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AUDIT COMMITTEE
MINUTES OF THE MEETING HELD
MARCH 6, 2007
3RD FLOOR EXECUTIVE CONFERENCE ROOM - VILLAGE HALL
I. Call to Order
The meeting was called to order at 6:02pm. Members present were Mayor Irvana Wilks,
Tmstee Tim Corcoran, Finance Committee Chair Chuck Bennett, Committee Chair Tom
Munz, and Director of Finance David Erb.
II. Approval of Minutes
Approval of Minutes for November 14,2006. Motion made by Mayor Wilks and Seconded
by Tmstee Corcoran. Minutes were approved.
III. Chair Report
No report at this time.
IV. Director of Finance Report
No report at this time. Items to be covered under New Business
V. Old Business
A detailed discussion of the upcoming audit for 2006 was held. Finance Director Erb opened
discussion by describing the audit process for the Village. Erb detailed the objective of the
audit along with outlining the responsibilities of the auditor and the Village, what procedures
will be undertaken, report timeline and fees for the engagement.
Copies of the Letter (?l Understanding (LOU) which provides the scope of the audit work to
be performed were sent out to committee members prior to the meeting for review.
Comments regarding the LOU were made and suggestions for improving the external audit
process were to be considered for this and future audits. Some suggestions include:
1) Establish major transactions (i. e. accounts payable, payroll, cash receipts) and
perform a more extensive audit on one of these transaction areas each year.
2) Change scope from a single year focus to a multi-year plan whereby all facets
of the Village's financial operations have had an extensive review.
3) Seek assistance from auditor on "best practices" within the industry and
include, when practical, to LOU.
4) Establish as a goal do an internal review of the major transaction areas,
evaluate process and modify as necessary and document changes over time.
Audit Committee - Minutes
March 6, 2007
Erb then provided a detail explanation of the Village's current internal audit process. Although no
formal internal audit policy, there are procedures that are followed to minimize the occurrence of
errors and the possibility of fraud. The internal review process includes the following steps:
1) Regular review of transaction based processes such as cash receipts, accounts
payable, payroll and utility billing.
2) Review prioritized by risk. Transactions more susceptible to problems are
reviewed more often.
3) Determine compliance with internal policies such as Purchasing Policy, Travel
Policy and Investment Policy.
4) Note deviations from policy or procedure and respond accordingly with
changes to process or control.
VI. New Business
No New Business at this time.
VII. Other Business
No Other Business at this time.
VIII. Next Meeting
The next meeting is set for Tuesday, July 10,2007 at 6:00pm. The meeting will be held in the
3rd floor executive conference room.
IX. Adjournment
Finance Chair Bennett motioned to adjourn the meeting and Tmstee Corcoran seconded. The
meeting adjourned at 6:58pm
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