OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Carson City Audit Committee Meeting - May 12, 2026

Board of SupervisorsTuesday, May 12, 2026
BodyCarson City, Nevada
SessionBoard of Supervisors
DateTuesday, May 12, 2026
StatusFILED
Video Record
0:00 / 34:29

Transcript — Verbatim
2:33

We would like to call to order the uh meeting of the audit committee for May twelfth twenty twenty six.

2:43

Can we have a roll call, please?

2:46

Chair Shudy.

2:47

Here.

2:47

Vice Chair Lambin.

2:49

Here.

2:49

Member Duke?

2:50

Here.

2:51

Member Scalia.

2:52

And Member Stack.

2:54

We have a quorum.

2:55

Thank you.

2:58

Next on the agenda are public comments and discussion.

3:02

I do not see anyone here from the public, but 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 as an action item.

3:24

No action may be taken on a matter raised during this period for public comment.

3:31

I do not see anyone from the public.

4:30

Center recommendations.

4:31

Sherry, take this away, please.

4:33

Thank you very much.

4:34

Um, CFO Sherry Russell Benaboo for the record.

4:37

And um, the first page I'm gonna direct you to is page 17.

4:40

It's the payroll processing assessment.

4:42

I do have three items I want to talk to you about today.

4:46

Um, the first one I'm recommending closure on is item number one on the payroll processing.

4:52

Um, this one was um a policy that we were waiting to get through the system, and it is complete and in policy tech.

5:01

Um, it has our detailed um payroll procedures, defines the staff involved, the timeline, and um, you know, time sheet submissions, that kind of thing.

5:11

So um that is complete, and I am recommending closure.

5:15

The second item I wanted to talk about was on the next page, the purchasing and contracts management review.

5:23

Um, this one is complete.

5:26

Um note that it's completed early.

5:28

Um, it was expected to complete 6 30 2026.

5:32

Um, but I always ask, and um this one was completed.

5:36

Um this was to reinforce our policy and um have some training on it, and so um we did do that.

5:45

The purchasing policy was um updated, we had trainings um for 25 participants on March 17th and 13 participants on March 24th.

5:56

Um, and she also created a Teams group so they could have a better communication for questions and discussion about purchasing, so um, I would like to close this item as well.

6:08

And back on page 20 for asset management review.

6:15

Um this one I I did a I oopsied.

6:20

Um I was supposed to bring the um deleted capital assets for 2025 along with the CIP plan because I thought there'd be a better synergy when you're talking about buying new CIP versus what we've gotten rid of.

6:35

So I it was a great idea.

6:38

Um, and then I forgot because the budget's very intense.

6:41

There's a lot of information, and so um I am going to take this to the May 21st meeting, the final budget, and then um have a discussion with the board as to when they want to hear that item.

6:53

Um it used to be brought with the um final financial report, which there really wasn't a synergy here.

6:59

It was like here's our financial report.

7:01

There were no findings.

7:02

Oh, and by the way, we got rid of these assets.

7:04

So it wasn't, I didn't know I didn't think it was a great time to give that information out.

7:10

So I tried to move it and that didn't work because I'm too busy during budget.

7:13

So um, so anyway, I will take it to the 521 meeting and and make sure that those deleted items are seen by the board.

7:20

Um, but I am asking for an extension on that one.

7:24

Uh and quick question on that one.

7:26

So that is really there's that's not a time sensitive.

7:30

It's not, and it's not even something that needs to be approved.

7:33

It's just in our policy for CIP, we let we have in our policy that we always let the board know what the deletions are, and so it's something that I do need to bring before the board so they can see it.

7:45

Um, but I haven't done that yet.

7:47

Okay, so are there any questions or comments regarding the two items that are before us?

8:00

Okay, one, nothing for you.

8:05

I have just one quick question on the timesheets that were moved to Friday by five, and I I remember that conversation, but I don't remember the why behind um moving it to the Friday.

8:20

It's just to give the staff a little more time to process payroll.

8:23

It used to be due um Monday, the Monday at 10, but we have to have it into the bank by Wednesday at two.

8:30

Okay, and so um we spent most of Monday morning chasing around timesheets that weren't submitted.

Discussion Breakdown — Share of Meeting
Fiscal Sustainability█████████████████████████████████████████████45%
Procedural█████████████████████████████████████37%
Public Safety█████████████13%
Technology and Innovation█████5%
Summary of Proceedings

Carson City Audit Committee Meeting - May 12, 2026

The Audit Committee of Carson City convened on May 12, 2026, at 9:30 AM. Chair Shudy called the meeting to order with a quorum present (Chair Shudy, Vice Chair Lambin, Member Duke, Member Scalia, and Member Stack). The meeting addressed progress on prior audit findings, the fiscal year 2026 audit work program, and a discussion on proposed internal audit topics for fiscal year 2027. No public comments were received.

Consent Calendar

  • None. Routine approvals were handled as action items.

Public Comments & Testimony

  • No members of the public provided comment. The public was invited but none were present.

Discussion Items

  • Audit Findings Tracking Report – Recommendations for Closure: CFO Sherry Russell Benaboo presented three items from the audit findings tracking report:
    • Payroll Processing Assessment (Item 1): A policy was finalized and entered into PolicyTech, establishing detailed payroll procedures, staff roles, timelines, and timesheet submission rules. The completion was recommended for closure.
    • Purchasing and Contracts Management Review: Completed early (original deadline June 30, 2026). The purchasing policy was updated, and training sessions were held—25 participants on March 17 and 13 participants on March 24. A Teams group was created for better communication. Closure recommended.
    • Asset Management Review: CFO Russell Benaboo requested an extension to the May 21 meeting because she had intended to bring deleted capital assets for 2025 along with the CIP plan for synergy, but forgot due to budget workload. She will present the deletions at the May 21 budget meeting. No action required on the deletion itself; it is a policy notification.
  • Fiscal Year 2026 Audit Work Program Update and Fraud, Waste, and Abuse Hotline Activity: Audit Manager Audrey Donovan reported zero hotline reports received. The internal audit plan is nearly complete: the risk assessment update and public guardian engagement are in progress and will be read out at the next meeting. About $20,000 remains to be invoiced, which will bring spending to the budgeted amount.
  • Proposed Internal Audit Services for Fiscal Year 2027 – Risk Assessment Discussion: Kathy Villemar and Audrey Donovan presented six potential audit topics based on a risk assessment update: cybersecurity penetration testing, benefits compliance, fire department overtime, franchise fee review, building department review, and human and health services (HHS) billing process review. Committee members discussed priorities:
    • Chair Shudy supported cybersecurity and fire department overtime as top priorities, and suggested deferring the building department review to next year due to its newness.
    • Member Duke noted the cybersecurity threat landscape (attacks up almost tenfold) and the importance of HHS billing given recent headlines.
    • CFO Russell Benaboo provided background: fire department overtime audit last done in 2019, and code categories were implemented but need verification; cybersecurity penetration testing was last performed nearly sixty years ago (per transcript); benefits compliance testing was done six to seven years ago; franchise fees and HHS billing have never been internally audited; HHS billing was recently brought back in-house.
    • The committee agreed to prioritize cybersecurity penetration testing, fire department overtime assessment, and franchise fee review for FY27. HHS billing and building department review were deemed more appropriate for FY28 due to timing and current transition. The annual internal audit budget is $110,000, and each engagement is estimated at $25,000–$35,000 (average $30,000), which limits the number to roughly three.
  • Consideration of Next Meeting Date: The previously scheduled June 9 meeting conflicted with Chair Shudy’s travel. The committee tentatively agreed to June 16, pending confirmation from all members.

Key Outcomes

  • Motion to Close Audit Findings: A motion was made and seconded to recommend to the Board of Supervisors closure of the payroll processing and purchasing/contracts management items based on the corrections noted. The motion passed unanimously (all five members voting aye). The asset management review item was granted an extension to the May 21 budget meeting.
  • Direction for FY27 Audit Plan: The committee directed staff to bring a finalized audit plan and risk assessment to the next meeting (tentatively June 16) that includes cybersecurity penetration testing, fire department overtime assessment, and franchise fee review as the top three priorities. HHS billing and building department review will be considered for FY28.
  • Next Meeting Date: Tentatively set for June 16, 2026, subject to committee availability.

Meeting Transcript

We would like to call to order the uh meeting of the audit committee for May twelfth twenty twenty six. Can we have a roll call, please? Chair Shudy. Here. Vice Chair Lambin. Here. Member Duke? Here. Member Scalia. And Member Stack. We have a quorum. Thank you. Next on the agenda are public comments and discussion. I do not see anyone here from the public, but 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 as an action item. No action may be taken on a matter raised during this period for public comment. I do not see anyone from the public. Center recommendations. Sherry, take this away, please. Thank you very much. Um, CFO Sherry Russell Benaboo for the record. And um, the first page I'm gonna direct you to is page 17. It's the payroll processing assessment. I do have three items I want to talk to you about today. Um, the first one I'm recommending closure on is item number one on the payroll processing. Um, this one was um a policy that we were waiting to get through the system, and it is complete and in policy tech. Um, it has our detailed um payroll procedures, defines the staff involved, the timeline, and um, you know, time sheet submissions, that kind of thing. So um that is complete, and I am recommending closure. The second item I wanted to talk about was on the next page, the purchasing and contracts management review. Um, this one is complete. Um note that it's completed early. Um, it was expected to complete 6 30 2026. Um, but I always ask, and um this one was completed. Um this was to reinforce our policy and um have some training on it, and so um we did do that. The purchasing policy was um updated, we had trainings um for 25 participants on March 17th and 13 participants on March 24th. Um, and she also created a Teams group so they could have a better communication for questions and discussion about purchasing, so um, I would like to close this item as well. And back on page 20 for asset management review. Um this one I I did a I oopsied. Um I was supposed to bring the um deleted capital assets for 2025 along with the CIP plan because I thought there'd be a better synergy when you're talking about buying new CIP versus what we've gotten rid of. So I it was a great idea. Um, and then I forgot because the budget's very intense. There's a lot of information, and so um I am going to take this to the May 21st meeting, the final budget, and then um have a discussion with the board as to when they want to hear that item. Um it used to be brought with the um final financial report, which there really wasn't a synergy here. It was like here's our financial report. There were no findings. Oh, and by the way, we got rid of these assets. So it wasn't, I didn't know I didn't think it was a great time to give that information out. So I tried to move it and that didn't work because I'm too busy during budget. So um, so anyway, I will take it to the 521 meeting and and make sure that those deleted items are seen by the board. Um, but I am asking for an extension on that one. Uh and quick question on that one.

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