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1015 Cultural Park Blvd. Cape Coral, FL

Tagged Passions:parks


Tagged Passions:audit

Meeting called to order

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Chair Wolfson

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Austin, Hiatt, Nelson, Stevens, and Wolfson

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December 20, 2017 meeting minutes


A. Public Input B. Election of Chair and Vice Chair C. CAO Hotline - How to report Fraud, Waste, Abuse or Violations of City Policy D. City Auditor Update Report - City Auditor Butola E. Discussion of Meeting Date Change Request for March and April F. Staffing Changes

Tagged Passions:audit, policy, human resources, voting, election, and business

Member Comments

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Time and Place of Next Meeting

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Wednesday, March 21, 2018, 3:00 p.m. Conference Room 2006

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Motion to Adjourn

In accordance with the Americans with Disabilities Act and Section of 286.26, Florida Statutes, persons with disabilities needing special accommodation to participate in this meeting should contact the Office of the City Clerk at least forty-eight (48) hours prior to the meeting. If hearing impaired, telephone the Florida Relay Service Numbers, 1-800-955-8771

(TDD) or 1-800-955-8770 (v) for assistance.

If a person decides to appeal any decision made by the Board/Commission/Committee with respect to any matter considered at such meeting or hearing, he will need a record of the proceedings, and for such purpose, he may need to ensure that a verbatim record of the
Tagged Passions:hearing and boards and commissions

proceedings is made, which record includes the testimony and evidence upon which the appeal is based.

Item Number: 3.A. Meeting Date: 2/21/2018 Item Type: Approval of Minutes AGENDA REQUEST FORM CITY OF CAPE CORAL

TITLE: December 20, 2017 meeting minutes


ATTACHMENTS: Description Type December 20, 2017 meeting minutes Backup Material



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Wednesday, December 20, 2017

CONFERENCE ROOM 2006 3:00 P.M. The meeting was called to order at 3:00 p.m. by Chair Wolfson.

ROLL CALL: Hiatt, Nelson, Stevens, and Wolfson were present. Austin was excused.

ALSO PRESENT: Andrea Butola, City Auditor Victoria Bateman, Financial Services Director

Andrew Laflin, Clifton Larson Allen Britt Martin, Senior Management/Budget Analyst Laura Tanner, Senior Accounting Manager Jacquelin Collins, Charter School Interim Superintendent Mary Anne Moniz, Charter School Business Manager Jeanette Kreuz, Charter School Senior Accountant
Tagged Passions:budget, superintendent, manager, audit, education, services, Charter Schools, Tony Taylor Custom, finance, charter schools, and business

Approval of Minutes: October 18, 2017 meeting

The minutes from the Audit Committee meeting of October 18, 2017 were presented for approval.
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Vice Chair Hiatt moved, seconded by Committee Member Stevens, to approve the minutes as presented. Voice Poll: All ayes. Motion carried.

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Charter School Annual CAFR Andrew Laflin

Clifton Larson Allen Andrew Laflin, Principal, Clifton Larson Allen, reviewed the Charter School Annual CAFR. He stated he was responsible for issuing two reports: 1) the financial statements of the Cape Coral Charter School Authority and 2) the consulting engagement performed on consulting services relating to internal audit findings. Financial Services Director Bateman mentioned that the power point that she presented at the Governing Board Meeting was sent to the Committee. She noted that it would cover a lot of Mr. Laflin s presentation. She stated that the Charter School had an increase in fund balance reserves for about 1 million last year. They received more revenue than expected. The rest concerned findings. VOLUME II PAGE: 29 Discussion held regarding: Page 4 concerning the increase in non-current liabilities by 2.8 million Net pension liabilities increased 2,984,010. Charter School employees are members of the Florida Retirement System which could fluctuate from year to year based on an actuarial evaluation. Salaries for the school were a little higher than expected. Expenses were up by a million. Revenues were up by 636,000 mostly because of PECO (Public Education
Tagged Passions:audit, education, services, Charter Schools, Tony Taylor Custom, financial report, retirement, finance, seniors, and charter schools

Capital Outlay) and E rate funding.

Charter School Business Manager Moniz stated it was budgeted for all employees to receive a 2 percent salary increase.

Tagged Passions:budget, manager, education, Charter Schools, Tony Taylor Custom, funding, charter schools, and business

Director Bateman stated salaries, wages, and employee benefits were up 1 million from the previous year s budget.

Discussion continued regarding the following: Major Changes in Statement of Revenues, Expenditures, and Changes in Net Position
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General Fund Budget vs. Actual Variance with final budget was 4.3 million. Biggest variance was the FEFP (Florida Education Finance Program).

Mr. Laflin reviewed the two reports at the back of the financial statements: Internal controls had no weaknesses. Management letter required by the Florida Auditor General. Highlights found from last year and if corrective action had been taken. Any new findings that may not rise to the significance of that material weakness Recommendations on improving financial management, operate more efficiently, and tighten up some internal controls. Page 50 addressed whatever findings were in the prior year s audit. Of the six findings, five were perfectly cleared, and one was partially cleared

Tagged Passions:budget, audit, education, financial report, finance, and program

which related to donor acknowledgements. Appendix B current year findings and recommendations: improvements,

strengthening internal control, how to operate more efficiently Page 51 - A Review of Accrued Leave Balances Interim Superintendent Collins inquired when the erroneous payout occurred. Mr. Laflin responded it was paid out in FY 2017. Committee Member Nelson asked how much was the total. Director Bateman stated the total was 35,000. She noted they could only find 5,000 that was documented where the Superintendent told the Governing Board that he was gone. A decision was made to only request back the amount where there were actual board meeting minutes as proof that he was not there. Committee Member Nelson questioned if he has been asked to reimburse us for that. VOLUME II PAGE: 30

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Director Bateman stated he has been in touch with us and the Police Department to find out how it was calculated. By the end of December, he is supposed to reimburse us 5,200.

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Committee Member Nelson asked for clarification that in the future we will not have this problem. Interim Superintendent Collins stated that the policy was changed that says when the Superintendent takes off time, there is a form that has to be sent to the Chairperson. The Chair signs it and forwards it directly on to the Payroll Supervisor.

Director Bateman mentioned the automated OnBase system for employees requesting time off which goes to the Manager and then to the timekeeper.
Tagged Passions:superintendent, manager, and policy

Senior Management/Budget Analyst Martin explained she would be reaching out to the Charter School in January to start using an automated system.

Tagged Passions:budget, education, Charter Schools, Tony Taylor Custom, and charter schools

Discussion held regarding:

How does the payroll supervisor know that someone did not do a leave slip? When people are absent, it is posted on email for matchup by the secretaries. The automated system has less room for possible theft of time or error. Before payroll is approved, there would have to be a policy that if you don t have

a leave slip in, unless you are sick, then you don t get paid. How we missed this potential theft of time? Chair of the Board should have been the one to approve his leave slips. That process was never communicated properly to the Board. Police did a search of all the minutes and records; they could only find 5,000. Director Bateman stated the City Auditor will be doing a more thorough vetting of the whole year for internal funds to make sure the recommendations were implemented.
Tagged Passions:audit, public safety, policy, and funding

Mr. Laflin stated that would be on the internal funds, but this PTO (paid time off) issue will be handled through the Financial Statement Audit. He continued that the last recommendation in the audit was 2017-002: Capital Asset Policy Compliance. He went over the criteria, condition, cause, effect, recommendation, and management s response. The Authority was not in compliance with the policy, and the recommendation was to follow policy and make sure there was adequate training among the parties involved.

Internal Fund Audit Follow-Up Procedure Draft Report Andrew Laflin Clifton Larson Allen

Tagged Passions:compliance, audit, policy, financial report, training, finance, procedure, and funding

Mr. Laflin stated last February the City Auditor s Office performed an analysis or investigation.

VOLUME II PAGE: 31 City Auditor Butola stated it was an audit of the Internal Funds which the prior City Auditor completed. There were 18 findings, 3 reportable conditions. The prior City Auditor retired at the end of March, and the current City Auditor started May 1st. Due to staffing limitations, we contracted with CLA to do the follow ups. Based on the findings of the prior City Auditor, CLA did some testing for a short period of time (March June). They looked at certain transactions that corresponded with the findings to see if the school had done some of the recommendations. It was important to note that this audit was released at the end of February. CLA, the City, and the school have completed a good amount of the recommendations. Discussion held regarding the attitude of the Board and how to change that perception.

Tagged Passions:audit, education, human resources, contract, retirement, and funding

Interim Superintendent Collins stated nothing had been done for a while but going forward, there will be an annual internal funds audit.

Director Bateman stated the culture with Ms. Collins has changed quite a bit and now they call us when they have a problem. Interim Superintendent Collins stated we are so limited in staff that we need the support from the City. She noted that we will be doing risk assessment every three years and the External Auditor will be doing the internal funds audit along with the CAFR.

Tagged Passions:superintendent, audit, risk, and funding

Ms. Laflin went over the following:

Opening Transmittal Letter Scope and Methodology Selected 60 receipt transactions and 60 disbursement transactions from March 1 to June 30, 2017 General Observations, Highlights of Recommendations Exhibit A - 18 internal audit findings, recommendations, and follow up procedures Exhibit B - Management s Final Response right before report was issued on December 11th Summary of findings Focus on receipts, disbursements Receipting Ticket Inventory Undesignated Donations Qualified Public Depositories Amount over 300 use purchase order Discussion held regarding the exception using Amazon.

Tagged Passions:audit, purchasing, Donation, internet retailers, procedure, and donation

Mr. Laflin continued:

Restrictions on use of a temporary approver Quarterly reporting, annual audit, updated Policy and Procedures Manual VOLUME II PAGE: 32 Discussion held regarding the 25/75 split for undesignated donations; 25 would be at the principal s discretion to go to a General Fund line item, and 75 would go towards technology such as smart boards and projectors. Discussion held regarding the process for training new personnel. Finance Staff (Martin and Tanner) and Charter School Staff (Collins, Muniz, Kreuz) left the meeting at 3:42 p.m. City Auditor Update Report City Auditor Butola went over the 11/17/17 through 12/19/17 Update of City Auditor s Office Activities dated December 19, 2017 which was emailed to the Committee and was posted online. They included the following: In Progress External Auditors Clifton Larson Allen (CLA): External Financial Auditors (CAFR) (FY2017) External Financial Auditors Charter Schools (CAFR) (FY2017) Pension Plan Audits (Police, Fire, and General) (FY2017) Charter School Authority Follow up Internal Funds

Tagged Passions:personnel, audit, education, public safety, policy, Technology, Donation, Charter Schools, Tony Taylor Custom, retirement, training, technology, finance, procedure, donation, funding, and charter schools

In Progress Internal Staff Follow up - Pension Census Data Follow up Evaluation of Internal Controls - Fuel Acquisition, Monitoring,

Disbursement and Usage Follow up Evaluation of Internal Controls Parts Acquisition, Monitoring, Disbursement and Usage Follow up Timekeeping City Clerk Records Division Audit Citywide Audit Risk Assessment FY 2019, 2020, 2021 Public Works Storm Water Operations IT Risk Assessment Follow up Police Department Annual Review of Property and Evidence

Tagged Passions:property, audit, public safety, Utility, Public Works, risk, retirement, stormwater, utility, public works, and water

Procedures 2016 Reportable Condition for impound lot and biohazard container

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Other FY2018 YTD Follow Up Action Register Professional Development Focus for the next period

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Discussion held regarding:

Pension Plan Audits How it was discovered that the prior Superintendent was being overpaid Complaints made about this issue; people must have known there was some
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indication of fraud The police investigation was public record

VOLUME II PAGE: 33 The City s hotline Director Bateman asked if Ms. Collins knew about the hotline. City Auditor Butola stated she would forward that to her. Committee Member Nelson noted she would mention it to her as well.
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Discussion held regarding:

How many employees are in the Charter School The list of best practices, anything costing too much money was not implemented Payroll timekeeping system will be a plus for them Very little sports programs; Parking issues at the schools; School s ratings due to turnover Committee Member Nelson and Mr. Laflin left the meeting at 3:55 p.m.
Tagged Passions:education, Charter Schools, Tony Taylor Custom, sports, parking, program, and charter schools

City Auditor Butola continued with her Update of City Auditor s Office Activities and went over the items included in the report.

Discussion held regarding the following: CLA completed flowcharts, process flows for CAB training in Procurement Electronic workpaper software City Auditor Butola distributed an article entitled Global Perspectives and Insights, Internal Audit and External Audit, Distinctive Roles in Organizational Governance , Issue 8 from the Institute of Internal Auditors. Public Comment No speakers. Member Comments None. Time and Place of Next Meeting The next meeting will be held on Wednesday, January 17, 2018, at 3:00 p.m. in Conference Room 2006. Motion to Adjourn There being no further business, the meeting adjourned at 4:15 p.m. Submitted by,
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Barbara Kerr Recording Secretary

Item Number: 4.D. Meeting Date: 2/21/2018 Item Type: BUSINESS AGENDA REQUEST FORM CITY OF CAPE CORAL
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TITLE: City Auditor Update Report - City Auditor Butola

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TITLE: Discussion of Meeting Date Change Request for March and April


ATTACHMENTS: Description Type Discussion of Meeting Date Change Request for March and April Backup Material

Barbara Kerr From: Sent: To:

Harvey Wolfson Thursday, January 25, 2018 7:35 PM Barbara Kerr

Subject: Re: requested agenda item for next Audit Committee meeting

No additional detail provided

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Ok, put it on the agenda .


Sent from Yahoo Mail for iPhone

On Thursday, January 25, 2018, 4:19 PM, Barbara Kerr wrote: Hi Harvey, Jill Hiatt sent me an email and said that she enrolled in the Cape Coral Citizen Academy not realizing that it was always on Wednesdays and would interfere with the Audit Committee meetings. She said she will either have to miss them or possibly change the day for those three months (February, March, and April) to a day other than Wednesday. I told her the Committee would have to discuss this. She asked that it be placed on the next meeting agenda. If this is okay with you, I will add it to the agenda and send you a draft. Barbara Kerr Recording Secretary
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City of Cape Coral

City Clerk's Office

0. Box 150027

Cape Coral, FL 33915 Phone: 239 242-3241 Fax: 239 242-5344

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