The Carson City Audit Committee met on February 18, 2026, at 9:30 AM. Chair Shuddy presided, with Vice Chair Lambin, Member Duke, Member Scalia, and Member Stack present. The meeting covered approval of prior minutes, a report on the FY26 asset management review, closure of previous audit findings, an update on the FY26 audit work program and fraud hotline activity, and scheduling of future meetings.
Hello, everyone. I would like to call the audit committee meeting to order. Um, can I have a roll call, please? Chair Shuddy. Here. Vice Chair Lambin. Member Duke. Here. Member Scalia. Here. Member Stack. We have Corman. Awesome. Thank you. Uh, next on the agenda, public comments and discussion. The public is invited at this time to provide comment on any topic that relates to a matter over which this public body has supervision, control, jurisdiction, or advisory power, including any such matter that is not specifically included on the agenda at as an action item. And no action may be taken on a matter raised during this period for public comment. Thanks for being here, Sherry. Um, so is there any public comment? All right. And as a reminder, as long as you've read the minutes, you can vote. You don't have to abstain if you were absent as long as you read the minutes. I would move that we approve the minutes from last meeting. And second and second. All in favor. Aye. Aye. Anyone opposed? Okay. The motion passes unanimously. Next meeting item 5A for possible action discussion and possible action regarding a report prepared by the Carson City Internal Auditor Id Bailey, LLP for the fiscal year 2026 audit work program concerning the Carson City Asset Management Review, including findings and recommendations. Sherry, take it away. Thank you. I am going to pass this to Audrey Donovan, the manager on the engagement. She may pass it off to the person who did the engagement, but we'll see what happens. Hi, thank you. Thank you, Audit Committee. Hi, hi, audit committee chair and audit committee members. It's a pleasure to be here with you again today. We do have an audit to read out to you today. The asset management review is noted. And this was approved on the fiscal year 26 audit plan. And mainly in part because of inherent risk that relate to the capital asset accounting, such as ineffective internal controls that could occur that may cause failure or prevent errors from being identified. There could be misclassification of assets. There could be inconsistent application of capitalization thresholds, improper unsupported entries, and potentially delays in capitalizing assets in a timely manner. So the engagement will be read out today by Christine Homack. She's a senior manager with the firm, also part of internal audit. And the team that conducted the engagement is Doug Schleich, manager, and Zach TellingHuson, senior associate. They will not be in attendance today, but Christine's Christine is tapped in. Her video is not working, but she should be able to have audio.