Audit Oversight Committee Meeting - April 20, 2026

The Audit Oversight Committee met on Monday, April 20, 2026, at 10:00 AM. Chair Price presided, with Vice Chair Booker and Member Kircher present; Members Brunei and Kelly were excused. A quorum was established. City Clerk confirmed compliance with open meeting law. The meeting lasted 29 minutes.

Public Comments & Testimony

• No members of the public spoke during the public comment or citizen participation portions of the agenda.

Discussion Items

• Approval of Minutes: The committee approved the minutes of the regular meeting of January 12, 2026, by motion (seconded, all in favor).
• Audit Staff Status Report (Brian Smith, City Auditor): Smith reported one frozen position (his previous role as internal audit section manager), two vacant positions, and authorization to underfill the vacancies with recruitment underway.
• Current Audits Report (Brian Smith): Three audits are in progress: (1) Information Technology – management of mobile devices; (2) Public Works Facilities Division – management and controls over tools, equipment, and supplies; (3) Municipal Court – management of bus passes distributed to court program participants.
• Update on Issued Audit Recommendations (Brian Smith with department representatives): Over the past three fiscal years, the audit office has issued 60 recommendations; 47 have been completed. Detailed updates by department:
  • Fire & Rescue: 5 of 6 recommendations completed; one (evaluating feasibility of an automated controlled substance management system) is not yet due. The department has been in regular contact with the auditor.
  • Community Development – Business Licensing (Darcy Adalby Heard, Manager): 8 of 10 recommendations completed. The two remaining involve documenting compliance fines/fees and improving collection procedures. The department is working with IT on system development, expects testing by end of May, and rollout before year end. Chair Price noted the complexity of IT-related recommendations and the importance of reasonable deadlines.
  • Municipal Court (Hans Jessup, Court Administrator): 1 of 6 recommendations completed (improved safe security for witness fee funds). Five remain. The court has reduced cash room access to supervisors only, but DPS still has access; work continues with DPS to assess appropriateness. Court filings have increased by nearly 100% in two years, affecting fund levels. No significant risk of loss was identified. Another audit (bus passes) is underway, requested by the court administrator.
  • Human Resources (Sue Brown, Director): 2 of 6 recommendations completed (improved clarity of employee separation form). Four remain, primarily updating the separation policy and procedure. HR is coordinating with IT, finance, and departments with hourly employees (e.g., Parks & Rec). An initial draft has been reviewed by audit; Brown estimates 90% completion and another month to finalize.
  • Finance: One recommendation (update P Card policy to address separating employees) is not yet due. Finance has completed the policy update, incorporated audit input, and submitted it for formal approval. Chair Price emphasized the balance between strong controls and operational burden.
• Chair Price praised the collaborative, non-adversarial relationship between internal audit and city departments, noting the goal of improving operations and reducing risk.

Key Outcomes

• Approval of minutes: Motion carried unanimously.
• Acceptance of reports: The committee accepted the staff reports on audit staff status, current audits, and the update on audit recommendations (motion carried).
• Next meeting: Scheduled for Monday, July 20, 2026.
• No future agenda items or citizen comments were proposed.