Board Meeting Dates

Additional Details

Audit Committee Meeting

AGENDA

Wednesday, August 31, 2011

5:00 PM

DeLayo-Martin Community Room, Alice and Bruce King Educational Complex, 6400 Uptown Blvd NE

Albuquerque, New Mexico

ALBUQUERQUE PUBLIC SCHOOLS

AUDIT COMMITTEE MEETING

August 31, 2011

MEETING SUMMARY

COMMITTEE MEMBERS PRESENT: David Peercy (acting chairperson), David Robbins, Paula Maes, Lorenzo Garcia, Kathy Korte, Analee Maestas, Don Moya (ex-officio member),  Winston Brooks (ex-officio member),  David King (community representative)

ABSENT: Martin Esquivel and Demesia Padilla (community representative)

Participants: Dr. Brad Winter, Peg Koshmider, Sonia Montoya, Joyce Ramirez, Tami Coleman, Brenda Yager

1. I. Call to Order

The meeting was called to order at 5:00 p.m.

1. II. Adoption of  August 31,  2011, Audit Committee Agenda and Approval of the February 16, 2011, Audit Committee Minutes (Discussion/Action)

Chairperson David Peercy motioned for approval of the August 31, 2011, Audit Committee agenda and approval of the February 16, 2011, Audit Committee minutes. Kathy Korte seconded the motion. All voted in the affirmative to approve the motion.

1. III. Special Issues
2. A. Audit Plan (Discussion/Action)

Peg Koshmider explained that the Audit Plan designates the number of hours we have, the number of staff, the different activities performed and how much time we allot to these activities. The last page shows what is in progress and follow ups to previous audits, continuous audits and audits to still be completed. David Robbins noted auditing for charter schools should be prioritized as a high function item with the scrutiny the LFC is taking and the heightened awareness of the State Auditor. Ms. Koshmider said that the current Internal Audit charter still prohibits us from auditing the charter schools. A special request was received from LFC and Superintendant Brooks to audit a charter school. David Robbins motioned for approval of the audit plan but asked that at the next meeting the Internal Audit Charter be reviewed. Paula Maes seconded. The motion passed. Ms. Koshmider explained bookkeeper training to answer questions from Analee Maestas.

1. B. Stolen Items Report (Discussion/Action)

Peg Koshmider explained that the stolen items reports is a required report in the state audit rules. Ms. Koshmider stated that there may be some duplication of this report with the Finance Dept. Both areas produce a report that includes some stolen items. The Internal Audit report includes all stolen items that are reported to the APS Police Dept., including cash and it has no materiality to it. The Finance Dept. produces a list that includes equipment taken out of service, including computers and items over $1000. So there could be a cross over, but these reports go to different areas of the state and meet different requirements. Ms. Koshmider explained that we take our information from the morning reports received from APS Police Department. A police report is obtained and a report is made. We list every item listed as stolen but will note if it is not an APS item with a zero value. Lorenzo Garcia made a comment regarding the amount of cash that is listed as stolen and the security of the cash at the school sites. Kathy Korte responded that some of the thefts appear to be procedural control issues. Dr. Winter explained that there are police reports issued for everything reported stolen and that APS police conduct an investigation of all those reports. Ms. Koshmider also mentioned that if Internal Audit is not informed of the theft or the recovery of items, then the report could possibly be greater or less in value. Paula Maes states that she believes this is a misleading report and is not accurate. David Robbins stated that although the report may not be totally accurate, it is also necessary. Ms. Koshmider contacted the State Auditor’s Office and Moss Adams, both indicated that anything stolen needs to be reported with a value. Kathy Korte asked how many keys to the schools are there. Ms. Koshmider explained that the principal has the authority to issue keys. Dr. Winter explained that procedures have been tightened concerning the issuing of keys. Mr. Brooks said that principals have been reprimanded for excessive abuse of unlocked doors. David Robbins motioned for approval of this report. David King seconded. All answered in the affirmative. The motion passed.

1. C. Follow Up and Aging Report (Discussion)

Peg Koshmider explained the purpose of the follow up and aging report is a tool used to help clear exception items. Ms. Koshmider said that Internal Audit is still working on getting a timely response from the appropriate areas. Ms. Koshmider said that Internal Audit needs to do a follow up to some audits and this will close some of this items. Dr. Brad Winter says they are working hard to clear some of these items from this report.

1. D. Activity Fund Statistics (Discussion)

Peg Koshmider explained that this report shows a comparison of the activity funds that have been completed in the last three years, along with the number of findings and number of repeat findings. This report also shows that approximately 282 findings would be eliminated if the activity fund disbursement function is moved into Lawson. Ms. Koshmider explained that the majority of the findings involve receipting, so the number of findings will not be significantly decreased. David Robbins commented that the number of commendable ratings has increased and it shows that staff is working really hard. Lorenzo Garcia also complemented the schools and staff.

1. E. Ethical Advocate (Discussion)

Peg Koshmider reviewed the number of whistle blower reports we have received. Last year, there have been 90 complaints. Ms. Koshmider said the new Ethics Line posters were sent out last year. Ms. Koshmider stated that she is working on getting the new posters up at the schools and is attending the principal meetings to get the current information out.

1. IV. Adjourn to Executive Session pursuant to the Open Meetings Act NMSA 1978

(§10-15-1(H) (2)) for the purpose of discussing limited personnel matters in

connection with Internal Audit (Discussion/Action)

David Robbins motioned to move to executive session. Analee Maestas                 seconded the motion. A roll call vote was called to verify committee member agreement to close the meeting and Lorenzo Garcia, Analee Maestas, Kathy Korte, Paula Maes, David Peercy, David Robbins, Don Moya, Winston Brooks and David King answered in the affirmative.  Martin Esquivel and Demesia Padilla were not present for the vote. The motion passed. David Peercy asked that all electronic devices be turned off at this time.

The committee adjourned to Executive Session pursuant to (§ 10-15-1 (H) (2)) for the purpose of discussing limited personnel matters in connection with Internal Audit including five non-compliant activity fund audits, twenty operational/federal funds audits and three audits/reports.

1. V. Reconvene to Open Session

1. VI. Statement of Closure

Mr. Peercy stated that the APS Audit Committee met in executive session on August 31, 2011, for the purpose of discussing limited personnel matters in connection with Internal Audit as authorized by the limited personnel matters exception -NMSA 1978,10-15-1(H) (2).  The matters discussed in the executive session were limited only to those specified.

1. VII. Consideration of Acceptance of the Internal Audit Reports discussed in Executive Session (Action)
   1. Five Non-Compliant Activity Funds Audits
   2. Twenty General Operational/Federal Funds Audits
   3. Three Audits/Reports  
      1. I.      Open Doors Management Report
      2. II.      Maintenance & Operations Time Fraud
      3. III.      Charter School

Paula Maes motioned for acceptance of the audits a. through c, Lorenzo Garcia seconded the motion. Analee Maestas, Kathy Korte, David Robbins, David King, Don Moya and Winston Brooks answered in the affirmative.  Martin Esquivel and Demesia Padilla were not present for the vote. The motion passed.

1. VIII. Adjournment

The meeting was adjourned at 6:35 pm.