Audit Committee

CITY OF GLENDALE AUDIT COMMITTEE MINUTES July 22, 2019 1. ROLL CALL: 8:07 a.m. Present: Zareh Amirian, Ed Khashadourian, Thomas O’Shaughnessy, Alex Parajon and Vahik Satoorian (absent) 2. BUSINESS AGENDA: A. Report of Recording Secretary re: Posting of Agenda The Agenda for the Audit Committee meeting of July 22, 2019 was posted on Thursday, July 18, 2019 on the Bulletin Board outside City Hall. 3. ORAL COMMUNICATIONS: None 6. REPORTS – INFORMATION: Note: Agenda Item 6D was taken out of order and presented first. D. Report from Vavrinek, Trine, Day & Co., LLP on the Audit of FY ended June 30, 2019 – Shu-Jun Li, Deputy Director of Finance Accounting Supervisor, Ms. Theresa Clark, introduced Mr. David Showalter, CPA Audit Partner from Vavrinek, Trine, Day & Co. LLP. (VTD), the City’s External Auditor. Mr. Showalter informed the Audit Committee that VTD has merged with another CPA firm, Eide Bailly, LLP with the merger taking effect July 22, 2019. This merger will give Eide Bailly an expansion into California with 11 additional offices. Mr. Showalter reassured the Audit Committee that the merge will not impact VTD’s work with the City of Glendale. Next, Mr. Showalter gave a presentation on the City’s fiscal year ended June 30, 2019 Audit and highlighted several important accounting pronouncements. 4. APPROVAL OF MINUTES: A. Minutes of the Audit Committee meeting held on Monday, April 22, 2019. Moved: Thom O’Shaughnessy Second: Ed Khashadourian Vote as follows: Ayes: Amirian, Khashadourian, O’Shaughnessy, Parajon Noes: Abstain: Absent: Satoorian

Audit Committee Minutes July 22, 2019 Page 2 of 3 5. ACTION ITEMS: A. Election of Audit Committee Chair There was a brief discussion to move this item to the next meeting in order to have the full Audit Committee in attendance. After the discussion, it was decided to hold the election of the Chair as originally scheduled. Audit Committee Member Thom O’Shaughnessy nominated Mr. Zareh Amirian to continue as Chair of the Audit Committee. No other nominations were made. Moved: Thom O’Shaughnessy Second: Ed Khashadourian Vote as follows: Ayes: Amirian, Khashadourian, O’Shaughnessy, Parajon Noes: Abstain: Absent: Satoorian B. Election of Audit Committee Secretary Chair Amirian nominated Ms. Mary Tchagaspanian to continue as the Secretary to the Audit Committee. Moved: Zareh Amirian Second: Thom O’Shaughnessy Vote as follows: Ayes: Amirian, Khashadourian, O’Shaughnessy, Parajon Noes: Abstain: Absent: Satoorian C. Annual Report to City Council Chair Amirian read the letter titled “Audit Committee Annual Report for FY 2018-19” into the record. This letter which serves the as annual report of activities from the Audit Committee to the City Council will be reviewed by the City Council at an upcoming meeting. Audit Committee Member O’Shaughnessy made a recommendation to revise this letter to include the names of all Audit Committee members prior to it being presented to the City Council. Moved: Thom O’Shaughnessy Second: Alex Parajon Vote as follows: Ayes: Amirian, Khashadourian, O’Shaughnessy, Parajon Noes: Abstain: Absent: Satoorian

Audit Committee Minutes July 22, 2019 Page 3 of 3 6. REPORTS – INFORMATION: A. Internal Audit Activity Report as of June 30, 2019 – Jessie Zhang, Internal Audit Manager Internal Audit Manager, Jessie Zhang updated the Audit Committee on the Internal Audit activity for quarter ended June 30, 2019. Ms. Zhang provided an update on the three projects in progress and the 12 outstanding audit issues that entered one of the three discussion criteria set by the Audit Committee in Resolution #2. The outstanding issues that have not been implemented within two years of the report date are: FASTER Fleet Asset Management System Audit, Marketplace Parking Garage Agreements Audit, and Records Management Audit. Sr. Public Works Manager, Shea Eccleston was present and answered questions regarding the outstanding issues from the FASTER Fleet Asset Management System Audit. The Parking Manager, Tad Dombroski was present and answered questions regarding the outstanding issue from the Marketplace Parking Garage Agreements Audit. The Audit Committee did not have any questions related to the outstanding issues in the Records Management Audit. B. FY 2018-19 Audit Work Plan Status Update and Proposed FY 2019-20 Audit Work Plan – Jessie Zhang, Internal Audit Manager Internal Audit Manager, Jessie Zhang gave a presentation on the status of the adopted FY 2018-19 Audit Work Plan and the proposed FY 2019-20 Work Plan. A discussion took place by the Audit Committee Members and Ms. Zhang answered questions. The Audit Committee members requested that the actual number of hours spent on conducting audits be included in next year’s work plan review. C. FY 2019-20 City Budget Adoption Update – Adrine Isayan, Deputy Director of Finance Sr. Budget Analyst, Mari Karamyan gave a presentation on the City’s FY 2019-20 adopted budget and answered questions from Audit Committee members. Note: Agenda Item 6D was taken out of order and presented earlier. 7. AUDIT COMMITTEE/STAFF COMMENTS: None 8. NEW BUSINESS: None 9. ADJOURNMENT: Moved: Ed Khashadourian Second: Alex Parajon Adjournment at 10:15 a.m.

AGENDA AUDIT COMMITTEE MUNICIPAL SERVICES BUILDING – 633 E Broadway, Room 105 Glendale, CA 91206 July 22, 2019 at 8:00 AM 1. ROLL CALL 2. BUSINESS AGENDA a. Report of Recording Secretary, re: Posting of Agenda The agenda for the July 22, 2019 Audit Committee Meeting was posted on Thursday, July 18, 2019 on the bulletin board outside City Hall. 3. ORAL COMMUNICATIONS Discussion is limited to items not a part of this agenda. Each speaker is allowed 3 minutes. The Committee may question or respond to the speaker but there will be no debate or decision. The Audit Committee Chair may refer the matter to staff for investigation and report. 4. APPROVAL OF MINUTES a. Minutes of the Audit Committee meeting held on April 22, 2019 5. ACTION ITEMS a. Election of Audit Committee Chair b. Election of Audit Committee Secretary c. Annual Report to City Council 6. REPORTS – INFORMATION a. Internal Audit Activity Report as of 6/30/2019 – Jessie Zhang, Internal Audit Manager Welcome to the Glendale Audit Committee Meeting. If you have any agenda related questions or requests for assistance, call the Finance Department at (818) 548-2085 during business hours. Audit Committee Meetings are archived and available for viewing on the City’s website at https://www.glendaleca.gov/government/agendas-minutes. Audit Reports are available for viewing on the following link: https://www.glendaleca.gov/government/departments/innovation-performance- and-audit/audit-reports. PLEASE TURN OFF CELLULAR PHONES WHILE INSIDE THE HEARING ROOM. In compliance with the Americans with Disabilities Act (ADA) of 1990, auxiliary hearing aids, sign language translation, and Braille transcripts are available upon request. Assisted listening devices are available same-day upon request. At least 48 hours (or two business days) notice is required for sign language translation and Braille transcription services. All documents related to open session items on this agenda that are received less than 72 hours prior to this meeting, and are public records, will be available for review in the City Clerk’s Office at 613 E. Broadway, RM 110, Glendale, CA 91206. Translation services are provided for meetings through the use of bilingual staff for speakers who wish to utilize the service as available. Speakers should state their request by contacting the City Clerk’s office at 818-548-2090, at least 24 hours prior to the scheduled meeting. Please specify the language for which you require translation. The exclusive use of City provided interpreters is not required and persons are welcome to use their own interpreter or speak in their native language.

b. FY 2018-19 Audit Work Plan Status Update and Proposed FY 2019-20 Audit Work Plan – Jessie Zhang, Internal Audit Manager c. FY 2019-20 City Budget Adoption Update – Adrine Isayan, Deputy Director of Finance d. Report from Vavrinek, Trine, Day & Co., LLP on the Audit of FY ended June 30, 2019 – Shu-Jun Li, Deputy Director of Finance 7. COMMITTEE /STAFF COMMENTS 8. NEW BUSINESS 9. ADJOURNMENT