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2022-03-01 AUDIT COMMITTEE MINUTESAudit Committee Meeting – March 1 and March 3, 2022 MINUTES OF A REGULAR MEETING OF THE AUDIT COMMITTEE OF PEARLAND, CITY OF PEARLAND TEXAS, HELD VIA VIDEOCONFERENCE ON TUESDAY, MARCH 1, 2022 AT 11:00 A.M. The meeting began at 11:09 a.m. PRESENT Councilmember Tony Carbone Councilmember David Little City Manager Clay Pearson Assistant City Secretary Ron Fraser Grants Administrator Joel Hardy Chief Financial Officer Amy Johnson Deputy Director of Finance Kristen Woolley Comptroller Karen Krenek Interim City Secretary Leslie Crittenden BKD Senior Manager Shakita Rawls BKD Partner Amanda Eaves 1. APPROVAL OF MINUTES Minutes from the January 27, 2022 Audit Committee Meeting were approved. 2. FY2021 ANNUAL COMPREHENSIVE FINANCIAL REPORT PRESENTATION (DRAFT) Ms. Eaves presented the Single Audit Report along with the Compliance Report. Mr. Hardy spoke in regards to the accrued grant revenue findings. Ms. Johnson questioned the effect of these findings for future grants. Mr. Pearson questioned BKD on the red flag as the findings seem to be out of the City’s control. Ms. Eaves responded in regards to not reporting all expenditures and Mr. Hardy countered that some of the expenditures are not provided at the time due to the reimbursement process. Councilmember Carbone asked where the report stands as of today. Mr. Pearson suggested another meeting to address the new issues brought forth today. **Meeting was recessed at 11:59 a.m. on March 1, 2022 due to conflicting schedules and reconvened on March 3, 2022 at 8:30 a.m. 3. FY2021 FEDERAL SINGLE AUDIT (DRAFT) PRESENTATION DocuSign Envelope ID: 8148C986-66D4-462D-B105-1E17A5E45735 Audit Committee Meeting – March 1 and March 3, 2022 Ms. Eaves picked up where the last meeting left off regarding the grant revenue findings. She provided explanation on the three findings. Ms. Rawls presented the summary of the findings and stated that all have been resolved A corrective action plan was discussed between staff and BKD representatives. Further discussion ensued in regards to early communication between staff and departments and Mayor Cole offered his full support to keep this on track. 4. RECOMMENDATION TO PRESENT REPORTS TO COUNCIL ON MARCH 7TH Councilmember Carbone made the motion, Mayor Cole seconded the recommendation to move forward with the presentation at the March 7, 2022 City Council Regular Meeting. 5. OPEN COMMENTS None. 6. NEXT QUARTELY MEETING The Next Meeting will be held virtually in April 2022. 7. ADJOURNMENT The meeting adjourned at 8:56 a.m. on March 3, 2022 Minutes approved as submitted and/or corrected this 20th day of April 2022. J. Kevin Cole Mayor ATTEST: Leslie Crittenden Frances Aguilar TRMC, MMC City Secretary DocuSign Envelope ID: 8148C986-66D4-462D-B105-1E17A5E45735