and
I
would
have
to
go
back
and
look
at
the
contract.
I,
don't
remember
off
the
top
of
my
head,
but
I
do
believe.
F
It
includes
auditing
up
to
four
or
five
Federal
programs
and
I
believe
two
or
three
state
programs
we
did
last
year
have
to
review
a
whole
bunch
more
than
that,
because
anything
that
had
coveted
dollars
had
to
be
reviewed,
but
I
have
already
been
in
conversations
with
our
partners
at
Cherry
Beckers
and
they
think
that
we'll
be
good
with
the
four
or
five
this
year
we
don't
have.
We
don't
anticipate
having
to
do
any
more
than
that.
So
yes,
this
should
be
an
all-inclusive.
B
A
Welcome
a
Debbie
another
reason:
I
can
weigh
in
on
this,
because
I
work
for
a
municipal
unit
as
well
here
in
the
last
two
to
three
years.
I,
don't
want
to
say
it's
directly
linked
with
covid.
You
have
seen
a
lot
of
auditing
firms,
leave
the
space
of
governmental
and
Municipal
Audits
and
therefore
because
there's
only
a
few
firms
that
are
doing
I
mean
it's
more
than
a
few,
but
there's
a
few
firms
doing
the
audits.
The
costs
are
going
up
for
all
Municipal
units
as
pertaining
to
that
thanks,
Kim.
E
And
then
I'll
just
add
to
you
before
we
move
on
from
this
item
that
that
we
were
very
pleased
that
cherry
Becker
was
one
of
the
companies
that
responded
to
our
RFP
and
very
pleased
that
we're
going
to
be
going
under
contract
with
them,
because
they
are
one
of
the
I
guess,
call
major
firms
in
North
Carolina.
They
do
work
with
a
lot
of
local
governments.
E
Currently
besides
organizations
our
size
and
larger
and
they're
amongst
a
shrinking
pool
of
folks
who
do
that,
like
Scott,
said,
there's
a
fewer
and
fewer
firms
that
want
to
work
on
government
work,
especially
local
government
work,
and
so
we're
very
pleased
that
we
got
Cherry
Becker
to
respond
and
are
happy
to
start
working
with
him.
A
Okay.
The
next
item
is
an
update
on
our
organizational
risk
assessment
and
I
will
turn
it
back
over
to
Tony.
E
Okay,
all
right!
Well,
thank
you.
All
thanks,
y'all
and
I
know.
Alicia
is
bringing
up
some
slides
for
you
all
to
view
as
well
and
I'll.
Just
add
that
we
do
have
I.
Think
Christine
is
on
from
Cherry
beckerd,
not
sure
if
Denise,
but
we
have
at
least
one
representative
from
Sherry
Becker
here
with
us
as
well,
and
right
off
the
bat
you're
gonna
go
wait.
We
just
heard
the
name.
E
Cherry
Becker
so
and
I'll
talk
a
little
bit
about
that
as
we
go
through
this
presentation.
E
But
the
next
item
that,
like
you,
mentioned
guys
an
update
on
the
risk
assessment
and
so
kind
of
to
give
you
all
a
little
background,
especially
for
Debbie
who's
new.
We
we
contracted
with
cherry
Becker
to
do
what's
called
a
risk
assessment.
I
think
we
went
under
contract
with
them
in
late
August
of
last
year
and
the
reason
we
went
again.
E
We
did
an
RFP,
much
like
they
did
with
the
external
audit
as
well,
and
the
reason
we
decided
to
do
a
risk
assessment
was
we
really
wanted
to
kind
I
jump
start
our
internal
audit
program,
our
the
person
who
had
been
in
the
internal
audit
role
left
the
organization
and
even
prior
to
her
leaving
the
organization
a
lot
of
her
time
in
her
last
year,
or
so
with
us,
was
spent
working
on
the
American
Rescue
plan
and
covid
funding,
and
things
like
that,
and
so
we
had
not
really
had
what
I
would
call
a
very
active
internal
audit
program
even
before
she
departed,
and
so,
as
we
were
kind
of
regrouping
and
looking
at
the
program
after
she
left,
we
decided
really.
E
E
The
areas
I
would
call
the
riskier
areas
of
our
operation
so
that
we
can
begin
to
formulate
an
internal
audit
work
plan
for
the
next
two
or
three
years,
and
so,
like
I
said
we
did
an
RFP
I
can't
remember
exactly
now
how
many
firms
we
had
that
responded
to
that,
but
the
winning
bid
for
that
was
also
Jerry,
beckert
and,
like
said
Christine
from
Cherry
beckert
is
here
today
with
us
and
she
led
the
prod
project
so
far
and
has
done
most
of
the
work
on
the
project.
E
Christine
did
ask
that
to
kind
of
step
back
today
as
we're
doing
the
presentation
to
you
all
because
of
the
first
item
that
you
all
heard.
E
You
know
we're
going
to
be
going
under
contract
at
the
end
of
this
month
with
Sherry
Becker
to
become
our
external
Auditors,
and
so
at
this
point
they
really
want
to
hand
off
this
risk
assessment
and
the
work
that's
been
done
on
that
to
us,
so
it
can
become
ours
to
own
and
ours
to
take
forward
and
and
work
with,
and
so
hence
you
have
me
doing
the
presentation
today
with
you
all
and
I
think
there
we'll
have
a
statement
here
on
the
next
slide
or
two
that
will
kind
of
lay
out.
E
You
know
the
the
conflict
of
interest
items
just
to
make
sure
that
everything
is
on
the
table
and
everything
that
everyone
understands
that
again,
the
Cherry
backward
is
provided
this.
This
work
for
us
and
now
they're
going
to
be
stepping
back
and
letting
us
Implement
the
road
map
from
here.
So
with
that
I'll
I'll
kind
of
launch
into
the
presentation,
so
just
kind
of
quick
agenda
for
the
for
the
overview.
Today
we're
going
to
talk
a
little
bit
about
the
purpose
of
the
project
and
the
scope.
E
We
have
an
executive
summary
what
what
I
would
call
key
takeaways
from
the
the
work
that
had
been
done
so
far
and
then
I'm
going
to
talk
a
little
bit
more
I'm
going
to
get
down
in
the
details
a
little
bit
about
the
methodology
that
was
used,
as
well
as
the
the
risk
assessment
cell
itself
and
some
of
the
control
results
that
were
found,
and
then
Cherry
record
also
provided
us
with
some
really
detailed
observations
and
recommendations
which
we
as
staff
are
still
working
through
and
and
looking
at,
and
we
hope
to
bring
back
before
this
committee
at
your
next
meeting,
some
more
information
about
those
specific
real,
detailed
level,
observations
and
recommendations
that
cherry
Becker
has
provided
us
with.
E
So
you
can
move
on
to
the
next
slide
Alicia.
So
the
purpose
of
the
risk
assessment
is
to
assist
Management
in
conducting.
Oh,
the
purpose
of
this
of
the
work
they
did
was
to
assist
Management
in
conducting
a
risk,
assess
risk
assessment
for
the
city
of
Asheville
and
propose
a
road
map
to
close
any
identified
gaps
and
again
that
was
kind
of
from
the
from
the
get-go.
That's
what
Cherry
beckert
said
they
would
help
us
do
and
that's
what
they
have
done
for
us
over
the
last
few
months.
E
So
we
can
go
on
to
the
next
slide.
So
this
next
slide
is
really
like.
I
said
the
folks
at
trade
record,
because
they're
going
to
become
our
external
Auditors.
E
Now
they
really
want
to
make
sure
that
that
everyone
understood
from
the
audit
committee
and
the
staff,
the
city
council,
that
there
is
no
conflict
of
interest
here
and
so
the
the
the
results
of
the
work
that
they
have
done
are
being
handed
off
to
us
and
I
won't
read
through
all
of
the
the
verbiage
on
this
slide,
but
I
think
that's
essentially
what
it's
saying
is
that
from
here
on
out
the
results
of
this
work
are
the
cities
and
for
and
the
cities
to
decide
what
we
do
with
it
from
here
on
out,
So
and
I've
asked
Christine
if
I
from
Cherry
record,
if
I
missed
something
or
key
detail
any
of
these
slides.
E
You
know.
Certainly
please
weigh
in
and
let
me
know
so
so
the
let
me
go
to
the
next
slide
Alicia.
So
the
scope
of
the
the
risk
assessment,
so
it
was
tailored
to
to
our
needs.
We
did
Identify
some
specific
areas
prior
to
the
start
of
the
work
that
we
wanted.
Cherry
Cherry
Becker
to
look
at,
and
that
was
specifically
around
our
grant.
Compliance
and
monitoring
inventory,
particularly
in
those
operations
in
our
depart.
E
Our
organization
that
that
have
a
substantial
inventory
and
we're
really
talking
about
Fleet,
our
Fleet
Maintenance
unit,
our
water
department,
which
has
a
significant
inventory
of
pipes
and
materials
and
stuff
like
that
that
they
keep
on
hand
and
also
our
Harris
Cherokee,
could
consider
operation
as
well.
E
We
all
we
ask
them
to
also
look
specifically
at
our
parking
services,
our
continuity
of
process.
Is
there
our
cash
handling
technology
issues
that
have
been
going
on
in
that
area,
and
we
also
had
them
look
specifically
procurement
and
how
departments
go
about
procurement,
with
a
particular
emphasis
on
the
Nature
Center,
Nature,
Center
and
Harris
Cherokee
Center
as
well,
and
again,
not
that
we
that
there
were
specific
concerns
in
any
of
those
areas.
E
But
we
just
identified
those
areas
as
some
areas
that
have
some
high
volume
transactions
and
that
we
wanted
to
have
cherry
Becker,
take
a
specific
look
at
those
areas
and
then,
like
I,
said
beyond
that
they
looked
at
our
overall
control
and
compliance
of
environment
as
well
and
identified
any
potential
control
gaps
that
we
might
have.
E
So
you
can
go
on
to
the
next
slide
Alicia.
So
again,
this
is
what
I
would
say
the
key
slide
from
the
presentation
today.
This
is
our
executive
summary
or
what
we're
calling
our
overarching
observations
for
any
of
you
that
have
seen
presentations
that
we
do
here
at
the
city.
In
the
last
couple
years,
since
Miss
Campbell
arrived
and
I
see
her
smiling.
This
is
the
fly
that
we
would
normally
call
our
key
takeaways
and
so
I'll
just
kind
of
run
through
these
quickly.
E
There's
really
what
even,
though
there's
five
bullets
on
this
page
I
would
say:
there's
really
kind
of
four
key
takeaways,
and
these
are
again
kind
of
the
the
overarching
things
that
Sherry
beckert
identified
as
they
went
through
their
process
over
the
last
six
to
nine
months
and
I'll
talk
a
little
bit
more
about
the
process
on
the
next
few
slides,
but
there
were
extensive
meetings
that
Jerry
beckard
had
with
all
of
our
departments,
and
so
the
things
that
came
out
of
that
that
they
heard
from
and
their
look
at
some
of
our
policies
and
procedures
were
communication.
E
I.
Think
that
wasn't
the
first
theme
that
they
heard
as
an
area
that
perhaps
we
can
make
some
improvement
in.
They
did
note
that
we
do
a
really
good
job
of
the
disseminating
information
out
in
a
lot
of
cases,
but
sometimes
there
was
a
lack
of
formalized
structure
follow
through
and
and
closing
the
loop
with
some
of
the
feedback
provided
and
again.
That
was
really
kind
of
a
a
an
observation,
not
only
in
terms
of
external
communication
but
internal
communication
as
well.
E
Cherry
Burger
to
look
closely
at,
and
that
was
our
grants
and
contract
management
here
at
the
city
and
I
think
what
we
heard
back
from
them
is
what
we
knew
is
that
we
have
a
really
decentralized
process
for
how
we
handle
particularly
grants,
but
also
contract
management
as
well,
and
sometimes
that
creates
some
challenges
with
tracking
documenting
reporting
and
monitoring,
some
of
those
those
grants
and
contracts,
and
so
I
think
what
we're
one
of
the
things
we're
looking
at
and
had
already
been
looking
at
as
a
part
of
the
budget
process
for
this
year
is,
are
there
opportunities
to
perhaps
improve
in
this
area
and
particularly
centralized
some
of
the
work
that
we're
doing
both
with
grants
and
contract
management
as
well,
a
third
area
that
they
identified
and
I?
E
Don't
think
this?
This
certainly
didn't
come
as
a
surprise
to
AES
any
of
us
any
of
us
working
in
the
organization
or
likely
would
be
a
surprise
for
city
council
as
as
well
is
that
we
have
some
aging
infrastructure
and
equipment,
and
that's
both
infrastructure
in
the
city.
E
Roads
sidewalks
those
kinds
of
things,
as
well
as
our
buildings,
the
equipment
that
we
have
and
things
like
that,
and
so
we've
been
talking
about
that
as
well
with
city
council,
as
we've
gone
through
the
budget
process
this
year
and
are
hoping
to
perhaps
identify
some
additional
funds
for
our
Capital
Improvement
program
through
a
potential
2024,
Geo
Bond,
but
again,
not
an
observation
that
came
as
a
surprise
to
to
any
of
us
in
the
organization.
E
E
Certain
things
around
cameras,
enhancing
security
measures
and
even
Staffing,
and
how
we
handle
Staffing
at
certain
events,
I
think
were
things
that
that
Rose
to
a
level
that
was
noted
in
the
the
assessment
that
Sherry
Becker
did
and
we've
already
started
talking
internally
about
how
we
can
do
additional
training
and
utilize
our
risk
management
staff
to
help
with
that.
E
And
that
is
also
a
discussion
we're
having
as
a
part
of
the
budget
process
and
then
finally,
the
last
bullet,
which
I
think
is
kind
of
a
a
good
news
thing,
and
it's
something
that
Christine
and
her
team
noticed
as
she
worked
with
us,
was
that
it
was
a
great
there
was
a
level
of
awareness
in
the
organization
about
what
it
where
we're
at
what
our
challenges
are
and
what
we
do
well
and
staff
was,
was
very
open
and
receptive
about
about
sharing
information
receiving
feedback
and
was
very
helpful
throughout
the
process
as
well.
E
G
I,
just
I
wanted
to
share
and
iterate
that
last
point.
That,
first
of
all,
thank
you
for
the
opportunity
and
happy
to
be
here
and
but
a
special
thanks
to
Tony
and
Becky.
This
was
we
had
over
21
workshops
and
they
facilitated
it.
They
helped
us
along
the
way,
with
documents,
discussions
and
I
I
think
it
was
a
pleasant
surprise.
G
We
are
not
a
gotcha
auditor
firm
and
we
were
really
here
to
add
value,
and
everyone
was
open,
honest
receptive
and
had
a
really
strong
conversations
around
challenges
faced,
but
also
great
things
that
they
feel
they
have
done
well
with
even
considering
the
constraints.
So
it
was.
G
D
I'm
not
sure
if
this
can
be
covered
later
on.
But
where
are
we
in
the
process
of
rebuilding
the
internal
audit
staff,
or
you
had
talked
previously
about
Outsourcing?
That.
E
Yes,
it
was
a
great
question,
so
we
we're
hoping
we're
wanting
to
get
through
the
risk
assessment
with
jerryback
was
really
before
we
made
any
decisions
about
moving
the
program
forward.
I've
been
working
with
our
HR
staff
over
the
past
few
weeks
to
look
at
what
a
re-vamped
or
retitled
internal
auditor
positioning
might
look
like
I.
Think,
as
you
all
know,
as
we
shared
with
you
all
a
couple
times
already,
we
had
a
lot
of
difficulty
recruiting
for
the
internal
auditor
position
and
so
we're
going
to
give
it
one
more
shot.
E
I
guess
I
would
say
in
terms
of
putting
that
position
back
out
for
recruitment
here
in
the
next
few
months,
with
the
ideas
that
we
could
get,
that
position
filled
and
then
potentially
again
we're
going
through
our
budget
process
right
now,
but
we're
hoping
that
we
can
add
some
dollars
to
the
internal
audit
budget
next
year
to
us
to
do
some
more
contracted
work,
and
so
we
want
to
take
the
results
of
the
risk
assessment
that
Sherry
beckert
has
done
with
us
and
again
they've.
E
Given
us
some
some
more
detailed
observations
that
we're
still
working
through
and
looking
at,
we
want
to
take
some
time
and
digest
those
and
then
kind
of
let
that
inform
what
our
next
steps
are
in
terms
of
the
actual
audits
that
we
may
look
at
doing
next
year
and
so
still
haven't
gotten
the
position
Phil,
but
trying
to
move
forward
with
that
again.
At
this
point
in.
B
E
So
until
we
get
an
internal
auditor
hired,
that
will
continue
to
be
me
that
handles
that
handles
that
as
the
finance
director,
okay,.
B
D
Yeah
I
I
guess
my
only
questions
are
kind
of
in
terms
of
budget
and
what
what
we
would
spend
with
an
external
firm
versus
an
internal
hire.
You
know
obviously,
like
I
said
in
the
past
I
feel
like
we
Outsource
a
lot
of
things.
You
know
it's
kind
of
noted
in
one
of
the
points
here
on
the
summary,
so
I
just
got
to
make
sure
whatever
we
do.
We're
gonna
receive
good
value
and
it's
going
to
meet
our
needs
is,
is
my
only
concern
and
input.
E
Thanks
Andrew,
all
right,
I
think
we
can
go
on
to
the
next
slide.
I
think
this
is
maybe
just
a
quick
one,
but
this
is
kind
of
just
an
overview
of
the
methodology
and
again
over
the
next
few
slides
I
want
to
kind
of
dive
into
the
methodology
that
cherry
Becker
used
as
they
went
through
this
process,
and
it's
really
kind
of
a
a
four-prong
approach
here.
If
you
will,
it's
a
understand,
assess
Benchmark
and
road
map
and
we're
kind
of
at
that
road
map
stage.
E
Now,
like
I
said
we
originally
contracted
with
cherrybacker
back
in
August,
and
so
they
went
through
a
number
of
meetings
with
our
organization,
with
our
departments
to
kind
of
understand
where
we
were
at.
They
took
all
that
information
went
back,
formulated
their
recommendations
and
observations,
Benchmark
that
with
some
other
organizations
and
and
they're
now
ready
to
provide
us
with
that
road
map
to
help
us
kind
of
move
forward
with
the
program.
E
So,
just
quickly
and
I'm
not
sure
how
much
familiarity
you
all
have
with
with
the
risk
assessment,
but
essentially
there's
certain
factors
that
are
are
looked
at
during
a
risk
assessment.
One
of
the
key
factors,
one
of
what
are
the
riskiest
elements
of
what
you
you.
E
That
organization
does-
and
this
is
the
list
of
the
factors
that
Cherry
Becker
looked
at
for
us
as
a
part
of
this
assessment
and
and
I
won't,
maybe
not
go
through
well,
maybe
we'll
go
through
them
very
quickly,
but
so
the
financial
impact,
obviously
I.
Think.
As
you
all
know,
anything
that
has
a
large
Financial
impact.
A
large
dollar
impact
is
something
that's
risky
and
something
that
you
want
to
look
at
any
operation
that
has
business
transaction
like
activities
such
as
a
Civic,
Center
or
Nature
Center.
E
Those
are
obviously
operations
that
are
inherently
going
to
be
risky
things
that
have
that
are
that
operate
under
a
strict
regulatory
environment.
We
want
to
make
sure
that
we're
you
know
meeting
all
of
our
expectations
there.
E
Third
third
party
Reliance
is
looked
at
as
a
risk
factor
and
that's
simply
because,
obviously,
as
you
all
know,
if
you're
relying
on
someone
outside
of
your
organization
to
provide
a
service
to
a
contract
or
something,
then
there
is
inherently
risk
in
that
and
things
that
you
can't
control
as
an
organization.
E
Have
there
been
substantial
alternative
or
in
the
organization
or
changes
in
our
processes
or
systems,
because
it's
in
environments
like
that
that
risk
can
go
up
and
and
and
things
can
happen,
they
looked
at
our
fraud
risk
they
evaluated
how
our
internal
controls
are
set
up
and
do
they
or
are
they
set
up
in
such
a
way
to
mitigate
or
lower
the
risk
of
fraud
within
the
organization?
E
And
then
finally,
they
consider
reputational
risk-
and
you
know,
as
a
public-facing
organization
as
a
local
government-
obviously
we're
doing
a
lot
every
day
that
puts
us
out
in
the
public
eye,
and
so
there
are
things
that
can
go
wrong
in
certain
areas.
In
the
police
department
or
in
our
city,
you
know
picking
up
trash
or
things
like
that
that
can
involve
reputational
risk,
and
so
they
looked
at
all
of
these
factors
as
they
they
put
together
the
what
I'll
call
the
report
card
that
they
have
provided
for
us
today.
E
So
after
looking
at
all
the
the
risk
factors,
essentially
every
department
or
operation
within
the
city
that
cherry
Burger
looked
at
was
ranked
between
based
on
its
its
inherent
risk,
and
it
was
right
from
low
or
negative
negligible
risk,
only
up
to
critical
risk
or
high
and
again
this.
This
really
was
an
and
maybe
I
inadvertently
used
the
term
report
card.
This
really
isn't
a
report
on
how
well-
and
you
know,
we're
doing
per
se.
E
It's
really
more
of
a
report
on
just
the
inherent
riskiness
of
these
operations,
so,
for
example,
you're
going
to
see
on
the
next
few
slides
and
then
some
of
the
graphs
that
an
operation
like
Harris
Center
is
ranked
as
a
very
risky
organization.
That
is
not
a
report
or
a
grading
on
how
well
Chris
Coral
our
director
of
Community,
Regional
and
in
entertainment
facilities.
God,
don't
know
why
I
struggle
in
that
age.
E
How
well
he's
doing
it's
simply
a
reflection
of
the
type
of
operation
that
he
runs
there
and
it
is,
you
know,
there's
a
lot
of
cash
handling,
a
lot
of
cash
in
and
out,
and
so
the
rankings
you'll
see,
don't
necessarily
reflect
performance
so
much
as
just
the
inherent
risk
and
some
of
the
operations
that
we
have.
E
So
you
can
go
to
the
next
slide
Alicia
so
like
I
mentioned
I,
think
Christine
mentioned
as
well,
so
Trey
Becker
did
a
lot
of
work
over
the
last
six
months
of
2022
working
with
our
departments
we
conducted,
or
they
conducted
21
workshops
that
covered
31
different
units
and
subunits
within
our
organization
and,
like
I,
said
they
provided
us.
Some
detailed
recommend
recommendations
which
we're
still
working
through
as
an
organization
and
we'll
hopefully
we'll
be
able
to
share
more
out
with
this
committee
at
your
next
meeting.
E
But
there
are
36
recommendations
that
they
provided
us
and
again
they
identified
across
some
of
our
major
areas.
What
are
some
of
the
areas
that
have
some
of
the
highest
inherent
risk
in
what
they
do
and
I
think
the
next
slide
kind
of
drills
down
the
next
couple,
slides
kind
of
drill
down
to
that
even
more
I
think
you
can.
You
can
go
on
to
slide
12.
Alicia.
So
on
this
slide
again
this.
E
This
is
the
areas
or
these
are
the
areas
that
they
identified
because
of
the
nature
of
what
we
do,
that
really
have
the
highest
risk
and
these
highest
risk,
and
these
are
the
areas
that
we
probably
would
want
to
focus
on
if
we
do
look
to
do
a
more
of
a
detailed,
deep
dive
or
follow
up
with
any
kind
of
internal
audit.
E
Specific
internal
audit
work
and
again
I
won't
read
through
all
of
these,
but
I
would
say
that,
just
in
looking
at
these
I
thing,
you
all
would
there
probably
are
no
surprises
on
this
slide
as
well.
I
mean,
obviously
things
like
I
mentioned,
like
Hera's,
that
have
a
lot
of
high
dollar
impact.
A
lot
of
business
transactions
going
on
a
department
like
my
own
finance
that
Becky
and
I
manage
with
treasury,
Services,
GL
and
purchasing.
Obviously,
an
area
of
a
potential
high
risk
and
also
Information
Technology
as
well.
E
You
can
go
to
the
next
slide
Alicia,
and
this
is
kind
of
a
more
of
a
graphical
representation
with
some
numbers
here
that
kind
of
show
you
again
based
on
their
scoring
criteria
at
Jerry
Becker.
What
are
those
areas
of
highest
risk
from
highest
to
lowest?
And
you
can
see
you
know
again,
as
as
you
might
guess,
Harrison
or
scored
the
highest
to
the
12.
E
Our
Fleet
Management
division
was
a
ten
and
a
half,
and
then
some
of
the
the
areas
that
are
that
are
less
risky
areas,
such
as
sustainability,
for
example,
and
you'll,
see
capital
projects
is,
is
high
on
risk
as
well
and
again.
That's
because
folks
in
that
area
manage
some
really
large
high
dollar
projects
that
have
a
lot
of
Community.
F
E
We
do
have
an
appendix
which
takes
and
I
won't
go
through
all
those
slides,
but
again
takes
the
information
in
that
last
slide.
That
I
shared
with
you
all
and
kind
of
breaks
it
down
on
a
more
minute
level
and
kind
of
looks
it's
each
of
the
specific
criteria
for
each
of
the
areas
and
gives
each
of
the
areas
or
each
of
the
domains
a
rank
between
low,
moderate
and
high
in
terms
of
the
risks.
E
So
with
that
I
think
I
will
stop
there
and
again
I'll
ask
Christine
if
you
have
any
additional
things
that
you
think
I
may
have
missed,
that
you
would
want
to
emphasize
and
then
turn
it
over
to
questions.
G
G
Obviously
progress
and
reputational
risk
weave
throughout
all
of
these
areas,
but
purposely
pull
them
out
and
that's
how
we
are
able
to
consistently
rank
across
those
factors
and
to
Tony's
point
for
the
inherent
risk
and
residual
risk,
but
we
do
take
into
consideration
as
part
of
that
process
in
our
discussions
of
the
controls
relevant
to
those
risk
areas
that
we
discuss
and
that
protect
the
organization.
So
that's
part
of
the
comprehensive
discussion
and
ranking.
B
G
So
we
take
those
the
rankings
are
considering
the
control
factors
you
have
with
the
inherent
and
residual
risks
that
might
the
residual
risk
that
may
be
retained
based
on
those
controls
that
are
in
place
and
our
recommendations
are
based
on.
If
you
improve,
if
you
implement
some
of
those
recommendations,.
G
Those
risks
further
sorry,
so
it's
looking
at
the
control
framework.
You
have
at
a
very
high
level,
based
on
the
descriptions
and
discussions
we've
had
with
the
information
provided
we
did
not
go
and
that's
not
part
of
the
scope
of
going
in
to
test
all
these
controls
and
their
effectiveness.
Does
that
help
answer
your
question?
Yes,
thank
you
absolutely.
A
County
the:
how
long
has
the
internal
audit
position
been
vacant
and
where
do
we
see
us
going
as
Andrew
was
saying
earlier,
looking
at
an
external
option
in
lieu
of
a
staff
member
yeah.
E
Great
question
so
I
I
think
that
I've
been
going
for
memory
here,
I
think
our
previous
internal
auditor
Patricia
left
in
I
think
it
was
October
of
2021.
E
So
it's
been
vacant
for
a
little
over
about
almost
a
year
and
a
half
I
would
say,
as
you
all
know,
we've
done,
I
think
three
recruitments
and
Scott
I
think
you
were
in
on
two
or
three
interviews,
three
yeah
and
we
unfortunately
did
not
find
a
a
candidate
that
we
felt
like
had
the
experience
and
background
to
move
forward,
and
so
we
kind
of
took
a
pause
at
that
point
and
especially
with
the
risk
assessment
kicking
off.
E
We
wanted
to
get
through
this
particular
project
and
and
have
something
of
an
internal
audit
work
plan
in
mind
before
we
before
we
made
a
decision
about
either
Contracting
out
for
this
function
or
trying
to
hire
internally
like
I,
said
earlier,
I
think
where
we're
at
right
now
is.
We
want
to
attempt
once
more
to
find
a
person
to
work
internally
here
at
the
city,
as
as
an
internal
auditor,
an
internal
audit
program
manager
we're
still
working
through.
E
Perhaps
the
exact
title
of
that
position,
but
actually
have
like
the
work,
the
internal
audits
that
can
get
done,
have
those
be
contracted
out
in
most
cases,
but
we're
still
working
through
that,
like
I,
said
we're
hoping
to
get
the
job
announcement
back
out
on
the
street
here
in
the
next
month,
or
so
as
if
you
all
were
on
at
the
beginning.
We
heard
Becky
talking
about
her
baby
Becky,
Becky
and
I
are
both
getting
ready
to
go
out
on
leave.
E
Unfortunately,
for
a
couple
months,
and
so
once
we
are
back,
HR
is
hopefully
going
to
have
us
the
candidates
to
look
at
and
we
would
move
forward
from
there.
So
Scott
does
that
answer
your
question.
A
And
if
we
do
go
with
an
internal
option
that
was
still
reside
under
the
city
managers
area,
correct
I,.
E
Think
I
think
that
is
our
plan
that
we
haven't.
We
haven't
fully
worked
that
out
yet,
but
I
think
in
order
to
maintain
the
independence
of
the
internal
audit
function
it
that
is
most
likely
where
that
position
would
reside.
D
I,
remember
you
know.
Kind
of
one
of
the
challenges
was
in
the
budget
for
the
position
of
the
internal
auditor.
I
want
to
say:
I
saw
it
posted
for
about
60k.
Last
time.
I
looked,
it
seems
like
we're
gonna,
be
farming
out
work
to
external
firms,
we're
going
to
go
over
that
amount
pretty
swiftly.
E
Yeah-
and
you
know
off
the
top
of
my
head-
I-
don't
know
we
also
in
that
division,
because
it's
an
it's
a
division
set
up
through
the
city.
We
also
budget
our
external
audit
as
well,
so
that
140,
950
000
cost
is
budgeted
there
as
well,
so
I
think
the
full
budget
for
that
division
is
somewhere
in
the
neighborhood
of
200
250
000,
Becky
Becky
looks
like
she
might
be,
checking
But.
It
includes
I'll.
Just
it
includes
the
salary
benefits
for
the
position.
It
includes
the
external
audit
contract
that
we
mentioned
earlier.
E
It
also
includes
the
Ethics
Hotline,
which
we
have
an
Ethics
Hotline,
that
folks
can
sending
complaints
either
through
phone
calls
or
through
the
web
through
their
website,
and
so
that's
budgeted
there
as
well
and
then
obviously
just
some
training
and
travel
and
miscellaneous
things
like
that.
But
but
what
we
would
do
is
we
would,
if
you
know,
if
we
go
into
the
budget
and
finish
up
the
budget
for
this
year,
we
would
budget
for
the
position.
D
Okay,
you
know
just
just
looking
at
the
external
audit
and
kind
of
the
numbers
they
have
to
the
base
fee
and
their
expected
number
of
hours.
You
know
we're
looking
around
140
dollars
an
hour
for
the
work.
That's
going
to
be
performed
right.
You
know,
I,
I,
don't
see
that
fitting
in
that
little
slice
of
budget,
which
may
be
something
more
for
sage
and
and
her
colleagues,
but
you
know
it
it's.
It
seems
like
we're.
Not
gonna
We're
not
gonna,
be
able
to
cram
it
all
into
the
budgetary
space.
We
have.
C
E
It's
you
know
when
Taylor
did
his
presentation
on
Tuesday,
we
talked
about
some
of
those
other
enhancements
that
we're
evaluating
as
capacity
allowed,
and
this
is
one
of
the
ones.
That's
that's
definitely
on
on
that
list,
and
so
you
know,
I
think
our
intent
is,
is
to
find
to
find
a
way
to
fund
some
of
the
contracted
audit
contract
contracted
internal
audit
work
is
a
part
of
the
budget
that
we'll
be
bringing
all
in
May.
A
Well,
Tony,
you
know
it's
very
easy,
there's
a
setback
and
you
know
in
those
stones
at
glass
houses,
but
you
know:
we've
been
two
years
without
an
effective
internal
audit
and
as
it
stands
right
now,
it
looks
like
we're
not
necessarily
depending
upon
our
external
auditor,
to
do
internal
audit
work.
Theoretically,
because
no
one
is
you
know
doing
that,
work
and
we're
you
know
and
of
course
that's
not
its
function.
A
I
would
hope,
as
as
Andrew
stated
that
you
know,
city
council
will
at
least
look
at
this
and
provide
monies
for
this,
because
it's
an
integral
part
of
just
the
checks
and
balances
with
with
throughout
the
city.
B
I
also
think,
if
you're
going
to
be
looking
at
some
kind
of
Public
Funding
for
Capital
Improvements,
it's
going
to
be
important
that
we
get
a
clean
opinion
in
relation
to
our
controls
and
I.
Think
internal
audit
is
is
critical
in
in
helping
the
city
to
ensure
that,
like
you're
saying
the
checks
and
balances
are
in
place
and
and
we
can
get
a
clean
opinion
every
year,
I
think
that's
going
to
be
critical.
If
we
want
Public
Funding.
H
I
wanted
to
just
chime
in
on
this
conversation,
because
I
don't
want
anyone
to
think
that
we
don't
value
and
understand
the
critical
nature
of
this
particular
position.
H
A
lot
of
the
reason
for
why
we
have
not
been
able
to
attract
a
candidate
and
I,
don't
know
if
it
has
been
the
salary
or
not
we're
not
certain,
but
I
know
that
as
Mr
McDowell
said
earlier,
we
have
had
three
iterations
of
trying
to
recruit
qualified
people
for
this
for
this
position
and
we
will
continue,
but
certainly
we
I
just
want
to
express
that
we
we
definitely
understand
the
critical
nature
of
this
position
and
I
don't
want
anyone
to
think
that
we're
overlooking
and
that
this
isn't
a
sense
of
urgency
for
us
it
is.
E
Any
other
questions
or
I
think
the
next
item
on
the
agenda
is
public
comment
but
I'll
turn
it
back
over
to
Scott,
you're,
muted,
Scott.
A
Thank
you,
Tony
public
comment.
We
have
no
public
comments.
Any
audio
recordings
have
been
transcribed
and
have
been
provided
to
committee
along
with
pre-submitted
written
comments.
So
we
didn't
have
any
public
comments.
So
the
next
thing
on
our
agenda
is:
if
we
don't
have
any
new
business
adjournment.
A
C
I'll,
second,
it
and
then
I'll
just
share
for
discussion
purposes
that
I'll
be
sure
to
follow
up
in
our
budget
sessions
about
this
concern.
Thank.