[1. Roll Call - Announcement of a Quorum]
[00:00:02]
AND THIS IS THE DALLAS COLLEGE BOARD MEETING FOR DECEMBER 15, 2020.
WE WILL BE BEGINNING WITH THE AUDIT COMMITTEE BUT I WILL START WITH A QUORUM, ROLL CALL TO CONFIRM QUORUM.
>> TRUSTEE RITTER, ARE YOU PRESENT?
>> TRUSTEE ZIMMERMANN, ARE YOU PRESENT?
>> TRUSTEE WILLIAMS, ARE YOU PRESENT? TRUSTEE JAMESON, ARE YOU PRESENT? TRUSTEE BRAVO, ARE YOU PRESENT?
AT THIS POINT I UNDERSTAND TRUSTEE COMPTON IS RUNNING LATE.
I KNOW THAT TRUSTEE WILLIAMS IS ONLINE SO EVEN THOUGH HE'S JUST MUTED -- BUT I CAN CONFIRM HE IS PRESENT.
SO, TRUSTEE WILLIAMS IF YOU CAN UNMUTE YOURSELF YOU CAN BEGIN THE MEETING.
TRUSTEE WILLIAMS R YOU PRESENT?
WE CONFIRMED A QUORUM FOR YOUR MEETING, SIR.
I'M GOING TO SHARE THE AUDIT COMMITTEE AGENDA.
>> YES, SIR YOU CAN BEGIN WE CONFIRMED A QUORUM FOR THE AUDIT COMMITTEE.
[2. Certification of Notice posted for the meeting]
IN ACCORDANCE WITH A SUSPENDED RULES WE CERTIFY NOTICE OF THIS COMMITTEE MEET HAS BEEN POSTED ONLINE FOR AT LEAST 72 HOURS.
ON MEMBERS OF BOARD OH NOT GATHERED IN CENTRAL PHYSICAL LOCATION THEY DO QUOR OR TELEPHONE CALL.
WE ARE MEETING BY AT USE OF CISCO WEBEX SOFTWARE APPLICATION WHICH ALLOWS TWO-WAY COMMUNICATION FOR INVITED PARTICIPANTS.
IN A PLATFORM WHICH ALLOW FOR PUBLIC TO BE POSTED WITH LINK.
AS YOU -- AS WE WOULD AT ANY IN-PERSON MEETING MEMBERS OF HAVE BEEN INSTRUCTED ON DALLAS COLLEGE BOARD OF TRUSTEES WHICH ARE REGISTERED TO SPEAK DURING THE PUBLIC WILL BE UNMUTED FOR 5 MINUTES TO SPEAK.
IF SPEAKERS WRITTEN COMMENTS IN ADVANCE THE BOARD WILL READ COMMENTS INTO THE RECORD FOR OUR DURING THE BOARD'S CONSIDERATION OF THAT ITEM.
IF YOU WOULD LIKE TO PROVIDE COMMENT AT FUTURE BOARD MEETING OR VIDEO CONFERENCE OR TELEPHONE CALL, PLEASE FOLLOW THE INSTRUCTION ON THE BOARD'S WEBSITE.
ALL OF THE MEETING WILL ADHERE TO AN ABOARD'S ADOPTED PROCEDURES TO EXTENT POSSIBLE.
THIS MEETING IS BEING BROADCAST OVER THE NET AND AUDIO ACCORDING TO AND TRANSCRIPT OF THIS MEETING ARE BEING MADE AND WILL BE AVAILABLE TO PUBLIC AT LATER DATE OF BOARD'S WEBSITE.
THIS SOFTWARE APPLICATION ALLOWS 1,000 PEOPLE TO PARTICIPATE IN VIRTUAL MEETING AND OVER 10,000 TO VIEW IT OVER THE INTERNET.
WE APOLOGIZE IN ADVANCE FOR ANY UNFORESEEABLE DIFFICULTIES AND APPRECIATE YOUR PATIENCE.
CHANCELLOR CAN YOU CONFIRM THIS MEETING HAS BEEN POSTED?
>> YES, CHAIR WILLIAMS THIS MEETING HAS BEEN POSTED (INAUDIBLE).
DO WE HAVE ANY CITIZENS THAT WANTED TO
[3. Citizens Desiring to Address the Board]
ADDRESS THE BOARD?>> NO, SIR THERE ARE NO CITIZENS REQUESTED TO SPEAK TO THE BOARD AND THE AUDIT COMMITTEE.
WE WILL START WITH JOHN ROBERTS WILL INTRODUCE MCCONNELL
[4.A. Comprehensive Annual Financial Report for the District and Richland Collegiate High School and Single Audit Report of Federal and State Awards together with Reports of Independent Auditors, for the Fiscal Years Ended August 31, 2020 Presenters: John Robertson, McConnell and Jones]
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AND JONES AUDIT FIRM.AND THEN WE'LL START FROM THERE.
I'M GOING INTRODUCE ARLEN WILLIAMS WITH MCCONNELL JONES.
THIS IS THEIR FIRST YEAR OF DOING AN AUDIT AND WE HIRED THEM JUST AS WE WENT ON TO REMOTE LEARNING BACK IN MARCH.
SO, I WILL TURN IT OVER TO MARILYN AND LET YOU GIVE YOUR PRESENTATION TO THE BOARD.
>> YES, SIR YOU ARE COMING THROUGH.
CAN THEY SAID YOU WILL BE BRINGING UP PRESENTATION THE POWERPOINT OR DO I NEED TO SHARE MY SCREEN?
>> NO, SIR IT IS WORKING ON JUST GIVE IT 30 SECONDS FOR TRANSITION AND THERE YOU GO.
>> THANK YOU SO MUCH ON BEHALF OF MCCONNELL JONES WE APPRECIATE THE OPPORTUNITY TO THE SERVE YOU THIS WAS OUR FIRST YEAR PERFORMING THE AUDIT.
ON A 5-YEAR CONTRACT WE PERFORMED IT YEARS BEFORE.
MAYBE NOT UNDER SUCH CIRCUMSTANCES, BUT IT'S BEEN YOU KNOW A CHALLENGE WORKING THROUGH BUT WE ARE TO THE POINT OF BEING ABLE TO DOUR PRESENTATION TODAY.
OUR CORE VALUES ARE KIND OF OUR WHAT WE START ALWAYS WITH OUR PRESENTATION NOW WITH.
OUR CITA CREATIVITY, INCLUSION, TRANSPARENCY AND ACCOUNTABILITY.
WE ENABLE TO WORK TOGETHER WITH YOUR STAFF.
WE'RE ABLE TO MEET DEADLINE WHICH WAS PART OUR ACCOUNTABILITY AND TRANSPARENCY OUR WAY OF THINK WE GO PROBABLY PRESENT SOME THINGS IN THIS MEETING TO JUST KIND OF THAT MIGHT NOT HAVE BEEN BROUGHT UP BEFORE, BASED ON WHAT WE HAVE FOUND.
AGAIN, DIVERSE THINKING IS THAT KIND OF WHERE DIFFERENT IDEAS COME OUT AND INVOLVING DIFFERENT SOLUTION THAT IS PART OF OUR OVERALL CORE VALUES.
JUST OVERALL JUST FOR OVERALL CAFR.
TOTAL ASSETS WERE $1.1 MILLION THAT AN INCREASED BY 28 MILLION.
DECREASE OF ABOUT $15 MILLION OVER THE PREVIOUS YEAR.
BONDS YOU CAN SEE IS ABOUT 147 MILLION WHICH IS A DROP OF ABOUT 51 YEAR OVER YEAR.
AND THE NEXT POSITION OVERALL WAS ABOUT $55 MILLION INCREASE YEAR OVER YEAR.
OPERATING REVENUES STAYED RELATIVELY FLAT.
OPERATING EXPENSES INCREASED BY ALL 42 MILLION OVER YEAR OVER YEAR AND OVERALL OPERATING REVE $40 MILLION.
THIS DIFFERENT THAN MOST OF THE HIGHER ED AND I THINK MAYBE YOUR ORGANIZATION AND WHERE WE'RE LOCATED IN COMPARED, BUT OVERALL, CONSIDERING THE COVID ENVIRONMENT THOSE ARE NOT, THOSE NUMBERS ARE PROBABLY TO THE BETTER SIDE OF HIGHER SIDE THAN WHAT WE ANTICIPATE.
>> MARLAN, TRUSTEE RITTER QUESTION.
>> COULD YOU JUST ARTICULATE FOR THE BOARD YOU KNOW THE DISTINCTION BETWEEN OPERATING AND A NONOPERATING REVENUES AND ALSO, EXPLAIN THE DRIVER BEHIND THE $42 MILLION INCREASE IN OPERATING EXPENSES?
SO JUST AS A WHOLE, TOP SIDE YOU'RE OPERATING REVENUES FOR YOU GUYS, PROBABLY EASIER TO LOOK FROM YOUR CAFR BUT GENERAL TUITION AND YOUR NORMAL DAY-TO-DAY.
DOES NOT INCLUDE THINGS THAT ARE KIND OF A BELOW THE LINE SUCH A TAXES WHICH IS REALLY NOT PART OF YOUR OPERATIONS.
AND SOME GRANT, SOME FUND TO COINCIDE THERE.
BUT, I DON'T KNOW IF YOU GOT A COPY OF YOUR DRAFT FINANCIAL STATEMENTS HANDY OR IS IT INCLUDED I DON'T KNOW IF THAT WAS INCLUDED IN THE POWERPOINT.
>> THIS IS POWERPOINT THAT WAS RECEIVED, SIR.
YEAH JUST THE POWERPOINT WE DID NOT HAVE A CAFR ITSELF.
WE GOT TEN CAFR WAS ALSO DISTRIBUTED, SIR.
>> YEAH WHEN YOU'RE LOOKING AT THE CAFR I WANT TO BRING MINE UP SO I'M LOOKING AT IT AT THE SAME TIME.
>> I CAN BRINK IT UP LET ME KNOW WHAT PAGE TO REFER TO
>> GO THE MBNA WHICH IS PROBABLY AROUND 30ISH.
[00:10:02]
I CAN TELL YOU EXACT PAGE NUMBER I'M REFERRING TO.>> WHILE WE'RE WAITING ON THAT THAT ABOUT TEN YEARS I'M DATING MYSELF, PRONOUNCE SPLITTING REVENUE OPERATING REVENUES WERE PRETTY MUCH TUITION.
STATE APPROPRIATIONS AND, PROPERTY TAXES DROPPED TO NONO TRANSACTIONAL BASED.
SO IT'S, IT'S JUST THE WAY THAT THEY WERE PRESENTED.
AND IF YOU LOOK ON EVEN IN MDNA ON EXHIBIT 2, NOW ONE OF THE THINGS WE DO IN THE MDNA IS WE RECLASS ALL OF THESE TO SHOW WHAT TOTAL REVENUES ARE IN THE MDNA, TO GIVE GOOD PICTURE WHAT YOU ALL WERE USED TO SEEING FROM THE BOARD.
SO JOHN THIS CONCEPT OF OPERATING IN OPERATING REVENUES AND NONOPERATING REVENUES THAT NEW ISN'T IT?
IT'S BEEN AROUND FOR AROUND WHILE
>> FAIRLY NEW WHEN YOU CONSIDER HOW LONG I'VE DOING THESE.
BUT, YOU KNOW, ACTIVITIES BEEN A NUMBER OF YEARS WHERE WE'VE HAD THAT IT SEPARATED TRUSTEE RITTER.
>> SORRY I'M GETTING PRESENTER ACCESS.
>> THAT ONLY SHOWS UP THAT WAY IN THE COMPREHENSIVE ANNUAL FINANCIAL REPORT.
AND THIS IS THE WAY THAT ALL HIGHER ED INSTITUTIONS REPORT AND ALL 50 COMMUNITY COLLEGES IN THE STATE OF TEXAS.
AND I WOULD SAY PERLA, I AM NOT SURE IT WILL BE A HELP TO FEEL PULL UP CAFR WHICH NOT REALLY DESIGNED FOR IT
AND I JUST DON'T THINK THAT WILL BE HELPFUL.
>> TO THE BOARD OR PUBLIC AND CERTAINLY ALL BOARD MEMBERS HAVE THAT AND CAN TAKE A LOOK AT IT.
BUT WHEN YOU'RE TALKING ABOUT AN AS MANY LINES AS ARE ON A PAGE THAT'S JUST NOT EVEN GOING TO SHOW UP ON THIS SCREEN.
BUT, HOW ABOUT THE REVENUE OR EXPENSE DRIVERS?
>> SO YOUR PRIMARY INCREASE IN THE EXPENSES OVER PERIOD OVER PERIOD RELATES TO INSTRUCTION AS WELL INSTITUTIONAL SUPPORT.
THAT MAJORITY OF THE DOLLARS GO INTO THERE AROUND SALARY RELATED.
SO THAT'S THE MAJORITY OF DRIVER.
YOU KNOW, THE AVERAGE DAILY ATTENDANCE OR STUDENT CAP NUMBER STAYED RELATIVELY THE SAME DURING THE PERIOD BUT YOUR EMPL WOULD SAY THAT'S MAJORITY OF THE DRIVERS.
I DON'T KNOW IF ANYBODY FROM THE CITY THERE IS SPECIFICALLY FROM DISTRICT THERE SOME COVID RELATED EXPENSES AS WELL, SOME DIFFERENT GRANTS THAT TOOK PLACE AS WELL NUMEROUS ITEMS THAT THOSE ARE THE MAJOR DRIVERS TO THE EXPENSE CHANGE.
>> AND A FUTURE BOARD MEETING I WOULD HAPPY TO GO OVER DETAILS RATHER THAN SO MUCH OF THIS SO MAYBE PHIL WE CAN HAVE ANOTHER SESSION WE CAN GO INTO THE OPERATING ASPECTS OF THE CAFR PAGE BY PAGE IF YOU LIKE.
YOU KNOW, IN RELATION AS AGAIN, YOU HAVE ABOUT A 5$50 MILLION PERIOD YOU'RE TALKING LESS A 10 PERCENT INCREASE IT'S A BIG NUMBER BUT ITS STILL RELATIVELY SMALL CONSIDERING ALL THE THINGS THAT HAVE GONE OVER FROM OVER PAST YEAR FROM A HIGH LEVEL.
THEN ANSWERS QUESTION FROM HIGH LEVEL ON NUMBERS SIDE?
>> REQUIRES A FIRM TO DEAL WITH PART OF AUDIT OUR RESPONSIBILITIES ARE ON ENUMERATED ON THIS SLIDE WHAT WE'RE ACTUALLY PERFORMING WE ARE LOOKING TO FORM AN OPINION ON FINANCIAL STATES TAKEN AS WHOLE ENSURING THEY ARE MATERIALLY RESPONSE IN RELATED TO U.S.
WHETHER THEY ARE CERTAIN SUPPLEMENTAL INFORMATION IS FAIRLY STATED.
READING THE OTHER INFORMATION TO MAKE SURE IT IS CONSISTENT WITH FINANCIALS SO WHAT UNAUDITED INFORMATION IS CONSISTENT WITH AT AUDITED INFO.
COMMUNICATE SPECIFIC MATTERS TO YOU GUYS, THAT, COME TO OUR ATTENTION THROUGHOUT ENGAGEMENT.
REPORTING ANY MATERIAL FINDINGS RELATED TO FEDERAL AND
[00:15:03]
STATE AWARDS.AND REPORTING ANY SIGNIFICANT DEFICIENCIES IN MATERIAL WEAKNESS NOTED THROUGHOUT THE FINANCIAL STATEMENTS OR IN ANY OF OUR PROCEDURES.
ONE OF THE WE ALWAYS SAY AUDIT PERFORM REASONABLE ASSURANCE NOT ABSOLUTE.
CONSIDERING SIZE OF THE COMMUNITY COLLEGE WOULD BE THERE FOREVER IF WE WERE LOOK EVERY ITEM.
SO THOSE ITEMS THAT ARE MATERIAL IS WHAT WE SPENT MOST OF OUR TIME ON.
THE EXPRESSING OF OPINION WE ALSO ARE DOING SOME INFORMATION TO SPEND MORE THAN CERTAIN DOLLARS IN FEDERAL FUNDS.
WE'RE ALSO DOING A STATE AND FEDERAL SINGLE AUDIT.
INSIDE THAT REPORT WE SUMMARIZED OUR QUESTIONS THAT ARE NOTED INSIDE THERE WE'RE EXPRESSING AN AS I SAID EARLIER, WE WERE ALSO PERFORMING PROCEDURES ON THE FOOT NOTES OR FINANCIAL STILTS IN REVIEWING SCHEDULES ENSURING THAT, ITEMS TIE OUT ON EXPENDITURE SIDE AS WELL.
SO A RESPONSIBILITIES SO DOES MANAGEMENT.
ONE OF THE ITEMS IS YOUR FINANCIAL STATEMENT AT THE END OF THE DAY.
SO OVERSEEING THE FINANCIAL PROCESS IS THAT RESPONSIBILITY OF MANAGEMENT.
I'M SETTING A TONE AT THE TOP VERY IMPORTANT TOO TO ENSURE THAT, YOU KNOW, FOLKS UNDERSTAND WHAT IS EXPECTED IN FINANCIAL REPORTING.
AND WHAT'S EXPECTED FROM THE COMMUNITY COLLEGE.
DISCUSSING SIGNIFICANT ACCOUNTING INTERNAL CONTROL MATTERS WITH MANAGEMENT.
THAT'S SO THAT EVERYBODY UNDERSTANDS WHAT ITEMS ARE KEY AND WHAT ARE THE KEY CONTROLS OF THE ORGANIZATION.
INFORMING US ABOUT ANY OTHER MATTERS THAT CAME TO THE ACCOUNTING TO OUR AUDITOR'S ATTENTION SUCH AS CHANGES IN RISK DUE TO BUSINESS RISK, WARRANTING THAT WOULD WARRANT OUR ATTENTION.
SIGNIFICANT COMMUNICATIONS WITH REGULATORS, VIEWS ON CURRENT COMMUNICATIONS THAT MAY HAVE ANY IMPACT ON THE FINANCIAL STATEMENTS.
THOSE ARE IN CHARGE OF GOVERNMENT THOSE ARE MAIN AREAS.
MANAGEMENT THEY PREPARE THE FINANCIAL STATEMENTS AND CIFA SCHEDULE OF FEDERAL AND STATE AWARDS.
AND ENSURE THEY ARE IN ACCORDANCE WITH GAP.
THEY DESIGN INTERNAL CONTROLS.
THEY COMMUNICATE THE SIGNIFICANCY OF AT WHAT ARE SIGNIFICANT ITEMS. THEY AND UNRESTRICTED ASSETS TO ALL PERSONS INVOLVED IN THE AUDIT.
THIS WAS ALSO PRESENTED IN REPRESENTATION LETTER THAT MANAGEMENT PROVIDES TO US ONCE THE AUDIT IS COMPLETE.
THERE ARE TO INFORM OF US ANY FRAUD ILLEGAL ACTS THAT COME TO THEIR ATTENTION.
AND ADJUSTMENTS TO FINANCIAL STATEMENTS IN ANY CHANGES IN THE DISCLOSURES TO CORRECT ANY MATERIAL AND THAT WERE NOTED IN THE PAST.
AND THEN THEY ALSO INFORM US ON ANY SUBSEQUENT EVENTS.
SO OUR TIMELINE WAS KIND OF SET OUT JULY THROUGH AUGUST.
AGAIN THIS TIMELINE WAS SET OUT PRE THE 5-LETTER WORD THAT CAME AROUND.
AND IT DID MAKE SOME CHALLENGES THROUGHOUT THE PERIOD.
SO, I WANT TO THE PAPERLESS ENVIRONMENT.
I THINK THIS WAS THE FIRST PREDOMINANT WAY OF 99 PERCENT PAPERLESS FOR THE COMMUNITY COLLEGE.
OUR RISK ASSESSMENT GENERALLY DONE THROUGH PERIOD OF OCTOBER OF AND NOVEMBER.
THEN OUR FINAL FIELD WORK WHICH KIND OF CAME INTERNAL CONTROL PROCEDURES WAS DURING NOVEMBER AND DECEMBER.
AND THAT'S WHEN WE ISSUED OUR OPINION.
AND IF WE TALKED EARLIER A MATERIALITY.
IT IS ESSENTIAL THAT MATERIALITY WHAT IS WE CONSIDER AN OMISSION OF SUCH ITEMS WOULD INFLUENCE A REASONABLE PERSON'S JUDGMENT.
IT IS BASED OFF VARIOUS BENCHMARK THAT IS WE SET, YOU KNOW FOR THE COLLEGE, WE USE THAT TOTAL ASSETS AS A BASIS OF WHAT WE USE FOR OUR MATERIALITY AND FOR THE SINGLE AUDIT IT'S EXPENDITURES, SINGLE AUDIT EXPENDITURE DRIVEN.
FINANCIAL STATEMENTS GREATLY GREATER THAN MATERIAL IN OUR SCOPE OR THOSE ITEMS WE LOOKED AT.
OTHER AREAS LESS MATERIAL MAY NOT IN OUR SCOPE HOWEVER, WE STILL WILL REVIEW THEM IN RELATION TO SOME OF THE OTHER ITEMS AND SOME THINGS SUCH AS RELATED PARTIES DON'T REALLY NECESSARILY HAVE A SCOPE ROTATION.
WE ALSO WILL PERFORM NONSTANDARD PROCEDURES ON ITEMS THAT ARE BELOW OUR SCOPE.
OR JUST THAT MAY HAVE CERTAIN FRAUD ASSOCIATED WITH SUCH ITEMS. NEXT SLIDE.
SO THROUGHOUT ENGAGEMENT WE DIDN'T
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REALLY USE A SPECIALIST AS PART OF IT.WE DID UTILIZE AN AUDIT STAFF.
THEY DID A LOT OF THE FEDERAL AND STATE TESTING OF THE EXPENDITURES.
AND THAT WORK WAS REVIEWED BY MGA TEAM.
WE NOT USE ANY THIRD PARTIES AS WELL AS PART OF ENGAGEMENT.
YOU KNOW GOVERNANCE, STATE APPROPRIATIONS, TAX, FEDERAL AND STATE AWARDS, TUITION, PAYROLL, PENSIONS OPERATING EXPENSES, LONG-TERM DEBTS FIXED ASSETS AND NET POSITIONS.
ALL BALANCES WERE DETERMINED TO NOT BE MATERIAL BASED OFF (INAUDIBLE) AND NO MATERIAL WEAKNESSES WERE UNCOVERED DURING OUR AUDIT PROCEDURES.
THERE IS NO CHANGES TO THE OPINION OR YOUR IN ACCORDANCE WITH GAP THERE WERE NO SCOPE LIMITATIONS.
MANAGEMENT AGAIN, ALLOWED US UNFETTERED ACCESS.
THERE WERE NO UNRESOLVED AUDIT ISSUES.
THERE WERE NO AUDIT ADJUSTMENTS THAT WERE POSTED TO FINANCIAL STATEMENTS.
THERE ADJUSTMENTS THROUGHOUT PROCESS BOW BALL OF THOSE WERE A PART OF MANAGEMENT CLOSING PROCESS AND OPEN AND EFFECTIVE COMMUNICATION OF MANAGEMENT THROUGH THE ENGAGEMENT.
AGAIN, HERE'S A RESULTS OF SINGLE AUDIT.
NO MANAGEMENT COMMENTS NO UNRESOLVED AUDIT ISSUES.
AND IT WAS OPEN AND EFFECTIVE COMMUNICATION.
THERE WAS A PRIOR YEAR FINDING THAT KIND OF THAT WAS NOT AUDIT AS PART OF MAJOR PROGRAM, BUT THIS ITEM EXISTED FOR LAST COUPLE OF YEARS I THINK IT SELECT A PART OF OUR MAJOR PROGRAMS. THERE WERE SOME ISSUES THAT WERE NOTED TO THAT.
IT'S LESS THAN AN IT HAD BEEN IN THE PAST BUT CONTINUOUS ISSUE THAT PROBABLY NEEDS TO BE INVESTIGATED TO DETERMINE WHAT THE CAUSE IS.
AND THEN OUR MAJOR PROGRAMS AGAIN, AS ALWAYS, GOING ALL MAJOR PROGRAM BUT SOME OTHER MAJOR PROGRAMS THAT WE'RE A PART OF ID IT H1 B JOB TRAINING HIGHER ED AND THE APPRENTICESHIP PROGRAM.
EXCUSE ME I'VE GOT A QUESTION ON THE VETERANS PROGRAM.
I KNOW I HAD ASK THIS IN GENERAL REVIEW BUT YOU DON'T REMEMBER THE ANSWER MY APOLOGY.
THE SO THE PREVIOUS SLIDE, PLEASE.
ON THE POST 9/11 VETERANS EDUCATIONAL ASSISTANCE, THOSE TWOS INSTANCES THE RESULTS, ARE THOSE FROM THE PAST AUDIT OR ISSUES WHERE IDENTIFIED ARE THESE NEW INSTANCES
>> OKAY I'M SURE WE ARE PUTTING METRICS IN PLACE WHERE WE DON'T HAVE HOPEFUL HAVE NEW INSTANCES? MR. ROBERTSON
>> YES WE'RE PUTTING MEASURES IN PLACE RIGHT NOW AS WE SPEAK.
BUT WE WILL MAKE SURE THAT WE HAVE THESE PROCEDURES IN PLACE.
AND WE ARE DOWN TWO INSTANCES, IT'S NOT PERFECT BECAUSE 0 DEFECTS IS THE GOAL HERE.
OTHE COMMUNICATIONS AS BY THE STANDARDS WERE THERE ANY DISAGREEMENTS WITH MANAGEMENT OR WE'RE PLEASED TO REPORT THERE WERE NO DISAGREEMENTS THAT WERE WITH MANAGEMENT THROUGHOUT ENGAGEMENT.
MANAGEMENT'S CONSULTANTS WITH OTHER ACCOUNTANTS TO OUR BEST OF OUR KNOWLEDGE AND BASED ON OUR COMMUNICATIONS WITH MANAGEMENT THERE WERE NO NEED FOR OPINION SHOPPING IT WAS GOING TO CLEAN AND NO COMMUNICATION WITH OTHER ACCOUNTS REGARDING ANY AUDITING ISSUES OR ACCOUNTING ISSUES THROUGH THE ENGAGEMENT.
OTHER INFORMATION DOCUMENTED CONTAINS AUDIT FINANCIAL STATEMENTS AND WE REVIEWED COLLEGE'S CAFR WHICH CONTAINS AUDITED INFO AND NONAUDITED INFO WE DID NOT IDENTIFY ANY MATERIAL INCONSISTENCIES ARE MISSTATEMENTS RELATED TO THE UNAUDITED OR AUDITED INFORMATION.
DIFFICULTIES THROUGHOUT ENGAGEMENT, WE DID NOT INCUR ANY SIGNIFICANT ISSUES AS DIFFICULTIES AS DEFINED AS SIGNIFICANT DELAYS OR UNWILLINGNESS OF MANAGEMENT UNNECESSARY BRIEF TIME TO COMPLETE THE AUDIT.
UNAVAILABILITY EXPECTED INFORMATION AND PERSONNEL.
NONE OF THESE ISSUES KIND OF CAME TO THE ATTENTION THROUGHOUT THE AUDIT.
[00:25:06]
THERE WERE NO RESTRICTIONS.IMPOSED ON ANY OF MANAGEMENT TO ANY OF OUR STAFF.
ACCOUNTING POLICIES OUT LINED.
THOSE WERE CONSIDERED TO BE REASONABLE P.M.
ACCOUNTING ESTIMATES, THERE'S, THERE ARE MAJOR ESTIMATES THAT ARE NOTED INSIDE THE FINANCIAL STATEMENTS RELATE TO THE ALLO CAPITAL ASSETS YOUR PENSION LIABILITIES, YOUR PENSION DEFERRED EVERYTHING RELATED TO PENSION THAT'S RELAYED TO DEFERRED INFLOWS WELL OVERALL NET PENSION LIABILITY.
THESE ESTIMATES ARE KEY TO OVERALL OPERATIONS OF AND AGAIN THEY ARE ESTIMATES AND CAN CHANGE.
WE PERFORMED TESTS TO SATISFY OUR OVERALL COMFORT RELATED TO THOSE.
WE'RE GOING TO TALK ABOUT ONE ESTIMATE SPECIFICALLY THAT WE PROBABLY MIGHT WANT MANAGEMENT TO LOOK INTO A LITTLE BIT MORE ESPECIALLY WITH CHANGE IN THE ENVIRONMENT.
WE'LL TALK ABOUT THAT WHEN WE GET TO OUR COVID SLIDE.
OVERALL DISCLOSURES, WE'VE ASSESS THE FINANCIAL STATEMENTS AND SINGLE AUDIT DISCLOSURES FOR COMPARITY OF COMPLETENESS.
FOOTNOTE CONSIDERED NEUTRAL CONSISTENT AND CLEAR.
WE MENTIONED COVID NOTE THAT IS NEEDED TO BE DISCUSSED A LITTLE BIT THAT IS BEING PREPARED AND ADDED TO FINANCIALS AND SO WE GAVE SOME EXAMPLES.
WE WERE TO A REPORT ON 2020 FINANCIAL STATEMENTS.
REPORT ON COMPLIANCE OF EACH MAJOR FUND.
PROVIDE COMMUNICATION AND MANAGEMENT ON AUDIT COMMITTEE RELATED TO TECHNICAL AUDIT OR INTERNAL CONTROL MATTERS.
ISSUE A WRITTEN COMMUNICATE TO MANAGEMENT IN AUDIT COMMITTEE.
REPORT ON COMPLIANCE AND AN ENTRUSTMENT ACT AND DATA COLLECTION FORM.
SIX OF THESE ITEMS ARE ALREADY TAKEN CARE WE'RE GOING TO WORKING ON DATA COLLECTION FORM AS THE AUDIT IS COMPLETE AND WE HAVE 30 DAYS TO DO THAT FROM IT'S DELIVERY AND REPORTING COMPLIANCE OF PUBLIC FUND WE'VE ALREADY PERFORMED PROCEDURES WE JUST NEED TO PUT THAT WORK TOGETHER.
THAT ALSO WILL BE INCLUDED AND PRESENTED TO MANAGEMENT TO COMPLETE OUR DELIVERABLES THAT WERE REQUIRED.
AS WE ALL KNOW DURING THIS AUDIT WORLD HEALTH ORGANIZATION DECLARED A PANDEMIC RELATED TO COVID-19.
EARLIER 2020 THE STATE AND GOVERNMENT DECLARED A STATE OF EMERGENCY AS A RESULT OF IT.
AND THERE HAS BEEN SOME COSTS ASSOCIATED WITH IT.
ONE OF THE AREAS AS WE I HINTED TO EARLIER, AROUND THERE RELATES TO RECEIVABLE WE NOTED.
HISTORICALLY RECEIVABLES HAVE BEEN RUNNING 19 TO 20 MILLION AS IT RELATES TO STUDENT TUITION.
THIS YEAR IT SHOT UP TO $35 MILLION.
NOT SURE IF IT'S COVID RELATED WE CAN'T TELL SPECIFICALLY.
BUT, WHEN SOMETHING LIKE THAT MUCH CHANGES THERE'S ALWAYS NORMALLY SOME SORT OF SOMETHING THAT CAUSED THAT CHANGE.
YOU KNOW, ESPECIALLY IF OPERATIONS HAVEN'T CHANGED SIGNIFICANTLY.
AS SUCH, WE DID TALK TO MANAGEMENT ABOUT REALLY TAKING A DEEP LOOK IN THE EARLY PART OF THE QUARTER, YOU KNOW EARLY THE NEXT YEAR INTO WHETHER OR NOT THE ALLOWANCES METHODOLOGY THAT HAS BEEN USED TIME AND TIME AGAIN IS STILL RATIONAL BASED ON WHAT'S GOING ON COLLECTION EFFORTS.
AND A MAY BE A LARGE COLLECTION SUBSEQUENTLY BUT ITS SOMETHING WE THOUGHT WE A THOUGHT WE'D BRING ATTENTION TO THOSE IN CHARGE OF AND SO IT'S ON RADAR AND YOU'RE AWARE OF THAT ISSUE GOING FORWARD.
WITH THAT AGAIN THAT'S OH CONCLUSION OF WHERE WE ARE RIGHT NOW.
THEY SAID I 30 MINUTES AND WENT TO 1:30 I'M TRYING TO STAY BEST WITHIN TIME.
>> I REMIND THE BOARD AUDIT COMMITTEE IS LOOKING TO MAKE A RECOMMENDATION TO THE BOARD AT THE 4 O'CLOCK MEETING.
WE KNOW FOR APPROVAL ON THIS BECAUSE WE HAD TO FILE AS REQUIRED BY STATE LAW, WE'RE REQUIRED TO FILE OUR CAFR ON JANUARY 1ST.
AND GOES THROUGH A NUMBER OF SOURCES AROUND THE STATE AND FEDERAL LEVELS SO, WE LOOKED TO HAVE THAT APPROVED AT THE REGULAR BOARD MEETING.
CHAIR WILLIAMS, JOHN, THANK YOU.
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THIS IS ROB WENDLAND GENERAL COUNSEL.I APOLOGIZE MY CAMERA IS NO THE FUNCTION AT PRESENT IF I CAN'T SEE YOU AND I CANNOT SEE AWE BUT I'LL TRY TO REMEDY THAT BETWEEN MEETING CHAIR WILLIAMS IF THERE ARE NO MORE QUESTIONS FROM COMMITTEE MEMBERS OR BOARD MEMBERS IN TEN DANCE YOU MIGHT ASK IF THERE'S CONSENSUS TO MOVE FORWARD WITH AN APPROVAL TO FORWARD AT THE REGULAR MEET THE AUDIT.
>> DO WE HAVE A SOMEONE WHO WOULD LIKE TO SAY THAT?
>> YOU'RE ASKING FOR CONSENSUS?
>> EXCUSE ME CHAIR WILLIAMS AS WELL.
I THINK THERE ARE TWO OF YOU PRESENT UNLESS TRUSTEE COMPTON HAS JOINED THE MEETING REALLY CONSENSUS OF THE TWO OF YOU ON AUDIT COMMITTEE THAT WOULD BE YOU, CHAIR WILLIAMS AND TRUSTEE ZIMMERMANN.
>> SHE HAS JOINED THE MEETING VIA PHONE
CONSENSUS OF AUDIT COMMITTEE WHAT OILED BE LOOKING FOR AT THIS JUNCTURE.
>> DO WE HAVE A CONSENSUS TO PRESENT AT WHAT, 4 O'CLOCK MEETING
THE FULL BOARD WILL TAKE ACTION ON AT THIS 4 O'CLOCK HEARING NO OBJECTION IT SOUNDS IF AUDIT COMMITTEE IS TO MOVE FORWARD
>> I CAN TAIL A ROLL CALL ROB TO CONFIRM
>> I COULDN'T SEE ANYTHING I'M CALLING IN BY THE PHONE TABLET IS NOT WORKING.
SO AT THIS POINT, YES I'M HERE.
I DID HEAR WHAT WAS BEING DISCUSSED.
I DID NOT GET TO SEAT PRESENTATION.
SO AT THIS POINT, UM, YEAH LET'S MOVE FORWARD JUST TO GET IT MOVING FORWARD.
I DON'T KNOW ENOUGH ABOUT AT THIS POINT BECAUSE I DIDN'T GET TO SEE ANY OF PRESENTATION.
>> TRUSTEE COMPTON I KNOW YOU'RE ONLINE COULD YOU GO AHEAD AND LET US KNOW IF YOU'RE WITH CONSENSUS AS WELL?
WE WERE JUST CHECKING IN WITH YOU.
THERE IS TRUSTEE IS REQUESTING CONSENSUS FROM THE AUDIT COMMITTEE.
I DIDN'T SEE THE PRESENTATION OR WHATEVER.
SO, IF YOU'RE OKAY WITH THAT'S FINE WITH ME.
SO ROB, AND TRUSTEE WILLIAMS THAT COMPLETES THAT CON FIRMS AS CONSENSUS FROM COMMITTEE IF YOU ARE ABLE TO PLACE IN THE REGULAR BOARD MEETING AGENDA FOR APPROVAL BY THE FULL BOARD.
TRUSTEE WILLIAMS YOU CAN MOVE ON TO THE NEXT PRESENTATION IF YOU'RE READY, SIR.
[4.B. Internal Audit (IA) Department Audit Committee Report 1st Quarter Ending November 30, 2020 Presenter: Lori Cox]
NEXT WE WILL LOOK AT THE INTERNAL AUDIT BY OUR CHIEF INTERNAL AUDITOR LORI COX.>> AND IF I COULD INTERRUPT YOU EXCUSE ME FOR INTERRUPT IF I COULD A MOMENT OF PRIVILEGE HERE.
AGAIN I APOLOGIZE YOU CAN'T SEE ME YOU CAN'T SEE ANYBODY EITHER.
SO I'M A LITTLE BIT HAMPERED BY THAT I DID WANT TO TAKE MOMENT REAL QUICKLY LORI COX JOINED DALLAS COLLEGE AS CHIEF INTERNAL AUDITOR A LITTLE OVER 60 DAYS AGO.
AND OF COURSE WE WERE REMOTELY MEETING AT THAT TIME AS A BOARD AS AN AUDIT COMMITTEE.
SO I BELIEVE LORI WAS INTRODUCED AT THE OCTOBER MEETING BUT IT WAS VERY BRIEF.
SO I WANTED TO AGAIN TAKE THIS OPPORTUNITY TO WELCOME LORI COX TO DALLAS COLLEGE AS OUR CHIEF INTERNAL AUDITOR.
SHE HAS HIT THE GROUND RUNNING LITERALLY.
AND HAS NOT ONLY BEEN MEETING AND WORKING WITH HER STAFF AND INTERNAL AUDIT BUT ALSO WITH THE KEY STAKEHOLDERS AND OTHER FOLKS ACROSS DALLAS COLLEGE.
SHE'S BEEN WORKING TIRELESSLY I KNOW SHE WILL REPORT ON WHAT AT INTERNAL AUDIT DEPARTMENT HAS BEEN DOING AND WHAT THE PLAN IS FOR THE COMING DAYS FOR AUDIT COMMITTEE I WANTED TO AGAIN TAKE THIS OPPORTUNITY TO WELCOME LORI TO DALLAS COLLEGE AND PERHAPS IF SHE COULD TAKE A MOMENT AND PERHAPS TO GIVE US A BRIEF INTRODUCTION TO HER ONCE AGAIN AS SHE JOINS US FOR THIS MEETING.
[00:35:01]
GO AHEAD, LORI.I AM VERY MUCH ENJOYING BEING WITH THE COLLEGE AND VERY EXCITED TO BE HERE AND EXCITING TIME FOR THE COLLEGE.
I HAVE BEEN IN INTERNAL AUDIT PROFESSION FOR OVER 20 YEARS.
I'VE SERVED ABOUT 25 YEARS TOTAL FOR THE LAST 20 YEARS RECEIVING CHIEF AUDIT EXECUTIVE FOR VARIOUS ORGANIZATIONS.
PRIOR TO THIS POSITION I WAS WORKING AS THE CHIEF OPERATING OFFICER IN THE CHIEF ETHICS AND COMPLIANCE OFFICER FOR AN INDIAN TRIBE IN TUCSON, ARIZONA.
THAT TRIBE I PREVIOUSLY WORKED FOR IN THE PAST AS THEIR INTERNAL AUDIT DIRECTOR.
THAT POSITION WAS OUTSIDE OF INTERNAL AUDIT.
GREAT LEARNING EXPERIENCE BUT I'M HAPPY TO BE BACK IN INTERNAL AUDIT.
FIVE YEARS OF MY CAREER I SPENT AS THE CHIEF AUDITOR FOR PIMA COMMUNITY COLLEGE IN TUCSON, ARIZONA.
I'M VERY FAMILIAR WITH THE ENVIRONMENT AND VERY EXCITED TO BE AT THE COLLEGE AND REALLY LOOK AT INTERNAL AUDIT AS A PARTNERSHIP WITH MANAGEMENT AND LEADERSHIP OF THE ORGANIZATION.
AND REALLY LOOK FORWARD TO WORKING WITH ALL OF THE STAKEHOLDER AND HELPING THE COLLEGE REACH ITS GOALS AND HELPING TO BRING INTERNAL AUDIT, MOVE IT MORE TOWARDS THE FUTURE WHICH I'LL EXPLAIN CERTAINLY IN THIS PRESENTATION.
SO AGAIN THANK YOU FOR THAT INTRODUCTION.
AND WE'LL MOVE ON WITH THE PRESENTATION.
SO TODAY I'LL BE TALKING ABOUT STATUS OF OUR CURRENT AUDITS AND PROJECTS.
AND ALSO, WHAT'S UP COMING IN THE FUTURE AND THEN THE FUTURE PLANS AND ENHANCEMENTS FOR THE INTERNAL AUDIT DEPARTMENT.
SO IN TERMS OF AN AUDIT STATUS I'VE BE HERE FOR 60 DAYS SO FAR.
PRIMARILY DURING THAT TIME THE AUDIT TEAM HAS BEEN WORKING ON THE FINANCIAL AND SINGLE AUDIT ASSISTANCE.
AND WE PROVIDE, OF COURSE AS YOU KNOW SUPPORT IN PERFORMING THE TEST WORK FOR THE FINANCIAL AND SINGLE AUDITS.
SO THAT IS HAD BEEN THE BULK OF WHAT THE AUDIT TEAM HAS BEEN WORK THING ON UP IN THIS POINT.
JUST PRIOR TO MY GETTING HERE WE COMPLETED AN AUDIT OF THE ATHLETICS DEPARTMENT AND THE EXPENDITURES AND WE THE TARGET DATE FOR ISSUING THAT REPORT IS NEXT WEEK.
IT'S IN THE VIEW PHASE I'M TAKING A LAST LOOK AT THAT.
AND CONFERRING WITH THE TEAM ON SOME POINTS ON THAT REPORT.
AND THAT REPORT WILL BE ISSUED.
THOSE ARE THE TWO PRIMARY THINGS THAT WE HAVE COMPLETED THUS FAR SINCE I ARRIVED.
IN TERMS OF UP COMING AUDITS AND PROJECTS IF YOU CAN MOVE TO THE NEXT SLIDE, SO WHAT WE HAVE UP COMING CONTINUING WITH SPECIAL PROJECTS AND INVESTIGATIONS, THIS IS AS NEEDED.
THIS IS BASED ON ANY REQUESTS FROM LEADERSHIP AND MANAGEMENT OR THE BOARD AS WELL AS WHAT MAY COME ACROSS FROM OUR HOTLINE IN WHAT IS REPORTED.
THERE MAY BE THINGS THAT REQUIRE INVESTIGATION.
SO THAT'S MORE ONGOING THINGS THAT WE DO.
WEE ALSO WORKING ON AN ANY FOLLOW-UP FOR PRIOR AUDIT ISSUES.
ONE OF THE THINGS I'LL GO OVER SHORTLY IS WE'RE DEVELOPING A MECHANISM FOR TO TRACK OUTSTANDING AUDIT ISSUES AND THEN A REGULAR FOLLOW-UP SCHEDULE TO FOLLOW-UP ON THOSE ITEMS UNTIL THEY ARE RESOLVED.
AND REPORTING THAN FOLLOW-UP AS WELL.
PARAGRAPH PRATT THE DALLAS COUNTY PROMISE THIS WAS CARRY OVER FROM LAST FISCAL YEAR AN ID IT THAT WE WERE OUR CARRYING OVER UNTIL THIS YEAR.
IT'S A PERFORMANCE AND OPERATIONAL AUDIT.
WE'LL LOOKING A ACHIEVEMENT OF PROGRAM GOALS AND OBJECTIVES A WELL AS ANY OPPORTUNITIES FOR PROCESS IMPROVEMENTS.
AND THEN LASTLY OPERATIONAL AUDITS AND PROCESS REVIEWS WE'RE WORKING ON A RISK ASSESSMENT RIGHT NOW MEAN MEETING WITH LEADERSHIP AND OF THE COLLEGE AND DETERMINING THOSE CRITICAL AREAS AND DEVELOPING PLANS ACCORDINGLY.
THE AUDIT PLAN FOR THIS CURRENT YEAR BECAUSE OF THE COVID SITUATION, AND MANY THINGS THAT,
[00:40:01]
AND OF COURSE THE CONSOLIDATION INTO ONE COLLEGE, WHAT WE DIDN'T SPECIFICALLY IDENTIFY OPERATIONAL AUDITS AND PROCESS REVIEW AREAS, WE HAD NOTED THAT WE WOULD CONTINUE WITH THE RISK ASSESSMENT AND IDENTIFYING THOSE AREAS.SO WE'RE IN THAT PROCESS RIGHT NOW.
>> FUTURE PLANS THERE ARE MANY.
OBJECTIVE OF THIS IS TO REALLY ENHANCE THE INTERNAL AUDIT DEPARTMENT AND DEVELOP A BEST IN CLASS INTERNAL AUDIT FUNCTION.
FUNCTION TO SERVE A MODEL OF EXCELLENCE FOR ALL COLLEGES AND UNIVERSITIES.
AND ALSO, FULLY EMBODY THE DEFINITION OF INTERNAL AUDITING.
THE DEFINITION OF PROFESSIONAL INTERNAL AUDITING IS LISTED HERE.
AND THIS DEFINITION IS DEVELOPED BY AT INSTITUTE OF INTERNAL AUDITOR THAT IS THE GOVERNING BODY FOR THE INTERNAL AUDIT PROFESSION.
AND IT'S BASED ON, THEY SET THE INTERNAL AUDIT STANDARDS WORLD WIDE FOR AGAIN THE INTERNAL AUDIT PROFESSION.
I ACTUALLY WORKED FOR THE INSTITUTE OF INTERNAL AUDITORS MANY YEARS AGO.
AND SO I'M VERY FAMILIAR WITH THE STANDARDS AND THE PROCESSES FOR INTERNAL AUDIT.
SO THE DEFINITION IS THAT AUDIT IS AN INDEPENDENT OBJECTIVE ASSURANCE AND CONSULTING ACTIVITY.
OUR CURRENT AUDIT PLAN NOTES THAT INTERNAL AUDIT CONDUCTS RISK BASE ASSURANCE ENGAGEMENTS AND INVESTIGATIONS.
SO ASSURANCE ENGAGEMENT WHAT YOU WOULD THINK OF A NORMAL AUDIT.
THIS DEFINITION GOES INTO MORE DETAIL ON WHAT'S IN OUR CURRENT AUDIT PLAN AND WHAT'S WE WILL PLAN TO ADOPT EMBODY GOING FORWARDS.
IT INCLUDE CONSULTING ACTIVITIES.
THOSE ACTIVITIES ARE WHAT YOU THINK ARE PROVIDING GUIDANCE DIRECTION INFORMATION.
IT MAY BE FOR EXAMPLE, REVIEWING OF POLICY AND RECOMMENDING INTERNAL CONTROLS.
IT MAY BE GETTING INVOLVED IN A SYSTEM IMPLEMENTATION.
PROVIDING GUIDANCE AND CONTROLS.
AND DISCUSSING RISKS AND THOSE KINDS OF THINGS.
FURTHER AUDIT ALSO HELPS TO BRING A SYSTEMATIC DISCIPLINE APPROACH TO EVALUATING AND IMPROVING RISK MANAGEMENT CONTROL AND GOVERNANCE.
IN DOING THAT RISK MANAGEMENT IS IDENTIFYING AND SUGGESTING WAYS TO REALLY MID GAIT RISKS.
SO WHAT ARE THE THINGS THAT MAY GET IN THE WAY OF THE COLLEGE ACHIEVING ITS GOALS AND OBJECTIVE AND HOW CAN INTERNAL AUDIT ASSIST IN MITIGATING AND ADDRESSING THOSE RISKS.
ALSO, AND THESE CAN BE PUT IN PLACE TO HELP AGAIN MITIGATE AND MANAGEMENT THE RISK.
THAT MIGHT BE POLICY AND PROCEDURES, VARIOUS WAYS THAT WE WOULD DO THAT.
AND THEN ALSO, INTERNALLY AUDIT REVIEWS IT HELPS TO IMPROVE GOVERNANCE PROCESS.
THOSE WOULD ALL PROCESS AND STRUCTURES THAT THAT ARE PUT IN PLACE TO HELP INFORM AND DIRECT AND MANAGEMENT THE ORGANIZATION.
SO INTE ON IS OF COURSE UNDERSTANDING THE BUSINESS.
SO OPERATING UNDER THE INTERNAL AUDIT WORK AND INTERNAL AUDIT STANDARDS.
THEN AS I MENTIONED ASSESSING RISK AND DEVELOPING A STRATEGY FOR AUDIT TO HELP THE ORGANIZATION MITIGATING THOSE RISKS TO EXECUTE OUR ENGAGEMENT TO PERFORM OF COURSE AUDIT WORK, ANY FRAUD INVESTIGATIONS OR ANY TYPES OF INVESTIGATION THAT IS WE NEED TO AS WELL AS THAT CONSULTING ACTIVITY THAT I MENTIONED.
AND THEN HELPING TO ASSIST WITH IMPROVING AND EVALUATING GOVERNANCE AND THEN REPORTING OF COURSE ALL OF OUR ACTIVITIES TO THE BOARD AND TO LEADERSHIP.
SO PLANS AND ENHANCEMENT THAT WE HAVE AN OUT LINED FOR YOU GOING FORWARD WE'RE GOING TO UPDATE OUR RISK ASSESSMENT PROCESS.
AND EVALUATING THE DIFFERENT RISK AND DIFFERENT AREAS OF THE COLLEGE AND PUTTING TOGETHER A PLAN ON WHERE WE NEED TO FOCUS ON
[00:45:04]
THOSE HIGHEST RISKS.RIGHT NOW THE STAFF AND I ARE WORKING ON DEVELOPING OUR MISSION AND VISION STATEMENT.
AND A STAFF TRAINING AND DEVELOPMENT PLANS FOR ALL OF THE STAFF.
AND SO WORKING WITH STAFF ON THAT RIGHT.
UP COMING IN JANUARY WE ARE WORKING ON A PROCESS TO AS I MENTIONED TRACK ALL OF THE OUTSTANDING AUDIT ISSUES OF THE AUDIT FINDINGS.
A CENTRALIZED PLACE TO TRACK THOSE AND THEN FOLLOW UP TO DETERMINE IF THOSE HAVE BEEN RESOLVED AND DOING CONTINUOUS FOLLOW-UP.
UNTIL THOSE HAVE BEEN RESOLVED AND THEN OF COURSE REPORTING THAT TO THE BOARD AND THE LEADERSHIP.
WE'RE WORKING ON A REDESIGN OF OUR AUDIT PROCESS.
AND THAT WOULD INVOLVE ENTRANCE CONFERENCE FOR THE AUDIT, A RISK ASSESSMENT AND EXIT CONFERENCE.
AND ALSO A FORMAL ACTION PLAN PROVIDING A FORMAL ASSISTANCE ON ACTION PLAN CORRECTIVE ACTION PLANNING TO THE DEPARTMENT.
A COMMUNICATIONS PLAN, THIS IS REALLY TO HELP COMMUNICATE THE ROLE AND SERVICE THAT INTERNAL AUDIT CAN PROVIDE.
WE'RE LOOKING AT AT BROCHURE WE'LL BE DEVELOPING AN ODD AUDIT INFORMATION PACKET THAT GOES THROUGH THAT AUDIT PROCESS THAT I JUST MENTIONED.
WITH THE WHAT THE EXPECTATION ARE OF MANAGEMENT AND THE DEPARTMENT, AND THEN WHAT THE EXPECTATIONS ARE THAT THE DEPARTMENT SHOULD HAVE INTERNAL AUDIT AS WELL.
AND ALSO, DEVELOPING A STRONGER PRESENCE ON THE WEB WHERE WE CAN, IT'S EASIER TO FIND INTERNAL AUDIT AND TO LOOK AT OUR AUDIT PLAN IF THAT'S OF INTEREST.
WE WILL ALSO DEVELOP AUDIT CHARTER.
AN AUDIT CHARTER A DOCUMENT THAT FORMALLY OUTLINES THE ROLES AND RESPONSIBILITIES AND REPORTING RELATIONSHIPS OF THE INTERNAL AUDIT FUNCTION.
AND AN AUDIT CHARTER IS ONE THE REQUIREMENTS INTEREST INTERNAL AUDIT STANDARDS.
ALSO BE LOOKING AT RESTRUCTURING THE DEPARTMENT THAT WE CURRENTLY HAVE TO OPEN AUDIT POSITIONS THAT HAVE BEEN APPROVED IN THE BUDGET.
AND WHAT CREATE OPPORTUNITIES FOR ADVANCEMENT WITHIN THE DEPARTMENT.
SO USE ROLES AS MORE SENIOR LEVEL INTERNAL AUDIT ROLES.
SO THAT CURRENT STAFF HAVE PLACES TO MOVE UP AND ADVANCEMENT OPPORTUNITIES WITHIN THE DEPARTMENT.
A STRATEGIC PLAN WE'RE ALSO WORKING ON THE PLAN OF COURSE FOR THE FUTURE OF AUDIT AND ACHIEVING OUR DEPARTMENT GOALS AND OBJECTIVE AND THAT PLAN OF COURSE WILL BUILD ON THE COLLEGE'S STRATEGIC PLAN.
WE WILL BE UPDATING THE DEPARTMENT MANUAL WITH THE CODE OF ETHICS AND THE CHARTER AND ALSO PROCESSES AND PROCEDURES AND TRAINING INFORMATION AS AN INTERNAL RESOURCE FOR THE STAFF A QUALITY ASSURANCE AND IMPROVEMENT PROGRAM, THIS IS ALSO A REQUIREMENT OF INTERNAL AUDIT STANDARDS AND REALLY A PROGRAM TO HELP ENSURE QUALITY AND THE INTERNAL AUDIT PROCESSES AND THAT WE'RE HEARING TO STANDARDS.
A QUALITY AN INSURANCE AND IMPROVEMENT PROGRAM INCLUDES, A PROCESS TO REVIEW ALL OF THE WORK OF INTERNAL AUDIT, BY MYSELF, IT ALSO IS A PROCESS FOR INTERNAL ASSESSMENTS OF THE DEPARTMENT.
AND THE LAST ITEMS (INAUDIBLE) WORKING PAPER SOFTWARE TOOL.
BOTH SOFTWARE TOOLS TO HELP THE AUDIT DEPARTMENT PERFORM MORE EFFICIENTLY.
DATA ANALYSIS DATA ANALYTICS ARE TOOLS THAT HELP US REVIEW LARGE AMOUNTS OF DATA MORE QUICKLY.
THERE ARE SOME STANDARD TOOL INTERNAL AUDIT.
SO WE WILL BE ASSESSING WHICH TOOL WOULD WORK THE BEST FOR US.
AND HOPEFULLY SOME TIME IN THE NEXT QUARTER OR THIRD QUARTER LOOK INTO PROCURE THAT TOOL.
AND THEN LASTLY THE WORK PAPER SOFTWARE TOOL VERY SIMILAR AND IT'S ASSIST US IN BEING MORE EFFICIENT AND HAVING MORE CONSISTENCY AND HOW WE DEVELOP OUR WORKING PAPERS, WHICH ARE THE SPORTING DOCUMENTS FOR THE AUDIT DEPARTMENT AND ALL OF THE AUDITS WE PERFORM.
[00:50:04]
ALLOW MORE CONSISTENCY WITH THAT AND ALSO ALLOW MORE EFFICIENCY AND ACTUALLY REVIEWING ALL OF OUR WORKING PAPERS IN DOCUMENT.THOSE ARE MAJOR FUTURE PLANS AND ENHANCEMENTS FOR THE DEPARTMENT AND OUR GOALS AND GOALS AND OBJECTIVES.
>> EXCUSE ME I'VE GOT A QUESTION.
I'M JUST CURIOUS WOULD YOU MIND SHARING YOUR COMMUNICATIONS PLAN AND YOUR STRATEGIC PLAN WITH US? I LIKE TO SEE HOW YOU'RE STRUCTURING THEM.
OR YOU HAVE, OUTCOMES PERFORMANCE METRICS, ET CETERA JUST CURIOUS HOW YOU'RE GOING TO SET UP THAT STRATEGIC PLAN.
ON BOTH OF THOSE YOU HAVE 2021 IS THAT WHEN YOU HAVE TO HAVE THEM COMPLETED?
>> SO THAT WOULD WHEN THE DRAFT OF BOTH OF THOSE ARE COMPLETED.
YES, I CAN CERTAINLY SHARE THOSE WITH THE AUDIT COMMITTEE WHEN THOSE ARE DEVELOPED ABSOLUTELY.
>> JUST AS AN INFORMATION ITEM, CERTAINLY NOT TO TELL YOU HOW TO SET UP ANYTHING.
THAT CONCLUDES MY DISCUSSION ON OUR OBJECTIVE AND OUR GOALS AND STRATEGIES.
ARE THERE ANY OTHER QUESTIONS THAT I CAN ANSWER AT THIS TIME? IF NOT, THANK YOU VERY MUCH FOR YOUR TIME.
AGAIN I'M VERY EXCITED TO BE HERE AND EXCITED TO SERVE THE COLLEGE.
>> TRUSTEE WILLIAMS, YOU MAY PROCEED WITH THE REST OF THE AGENDA.
ANY OTHER QUESTIONS? THIS COMPLETES THE AUDIT REPORT FOR DECEMBER 15TH AT 1:50 P.M.
WE STAND ADJOURNED.
* This transcript was compiled from uncorrected Closed Captioning.