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From YouTube: August 27, 2018 Audit Committee
Description
Minneapolis Audit Committee Meeting
A
Good
morning,
I'd
like
to
welcome
you
to
the
regular
meeting
of
the
Audit
Committee
for
the
city
of
Minneapolis,
it's
August,
27th
and
with
me
here
on,
the
dais
is
Commissioner
Chris
Meyer
mr.
David
Fischer
vice
chair
mr.
Scott
Neal
and
councilmember
Schrader.
Please
let
the
record
reflect
that
we
have
a
quorum
and
I'd
like
to
move
adoption
of
the
agenda
before
you
today.
A
B
B
We
audited
the
city
of
Minneapolis,
the
Municipal
Building
Commission
in
the
park
board
for
the
year
ended
December,
31st
2017,
and
we
issued
our
opinion
for
both
the
city
in
the
park
board
and
our
opinion
is
included
in
both
of
their
annual
financial
reports.
We
performed
our
audits
in
accordance
with
auditing
standards,
generally
accepted
in
the
United
States
of
America
government,
auditing
standards
and
uniform
guidance.
Our
opinions
for
both
the
city
and
the
park
board
were
dated
July
9th
2018
and,
like
I,
mentioned
they're
in
both
of
their
respective
financial
reports.
B
B
We
also
audited
the
city's
federal
awards
and
have
issued
our
opinion
on
compliance
for
the
major
programs
that
we
audited.
The
opinion
on
each
of
the
city's
major
federal
programs
was
unmodified,
and
this
means
that
the
city
has
complied
in
all
material
respects,
with
the
compliance
requirements
that
were
directing
material
to
each
of
those
federal
programs
that
we
looked
at
the
park
board
and
NBC
both
had
federal
expenditures
as
well,
but
neither
one
of
them
hit
the
threshold
that
required
a
single
audit.
B
So
we
did
not
audit
federal
programs
for
either
the
park
board
or
the
Municipal
Building
Commission
and
their
expenditures
are
included
in
the
city's
schedule
of
expenditures
of
federal
awards
throughout
our
audit.
Any
findings
related
to
internal
control,
compliance,
Minnesota,
legal
compliance
or
related
to
federal
programs,
either
internal
control
over
compliance
or
compliance.
B
The
summary
schedule
of
prior
audit
findings
lists
the
findings
that
were
reported
in
our
prior
year,
annual
or
our
prior
year
report
and
it's
a
status
report
of
the
findings
from
the
previous
year
and
where
they're
at
this
year,
whether
they
were
resolved,
partially
resolved
or
not
resolved,
and
then
the
corrective
action
plan
is
also
management's
document
and
it's
their
current
year
plan
for
how
to
resolve
our
current
year.
Findings
that
we
reported
so
both
of
those
are
in
the
reports
as
well
for
the
corrective
action
plan.
B
We
do
not
audit
the
city
or
the
park
boards
response
to
their
to
their
current
year
findings,
but
we
do
follow-up
in
the
next
year's
audit
to
see
how
those
have
been
resolved
or
what
progress
has
been
made
on
those
findings
in
our
2007
management
and
compliance
report
for
the
city,
we
reported
four
findings,
three
of
those
where
new
findings
and
one
was
a
repeat
from
last
year.
Our
schedule
of
findings
and
question
costs
also
include
the
following
about
the
finding.
B
We
issue
a
statement
about
the
criteria
and
that's
how
we
measure
the
finding
on
the
condition
what
the
finding
actually
is
or
what
the
issue
is
at
some
additional
context,
which
provides
some
more
perspective
on
the
on
the
issue.
What
the
effect
of
the
problem
is
what
it
could
lead
to
or
what
it
did
lead
to
the
cause
of
the
finding,
and
we
review
this
with
both
city
management
and
park,
board
management
as
well,
and
then
our
recommendation
as
to
how
to
resolve
the
issue.
B
Our
three
new
findings
that
we
reported
relate
to
monitoring
of
internal
controls,
a
prior
period
adjustment
and
a
fat
withholding
epidemic
for
contractors,
which
is
also
the
form
IC
134.
The
finding
repeated
from
the
prior
year's
report
relates
to
uniform
guidance,
written
procurement
policies
and
procedures.
The
city
has
provided
its
corrective
action
plan
for
these
findings
and,
like
I
mentioned,
will
we're
required
to
follow
up
on
them
and
the
next
year's
audit.
B
One
was
a
new
finding
and
one
was
repeated
from
last
year
and
then
we
also
resolved
one
finding
from
the
park
board
last
year
and
while
I
mentioned
resolved
findings,
we
did
resolve
three
findings
from
the
city
last
year,
one
of
them
being
the
prompt
payment
of
invoices
which
been
has
been
reported
since
2009.
So
we
were
able
to
resolve
that
one
this
year.
C
D
C
B
A
Are
you
through
yep,
okay,
great
I,
appreciate
your
coming
to
our
Audit
Committee?
As
always,
are
there
other
questions
from
Council
members
about
these
reports?
I
had
an
opportunity
to
meet
with
the
finance
department
to
speak
about
these
when
they
were
in
draft
form,
so
I
don't
have
any
more
questions
or
thoughts
about
it.
Now
I
will
move
to
receive
and
file.
All
three
of
these
reports.
C
C
A
D
A
Secondly,
I
meant
to
do
this
at
the
beginning
when
we
adopted
the
agenda,
but
the
next
item
on
our
agenda
is
an
audit
plan
amendment,
but
it
might
help
to
refresh
your
memory
about
some
of
the
workings
of
the
audit
department
right
now
and
and
to
refresh
our
memories
of
what's
on
that
audit
plan.
With
your
permission,
I'd
like
to
move
to
the
internal
auditors
update
report
before
we
then
speak
specifically
about
this
potential
plan
amendment.
F
We
have
two
completed
audits
today,
which
are
IT
audit
reports
and
chair
Palmisano
will
speak
to
those
later.
We
have
a
number
of
performance
audits
and
consultations
in
progress
here
to
give
an
update
on
our
performance
audits
in
progress.
Is
you
get
a
so
lot?
Who
is
our
senior
auditor
following
her
update
will
be
Carol
de
Sciglio
of
audit
manager,
who
will
provide
an
update
on
the
status
of
our
consultations,
IT
audits
and
projects
and
progress?
You
get.
G
G
We
are
currently
finishing
field
work
for
the
payroll
audit
and
I've,
already
communicated
a
list
of
potential
issues
and
open
items
needed
to
be
completed
in
order
to
finish
field
work
to
management,
and
the
objective
of
the
payroll
audit
was
to
evaluate
the
city,
payroll
processes,
identified,
controls
in
place
to
prevent
pair
of
fraud
and,
most
importantly,
determine
if
the
controls
were
appropriately
designed
and
if
they
are
operating
effectively.
We
will
continue
to
work
with
management
to
finalize
our
filled,
work
and
issue
an
audit
report.
G
We
just
started
field
work
for
the
AG
audit
last
week,
and
the
objective
of
this
audit
is
to
ensure
that
select
clauses
of
the
contract
between
AG
and
the
city
of
Minneapolis,
relating
to
the
operation
of
the
Target
Center,
are
abided
by
that
AG
financial
reporting
is
complete
and
that
the
city's
management
of
the
contract
is
adequate
part.
Part
of
the
film
work
will
be
done
on-site
at
AG
and
we're
also
planning
to
present
the
audits
report
at
the
October
15
audit
committee
meeting.
That
concludes
the
audit
project.
H
H
Our
next
consultation
progress
is
the
Public
Works
fleet
services
bottle
consultation,
the
Public
Works
fleet
services
division
has
revised
its
cost
allocation
model
for
how
it
charges
cost
to
other
departments.
The
current
the
prior
model
has
been
in
place
for
a
little
while
our
review
for
this
consultation
is
to
look
at
the
assumptions
and
estimates
that
went
into
the
new
model
and
look
at
the
resulting
fund
balances
that
are
likely
to
result
from
improve
implementing
this
new
model
and
to
provide
commentary
on
whether
the
assumptions
are
reasonable
and
well
documented.
H
Next
project
is
our
consultation
with
C
ped
on
their
records
management
program,
we're
reviewing
retention
and
maintenance
processes
at
C
ped
to
help
ensure
that
their
record
retention
program
has
its
well
structured
and
has
proper
controls.
The
reason
this
consultation
is
relevant
is
C.
Ped
is
to
be
relocating
to
the
new
city
public
service
building
when
its
constructed
in
2020
they're
supposed
to
be
the
first
tenant
and
see
if
it
has
a
lot
of
records
that
they
need
to
figure
out
where
to
move
and
how?
H
What
to
digitize
and
how
and
we've
been
engaging
with
C,
ped
and
city
clerk
records
staff
to
understand
the
current
process
and
our
next
steps
will
be
we're
working
with
C
ped
management
to
assist
them
with
mapping
out
their
records,
related
risks
and
controls
across
the
departments
that
they're
able
to
have
a
system
in
place
so
that,
when
city
records
staff
advise
next
steps
related
to
the
move.
Steve,
it
has
a
structure
in
place
to
be
able
to
take
those
steps
effectively.
H
Next,
we
are
working
with
the
neighborhood
Community
Relations
group
at
the
city
on
their
2020
project.
The
2020
project
is
proposing
changes
to
how
the
city
oversees
neighborhood
city
reimbursed
funding
the
process.
The
2020
process
is
a
longer
one.
It
started
out
with
a
road
map
earlier
this
year
that
we
had
some
comments
on.
The
next
steps
are
public
workgroups
that
will
provide
some
recommendations
and
suggestions
that
will
go
up
to
for
City
Council
for
a
vote.
H
Our
role
here
is
to
look
at
ways
that
internal
controls
can
be
improved
and
oversight
can
be
improved
within
the
different
options
and
provide
that
commentary
to
NCR
as
they
develop
their
final
proposal
to
City
Council
and
our
final
component
for
this
review
will
be
to
look
at
NCR's
audit
policy
to
ensure
that
whatever
the
final
2020
is
for
how
the
oversight
will
be
structured,
that
the
that
NCR's
audit
policy
reflects
that
captures
risks
appropriately
and
properly
controls.
The
oversight
that
we
are
able
to
do
for
these
funds.
H
The
last
consultation
that's
currently
actively
being
worked
on
in
progress
is
the
results.
Minneapolis
project
results
me
appleÃs
provides
city
council
with
reports
from
departments
on
those
departments
results.
The
program
is
going
through
a
revision
right
now,
that's
led
by
the
strategic
planning
and
analysis
group.
That's
under
the
city
coordinator,
as
departments
are
being
transitioned
one
by
to
the
new
reporting
format.
H
Internal
audit
is
engaging
at
two
points
to
review
and
comment
on
the
department
goal-setting
process,
with
the
idea
of
identifying
opportunities
for
more
meaningful
goals
and
suggesting
ways
that
these
goals
can
better
be
measured.
Our
final
touch
points
with
the
of
these
departments
will
be
looking
at
their
final
reports
that
are
getting
presented
to
City
Council
in
early
2019.
H
This
consultation
will
likely
not
be
completed
until
early
2019,
because
that's
when
the
final
reports
are
due
with
the
other
consultations,
I
spoke
of
likely
to
be
presented
later
this
year,
either
at
the
October
or
December
committee
meetings
and
then
for
results.
Minneapolis
specifically,
we
have
worked
on
feedback
with
the
HR
department
and
we're
working
on
feedback
on
C
pads
goals
that
are
being
proposed
and
planned
to
review
the
goals
as
another
three
or
four
departments
are
transitioned
to
the
new
format.
During
the
course
of
this
year.
A
Thank
you,
I
do
want
to
interject
at
this
point,
and
just
mention
to
you
to
I
guess
out
loud
that
a
lot
of
the
conversations
that
I've
had
with
my
colleagues
this
year
have
really
been
about
how
we
use
results,
Minneapolis
and
a
consistent
and
meaningful
way,
and
some
of
that
takes
evolving
results.
Minneapolis
I'm
really
happy
that
the
audit
department
and
the
audit
team
has
been
involved
in
it
because
it
helps
us
come
up
with
more
measurable,
consistent
things
that
we
can
use
to
evaluate
performance.
A
Something
that
we
are
talking
about
in
Budget
Committee,
which
starts
later
on
today,
is,
is
the
opportunity
to
look
at
the
budget
more
holistically
and
dive
more
deeply
into
the
existing
role
over
year
to
year
from
department
to
department,
instead
of
just
the
incremental
change,
and
this
will
be
a
part
of
that.
So
I
just
wanted
to
note
that.
Thank
you.
D
I
H
Our
work
couldn't
really
start
until
implementation
was
substantively
underway.
The
this
system
is
live
as
of
June,
so
happily
we'll
be
able
to
complete
field
work
in
the
next
few
months
and
report.
The
results
of
this
work
on
the
employ
tation
later
this
year,
the
middle
item
here
the
separation
process,
is
a
consultation
with
HR
on
how
effective
their
new
employee
separation
process
has
been
to
control
access
to
systems,
especially
when
employees
leave
city
employment.
H
F
Thank
you,
you
getting
Kiril.
Another
important
function
of
the
audited
is
following
up
on
open
audit
issues.
The
process
involves
periodic
updates
with
management
and
the
audit
team
discussing
progress.
The
key
purpose
is
to
identify
if
remediation
dates
will
be
missed,
so
that
we
can
address
problems
ahead
of
time
when
an
issue
is
ready
to
be
closed,
management
will
fill
out
a
memo
and
attach
evidence
that
they
have
remediated
the
issue.
F
Internal
audit
then
reviews
the
evidence,
and
if
the
issue
is
indeed
ready
to
be
closed,
then
internal
audit
formally
closes
those
audit
issues
here
to
provide
an
update
on
our
issue.
Follow-Up.
The
status
of
open
issues
is
staff
out,
or
staff
auditor
Ethan
ruck
Heim
who's
been
doing
a
great
job
following
up
on
old
audit
issues
and
pulling
everything
together
and
helping
with
tracking
Ethan.
J
J
J
F
F
The
reason
why
it's
going
to
be
a
few
months
out
is
because
we
work
with
management
to
establish
the
criteria
across
multiple
risk
categories,
such
as
financial
risk,
operational
risk,
strategic
risk,
reputation,
risk
management
and
audit
agree
on
the
criteria
for
the
different
ratings,
because,
ultimately,
they
they
own
the
risk
appetite
for
their
programs
or
departments.
So,
hopefully,
January
2019
going
forward
we'll
be
able
to
have
the
risk
rating
for
all
of
our
issues.
I
F
Palmisano
committee
member
Fischer,
a
couple
of
those
overdue
items,
are
from
older
reports
from
2013-2014.
We
believe
that
some
of
those
are
very
close
to
being
remediated,
so
we
have
an
initiative
underway
to
work
with
management
and
see
if
the
evidence
actually
already
exists
to
close
out
some
of
those
older
issues
and
unfortunately,
some
of
the
detail
just
got
lost
over
time
with
changes
in
the
department
and
tracking
for
the
items
that
cannot
be
remediated
immediately.
D
J
Next,
slides
kind
of
break
down
the
numbers
from
the
previous
slide
in
a
little
more
detail
by
project
I'm
not
going
to
go
through
line
by
line,
but
there
are
a
couple
of
past
audits,
I'd
like
to
speak
on
the
first
of
which
is
the
application
security
review.
As
you
can
see,
it's
currently
overdue,
but
management
does
believe
that
the
finding
has
been
remediated
and
we
will
be
communicating
with
management
to
get
that
closed.
J
J
The
the
next
is
the
IT
program
and
project
management
consultation.
This
project
was
a
consultation
and
former
follower.
Follow-Up
will
no
longer
be
taking
place.
Management
is
in
the
process
of
providing
an
outline
for
the
outstanding
items,
and
then
this
project
will
be
closed
by
internal
audit.
Four
of
the
currently
included
overdue
figures
from
the
previous
slide
are
from
this
project.
J
Next
is
meet
minneapolis
meet
minneapolis
has
communicated
that
they've
remediated
three
of
their
four
findings
prior
to
the
next
committee
prior
to
the
next
committee
meeting,
will
receive
the
supporting
documentation
from
minneapolis
will
then
review
those
materials
to
ensure
that
the
actions
have
been
carried
out
and
will
then
close
those
findings.
I
just.
A
J
Next,
I'd
like
to
provide
an
update
on
the
state
auditor,
the
audit
committee
has
provided
staff
direction
to
us
to
track
findings
that
are
reported
by
the
state
auditor.
The
city
of
minneapolis
recently
received
its
audit
report
for
2017.
The
state
auditor
reported
four
new
findings.
There
are
also
two
recurring
findings
from
previous
years.
Moving
forward.
We
will
receive
updates
from
management
on
the
status
of
the
remediation
and
then
report
that
to
this
committee.
F
Thank
You
Ethan
a
couple
of
additional
items:
the
citywide
risk
assessment,
we're
in
the
process
of
ramping
up
a
refresh
where
we
meet
with
management
and
discuss
their
department,
objectives
and
goals.
It
gives
us
an
opportunity
to
talk
about
their
data
collection,
method,
sorry
and
encourage
cross
departmental
communications.
F
We
use
this
citywide
risk
assessment
refresh
or
update
to
inform
our
audit
plan.
So
we
based
the
audits
that
that
we
plan
and
we're
going
to
call
it
a
rolling
audit
plan
so
that
we
can
always
see
six
to
twelve
months
out.
What's
up
on
the
agenda
to
keep
things
in
motion.
Sometimes
things
have
to
be
delayed,
and
sometimes
we
finish
things
early
and
then
we'll
go
to
the
next
audit
on
the
plan
that
is
informed
from
the
citywide
risk
assessment.
F
Internal
audit
is
making
progress
on
an
internal
quality
assurance
and
improvement
program.
We
expect
to
implement
our
first
self-assessment
in
early
2019
and
we'll
we'll
use
those
results
to
shore
up
our
processes
and
hope
to
have
our
first
peer
review
a
couple
of
years
after
that,
Professional
Standards
require
us
to
have
a
peer
review
once
every
five
years
and
the
self
assessment
is
derived
from
the
the
testing
that
they
would
do
during
a
peer
review,
a
training
regardless
of
our
experience
levels.
We
need
ongoing
training
and
education.
F
K
K
F
F
A
A
A
F
So
the
consultation
that
were
requesting
be
added
to
the
2018
plan.
I
wanted
to
mention
that
our
objectives
in
this
consultation
are
at
the
key
objective
is
to
analyze
datasets
datasets.
Will
it
will
give
consideration
to
the
level
of
applicants
so
whether
it's
a
community
service
officer
applying
a
cadet
or
a
recruit?
And
then
we're
also
looking
at
the
application
processes,
which
could
include
resume
review
phone
and
in-person
interviews,
physical
tests
and
dropout
statistics?
I.
A
Think
it's
an
appropriate
time
that
we
will
receive
and
file
the
auditor
update
report
after,
but
since
we
are
talking
about
this
now,
I'd
like
to
bring
us
into
item
number
four,
which
is
the
consideration
of
this
audit
plan
amendment.
If
that's
permissible
to
the
clerk
super,
so
did
you
have
anything
else?
You
wanted
to
say
there's
a
couple
of
questions
up
up
here.
F
C
F
Palmisano
committee
member
Neal,
we
looked
at,
we
have
a
scheduling
tool
now,
so
we
looked
at
our
availability
and
we
do
have
capacity
in
November
without
changing
anything
on
the
audit
plan.
So
we
we
plan
to
get
started
in
October
a
little
earlier
if
some
of
our
other
projects
finish
early.
Otherwise
we
do
have
capacity
to
complete
the
data
analytics
in
November
a.
C
Second
question
I
have
is
regarding
the
the
data
you're
going
to
be
reviewing.
Is
this
data
in
I
know
it's
early
and
you
haven't
started
it,
but
is
this
an
that
you
anticipate
you'll,
be
going
into
the
police
department
and
gathering
data
or
you'll
you'll
be
reviewing
data
that
they
provide
to
you?
Is
it
a
good.
F
Question
probably
a
combination
of
both
we'll
be
working
closely
with
deputy
chief
art
Knight
from
the
Minneapolis
Police
Department,
and
with
Ryan
Patrick
law
enforcement,
analyst
from
the
Office
of
police
conduct
review.
They
have
data
sets
available.
We
probably
will
have
to
request
additional
data
sets
and
I
expect
we'll
work
with
HR
to
get
some
data
sets
as
well.
Thank.
F
A
A
Super
other
thoughts,
questions
but
I
just
want
to
say,
I'm
glad
we
were
able
to
find
a
way
to
fit
this
in
those
of
you
that
may
have
been
or
seen
the
presentation
given
that
the
police
conduct
oversight
Commission
last
week.
Unfortunately,
that's
not
something
that's
recorded
and
is
able
to
be
easily
recalled,
but
the
conversation
at
last
week's
police
conduct
oversight
Commission.
This
was
a
presentation
given
actually
by
a
summer.
Intern
is
where
it
started,
but
the
concerns
here
really
come
forward
in
listening
to
community
year.
E
A
Year
after
year,
I
think
this
is
a
meaningful
way
to
dig
into
the
barriers
that
prevent,
prevent
more
women
in
our
Police
Department,
potentially
be
also
preventing
more
people
of
color
and
more
other
kinds
of
diversity
to
be
joining
our
department.
You
know
in
within
results
Minneapolis.
This
is
one
of
the
elements
that
we
dig
into
in
other
departments,
but
policing
really
has
its
own
process.
A
So
while
it
has
been
a
priority
for
police
over
the
past
few
years,
I
don't
think
that
anybody
is
thrilled
with
it
or
could
see
that
we
are
getting
the
progress
that
we've
hoped
for,
despite
the
efforts
of
MPP,
so
so
yeah
I
just
wanted
to
say,
I
do
appreciate
you
finding
time.
I
did
want
to
also
ask
one
of
the
elements
for
2018
is
the
grant
management,
city
and
parks?
A
Audit
and
I
noticed
this
weekend
and
reading
the
materials
that
that
seems
to
be
a
recurring
theme
from
the
state
auditor
as
a
question
or
finding
from
the
park
board
year
after
year
since
2015
I,
think
that
is
still
something
that
we
would
be
able
to.
You
think,
look
into
or
start
that
audit.
As
well
in
2018.
F
A
I
know
that
is
a
little
bit
of
a
departure
in
conversation
with
the
interim
superintendent.
She
did
say
the
body
worn
camera
program
was
the
priority
for
her
and
for
the
department,
but
I
just
didn't
want
to
lose
sight
of
this.
So
so
thank
you
without
further
questions.
I
would
like
to
consider
and
I'd
like
to
move
approval
of
this
amendment.
To
the
audit
work
plan
for
2018
could
I
have
a
second
all
right
without
further
ado,
all
those
in
favor
say
aye
aye
opposed
that
carries
that
amendment
is
approved.
A
Thank
you
so
much
for
for
implementing
the
scheduling
tool
and
pretty
quick
order
for
working
on
this
and
for
being
able
to
accommodate
this
in
your
already
packed
plan.
Another
piece
that
we
need
to
do
is
we
need
to
receive
and
file.
The
auditor
update
report
that
we
were
hearing
just
prior
to
this,
so
I'd
like
to
move
that
could
I
have
a
second
mister,
sorry,
Commissioner
Meyer
seconds
it
all.
Those
have
an
approval.
Please
say
aye
aye
opposed
that
carries.
Thank
you.
Miss
Bigby.
A
So
the
next
items-
sorry,
the
next
items
on
the
agenda-
are
the
minneapolis
water
treatment
and
distribution
system,
IT
audit
and
the
traffic
signal
system.
It
audit
I'd
like
to
ask
deputy
city
attorney
Eric
Nielsen,
to
help
us
explain
the
reason
why
the
meeting
should
be
closed
to
discuss
these
agenda
items.
Sure.
E
If
disclosure
of
the
information
discussed
would
pose
a
danger
to
public
safety
or
compromised
security
procedures
or
responses,
and
so
before,
closing
a
meeting
under
this
paragraph,
the
public
body
and
describing
the
subject
to
be
discussed,
must
refer
to
the
facilities,
systems,
procedures,
services
or
infrastructures
to
be
considered.
During
the
closed
meeting.
Thank.
A
You
there
any
questions
or
concerns:
okay,
I
move
to
adjourn
to
room
315,
which
is
right
across
the
hall
here
to
a
closed
session
of
the
Audit
Committee.
For
the
purpose
of
discussing
these
two
matters,
the
Minneapolis
water
treatment
and
distribution
system
and
the
traffic
signal
system,
IT
audit,
all
those
in
favor,
please
say:
aye
aye
opposed
the
motion
having
passed
by
Unanimous
Consent.
This
committee
will
adjourn
to
room
315
to
a
closed
session
for
receipt
of
these
audits.
Thank
you.