03-08-2017 Joint Audit Committee Meeting


The School Board of Brevard County, Florida met for a Joint Audit Committee Meeting on Wednesday, March 8, 2017 at the Educational Services Facility, 2700 Judge Fran Jamieson Way, Viera, Florida. Notice of the meeting was advertised in the Eagle newspaper on Thursday, February 23, 2017. The affidavit of publication with a copy of the ad attached is filed in the Affidavit File in the Board Office.

Opening Exercises
1. Opening Exercises

Minutes: Vice-chairman John Craig called the meeting to order at: 8:51 a.m.

Roll Call
2. Roll Call

Minutes: 

Members Present:  John Craig, Tina Descovich, Matt Susin and Andy Ziegler

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Misty Belford arrived at 10:22 a.m. as she was representing the district at another function.
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Pledge of Allegiance
3. Pledge of Allegiance

Minutes: Vice-chairman John Craig led the Pledge of Allegiance.

Order of Business
4. Audit Committee Presentation/Progress Report and Committee Goals
Attachment: Audit Committee Presentation - FINAL 2-28-17.pdf
Attachment: Audit Committee Agenda 3-8-17 Joint Meeting.pdf
Attachment: Audit Committee Handout- Summary Project Status.pdf
Minutes: 

Art Edwards,  Audit Committee Chairman gave an overview of the presentation.  The committee is most proud of the fact that  they have completed 100% of their goals and objectives.

Questions from Board

Mr. Susin asked Mr. Edwards if he feels that RSM is doing as good of a job as an internal audit board as they are external, to which Mr. Edwards replied absolutely. 

Mr. Ziegler suggested that the audit chart be reorganized to  show what is routine and what is a special investigation so the cycles don't appear that they are "hit or miss." He also asked about pharmacy rebates. He asked if anyone looked at why pharmacy rebates suddenly stopped with Walgreens.  Mr. Edwards said he would take this as an action item to investigate.  He wanted to define the scope of the audit of third party self-insurance.  RSM representatives provided an explanation. Ms. Zuercher also gave some input.

Ms. Descovich  asked about doing audits of security checks. Ms. Zuercher explained that it had just been completed by the auditor general and is done every three years.

Mr. Craig asked if the audit committee had seen the most recent auditor general findings and if so is there anything of concern. Ms. Zuercher explained that those findings were not published yet. Mr. Craig continued to find out what the process would be for evaluating the auditor general findings. Mr. Edwards explained that if there is anything of concern on those findings, they would be elevated for action.

Mr. Craig questioned the difference in audits that say they are ongoing and those that are postponed.  Ms. Zuercher provided some input. Mr. Craig asked the audit committee's opinion of hiring a paid inspector general position. There were comments from audit committee members.  Mr. Edwards concluded that on the surface, it sounds like a good idea, but he believed you have to understand exactly what this position would do before it can be considered. 

Mr. Craig asked what keeps the audit committee members up at night. Responses ranged from referendum projects to the district being more reactive than proactive to the fact that they feel we do not do as much training as we need to.  There was also discussion about more extensive asset controls. 

 

5. Independent Citizens Oversight Committee (ICOC) Presentation
Attachment: ICOC Annual Report to Audit Committee.pdf
Minutes: 

Gary Shiffrin, chair of the ICOC gave an overview of the presentation.

Following some comments Mr. Craig reiterated that the Board and ICOC had some robust conversation at an earlier workshop and they absolutely will stay within the guidelines of the referendum language and will adhere to established budgets.

6. Half-Cent Sales Tax Internal Audit
Attachment: RSM Half-Cent Sales Tax Report 3-2-17.pdf
Minutes: 

Jennifer Murtha, internal auditor for RSM Mcgladrey, walked the Board through some of the processes.

Comments and questions were posed about the means that projects were evaluated and whether or not inflation had been factored in on projects that might be slated for years out.

Sue Hann, director of Planning and Project Management, Facilities Services, explained that there was an escalator built into the funding structure across the Board; however, when the estimates were given, although as thorough as possible at the time, it was impossible to determine every factor until you are doing the project. 

7. Board Discussion

Minutes: 

Closing Remarks
8. Closing Remarks

Minutes: Vice-chairman Craig thanked everyone.  He said that the discussion was beneficial and they have a lot of things to think about.

Adjournment
9. Adjournment

Minutes: Vice-chairman Craig adjourned the meeting at 10:38 a.m.

For further details pertaining to this meeting, please refer to the published video on the School Board of Brevard County's website (www.brevardschools.org).








Secretary

Chair