HomeMy WebLinkAbout2012-02-15 Audit Committee MinutesAudit Committee Meeting
February 15, 2012
The meeting convened at 7:10 p.m. in the Conference Room, 16 Lowell Street, Reading,
Massachusetts. Present was Audit Committee Chair David Greenfield and members
Camille Anthony, Lisa Gibbs (departed at 7:50pm), Steven Herrick and Phil Pacino
(arrived 7:30pm). Absent was Chair Marsie West and member Chuck Robinson. Also
present was Assistant Town Manager/Finance Director Bob LeLacheur.
Mr. Herrick asked if the Auditors had any concerns arising from the recently completed FYI
Audit, since he had to miss the previous meeting where it was reviewed. Mr. Greenfield said the
auditors had no concerns and were quite satisfied. Ms. Anthony characterized their views that
everything was flat, or maintained as compared to the previous year. Mr. Greenfield added that
there were no new control issues.
Ms. Anthony moved to accent the FY11 Audit Report as presented, seconded by Mr.
Herrick, and approved by a 4 -0 vote (Mr. Pacino not present).
Ms. Anthony asked about the formation of a Risk Subcommittee as proposed by Mr. Pacino at
the previous meeting. She stated that Mr. Pacino pointed out that Reading had no formal policy
for risk assessment, while some Towns do have such a policy. Ms. Anthony asked if the purpose
of a risk assessment was to show areas of concern. For example, recently she learned that checks
were accepted as payment for Depot/Compost stickers at the Police station, when for many years
she had believed this was a `cash only' business.
Mr. Greenfield pointed out that his profession is risk assessment and that the first question
should be what risk program do you want? He suggested a good method was to ask each of the
organization's entities to self - assess, and then to turn those results over to an independent outside
group for an objective opinion. The final step was to then go back to the first question and
determine what levels of risk needed to be watched. From his experience, overkill on too many
small risks was a potential hazard, and attention was only worthy of the big risks. Ms. Anthony
pointed out that with taxpayer money that point was toned down a bit, and Mr. Greenfield
agreed.
Ms. Anthony stated that the Audit Committee had no formal process to determine annually
which areas to focus on. Mr. Herrick stated that a recent focus on the school lunch program
brought about some changes that seemed to improve controls, and Ms. Gibbs added that this was
true of several areas in the schools as Mary DeLai had improved controls over PTOs and athletic
booster organizations as an example.
Mr. Herrick asked about the formation of a subcommittee. After discussion, the group concluded
that it was not necessary at this time. The group then had a discussion about the special emphasis
for the next annual audit.
Mr. Robinson had emailed his thoughts which included Ambulance billing, Recreation and All -
day Kindergarten. Ms. West had also emailed her suggestions which included Town Manager's
office, Inspectional services, Police Department, Police details, Ambulance billing, Recreation
and School Food Service. Mr. LeLacheur noted that ambulance billing might be outsourced by
July 1, 2012. However the Audit Committee could select that as a focus and then it could be
dropped later this spring if such a decision to outsource was reached by the Fire Chief.
Mr. Herrick cited Town Manager's office, Police details, Cemeteries, Recreation, School Food
Service, and all -day Kindergarten. Ms. Gibbs, Mr. Pacino, Mr. Greenfield and Ms. Anthony
voiced agreement with many of the topics, and the group reached a consensus on the following
items: Town Manager's Office, Police details, Ambulance billing, Cemeteries, Recreation. Mr.
LeLacheur agreed to forward this list to Town Accountant Gail LaPointe and to the Auditor's for
comment.
Ms. Anthony asked if a questionnaire to the Department Heads was the best way to learn more
about views on risk assessment, and Mr. LeLacheur agreed that it was. Mr. Herrick asked if this
was a one -time request in order to build a framework, and the group agreed this was the
intention. Mr. Greenfield agreed to send a list to Ms. LaPointe and Mr. LeLacheur which could
form the basis of such a questionnaire.
Mr. Pacino moved that the Audit Committee recommend the FY11 Audit Report as
presented to the Board of Selectmen, seconded by Ms. Anthony, and approved by a 4 -0 vote
(Ms. Gibbs not present).
Mr. Pacino moved that the Audit Committee adiourn at 8:10, seconded by Ms. Anthony,
and approved by a 4 -0 vote (Ms. Gibbs not present).
Respectfully submitted,
Secretary