Texas State Library and Archives Commission
Monday, June 9, 2008 11:00 a.m.
Audit Committee Minutes

The Texas State Library and Archives Commission (TSLAC) Audit Committee met on Monday, June 9, 2008 at 12:30 p.m., at the State Records Center, 4400 Shoal Creek Boulevard in Austin, Texas.

A quorum being present, Chairman Hernandez convened the meeting at 12:30 p.m.

1. Review and approve the Internal Audit of the Texas Trans Pecos Library System.

Carleton Wilkes addressed the Audit Committee, summarized results of the audit, and answered questions from the Committee and staff. Mr. Wilkes reported that the Texas Trans Pecos Library System (TTPLS) had achieved the following at the time of the audit:

• TTPLS has increased the number of Continuing Education workshops offered from 10 per year to 20 per year in FY2008 and is seeing broader attendance by public and private school, college, university and special libraries.
• TTPLS’s consulting project is collaborating with local libraries, schools and Texas Workforce Commission offices in five of the rural communities it serves to expand services for Texans with limited information skills to improve learning and access to information.
• With a new grants management system, the City of El Paso will be able to monitor and report on all grants.

Although no significant weaknesses were determined in the audit, the following areas for improvement were identified:

• Management can improve end-of-year expenditure monitoring controls to minimize the risk of returning unexpended grant funds.
• Management can improve fixed asset procedures to improve compliance with Uniform Grant Management Standards mandated by grant contracts.
• Management can improve procedures in the City of El Paso’s Grants Management Manual by including greater emphasis on grant compliance requirements.

2. Review and approve the Internal Audit of the Big Country Library System.

Carleton Wilkes addressed the Audit Committee, summarized results of the audit, and answered questions from the Committee. Mr. Wilkes reported that the Big Country Library System (BCLS) had achieved the following at the time of the audit:

• During FY2007, BCLS member libraries receiving Targeted Library Services allocations provided system-sponsored services to 57,243 library users representing 13.52% of the total population served by 38 member libraries.
• During FY2007, BCLS staff assisted 1,469 library staff, training 305 library staff at face-to-face, online and video workshops resulting in 1,824 contact hours and providing librarians the opportunity to earn 108 CE credits.
• Since the beginning of FY2007, BCLS staff has reviewed 14 grant applications for area libraries. During that same period, 16 BCLS libraries were awarded 20 grants totaling $298,969.
• During FY2007, Interlibrary Loan initiated “direct request” at all client libraries.
• In FY2008, BCLS initiated the Lifelong Learning Project. As part of the project, BCLS purchased Live Homework Help from Tutor.com and Learning Express Library for all 43 public libraries in the system. Through the second quarter of the fiscal year, 1,998 persons received services through the project.

Although no significant weaknesses were determined in the audit, the following areas for improvement were identified:

• Management can improve internal control related to grant monitoring and accountability by periodically reviewing grant compliance and communicating results to senior city management.
• Management can improve documentation of procedures in several areas: performance measures, Technical Assistance Negotiated Grant (TANG), fixed assets and an audit recommendation follow up process.
• Management can use existing ILL grant software for record retention needs.

Strengthening internal controls can assist management in reducing the risk of grant noncompliance involving federal or state funding and may also benefit the City of Abilene in other areas beyond the scope of this internal audit, according to Mr. Wilkes.

Commissioner Waters moved to approve the audit. Commissioner McAfee seconded. Motion passed.

3. Review and approve the Follow Up Report on the Status of Internal Audit Recommendations Involving the Central Texas Library System (CTLS) and the Houston Area Library System (HALS).

Carleton Wilkes informed the Committee that all internal audit recommendations made in FY2007 for the Central Texas Library System had been implemented as of April 1, 2008. The Houston Area Library System (HALS) and Houston Public Library (HPL) had implemented all recommendations but one. Mr. Wilkes said that neither HALS nor HPL have implemented an annual process to review implementation status of prior audit recommendations.

Eileen Altmiller, CTLS board member, thanked TSLAC and Carleton Wilkes and stated that the audit process has allowed CTLS management to be better informed and have better communication.

In response to a question from Commissioner McAfee, Mr. Wilkes stated that he expects HALS and HPL to complete implementation within 90 days. It was noted that in addition to staffing challenges, HALS had also been undergoing renovation.

Commissioner McAfee moved to approve the follow up report. Commissioner Waters seconded. Motion passed.

There being no further business before the Audit Committee, Chairman Hernandez adjourned the meeting at 12:47 p.m.

Respectfully submitted,

Peggy D. Rudd
Director and Librarian