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2021-10-21 AUDIT COMMITTEE MINUTES MINUTES OF A REGULAR MEETING OF THE AUDIT COMMITTEE OF PEARLAND, CITY OF PEARLAND TEXAS, HELD VIA VIDEOCONFERENCE ON MONDAY, OCTOBER 21, 2021, 4:00 P.M. The meeting began at 4:00 p.m. PRESENT Mayor Kevin Cole Councilmember Tony Carbone Chief Financial Officer Amy Johnson Deputy City Manager Trent Epperson Assistant City Manager Ron Fraser Crystal Roan, City Secretary Comptroller Karen Krenek 1. CORRECTIVE ACTION PLAN UPDATE Comptroller Krenek gave an overview of the Corrective Action Plan Update. Chief Financial Officer Johnson stated this is only a staff report and Legal has not reviewed it. Ms. Johnson also stated the plan update will be included on the next Thursday packet. 2. FY21 AUDIT UPDATE AND PROPOSED TIMELINE Ms. Johnson gave an overview of the FY21 Audit Update and the proposed timeline. The auditors will share their interim findings with the Audit Committee at the end of January 2022 or early February 2022. 3. COMPREHENSIVE FINANCIAL MANAGEMENT POLICY – REQUESTED CHANGE FOR REVIEW Mayor Cole stated Councilmember Kamkar requested an addition to the City of Pearland’s Comprehensive Financial Management Policy under Section 7, article C, subsection 2 to state, “G. Debt issued as a Certificate of Obligation will have a maturity that at least lasts the useful life of the asset being financed.” Councilmember Carbone suggested amending the proposed language to state, “Debt issued as a Certificate of Obligation will have a maturity that does not exceed the useful life of the asset being financed.” Ms. Johnson will discuss the proposed language with the auditors. 4. NEXT MEETING The next meeting will be held in late January 2022 or early February 2022. 5. ADJOURNMENT The meeting adjourned at 4:30 p.m. Audit Committee Meeting – October 21, 2021 th Minutes approved as submitted and/or corrected this 27 day of January, 2022. J. Kevin Cole Mayor ATTEST: Crystal Roan, TRMC, CMC City Secretary Audit Committee Meeting – October 21, 2021