Minutes – August 2018 Audit Committee Meeting

Attendance

  • Committee Members Present
  • John Thomas, Chair
  • Mary Durheim, Council Chair
  • Andrew Crim
  • Scott McAvoy
  • Committee Members Absent
  • Kristen Cox
  • Guests Present
  • Daniel Graves, Weaver & Tidwell
  • Staff Present
  • Beth Stalvey, Executive Director
  • Martha Cantu
  • Scott Daigle
  • Koren Vogel

Call to Order

The Audit Committee of the Texas Council for Developmental Disabilities convened on Friday, August 3, 2018, in the Lone Star Room at the Crowne Plaza Austin Hotel, 6121 North IH-35, Austin, TX 78752.  Committee Chair John Thomas called the meeting to order at 8:09 AM.

  1. Introductions
    Council members, staff and guests were introduced.
  1. Public Comments
    No public comments were offered to the Committee.
  1. Consideration of MinutesThe minutes were reviewed and no additions or corrections were noted.
  2.  
  3. MOTION: To approve the minutes of the November 2, 2017, Audit Committee meeting as presented.
  4. MADE BY: Scott McAvoy
  5. SECOND: Andy Crim
  6. The motion passed unanimously.
  1. Review of FY 2018 Findings and Observations: Public Policy and External Communications
    Daniel Graves, Senior Manager from Weaver & Tidwell LLP discussed internal audit activities for FY 2018 which included a review of External Communications, Advocacy, and Public Policy. The focus was on grantee communications, public relations, inter-agency relations, media relations, public policy research and analytical support, position statements, and policy advocacy. Audit activities were conducted from February 26, 2018 through May 9, 2018 with a final report presented to TCDD staff on June 28, 2018. He further reported that TCDD management has already responded to the findings of the audit.
  2.  
  3. The overall assessment of the audit was reported as “satisfactory”. The three objectives of the audit included:
    • Determine whether internal controls over the External Communications, Advocacy, and Public Policy processes are in place to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations.
    • Ensure that controls over critical External Communications, Advocacy, and Public Policy processes are operating effectively and according to authoritative guidance.
    • Evaluate access controls within systems used for Communications, Advocacy, and Public Policy processes to ensure that access is restricted to appropriate individuals.
  4.  
  5. Audit staff identified 29 controls and four findings. The four findings included:
    • Mass communications to grantees are not consistently reviewed and approved by grants personnel prior to their release. This finding received a “low” rating.
    • Review and approval of external communications is not consistently documented. This finding received a “moderate” rating.
    • TCDD’s responses to information requests from the legislative office are not consistently reviewed and approved prior to their release. This finding received a “moderate” rating.
    • Former Public Policy Director had access at the time of the audit to TCDD’s user account in Telicon and could access the system. In addition, TCDD’s Telicon account is currently shared by multiple TCDD employees. This finding received a “high” rating.
  6.  
  7. Graves reported that the Telicon access was corrected in May and that checklists for approval of legislative requests were developed in June. Policies and procedures related to the first two findings are in progress.
  1. Update on FY 2017 Grant Monitoring
    Graves further reported on the follow up to FY 2017 audit activities on Grants Management. The objective of this was to validate that adequate corrective action was taken to remediate the issues identified in FY 2017 audit activities. He noted that three of the four findings had been remediated and the remaining finding was partially remediated. This follow-up assessment received a “strong” rating.
  1. FY 2018 Annual Internal Audit Report
    Graves noted that the State Auditor’s Office (SAO) had just published the guidelines for the 2018 Annual Internal Audit Report and presented copies of the report that included revisions based on these guidelines. New reporting requirements for FY 2018 include a description of the risk assessment and submission of the Revised Internal Audit Plan for FY 2019 if changes are made. The report is due to the SAO by November 1 of each year.
  2.  
  3. The FY 2018 Internal Audit Report includes the following:
    1. Compliance with Texas Government Code, Section 2102.015
    2. Internal Audit Plan for FY 2018
    3. Consulting Services and Nonaudit Services Completed
    4. External Quality Assurance Review
    5. Internal Audit Plan for FY 2019
    6. External Audit Services Procured in FY 2018
    7. Reporting Suspected Fraud and Abuse
  4.  
  5. The FY 2019 Audit Plan activities will focus on governance.
  6. MOTION: To recommend Council approval of the FY 2018 Annual Internal Audit Report which included the Audit Plan for FY 2019.
  7. MADE BY: Scott McAvoy
  8. SECOND: Andy Crim
  9. The motion passed unanimously.
  1. Other Discussion Items
    It was noted that Chair Durheim appointed Andy Crim to the Audit Committee replacing Amy Sharp.

Adjourn

Committee Chair Thomas adjourned the Audit Committee at 8:29 AM.