[00:00:05]
COUNCIL MEMBER ELA, CITIZEN MEMBER TINO.
[Approval of Minutes ]
OKAY, WE'LL GO AHEAD AND BEGIN WITH THE APPROVAL OF THE MINUTES FROM APRIL 26TH, 2023.UH, I WILL ASK, UH, DID ANYBODY HAVE ANY QUESTIONS ABOUT THOSE MINUTES AND WANNA MAKE ANY CHANGES? AND IF NOT, I'D ENTERTAIN A MOTION TO APPROVE THE MINUTES FROM, UH, APRIL 26TH.
A MOTION'S BEEN MADE AND SECONDED.
DOESN'T SEEM TO BE ANY CHANGES TO THE MINUTES FROM APRIL 26TH.
AND HEARING, HEARING NONE OPPOSED, SINCE IT'S JUST THE THREE OF US, THE MINUTES ARE APPROVED.
I'D LIKE TO ASK CITY CLERK, DID ANYBODY SIGN UP TO DO ANY PUBLIC COMMENTS AT OUR MEETING TODAY? WE HAVE NO MEMBERS OF THE PUBLIC SIGNED UP TO UP TO SPEAK TODAY, SIR.
[CONSENT AGENDA ]
THEN WE'LL PROCEED WITH OUR AGENDA.UH, WE HAVE, UH, FOUR ITEMS. WELL, EXCUSE ME.
WE HAVE THREE ITEMS TO GO OVER.
WE IS, UH, ON CONSENT AND THAT'S THE ACCEPTANCE OF THE OFFICE OF CITY AUDITOR'S REPORT ON THE AUDIT OF AVIATION FACILITIES, UH, MAINTENANCE FOLLOW UP.
UH, AND THEN WE HAVE TWO OTHER ITEMS FOR INDIVIDUAL CONSIDERATION OR ONE FOR INDIVIDUAL CONSIDERATION, A POST SOLICITATION HIGH PROFILE BRIEFING, AND THEN A STAFF BRIEFING, UH, ON OUR, UH, OVERALL CITY AUDIT.
SO AT THIS TIME, UH, I'D ENTERTAIN, UM, A MOTION EITHER TO PROCEED WITH THE CONSENT AGENDA OR IF ANYONE WOULD LIKE TO CHANGE THAT FOR INDIVIDUAL CONSIDERATION.
NOW IT'D BE THE TIME TO DO THAT.
UH, I DON'T BELIEVE THERE'S ANY OTHER QUESTIONS ABOUT IT.
SO, ALL IN FAVOR APPROVING THE CONSENT AGENDA.
ALRIGHT, SO THE CONSENT AGENDA IS APPROVED NOW
[Post-Solicitation High Profile Briefings ]
WE'LL MOVE ON TO, UH, ITEM FOR INDIVIDUAL CONSIDERATION.ITEM NUMBER THREE, IT'S A POSTS SOLICITATION IT AND, UM, IT'S APPROVAL TO PROCEED FOR CITY COUNCIL CONSIDERATION FOR THE FINANCE DEPARTMENT, FOR THE ESTABLISHMENT OF A FINANCIAL UNDERWRITING POOL.
AND SO I DON'T KNOW IF BEN OR TROY WANNA GO AHEAD AND PRESENT THAT.
TROY, UH, I'LL TAKE THIS ONE, SIR.
AND, AND GOOD MORNING, UH, CHAIR MEMBERS OF THE COMMITTEE.
I'M THE DEPUTY CHIEF FINANCIAL OFFICER, AND THIS MORNING I'LL BE PRESENTING, UM, THE POST SOLICITATION FOR A REQUEST FOR QUALIFICATIONS THAT WE ISSUED.
AND THIS REQUEST FOR QUALIFICATIONS WAS FOR, UM, TO DEVELOP A POOL OF FINANCIAL UNDERWRITERS.
UH, WE USE FINANCIAL UNDERWRITERS OVER A TERM ABOUT FIVE YEARS TO, UM, THEY FACILITATE, UM, OUR ISSUANCES FOR OUR DEBT.
UH, FOR EXAMPLE, THIS SUMMER WE HAVE OUR GENERAL OBLIGATION, OUR SUMMARY ISSUANCE COMING.
WE WILL PUT TOGETHER A TEAM OR A SYNDICATE OF UNDERWRITERS WHO WILL HELP US ADVERTISE MARKET TO OUR POTENTIAL INVESTORS AND SELL THOSE BONDS TO POTENTIAL INVESTORS.
UM, AS I MENTIONED, THIS IS A REQUEST FOR QUALIFICATIONS.
IT'S A PROPOSED TERM OF THREE YEARS WITH ONE TWO YEAR OPTION.
UM, THERE IS NO VALUE ASSOCIATED WITH THIS.
THE WAY THAT WORKS IS THEY'RE NOT COMPENSATED UNTIL THEY ARE PUT INTO A SYNDICATE OR A TEAM.
UM, ONCE THEY'RE ON THAT TEAM AND WE COMPLETE THAT ISSUANCE OR THAT TRANSACTION, THEN WE TYPICALLY WILL PROVIDE Y'ALL WITH A SUMMARY OR A DISCLOSURE TELLING THE TOTAL ECONOMICS OF THE DEAL AND HOW MUCH EACH OF THOSE UNDERWRITERS WERE COMPENSATED, UM, ON A, IN TOTAL AND ON A PER BOND BASIS.
OUR CURRENT CONTRACT, UM, IT EXPIRED IN SEPTEMBER 30TH, 2022.
SO WE'RE TRYING TO PUT THIS IN PLACE, UM, TO BE ABLE TO, UM, PREPARE FOR OUR SUMMER ISSUANCES.
LIKE I JUST MENTIONED, WHEN LOOKING AT THE EVALUATION OF OUR UNDERWRITERS, THE AMOUNT OF CAPITAL THEY HAVE IS A, AN IMPORTANT CONSIDERATION.
BUT TO MAKE SURE THAT IT'S FAIR, WE BASICALLY SPLIT IT UP INTO THREE DIFFERENT CATEGORIES AND WHY CAPITAL IS IMPORTANT, BECAUSE WE WANNA MAKE SURE THEY HAVE THE CAPACITY BASED ON THE SIZE OF OUR ISSUANCES AND OUR BONDS TO ACTUALLY UNDERWRITE OUR BONDS.
BUT WE, UM, WE PLACE THESE FIRMS INTO THREE CATEGORIES, AND YOU'LL SEE THE NUMBER OF FIRMS WE HAVE, UM, THAT PROPOSE ON THIS.
IT'S FAIRLY LARGE, BUT WE LOOK AT FIRMS WITH EXCESS, UM, NET CAPITAL, LESS THAN 20 MILLION.
THAT WOULD BE ONE CATEGORY, AND YOU'LL SEE AN EVALUATION ASSOCIATED WITH THAT.
WE HAVE A SECOND CATEGORY WITH NET EXCESS CAPITAL RANGING FROM 20 20 MILLION TO 500 MILLION.
AND THEN WHAT WE CALL OUR LARGE FIRMS ARE 500 MILLION AND GREATER.
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IMPORTANT.AND BASICALLY WHAT THAT CAPITAL IS, IT'S LIQUID CASH OR CASH THAT'S AVAILABLE TO UNDERWRITE OUR BONDS WHEN WE GO INTO THE MARKET.
SO THIS VALUATION METHODOLOGY, WE'VE USED IT IN THE PAST, IT ALLOWS FOR, UM, YOU KNOW, AS YOU SEE ON THE SCREEN, SELECTION OF A WELL DIVERSIFIED POOL, COMPRISED OF SMALL, MEDIUM, LARGE.
AND ALSO WE LOOK AT THE LOCAL AND OUR SMALL BUSINESSES FIRMS. SO IN THIS FIRST POOL, UM, THIS IS THE, WHAT WE CALL THE SMALL FIRMS. THESE ARE GONNA BE THOSE FIRMS THAT ARE GONNA BE, UM, HAVE CAPITAL OF 20 MILLION OR LESS.
WE'RE RECOMMENDING SIX OUT OF THE EIGHT FIRMS THAT PROPOSED.
AND YOU CAN SEE BETWEEN VENDOR F AND VENDOR G, THERE'S PRETTY GOOD, UM, SPLIT BETWEEN THOSE TWO VENDORS.
WE DID HAVE ONE VENDOR IN THE SELECTION THAT ACHIEVED THE TOTAL LOCAL PREFERENCE POINTS OF 10, WHICH IS VENDOR C.
THE MEDIUM FIRMS, WHICH ARE THE 20 MILLION TO 500 MILLION.
WE ARE RECOMMENDING SEVEN OUTTA NINE FIRMS. YOU CAN SEE ON THE SCREEN.
AND I CAN TELL YOU BETWEEN, BASED ON OUR EXPERIENCE BETWEEN THE LAST, UM, TIME WE DID THIS, AND THIS TIME WE SAW A NUMBER OF FIRMS MIGRATING BETWEEN THE CAPITAL STRUCTURES.
A LOT OF SMALL FIRMS ACTUALLY MOVED INTO THE MEDIUM FIRM STRUCTURES, UH, BASED ON THEIR CAPITAL SIZES.
ANOTHER THING I POINT OUT IN HERE, BASED ON THE SELECTION, WE DID HAVE ONE FIRM THAT QUALIFIED FOR THE VENDOR OWNED SMALL BUSINESS PREFERENCE PROGRAM.
THE LAST CATEGORY, WHICH IS OUR 500 MILLION OR GREATER, GREATER IN CAPITAL, WE'RE RECOMMENDING SEVEN OUT OF 13 FIRMS. UM, THERE WERE SEVERAL FIRMS, I BELIEVE THREE THAT ACTUALLY ACHIEVED THE LOCAL PREFERENCE POINTS BECAUSE OF THE AMOUNT OF, UM, INDIVIDUALS THEY HAVE IN THE ACTUAL SAN ANTONIO LOCATION.
AS FAR AS THE DUE DILIGENCE RESULTS, WE NOTIFIED OVER 162 VENDORS.
UM, THERE WERE SEVEN VENDORS AT THE PRE-SUBMIT SUBMITTAL CONFERENCE.
UM, AS FAR AS OUR, UM, NUMBER OF RESPONSES RECEIVED, WE RECEIVED 33.
THERE WERE 30 THAT WERE RESPONSIVE, AND THOSE 30 WERE THE ONES I SHOWED YOU BEFORE.
OUT OF THOSE 30, WE'RE RECOMMENDING 20 FIRMS. THOSE 20 FIRMS ARE COMPARABLE TO WHAT WE HAD IN THE POOL LAST TIME.
I THINK WE HAVE ABOUT 19 CURRENTLY, BUT OUTTA THOSE 33, WE HAD 30 THAT WERE RESPONSIVE.
TWO RESPONDENTS WERE DEEMED NON-RESPONSIVE FOR THE ABILITY, THE INABILITY TO COMPLY WITH THE PROPOSAL REQUIREMENTS.
AND THEN ONE FIRM WAS DISQUALIFIED DUE TO A POLITICAL CONTRIBUTION MADE DURING THE, THE PRODA BLACKOUT PERIOD.
WE ALSO HAD AN ADDITIONAL FIRM THAT'S NOT, NOT, UM, UM, DISCLOSED HERE, BUT THEY, THEY NOTIFIED US, UM, AND ASKED US IF WE HAD RECEIVED THE PROPOSAL AND IT WAS LATE.
SO WE ALSO HAD ONE LATE FIRM THAT WAS NOT, UM, ACCEPTED HERE AS FAR AS THE MINIMUM REQUIREMENTS REVIEW AND, UM, OUR DUE DILIGENCE REVIEW BY KEVIN'S OFFICE.
UM, WE DID NOT FIND ANYTHING BASED ON THE SIZE OF THESE ORGANIZATIONS THAT ARE, UM, WOULD BE UNTYPICAL TO, UM, AN ORGANIZATION THE SIZE.
AND IN THEIR COURSE OF BUSINESS CHAIR.
THAT, UH, COMPLETES MY, UH, PRESENTATION.
BE HAPPY TO ANSWER ANY QUESTIONS.
AND, AND PLEASE NOTE THAT COUNCILMAN LYAS IS WITH US AND WE'RE ON ITEM NUMBER THREE, COUNCILMAN.
AND, UH, I WOULD, I WOULD HAVE A QUESTION OR OR TWO WITH THE 19 OR SO PRIOR, UH, DESIGNEES FOR THIS, HOW MANY OF THEM ACTUALLY PARTICIPATED IN SOME OF OUR BOND FUNDING? I'D HAVE TO GET YOU THE EXACT NUMBER.
WHAT WE DO IS WE LOOK AT, IN PARTICIPATION'S GONNA BE DEPENDENT ON SEVERAL FACTORS.
THE SIZE OF THE ISSUANCE, THE TYPE OF THE ISSUANCE.
IS THAT A REVENUE BOND FOR THE AIRPORT? IS IT A CONVENTION FACILITY? WE TRY TO LOOK AT THEIR PARTICIPATION AND ROTATE THEM TO MAKE SURE THAT ALL OF THEM, UH, PARTICIPATE ON ONE BOND SALE OR OTHER OVER THE FIVE YEARS.
I HAVE TO GO BACK AND GET THAT EXACT INFORMATION FOR YOU.
DO YOU THINK YOU'VE PRETTY MUCH GOT TO ALMOST ALL OF THEM OVER THAT PERIOD, PERIOD TIME? YES SIR.
AND, UH, HOW MANY FIRMS, AND I KNOW WE DON'T KNOW THEIR NAMES OR ANYTHING RIGHT NOW, BUT HOW MANY OF THEM ARE REPEAT THAT HAVE BEEN WITH US, LET'S SAY OVER TWO OR THREE OF THESE PERIODS? A LARGE NUMBER OF THEM WERE, UM, IF I CAN'T REMEMBER THE EXACT NUMBER, IT WAS MARGARET HAT.
I DIDN'T MEAN MEAN TO THROW YOU ANY CURVE BALLS.
AND ACTUALLY I ANTICIPATED THAT QUESTION, BUT I FORGOT TO LOOK AT IT THIS MORNING.
UM, BASED ON MY RECOLLECTION, THERE WAS ONLY A SMALL NUMBER, IF ANY, THAT WOULD'VE, THAT WOULD NOT HAVE BEEN THERE IN THE PRIOR POOL.
HAVE WE RUN INTO ANY THAT WOULD DISSATISFACTORY AND SO WE, UH, EITHER DIDN'T INVITE THEM OR WE'VE KIND OF FELT LIKE THEY WOULDN'T BE VERY, UH, SUCCESSFUL IN WORKING WITH US IN THE FUTURE.
UM, WE, WE TALKED ABOUT THAT DURING THE
[00:10:01]
EVALUATION.WE REALLY LOOKED AT THEIR EXPERIENCE, BACKGROUND AND QUALIFICATIONS.
UM, WE DO TALK ABOUT THEIR PAST EXPERIENCE, BUT THERE WAS NOTHING THAT REALLY STUCK OUT FROM A PERFORMANCE STANDPOINT.
DO ANY OF THE OTHER COMMITTEE MEMBERS HAVE ANY QUESTIONS? 14.
UH, THERE ARE 14 THAT ARE REPEATS.
WELL, NONE OF THE COMMITTEE MEMBERS HAVE ANY QUESTIONS.
I THINK I'VE ASKED ALL MINE NOW.
THIS IS SOMETHING THAT WE WOULD MOVE FORWARD TO CITY COUNCIL FOR THEIR CONSIDERATION.
SO, UH, I WELCOME A MOTION TO MOVE THIS FORWARD TO CITY COUNCIL FOR THEIR APPROVAL.
ANY OTHER QUESTIONS OR THOUGHTS? HEARING NONE.
ITEM THREE IS PROVED AND MOVE FORWARD TO COUNSEL.
[Staff Briefing ]
THE LAST ITEM THAT WE HAVE IS A STAFF BRIEFING ON OUR EXTERNAL FINANCE AND AUDIT.AND SO WHO WILL BE DOING OUR PRESENTATION ON THAT TODAY? UH, MELANIE KEATON WILL BE DOING OUR PRESENTATION JOINTLY WITH OUR AUDITORS.
UM, I'LL JUST BRIEF INTRODUCTION.
THIS IS, UM, IT'S A GOOD REPORT.
UM, HAPPY THOUGH SHE'LL BE PRESENTING KIND OF THE, UM, FISCAL YEAR 2022 EXTERNAL FINANCIAL AUDIT RESULTS.
WE CAME TO YOU A WHILE BACK KICKING OFF THE AUDIT.
UM, WE DID, TOOK A LITTLE LONGER THAN WE THOUGHT.
WE HAD SOME IMPLEMENTATIONS THAT, UM, WERE A LITTLE MORE CHALLENGING THAT WE THOUGHT BASED ON G A S B, BUT I'LL HAVE MELANIE KEATON PRESENT, INTRODUCE HER TEAM AND, UM, TALK ABOUT THE GOOD RESULTS THAT WE HAD.
AND GOOD MORNING CHAIR COMMITTEE MEMBERS.
UM, AS TROY SAID, MY NAME'S MELANIE KEATON.
I'M THE ASSISTANT FINANCE DIRECTOR OVER THE ACCOUNTING DIVISION.
SO THE CITY'S EXTERNAL AUDIT, UH, JUST TO GIVE A QUICK LITTLE, UM, RECAP OF WHAT THE EXTERNAL AUDIT REQUIREMENTS ARE.
THEY'RE REQUIRED UNDER THE CITY CHARTER TO PROVIDE A TRA A TRUE AND FAIR VIEW OF THE FINANCIAL POSITIONS OF THE CITY.
IT IS REQUIRED BY STATE STATUTE AND IT ENSURES THAT THE CITY'S RECORDS ARE PROPERLY MAINTAINED FREE FROM MATERIAL MISSTATEMENTS AND COMPLY WITH THE ESTABLISHED CONCEPTS, PRINCIPLES AND ACCOUNTING STANDARDS, WHICH IS PRI PRIMARILY G A SS B.
AND YOU'LL HEAR A LITTLE BIT ABOUT G A S B THIS YEAR BECAUSE WE HAD A VERY, UM, HEAVY LIFT OF AN IMPLEMENTATION, WHICH WE'LL TALK ABOUT IN A LITTLE BIT.
NOW, THIS IS A LITTLE DIFFERENT FROM KEVIN'S INTERNAL AUDIT REQUIREMENTS.
THE INTERNAL REQ AUDIT IS TYPICALLY MORE, UH, CONTROLS CONTRACTUAL, VERY SPECIFIC FOCUSED WHERE THIS IS OVER THE ENTIRE FINANCIAL, UH, REPORT OF THE CITY.
UM, AND SO THEY LOOK AT A LOT MORE AS, UM, OF THE FINANCIAL, THE HOLISTIC VIEW OF THE CITY'S FINANCIALS, THE CONTROLS IN PLACE, AND SPECIFICALLY IN RELATION TO THE FEDERAL AND STATE, UH, GRANT FUNDINGS THAT WE GET, THE CONTROLS THAT WE HAVE THERE, THAT THEY'RE WORKING PROPERLY AND THAT WE'RE IN COMPLIANCE WITH THOSE GRANT RULES SO THAT WE CAN CONTINUE TO GET THOSE GRANT FUNDS.
WE HAD A NEW AUDIT CONTRACT THIS YEAR.
IT WAS APPROVED IN JUNE OF 2022.
SO THIS IS THE FIRST YEAR, FISCAL 22 AUDIT WITH FOUR VS.
UH, IN AMANDA EVES, WHICH I'LL PRESENT IN A LITTLE BIT TO LET HER GO OVER HER SIDE.
PART OF THE SLIDES IS THE NEW ENGAGEMENT PARTNER.
SO THIS IS A THREE YEAR TERM WITH TWO ONE YEAR EXTENSIONS.
AND, UM, THE PRESENTATION FOR THIS WILL GO OVER A LITTLE BIT, A HIGH SUMMARY ON MY END, AND THEN I'LL GIVE IT TO AMANDA TO DO THE RESULTS OF THE AUDIT AND THE REQUIRED COMMUNICATIONS THAT THE AUDITORS ARE HAVE TO HAVE WITH THE AUDIT COMMITTEE.
SO JUST A QUICK SHOW OF THESE ARE THE DELIVERABLES OF THE EXTERNAL AUDIT.
SO YOU'LL SEE THE ANNUAL COMPREHENSIVE FINANCIAL REPORT ALL THE WAY DOWN BASICALLY TO MANAGEMENT LETTER IF IT'S APPLICABLE.
UM, AND ALL OF THESE REPORTS ARE AVAILABLE ON THE CITY'S TRANSPARENCY WEBSITE AT THE ADDRESS NOTED BELOW FOR OUR RESIDENTS AND EASY, UH, USE OF VIEWING.
SO I REALLY WANTED TO SPEND JUST A COUPLE SECONDS HERE ON THIS SLIDE.
IT HAS TAKEN US WELL OVER 15 YEARS TO REALLY GET OUR CONTROLS FIXED, GET OUR FINDINGS FIXED.
AND YOU CAN SEE IT HERE WHERE BACK IN 2006, WHICH WAS RIGHT AFTER WE IMPLEMENTED S A P, WE HAD QUITE A BIT OF CONTROL ISSUES.
AND SINCE THEN WE HAVE GOTTEN TO THE LAST FIVE YEARS, WE HAVE NOT HAD ANY SINGLE INTERNAL CONTROL FINDINGS, WHICH MEANS WE HAVE NO MANAGEMENT LETTER COMMENTS FROM THE AUDITORS.
IT'S HARD TO GET THERE THE FIRST YEAR.
IT'S VERY HARD TO KEEP IT FOR FIVE YEARS.
AND I'M REALLY PROUD OF MY TEAM, WHICH I'LL INTRODUCE IN JUST A SECOND.
IN ADDITION TO THE INTERNAL CONTROLS OVER THE FINANCIAL AUDIT, WE HAVE THE SINGLE AUDIT FINDINGS.
NOW YOU'LL SEE WE HAVE JUST A FEW FINDINGS.
WE HAVE TWO FINDINGS THIS YEAR, GIVEN THE LEVEL OF GRANT FUNDING WE'VE HAD OVER THE LAST TWO YEARS, WITH ALL THAT COVID DOLLARS, NEW REQUIREMENTS COMING IN VACANCIES AND JUST TRYING TO KEEP OUR CURRENT GRANTS PLUS THESE NEW ONES.
THE TWO ARE, UM, I'M HAPPY WITH THAT.
WE STILL WORK FOR ZERO DEFINITELY, BUT, UM, WE, WE'VE KEPT IT AT A MANAGEABLE LEVEL AND WE'VE ALREADY FIXED THOSE ISSUES.
[00:15:03]
SO I WANTED TO KIND OF JUST DO A QUICK WRAP UP HERE.THESE, THE RESULTS ARE TAKEN INTO ACCOUNT OF A CHANGING ENVIRONMENT FOR US.
WE HAVE NOW MOVED A LOT OF THE FISCAL OPERATIONS ACROSS THE CITY TO A HYBRID WORK ENVIRONMENT.
UM, SO PART OF THAT IS CREATING NEW PROCESSES AND CONTROLS TO, UH, ACCOUNT FOR THAT HYBRID NATURE AND MAKE SURE WE STILL HAVE CONTROLS IN PLACE AND WE'RE STILL ABLE TO DO THE WORK WE NEED TO DO.
IN ADDITION TO THAT, AS TROY MENTIONED, WE IMPLEMENTED A COMPLEX ACCOUNTING STANDARD.
IT WAS THE LEASE STANDARD, WHICH HONESTLY WAS SO COMPLEX THAT G A S B HAD DELAYED IT FOR A COUPLE OF YEARS BECAUSE THEY KNEW THE PANDEMIC NEEDED TO TAKE FOCUS.
THE CITY HAD OVER 800 LEASES THAT WE HAD TO EVALUATE THIS YEAR AND PUT INTO A SOFTWARE PROGRAM THAT WE GOT THE SOFTWARE APPROVED IN JANUARY.
SO WHAT NORMALLY TAKES 90 DAYS, MY TEAM WAS ABLE TO BASICALLY WORK ON IT AND GET IT IMPLEMENTED IN 45 DAYS AND NOT HAVE FINDINGS ON IT, WHICH IS TERRIFIC.
UM, WE ACTUALLY HAD SEVERAL COMPONENT UNITS WHO WERE, WHO KIND OF CONTRIBUTED TO THE DELAY OF US ISSUING THE AUDIT.
WE WERE WAITING FOR THEM, AND ONE, WE COULDN'T WAIT ANY LONGER.
UM, SO THAT WE ACTUALLY HAD TO EXCLUDE THEM OUT OF OUR ANNUAL FINANCIAL REPORT THIS YEAR BECAUSE OF THE LEASE STANDARD THAT THEY WERE HAVING ISSUES WITH AS WELL.
BUT EVEN WITH THESE CHALLENGES, MY STAFF WAS STILL ABLE TO KEEP ON TOP OF THE MONTHLY FINANCIALS FOR 2023 AND ALL THE OTHER OPERATIONS WE NEED TO DO ACROSS THE CITY.
UM, AND I REALLY WANTED TO GIVE A SPECIAL THANKS TO THE CONTROLLER'S DIVISION.
THEY DO THE HEAVY LIFT OF THE AUDIT AND THE FINANCIAL REPORTS PUTTING IT TOGETHER AS WELL AS THE DFAS IN THEIR FISCAL SHOP ACTUALLY HANDLING THE DAY-TO-DAY ACTIVITY.
BUT I WANTED TO RECOGNIZE, UH, SOME STAFF MEMBERS BEHIND ME.
SO IF THEY WOULDN'T MIND STANDING WHEN I SAY THEIR NAMES.
VICTORIA ROTOR, SHE'S THE CONTROLLER AND SHE'S OVER REALLY THE ENTIRE CONTROLLER'S OFFICE.
AND THEN HER MANAGERS, ELIZABETH DARD, KIMBERLY NUNEZ, AND JAY BLACKWELL.
THEY ARE THE CORE OF WHAT HAS HELPED US KEEP THAT FIVE YEAR NO FINDINGS.
AND REALLY WITHOUT THEM, I WOULDN'T BE ABLE TO GIVE THIS PRESENTATION TODAY.
SO WITH THAT, I'D LIKE TO GO AHEAD AND HAND IT OVER TO AMANDA TO FINISH HER SLIDES.
UM, SO I JUST WANNA FIRST OF ALL SAY THANK YOU, UM, TO THE CITY.
WE DO APPRECIATE PROVIDING YOU WITH OUR SERVICES THIS YEAR.
I REALLY APPRECIATED BEING ABLE TO BE THE PARTNER ON THE ENGAGEMENT THIS YEAR, AS MELANIE SAID, TRANSITIONING IN AS A NEW PARTNER, UM, ON THE AUDIT THIS YEAR.
AND CERTAINLY THANK YOU TO YOUR STAFF.
I MEAN, THEY'VE BEEN WORKING WITH US ON THE AUDIT FOR, I GUESS ABOUT THE PAST 10 MONTHS, UM, GETTING READY TO START UP AGAIN.
SO WE APPRECIATE THEIR DILIGENCE AND JUST, YOU KNOW, HANGING, HANGING IN THERE WITH US THROUGH THE ENTIRE AUDIT PROCESS.
THEY WERE VERY HELPFUL, VERY PROACTIVE IN PROVIDING INFORMATION, UM, ON TOP OF IMPLEMENTING THIS NEW SIGNIFICANT ACCOUNTING STANDARD.
UM, I DO WANNA SAY BEFORE I GET STARTED, YOU'LL NOTICE THAT I HAVE, UM, MANY SLIDES IN THE SLIDE DECK.
SO THESE ARE OUR REQUIRED AUDIT COMMUNICATIONS TO THE COMMITTEE.
I'M NOT REQUIRED TO TALK ABOUT ALL OF THEM, SO I'M JUST GONNA GO THROUGH THE HIGH POINTS, BUT YOU HAVE ALL OF THE INFORMATION THERE IN FRONT OF YOU.
OKAY, SO IF WE START ON SLIDE NINE, UM, THE SCOPE OF OUR AUDIT, AGAIN WAS YOUR FINANCIAL STATEMENTS FOR THE YEAR END, SEPTEMBER 30TH, 2022.
UM, AND I DO WANNA REMIND THE COMMITTEE THAT OUR AUDIT IS DESIGNED TO OBTAIN REASONABLE ASSURANCE OVER YOUR FINANCIAL STATEMENTS, NOT ABSOLUTE ASSURANCE.
IN OTHER WORDS, WE'RE NOT TESTING EVERY TRANSACTION.
UM, WE HAVE ISSUED AN UNMODIFIED OR CLEAN OPINION ON YOUR FINANCIAL STATEMENTS.
THAT'S THE HIGHEST LEVEL OF ASSURANCE THAT YOUR FINANCIAL STATEMENTS ARE PROPERLY STATED IN ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
I'M GONNA STOP FOR ONE MINUTE BECAUSE I REALIZED I DID NOT INTRODUCE OUR TEAMING PARTNERS.
I MEANT TO, UM, WE HAVE BOB WILLIAMS HERE.
WE ALSO HAVE CHARLES MARSHALL FROM BRITTS AND ASSOCIATES AND CHRIS CARMONA.
THEY WERE INTEGRAL PARTS OF THE AUDIT AS WELL.
AND AGAIN, I APOLOGIZE FOR, UM, MISSING MY NOTE ON THAT.
SO THANK YOU ALL FOR YOUR HELP AS WELL.
UM, NEXT WE'LL GO TO SLIDE 11.
UM, SO AS MELANIE MENTIONED, WE ALSO ISSUED A REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.
WE HAD NO INTERNAL INTERNAL CONTROL FINDINGS TO REPORT.
UM, WE DID ALSO REPORT ON YOUR SINGLE AUDIT, SO YOUR FEDERAL AND STATE PROGRAM COMPLIANCE.
UM, WE'VE ISSUED AN UNMODIFIED OPINION ON COMPLIANCE WITH THOSE, UM, WHICH MEANS, UH, THE HIGHEST LEVEL OF ASSURANCE, AGAIN, THAT YOU HAVE COMPLIED WITH ALL MATERIAL GRANT REQUIREMENTS.
UM, AND AS MELANIE MENTIONED, THERE WERE A COUPLE OF, OF FINDINGS RELATED TO THOSE, BUT THAT DID NOT AFFECT OUR OPINION.
AND IF WE MOVE TO SLIDE 14, YOU WILL SEE THE SPECIFIC PROGRAMS THAT WE TESTED THESE YEAR, THIS YEAR.
AND THOSE ARE YOUR FEDERAL AND
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YOUR STATE PROGRAMS. NEXT ON SLIDE 17.SO WE DO WANNA POINT OUT TO THE COMMITTEE, UM, ANY FINANCIAL STATEMENTS, UM, INHERENTLY DO HAVE MANAGEMENT'S JUST, UH, JUDGMENT AND ESTIMATES IN THEM.
AND SO THESE ARE THE SIGNIFICANT JUDGMENTS AND ACCOUNTING ESTIMATES THAT ARE INCLUDED IN YOUR FINANCIAL STATEMENTS, UM, NECESSARY IN ORDER TO DETERMINE BALANCES AND ALSO DISCLOSURES.
AND YOU'LL ALSO SEE THE FINANCIAL STATEMENT DISCLOSURES LISTED HERE THAT INCLUDE THOSE ESTIMATES AND JUDGMENTS.
SO WE JUST WANTED TO POINT THOSE OUT TO YOU.
UM, OF COURSE, YOUR PENSION AND RETIREMENT PLANS, OPE, RETIREMENT BENEFIT PLANS ARE SOME OF THE MORE SIGNIFICANT ESTIMATES.
THOSE RELATE TO THOSE ACTUARIAL ASSUMPTIONS, UM, THAT YOUR ACTUARY MAKES AND THAT MANAGEMENT AGREES WITH IN, IN DETERMINING THOSE AMOUNTS.
SO I WOULD ENCOURAGE YOU TO LOOK AT THOSE, UM, NOTE DISCLOSURES AS WELL.
SO IN THE COURSE OF JUST ABOUT ANY AUDIT, WE, UM, IDENTIFY ADJUSTMENTS THAT WE PROPOSE TO MANAGEMENT DURING THE AUDIT.
UM, MANAGEMENT LOOKS AT THOSE AND DETERMINES WHETHER THEY'RE MATERIAL, FIRST OF ALL, WHETHER THEY AGREE WITH THEM, AND THEN WHETHER THEY'RE MATERIAL AND WHETHER THEY'RE GOING TO ADJUST THE FINANCIAL STATEMENTS FOR THOSE, UM, ADJUSTMENTS.
AND, AND THEY MAY DETERMINE TO POST SOME AND OTHERS, THEY MAY SAY IT'S IMMATERIAL.
WE'RE NOT GOING TO POST THOSE.
WE'RE GONNA REPORT 'EM AS AN UNCORRECTED MISSTATEMENT.
SO YOU'LL SEE HERE WE DID HAVE SOME PROPOSED ADJUSTMENTS THAT WERE RECORDED, UM, ONE RELATED TO SOME YEAR END ACCRUED LIABILITIES FOR COMPENSATED ABSENCES.
UM, THE SECOND ONE THERE WAS SIMPLY A BALANCE SHEET RECLASSIFICATION.
IT DID NOT AFFECT YOUR, YOUR ENDING, UM, NET POSITION.
AND THEN THE LAST ONE HERE WAS RELATED TO WHAT MELANIE DISCUSSED, UM, IMPLEMENTING G A SS B 87 AND JUST SOME ADJUSTMENTS THERE RELATED TO THE BALANCES THAT WERE, UM, REPORTED UNDER THREE YEAR LEASES UNDER 87.
UM, THERE WERE ALSO SOME UNCORRECTED MISSTATEMENTS.
THERE WAS ONE RELATED TO, UM, A PRIOR YEAR.
UH, BOTH OF THESE ACTUALLY WERE PRIOR YEAR ITEMS. ONE OF 'EM WAS A TURNAROUND EFFECTS FROM A PRIOR YEAR, UNCORRECTED MISSTATEMENT THAT WILL GO AWAY NEXT YEAR.
UM, AND THEN THE OTHER ONE WAS JUST RELATED TO A PRIOR YEAR, UM, ACCRUED LIABILITY FOR RETIREMENT EXPENSE.
AGAIN, NOT MATERIAL, BUT WE JUST NEEDED TO BRING THAT TO YOUR ATTENTION AS WELL.
SO, UM, AS MELANIE MENTIONED AS WELL, UM, WE DID HAVE A COUPLE OF COMPLIANCE DEFICIENCIES TO REPORT.
UM, THESE ARE REPORTED AS SIGNIFICANT DEFICIENCIES.
AND SO ONE OF THEM WAS OVER YOUR HEAD START PROGRAM.
THE OTHER WAS OVER YOUR TB PREVENTION AND CONTROL STATE GRANT.
UM, SO ONE ON A FEDERAL PROGRAM, ONE ON A STATE PROGRAM.
UM, BUT AGAIN, MELANIE, IT'S MELANIE MENTIONED THE CITY HAS, UM, PUT IN PLACE A CORRECTIVE ACTION PLAN TO CORRECT THESE ITEMS GOING FORWARD.
AND SO, AGAIN, FINDINGS, BUT WE ARE STILL ISSU, WE STILL ISSUED AN UNMODIFIED OPINION ON COMPLIANCE.
UH, THESE WERE THE TWO FINDINGS THAT WERE REPORTED LAST YEAR FOR FEDERAL PROGRAMS. AND AS YOU'LL SEE, UM, THE STATUS ON BOTH OF THOSE IS RESOLVED.
SO BOTH OF THOSE ITEMS WERE RESOLVED THIS YEAR AND, UM, WILL NOT SHOW UP IN YOUR REPORT AGAIN NEXT YEAR.
AND THAT IS THE END OF MY PRESENTATION.
UM, THERE ARE A COUPLE OF ITEMS IN THE APPENDIX.
SO AS MELANIE MENTIONED, COMPONENT UNITS, THE CITY HAS A NUMBER OF COMPONENT UNITS.
UM, THERE WERE SOME FINANCIAL STATEMENTS THAT WERE NOT INCLUDED IN THE CITY'S FINANCIAL STATEMENTS, YOU KNOW, DUE TO TIMING.
AND THE CITY ALSO DETERMINED THAT LEAVING THEM OUT DID NOT CAUSE THE FINANCIAL STATEMENTS TO BE MATERIALLY MISSTATED.
SO YOU CAN SEE THOSE INDICATED ON THIS SLIDE AS WELL.
AND THEN LASTLY, WE JUST, UM, WE LIKE TO POINT OUT THE NUMBER OF STANDARDS THAT THE CITY WILL HAVE TO IMPLEMENT GOING FORWARD, THE NEW G S BS THAT'LL BE COMING UP.
UM, SO THIS IS JUST A SLIDE TO SHOW YOU, UH, THE ONES YOU HAVE, UH, COMING UP IN THE NEAR FUTURE.
AND WE'LL BE, UH, THE CITY STAFF IS, YOU KNOW, WORKING ON IMPLEMENTING THOSE, UM, FOR FUTURE YEARS.
SO I'D BE HAPPY TO ANSWER ANY QUESTIONS THAT ANYONE HAS.
YOU KNOW, I HAVE, I HAVE A QUESTION AND IT'S REALLY NOT RELATED TO THE WORK YOU'VE DONE.
IT SOUNDS GREAT, BUT, UH, I HEARD US TALKING ABOUT HOW WE HAD CHALLENGES WHEN WE WENT IN WITH SS A P 15 YEARS AGO OR SOMETHING LIKE THAT.
I'VE ALSO HEARD THAT S A P IS CHANGING A LOT.
ARE WE LOOKING AT A CITY OF MAKING ANY DRAMATIC CHANGES IN HOW S A P HAS BEEN FUNCTIONING FOR US? COULD THAT AFFECT FUTURE, UH, LIKE IT DID IN THE PAST? UH, WHEN IT COMES TO AUDITING AGAIN, YES, UH, YES, CHAIR WE'RE MAKING, BASED ON
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OUR PAST EXPERIENCE AND LESSONS LEARNED, WE'RE, UM, INCORPORATING THOSE LESSONS LEARNED INTO THE FUTURE.WE ALSO HAVE, I THINK ONE OF THE BI THE BIG BENEFITS IS, AND I'LL TALK ABOUT SOME OF THE THINGS WE'RE PUTTING IN PLACE AND SOME OF THE THINGS THAT WE, WE WILL BE BRINGING TO COUNCIL IS THAT YOU HAVE A TEAM HERE WHO'S BEEN THROUGH IT BEFORE.
WE'VE HIRED A LOT OF, UM, CRAIG HOPKINS HAS BEEN THROUGH THIS WITH U S A A.
UM, MY TEAM HAS BEEN THROUGH IT.
I THINK WE HAVE A LOT OF THAT PAST EXPERIENCE.
WE'RE ALSO, FROM A CONTRACTUAL STANDPOINT, WE'RE PUTTING THINGS IN PLACE WHERE WE HAVE COMPANIES COMING IN THAT WILL HELP MONITOR THE QUALITY OF THE IMPLEMENTATION AND THE RISK ASSOCIATED WITH IT AND TRY TO KEEP US ON THE PATH TO ACTUALLY HAVE A SUCCESSFUL IMPLEMENTATION.
I THINK THE OTHER THING THAT, UM, I WOULD ADD IS WHEN WE FIRST WENT LIVE WITH S A P, WE WENT FROM A SYSTEM THAT HAD NINE OPTIONS ON IT, GREEN SCREEN MAINFRAME.
UM, MOST OF OUR PROCESSES WERE PAPER.
AND SO WE REALLY DIDN'T HAVE ANY FOUNDATION.
A LOT OF US ACTUALLY DIDN'T EVEN HAVE PCS THAT WE WERE FAMILIAR WITH.
SO I THINK NOW WE HAVE A FOUNDA STRONG FOUNDATION IN PLACE, BOTH IN TERMS OF PEOPLE EXPERIENCE AND OUR BUSINESS PROCESSES.
SO I THINK YOU'LL SEE A, A DIFFERENT OUTCOME WITH THIS GO ROUND.
THAT WAS REALLY THE ONLY QUESTION THAT I HAD.
I APPRECIATE THE PRESENTATION.
ANY OTHER COMMITTEE MEMBER HAVE A QUESTION ABOUT THE AUDIT AND PRESENTATION? COUNCILMAN? UM, I'M LOOKING ON PAGE 27 OF THE PRESENTATION.
I DON'T SEE IT'S, THERE'S THAT NOT A CU COULD, OH, I'M SORRY.
I'M, SO, IT IS, I, I WAS NOT THE PARTNER ON THAT AUDIT.
FOUR US AUDITS THE PORT, SO IT'S NOT LISTED HERE AS AUDITED BY ANOTHER FIRM BECAUSE FOUR US DOES AUDIT.
IT'S A DIFFERENT AUDIT PARTNER AND TEAM THAT DOES THE AUDIT.
BUT THAT'S A REALLY GOOD QUESTION.
AND THEN, UM, I HAD ANOTHER QUESTION ABOUT PAGE 21.
UM, SECOND BULLET POINT SAYS THAT, UM, YOU HAD DISCUSSED THE OMISSION OF CERTAIN COMPONENT UNITS DUE TO UNAVAILABILITY OF AUDITED FINANCIAL STATEMENTS.
WHAT, CAN YOU, CAN YOU SHED A LITTLE MORE LIGHT ON THAT? WHAT IS, WHY, WHY WERE THEY UNAVAILABLE? IS THAT, IS THAT PAR FOR THE COURSE? THAT SOMETIMES THEY'RE UNAVAILABLE? UH, SOMETIMES THEY ARE UNAVAILABLE, BUT THIS YEAR, I THINK MELANIE MENTIONED IT WITH THE IMPLEMENTATION OF THE LEASE STANDARD.
IT'S A FAIRLY COMPLEX STANDARD.
UM, FORTUNATELY I THINK WE HAD WITHIN 45 DAYS, IT WAS VERY CHALLENGING FOR SOME OF THE OTHER COMPONENT UNITS MM-HMM.
AND SO WE LOOKED AT THAT TO SEE IF THERE WAS GONNA BE AN IMPACT TO OUR FINANCIALS AND WE DID NOT FEEL IT'S MATERIAL, SO WE MOVED FORWARD WITHOUT THEM.
ANY OTHER COMMITTEE MEMBERS HAVE A QUESTION? OKAY.
AGAIN, AND THIS COMMITTEE, OH, GO AHEAD BEN.
I JUST WANT TO, UM, TAKE A COUPLE OF MOMENTS HERE.
ONE, I WANT TO THANK AMANDA AND THE ENTIRE AUDIT TEAM.
YOU KNOW, WE WANT A TEAM THAT, THAT HAS THE ABILITY TO AUDIT AN ORGANIZATION AS COMPLEX AS US.
AND THEY'VE GOT A GREAT TEAM IN PLACE AND WE REALLY FELT LIKE THEY DID THAT.
UM, SO I WANNA THANK THEM FOR ALL OF THEIR WORK AS THEY WENT THROUGH THAT.
I ALSO WANNA RECOGNIZE THE STAFF AGAIN, TROY, UM, MELANIE, VICKI, JAY, ELIZABETH, UH, KIMBERLY.
I MEAN THE, I CAN'T, I DUNNO IF I CAN ACTUALLY DESCRIBE HOW COMPLEX THESE AUDITS HAVE BECOME AND HOW MUCH STANDARDS HAVE CHANGED OVER TIME.
YOU TALKED ABOUT THE LAST TIME WE DID THE SS A P IMPLEMENTATION.
THERE ARE SO MANY STANDARDS AND SO MUCH THAT HAS CHANGED AND THIS HAS GOTTEN MUCH MORE CHALLENGING.
AND THEN AS AN ORGANIZATION, SOMETIMES I THINK ORGANIZATIONS CAN FOCUS ON ONE THING THAT THEY DO OR MAYBE A COUPLE OF THINGS THAT THEY DO.
WE DO A LOT OF DIFFERENT THINGS.
WE RUN A CONVENTION CENTER, AN ALAMO DOME.
UH, WE HAVE THE GENERAL FUND, WE HAVE THE AIRPORT.
WE GET A LOT OF FEDERAL AND STATE GRANT FUNDING THAT COMES WITH A LOT OF COMPLIANCE.
AND I REALLY WANT TO THANK THAT TEAM.
THIS IS THE FIFTH YEAR IN A ROW THAT WE'VE HAD NO INTERNAL CONTROL ISSUES FOR AN ORGANIZATION OF THIS SIZE THAT IS, UM, COMPLETELY ATTRIBUTABLE TO THEIR WORK.
BECAUSE THAT'S A DAY IN, DAY OUT THING.
YOU DON'T GET TO THE END OF THE AUDIT AND, AND GET TO THAT POSITION.
THE AUDITORS ARE LOOKING AT IT.
YOU'RE IN THAT POSITION, YOU'RE GONNA HAVE ISSUES, YOU'RE GONNA HAVE FINDINGS.
THAT IS A COMMITMENT THAT THEY HAVE EVERY DAY TO THE QUALITY WORK THAT THEY DO.
SO I REALLY WANNA THANK THAT TEAM FOR
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ALL THEIR WORK AND TROY FOR HIS LEADERSHIP AS WELL.I THINK THE COUNCILMAN HAD ANOTHER CONCERN.
I I, I DO WANT TO MAKE EMPHASIS THAT, UM, YOU, YOU, WE ONLY SEE YOUR TEAM ONCE A YEAR, UH, PRETTY MUCH.
RIGHT? UM, AND YOU KNOW, I ALWAYS, I ALWAYS CALL PEOPLE ON YOUR TEAM, THE MEN IN BLACK, UH, RIGHT.
UH, WE DON'T SEE YOU, WE DON'T REALLY, UH, KNOW WHERE YOU ARE AT ANY GIVEN TIME.
UH, BUT WE HAVE, UM, BUT WE DO OWE YOU A DEBT OF GRATITUDE.
I MEAN, THE, THE WORK YOU GUYS DO IS, IS PRIMORDIAL IMPORTANT.
AND, UH, I DO THINK, ANDY, YOU'D AGREE WITH ME THAT, YOU KNOW, IF YOU HAD TO RENDER DOWN OUR, THE KEY FUNCTIONS OF CITY COUNCIL, IT'S ONE IS TO, YOU KNOW, CREATE POLICY.
TWO, IT'S TO OVERSEE THE EXECUTION OF THAT POLICY.
THREE, IT'S TO BUDGET FOR THAT.
AND THEN FOUR AT THE END OF THE DAY IS TO, YOU KNOW, DO THIS 360 DEGREE, UH, YOU KNOW, META-ANALYSIS OF WHETHER OR NOT WE'RE STILL A HEALTHY ORGANIZATION AT THE END OF THE DAY.
AND, AND, YOU KNOW, MAKE SURE THAT THAT'S TRANSPARENT.
ALONG THE LINES OF TRANSPARENCY, UM, ONE OF THE, ONE OF THE PROBLEMS WITH THE WORLD TODAY IS, AND ONE OF THE BIG FRACTURES IS THAT THERE'S JUST A LOSS OF TRUST IN INSTITUTIONS LIKE OURS.
UH, BECAUSE THERE'S PEOPLE OUT THERE WHO JUST MAKE HAY, UH, AND, YOU KNOW, SCORE POINTS BY, YOU KNOW, SAYING, YOU KNOW, GOVERNMENT IS CORRUPT.
GOVERNMENT DOESN'T DO ITS JOB, BUT 15 YEARS IN A ROW OF, YOU KNOW, UH, NO, NO MATERIAL FINDINGS, 15 YEARS IN A ROW OF GETTING A REALLY HEALTHY, UM, UH, YOU KNOW, HEALTH CHECK BACK FROM OUR, FROM OUR DOCTORS.
I, I THINK IT'S IMPORTANT MAYBE FOR US TO ENCOURAGE LANA, UH, OVER AT OUR COMMUNICATIONS DEPARTMENT THAT THIS NEEDS TO BE SOMETHING THAT WE SHARE WITH THE PUBLIC, RIGHT? THAT, YOU KNOW, WHILE EVERYBODY'S OUT THERE TALKING ABOUT HOW, UM, YOU KNOW, UH, HOW, HOW, HOW NOBODY SHOULD TRUST GOVERNMENT.
WE'VE GOT 13,000 PEOPLE IN THIS CITY WHO COME TO WORK EVERY DAY, UM, WHO I THINK DESERVE THE OPPORTUNITY TO BE, TO SEE THEMSELVES REFLECTED IN THE NEWSPAPER OR ON TV.
UM, YOU KNOW, AND HAVE SOMEBODY SAY, NO, NO, NO, NO, NO.
THIS ORGANIZATION GETS AN A PLUS, RIGHT.
THE SECOND THING I'LL TELL YOU IS THAT THESE AUDITS ARE VERY HELPFUL TO, HELPFUL TO CITY COUNCIL MEMBERS.
BECAUSE OFTEN, YOU KNOW, OFTENTIMES IT COMES UP IN, UH, CONVERSATIONS I HAVE WITH MY HOMEOWNERS AND MY CONSTITUENTS, RIGHT? THEY'RE LIKE, YEAH, WELL, YOU GUYS NEED TO BE AUDITED.
WE ARE AUDITED, RIGHT? UM, AND, YOU KNOW, FEEL FREE TO GO TO SAN ANTONIO.GOV AND SEE IT.
NOT ONLY ARE WE AUDITED, BECAUSE EVERY ONCE IN A WHILE WE SAY, YOU KNOW, WHAT WOULD BE A GOOD IDEA IS FOR OURSELVES TO AUDIT IT.
LIKE THIS ISN'T, THIS IS, THIS IS EXACTLY WHAT WE DO.
IT'S, UH, THE FACT THAT WE AUDIT OURSELVES IS, UM, IN OUR BAKED INTO OUR D N A.
THAT'S AN EXERCISE WE DO EVERY SINGLE DAY BECAUSE THAT'S ONE OF OUR FUNCTIONS.
AND SO, UM, I I, I, I DON'T KNOW WHO TO HAVE THIS CONVERSATION WITH ABOUT GETTING THIS OUT TO THE PUBLIC, RIGHT? BECAUSE I MEAN, WE CAN ALL SIT AROUND HERE AND CONGRATULATE OURSELVES AND THANK EACH OTHER, WHICH WE SHOULD.
UH, BUT, YOU KNOW, THERE'S, WE WORK FOR THE PEOPLE OUT THERE AND IF OUR CUSTOMERS AREN'T HEARING THAT WE'RE HEALTHY, UM, THEN I THINK WE'RE MISSING AN OPPORTUNITY.
COUNCILMAN, WE, WE WILL REACH OUT TO ALANA AND C AND E AND WORK ON, ON GETTING, UH, THIS OUT AND, AND, AND SEE WHAT WE CAN DO THERE.
AND I, AND I APPRECIATE YOUR COMMENTS AS WELL.
I MEAN, I THINK THE, THE, THE PREMISE OF THE AUDIT AND TALKED ABOUT AMANDA AND HER TEAM AND WANTING AND AFFIRM THAT CAN HANDLE, YOU KNOW, AN ORGANIZATION OF OUR COMPLEXITY IS, AT THE END OF THE DAY, IF THERE'S SOMETHING THAT WE'RE MISSING OR SOMETHING THAT WE'RE NOT DOING RIGHT, WE WANT TO GET BETTER.
AND I THINK THAT TEAM, UM, THAT'S WHY WE'VE HAD THE NO FINDINGS FOR FIVE YEARS ON, ON INTERNAL CONTROL ISSUES.
'CAUSE THEY'RE LOOKING FOR THOSE THINGS.
THEY'RE, THEY'RE NOT TRYING TO AVOID THEM.
THEY'RE LOOKING FOR THOSE THINGS THAT MAYBE WE NEED TO DO A LITTLE BIT BETTER.
AND SO, UM, BUT THE, THE AUDIT, IT'S GREAT RESULTS.
AGAIN, FIVE YEARS IN A ROW WITH NO MATERIAL, UH, INTERNAL CONTROL ISSUE.
SO WE WILL WORK WITH C AND E ON, ON GETTING THAT MESSAGE OUT.
AND IF I MAY, COUNCILMAN, JUST TO UNDERSCORE YOUR COMMENT THAT YOU'VE HAD EXPERIENCE AS WELL AS I HAVE WITH FORTUNE 50 COMPANIES, A LOT OF 'EM WOULD REALLY WANT TO HAVE FIVE YEARS WITH NO INTERNAL FINDINGS.
AND I DOUBT YOU'LL FIND FEW THAT HAVE THAT TRACK RECORD.
ANY OTHER COMMITTEE MEMBERS? OKAY.
AND, AND I'LL JUST CLOSE BY SAYING, YOU KNOW, THAT'S WHY THIS IS THE AUDIT AND ACCOUNTABILITY COMMITTEE BECAUSE IT IS OUR RESPONSIBILITY TO DO JUSTICE, AS COUNCILMAN HAS ALLUDED TO, TO ENSURE THE, UH, INTEGRITY OF OUR FINANCIAL SYSTEM AND EVERY CONTRACT THAT WE ENTER AND EVERY DEPARTMENT THAT WE DEAL WITH.
AND I THINK WE DO A GOOD JOB HERE.
I, I THINK THAT CONCLUDES THE REPORT.
NOW I'LL ENTERTAIN A MOTION TO HAVE THIS, UH, GO FORWARD TO THE CITY COUNCIL.
WOULD THEY, DO THEY NEED THAT FOR THEIR APPROVAL TO AND ACCEPT? UH, CHAIRMAN, IT'S JUST A MOTION TO ACCEPT THE REPORT.
SO I'LL ENTERTAIN A MOTION TO ACCEPT THE REPORT.
OKAY, WE HAVE A MOVE, A MOTION AND A SECOND TO ACCEPT THE AUDIT REPORT.
UH, I DON'T THINK WE HAVE ANY OTHER QUESTIONS.
[00:35:01]
I BELIEVE THAT HANDLES, UH, ALL OF OUR BUSINESS ON OUR AGENDA RIGHT NOW.BEN, DID YOU WANNA MAKE A COMMENT? UH, CHAIR, THAT DOES CONCLUDE EVERYTHING ON THE AGENDA.
JUST WANNA POINT OUT THAT OUR NEXT MEETING IS SCHEDULED FOR JUNE 13TH.
SO WE'RE A LITTLE BIT OFF SCHEDULE THERE, BUT I THINK IT'S ON ALL OF YOUR CALENDARS.