[00:00:03]
[CALL TO ORDER ]
ON AUGUST 20TH, 2025.AND I WILL CALL TO ORDER THE, UH, REGULAR MEETING OF THE AUDIT AND FINANCE COMMITTEE OF THE AUSTIN CITY COUNCIL.
UH, WE ARE MEETING IN CITY COUNCIL CHAMBERS, WHICH IS LOCATED IN CITY HALL AT 3 0 1 WEST SECOND STREET IN AUSTIN, TEXAS.
AND WE HAVE, UH, A QUORUM OF THE AUDIT AND FINANCE COMMITTEE HERE TODAY.
UM, I AM INFORMED, BUT I WILL ASK FOR THE RECORD.
I'M INFORMED THAT WE DON'T HAVE ANY PUBLIC COMMENT THIS MORNING.
IS THAT CORRECT? THAT'S CORRECT.
THAT WILL TAKE US MEMBERS TO ITEM
[1. Approve the minutes of the Special Called Audit and Finance Committee meetings of July 22, 2025, July 30, 2025 and August 5, 2025.]
NUMBER ONE.WELL, LEMME TELL YOU THE ORDER.
WHAT WE'RE GONNA DO IS WE'RE GONNA GO THROUGH THE AGENDA ITEMS THAT WE HAVE PRESENTA A PRESENTATION ON AND, AND, AND APPROVE THE MINUTES HERE IN A SECOND.
AND THEN WE'RE GONNA GO INTO AN EXECUTIVE SESSION AND I'LL TALK MORE ABOUT THAT IN A MINUTE.
BUT THAT EXECUTIVE SESSION IS THE, FOR THE PURPOSE OF CONTINUING IN THE PROCESS OF SELECTING OUR NEXT CITY AUDITOR.
I'LL TALK A LITTLE BIT MORE ABOUT THAT WHEN WE GET TO THAT AGENDA.
ITEM ITEM NUMBER ONE IS APPROVAL OF THE MINUTES OF THE SPECIAL CALLED AUDIT AND FINANCE COMMITTEE MEETINGS OF JULY 22ND, JULY 30TH, AND AUGUST 5TH, 2025.
UH, I'LL ENTERTAIN A MOTION MOTIONS MADE BY COUNCIL MEMBER DUCH AND SECOND BY THE MAYOR PRO TIM.
DISCUSSION, WITHOUT OBJECTION, UH, THE MINUTES OF THOSE THREE MEETINGS, UH, SPECIAL CALL MEETINGS ARE APPROVED.
[2. External Quality Control Review for the Office of the City Auditor. [Corrie Stokes - City Auditor].]
ITEM NUMBER TWO, WHICH IS OUR EXTERNAL QUALITY CONTROL REVIEW FOR THE OFFICE OF THE CITY AUDITOR.AND I WILL TURN IT OVER TO OUR CITY AUDITOR.
AND THIS WILL BE A VERY QUICK PRESENTATION.
JUST WANTED TO BRING TO YOUR ATTENTION.
YOU, AND THERE'S NO ACTUAL SLIDES, SO DON'T WORRY ABOUT THAT.
UH, 'CAUSE IT'S VERY QUICK, I PROMISE.
UM, BUT I JUST WANTED Y'ALL TO KNOW, SO IN YOUR BACKUP, YOU HAVE A COPY OF OUR PEER REVIEW REPORT AND JASON JUST SENT IT OUT LAST WEEK, UM, OR MAYBE THE WEEK BEFORE.
BUT ANYWAY, WE HAD OUR PEER REVIEW IN AT THE END OF JULY.
UH, PEER REVIEW IS ACTUALLY, WE CALL IT OUR EXTERNAL QUALITY CONTROL REVIEW.
AND IT IS ACTUALLY DESIGNED TO HELP MAKE SURE THAT WE ARE MEETING THE STANDARDS.
WE ARE REQUIRED TO FOLLOW BY CITY CHARTER AND CITY CODE.
SO WE FOLLOW SOMETHING CALLED THE GOVERNMENT AUDITING STANDARDS.
WE TRY TO STAY UP WITH THEM AND MAKE SURE WE FOLLOW THEM.
BUT AS PART OF THOSE STANDARDS EVERY THREE YEARS, THERE'S AN AUDIT OF THE AUDITORS.
SO INDEPENDENT AUDITORS FROM OTHER JURISDICTION THAT BASICALLY DO THE SAME WORK WE DO.
UM, IN THIS CASE, I THINK WE HAVE LONG BEACH, PHOENIX AND, UH, COUNTY IN PENNSYLVANIA.
UM, BERKS COUNTY, PENNSYLVANIA, I THINK WASN'T BERKS, LEHIGH COUNTY, PENNSYLVANIA.
UM, BUT THEY CAME IN, UH, THEY DO A LOT OF WORK.
THEY REVIEW OUR POLICIES AND PROCEDURES, THEY LOOK AT OUR PERSONNEL PRACTICES, THEY LOOK AT OUR TRAINING RECORDS, THEY GO DEEP.
IT'S A LITTLE BIT INTIMIDATING AND SCARY.
THEY GO THROUGH OUR AUDIT ENGAGEMENTS OR A SAMPLE OF AUDIT ENGAGEMENTS, AND THEY'RE REALLY JUST MAKING SURE THEY'RE AUDITING US TO MAKE SURE THAT WE ARE COMPLYING WITH THOSE STANDARDS.
AND THEN BECAUSE WE'RE AUDITORS AND THEY'RE AUDITORS, THE NICEST THING THAT THEY SAY IS THAT YOU PASS AND PASS IS LIKE THE BEST WE GOTTA PASS.
UH, WE HAD ONE MANAGEMENT LETTER COMMENT, WHICH JUST MEANS THERE'S AN AREA THAT WE COULD TWEAK AND THAT HAD TO DO WITH, UM, INCLUDING THE SCOPE IN OUR AUDIT REPORTS OR BEING MORE PRECISE ABOUT THE SCOPE IN OUR AUDIT REPORTS.
SO WE'RE PRETTY GENERAL, UH, IN OUR PUBLIC REPORTING OF WHAT THE SCOPE OF OUR WORK WAS, AND THEY WANTED US TO BE MORE DETAILED ON THAT.
WE'VE ALREADY ADJUSTED OUR INTERNAL PROCESSES TO MAKE SURE THAT HAPPENS.
UM, BUT THERE KIND OF REASONABLE ASSURANCE THAT WE COMPLY WITH STANDARDS IS LIKE THE NICEST THING THEY SAY.
UM, BUT, UM, I'M REALLY PROUD OF YOU.
I KNOW IT'S A SURREAL STRETCH.
THEY ACTUALLY SAID SOME OTHER NICE THINGS ABOUT OUR OFFICE AND OUR PROCESSES, UM, THAT IN THE LETTER, WHICH IS KIND OF NICE, THEY GIVE YOU A FEW BULLETS OF THESE ARE THINGS WE THINK YOU DO WELL AND NOW YOU PASS LIKE GREAT
UM, SO ANYWAY, BUT, BUT JUST WANTED TO SAY I'M, I'M PROUD OF THE RESULTS.
I'M PROUD OF THE TEAM WE'VE HAD, YOU KNOW, PAST OPINIONS FOR UM, REALLY EVER.
UM, BUT, BUT IT REALLY SHOWS, YOU KNOW, MY QUALITY ASSURANCE TEAM.
Y'ALL KNOW CARL AND OLGA ALSO, UM, WHO, UH, THEY REALLY DO A LOT OF WORK TO MAKE SURE THAT EVERYTHING THAT GOES OUT OF OUR OFFICE IS, UH, MEETS THE STANDARDS AND IS A HIGH QUALITY PRODUCT.
AND, UM, IN ADDITION TO ALL OF THE STAFF THAT PUT THOSE THINGS TOGETHER.
SO I JUST WANTED TO KINDA COMPLIMENT THEM AND LET YOU GUYS KNOW THAT WE PASSED.
ANYBODY GOT ANY QUESTIONS OR COMMENTS? WE DO APPRECIATE IT.
UM, THAT TAKES CARE OF ITEM NUMBER TWO.
SHE SAID SHE WAS GONNA BE FAST.
I DIDN'T REALLY KNOW WHETHER TO BELIEVE THAT, BUT, UM, SHE, SHE, SHE, SHE DID IT.
[Executive Session]
TO ITEM NUMBER THREE AND, AND MEMBERS.THAT'S GONNA TAKE US INTO A, A, AN EXECUTIVE SESSION.
BUT BEFORE WE GO INTO THE EXECUTIVE SESSION, I WANNA REMIND, UH, THE PUBLIC AND OTHER MEMBERS OF THE COUNCIL THAT AREN'T ON THIS COMMITTEE WHERE WE ARE IN THIS PROCESS.
AS, AS YOU KNOW, COREY INDICATED AND GAVE US A LOT OF, UH, RUNWAY TO LET US KNOW THAT, UH, SHE WAS GONNA BE LEAVING, UH, RETIRING AT THE END OF THE YEAR.
AND WHAT THAT DID IS THAT CREATED THE OPPORTUNITY FOR US TO HAVE A PROCESS, UH, WHERE WE CAN HAVE, UH, A SELECTION PROCESS AND, AND MAYBE HAVE SOMEBODY SELECTED,
[00:05:01]
UH, BEFORE OR AT OR NEAR THE TIME THAT SHE LEAVES.THE CITY CODE ESTABLISHES THAT MEMBERS OF THE COUNCIL'S AUDIT AND FINANCE COMMITTEE SHALL SERVE AS A NOMINATING COMMITTEE TO THE ENTIRE COUNCIL AND THE NOMINATING COMMITTEE.
THIS COMMITTEE NEEDS TO MAKE A RECOMMENDATION NO LATER THAN 90 DAYS AFTER THE POSITION IS VACATED.
WELL, OBVIOUSLY WE'RE WELL AHEAD OF THAT SCHEDULE, UH, BECAUSE THE POSITION'S NOT VACATED YET.
UM, AND WE SHOULDN'T HAVE ANY PROBLEM WITH THAT.
THE ONLY OTHER TIME MEMBER, UH, TIMEFRAME THAT I'LL MENTION IS THERE'S ONE OTHER TIMEFRAME THAT'S REAL IMPORTANT, AND THAT IS THAT THE COUNCIL HAS TO SELECT A CITY AUDITOR FROM THE RECOMMENDATIONS THAT ARE MADE BY THE NOMINATING COMMITTEE WITHIN 30 DAYS OF THE RECOMMENDATION BEING MADE.
WE'RE ALL ON A SCHEDULE FOR THAT.
AND LEMME TALK QUICKLY ABOUT THE SCHEDULE.
TODAY'S THE 20TH AND WHAT WE'LL BE DOING TODAY IS HAVING THE CANDIDATES PRESENTED TO THE NOMINATING COMMITTEE DURING THIS AUDIT AND FINANCE COMMITTEE MEETING.
AND HOPEFULLY WE'LL BE IN A POSITION WHERE WE CAN GET CLOSE TO KNOWING, UH, WHO WE WANT TO INTERVIEW.
THE WAY I'D PUT IT IN THE MESSAGE BOARD ORIGINALLY IS THAT WE WOULD EITHER SEPTEMBER 17TH OR AT A SPECIAL CALLED MEETING, HAVE THE CANDIDATES IN CALLED MEETING OF THE COMMITTEE, THE NOMINATING SLASH AUDIT AND FINANCE COMMITTEE.
WE WOULD HAVE INTERVIEWS OF IDENTIFIED, UH, FOLKS.
UM, I'M TOLD BEST PRACTICES IS TO DO THAT THROUGH A SPECIAL CALLED MEETING.
SO THE, THE RECOMMENDATION IS SEPTEMBER 23RD AND THE RECOMMENDATION FOR SEPTEMBER 23RD IS THAT IF WE DO THAT ON SEPTEMBER 23RD, IS THAT WE DO THAT AT 1:00 PM MEMBERS.
THAT'S A WORK SESSION DAY ANYWAY.
SO, UH, UH, MY OFFICE AND I TALKED ABOUT IT AND WE THINK SINCE EVERYBODY'S GONNA BE HERE FOR A WORK SESSION AND WE OUGHT TO BE DONE BY ONE, THAT THAT WOULD BE A GOOD TIME FOR US TO DO THE INTERVIEW PROCESS.
MY RECOMMENDATION IS THAT WE DO THAT ON SEPTEMBER 23RD.
AND UNLESS THERE'S STRONG OBJECTION, WE'LL GO AHEAD AND SET THAT.
UH, WE'RE CURRENTLY LOOKING AT COUNCIL, THE COUNCIL RECEIVING OUR RECOMMENDATION, UH, FROM THE NOMINATION SLASH AUDIT AND FINANCE COMMITTEE.
AND TOP FINALISTS CAN BE INTERVIEWED BY, UH, THE CITY COUNCIL AT THAT TIME, OCTOBER 21ST, THE COUNCIL WILL IDENTIFY A TOP CANDIDATE, UH, AND THEN WE WILL DO WHAT WE NEED TO DO WITH PRE-EMPLOYMENT JOB CHECKS, FINALIZE A DECISION, BEGIN THE NEGOTIATION, UH, WITH REGARD TO THAT CANDIDATE WITH THE IDEA BEING THAT BY NOVEMBER 6TH, COUNCIL NAMES AND APPOINT A NEW CITY AUDITOR DURING THAT COUNCIL MEETING.
AND THEN DECEMBER 29TH OR JANUARY 12TH, BECAUSE OF THE, THE WAY WE, WE DO THAT AT THE CITY WHEN PEOPLE START WORK AND EMPLOYMENT, UM, UH, THE NEW CITY AUDITOR WOULD START.
SO I JUST, I REALLY AM LAYING THAT OUT TO REMIND EVERYBODY KIND OF, OF THE, THE, OF THE CADENCE WE'RE ON AND LET EVERYBODY KNOW.
BUT IS THERE, ARE THERE ANY QUESTIONS? WELL, IN THAT CASE, UM, MEMBERS WITHOUT OBJECTION, THE AUDIT AND FINANCE COMMITTEE SLASH NOMINATING COMMITTEE FOR A NEW CITY AUDITOR WILL GO INTO AN EXECUTIVE SESSION TO DISCUSS PERSONNEL ISSUES RELATED TO THE APPOINTMENT OF A NEW CITY AUDITOR PURSUANT TO SECTION 5 5 1 0 7 4 OF THE GOVERNMENT CODE.
UM, IS THERE ANY DISCUSSION THEN WITHOUT OBJECTION? WE WILL GO INTO THE EXECUTIVE SESSION ON ITEM NUMBER THREE UNDER 5 5 1 0 7 4 OF THE GOVERNMENT CODE.
IT IS 9:39 AM THANKS EVERYBODY.
WE'LL BE BACK IN A LITTLE WHILE.
ALTHOUGH WE WERE JUST IN RECESS.
WE HAD GONE INTO AN EXECUTIVE SESSION.
UH, THE COMMITTEE, UH, THE AUDIT AND FINANCE COMMITTEE OF THE AUSTIN CITY COUNCIL HAS COMPLETED ITS EXECUTIVE SESSION.
WE SPOKE, UH, PURSUANT TO 5 5 1 0 7 4, THE TEXAS GOVERNMENT CODE ON PERSONNEL MATTERS RELATED TO THE HIRING OF A NEW CITY AUDITOR, UH, WHICH IS ITEM THREE ON THE COMMITTEE'S AGENDA.
WE HAVE COMPLETED THAT AND WE ARE, UH, NOW THE, WE HAVE COMPLETED THE ENTIRE AGENDA OF THE AUDIT AND FINANCE COMMITTEE.
SO WITHOUT OBJECTION, WE WILL ADJOURN THE MEETING OF THE AUDIT AND FINANCE COMMITTEE AT 10:22 AM WE ARE ADJOURNED.