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HomeMy WebLinkAboutPension & Audit Committee April 11, 2017 PENSION & AUDIT COMMITTEE COMMITTEE ROOM April 11, 2017 PRESENT: Hons. Hardie Davis, Jr., Mayor; Mary Davis, Mayor Pro Tem; Sean Frantom, Finance Committee Chairman; Janice Jackson, Administrator; Donna Williams, Finance Director; Sias, Commissioner; Tim Schroer, Finance Department Assistant Director; Jody Smitherman, Senior Staff Attorney; Nancy Morawski, Deputy Clerk of Commission. 1. Receive report of investment earnings for 1945 and 1949 Pension Plans from Heather J. Seigler, Morgan Stanley. Mr. Mayor: We’re going to delete this item. Ms. Seigler is not available to be here today and we’ll revisit this at a later time. We’ll get a motion to delete this item. Ms. Davis: So move. Mr. Frantom: Second. Mr. Mayor: All those in favor, normal sign. Motion carries 5-0. 2. Receive as information update regarding status of delayed start of contributions for some employees on GMEBS I plan. Ms. Smitherman: As you are aware the GMEBS I plan is the plan that covers the majority of our employees. It became mandatory for all employees effective at the beginning of 2008. HR became aware of an issue with the start date of contributions for some of the employees. Prior to January 1 of 2015 there was a 30-day waiting period to enter the GMEBS I plan and therefore contributions were supposed to start the first pay period after that 30-day waiting period for every employee hired after that point. After January 1, 2015 there was a zero waiting period and so the employees were supposed to be starting contributions immediately upon employment. HR became aware that there was an error in their department which caused about 226 employees to not begin their contributions when they should have been started. The law requires that the employer make those contributions up to make the employee whole so what HR has done is gone through and found all of the employees that were affected by this, figured out what the total contributions that were not contributed that we need to contribute and compounded interest because had the contributions been made timely those contributions would have compounded interest monthly and so we were required to put in those contributions plus that interest payment in order to make those accounts whole within the GMEBS plan. So the total amount for the 226 employees is $89,009.17. That check has already been cut by Finance, it’s already been budgeted for in the contributions portion of the budget and that issue is going to be resolved as of this week so we just wanted to make you aware of that. The employees have not been aware of the effect of this. It’s been an internal issue that’s being corrected. Mr. Mayor: Any questions? 1 Ms. Williams: Motion to receive as information. Mr. Frantom: Second. Mr. Mayor: All those in favor. Motion carries 5-0. 3. Approve the recommendation of the selection committee to award the contract to engage firm of Serotta Maddocks Evans, Certified Public Accountants as internal auditors. Mr. Schroer: It is a best practice to hire an external auditor to handle our internal audit functions. This is a five-year occurrence. We put out an RFP this year to request qualifications for firms. Three firms responded. The selection committee reviewed the three firms that responded and we selected the firm of Serotta Maddocks Evans. Mr. Mayor: Are there any questions from the committee? Mr. Frantom: Move to approve. Ms. Davis: Second. Mr. Mayor: All in favor. Motion carries 5-0. 4. Approve the recommendation of the selection committee to award the contract to engage firm of Mauldin Jenkins, Certified Public Accountants as external auditors. Mr. Schroer: Augusta is required by Georgia statute to have an external audit each year. Our current contract with Mauldin Jenkins expired last year so we went out with an RFP again this year for professional auditing services. The evaluation reviewed the firms that submitted qualifications and is recommending Mauldin Jenkins for external auditors. Mr. Mayor: Any questions? Ms. Davis: Move to approve. Mr. Frantom: Second. Mr. Mayor: A motion and a second. All in favor. Motion carries 5-0. 2 5. Approved proposed 2017 schedule of internal audit tasks. Ms. Williams: This is a listing not to be all inclusive but very similar to the sample of internal audit jobs that would be expected to be done or could be done during a regular year. This was a sample that was used in the RFP and it’s typically examples of items such as surprise cash counts, internal control engagements that would be performed by Serotta Maddocks in the period of a year within the confines of our existing budget. Mr. Mayor: A couple of questions. Is this an organizational-wide audit or in item one here you list just a few departments? Ms. Williams: Well, on the cash items not every department has cash in their office so it would include those that typically handle large volumes of cash looking for any problems with their internal control processes. Mr. Mayor: So, Ms. Jackson, we still have the Probation Office and I’m not sure if they handle cash receipts but I do know that they are collecting money so I would like to see them included in this conversation. Ms. Williams: We can. Mr. Mayor: My second question is it says internal audit schedule. This is more of a here’s what they’re going to do as opposed to a timeline. Can you speak to that? Ms. Williams: We have not yet developed a timeline since we had not engaged a firm at the time that this rather generic schedule was put together so that can certainly be worked on and we can report back to this committee or through the Administrator, however the committee wants it handled. Mr. Mayor: I’d like to see that. I think it’s important for us if we’re going to have an activity schedule which is what this is, it would be important for us to tie this to an actual work schedule so we’d know when they’re starting and when they complete the schedule. Ms. Davis: Move to approve. Mr. Frantom: Second. Ms. Davis: With the two changes. Mr. Mayor: Okay, we’ve got a motion to approve with the noted changes. All those in favor. Motion carries 5-0. Mr. Mayor: Is there any additional business noted for today? There being none, the meeting is adjourned. 3 ADJOURNMENT: There being no further business, the meeting was adjourned. Nancy W. Morawski Deputy Clerk of Commission 4