Also Mr.

Hebrink will not be with us today as he's on vacation and having fun.

Rolando Charvel from the Comptroller's Office, Lisa Burnt from IBA, Priscilla Dugard from the City Attorney's Office.

And Mr.

Luna, our city auditors here, and Laura Gates committee consultant.

Looks like we are all present and have a quorum.

We'll begin approval of the minutes from the February 15th, 2017 meeting of the audit committee.

Those will be unanimous consent unless anybody has any changes or objections.

Any comment from Mayor's Office, IBA, City Attorney, Committee members.

No, we're all good and just ready to get to work.

Mr.

Luna, take it away.

Certainly.

I'm here to present our monthly activity report since our last meeting.

Audits that are apologies for that.

Audits that are in report writing, we have the environmental services department.

Audits that are in progress includes the capital improvement program, quality assurance, the IT audit, Excel implementation, the Office of Special Events application process, and the auditing boards and commission.

And then finally, I'd just like to make the audit committee aware.

We go through our own audit through our peer review program.

So that concludes my presentation.

Great, thank you.

And then uh on the lifeguard tower uh audit.

Any idea about when that will be complete and out for review?

Certainly, we've um engaged a consultant and we're finalizing that contract.

It should be very soon before he could begin.

In the estimate on his part would be 40 hours of field work.

So I would hopefully expect that in May or if not no later than the end of this fiscal year, that review will be completed.

Great.

Thank you, sir.

Appreciate it.

And we will thank you for the report.

That will be the end of our information agenda.

We'll move on to action items, and we're going to be going kind of out of order here to accommodate the city controller's office.

And who will be presenting from the Comptroller's office today?

Is that you, Mr.

Sharville?

Oh, how are you?

So it's both of you.

We got we got both today.

Good deal.

Whenever you are ready.

Good morning.

Um I'm Mary Lewis, Chief Financial Officer.

To my right is Rolando Charvel, who is the city controller.

And we're presenting the annual report on internal controls over financial reporting.

This is an important document that the Department of Finance does, the finance branch, every year.

Take a step back and look at our accomplishments.

Uh what is the work ahead in internal controls?

This is an ongoing body of work that is housed in uh Rolando's department.

Um just some background.

In 2004, the City Council adopted an ordinance to achieve high standards in financial and disclosure practices.

And part of it is to produce this report on internal controls to the audit committee.

The municipal code codifies this requirement, and an annual report is issued and it is presented by the Office of the Chief Financial Officer.

Both the Chief Operating Officer and the Chief Financial Officer certify this report as well as the city controller.

And that certification is basically an affirmation that we have responsibility as management over internal controls to maintain and establish and maintain internal controls, to evaluate the effectiveness of internal controls, and to report out any weaknesses to our independent auditor and to the audit committee.

We also note accomplishments in this report.

Um I'm going to turn it over to uh Rolando to walk you through the report and we'll we're here to answer any questions.

Thank you, Mary.

Good morning, everyone.

As way of introduction, the concept of internal controls can best be understood in relation to the objectives that management establishes for the organization.