Meeting Summary
The City Council conference focused on a detailed discussion of the internal audit Charter and policies. The Internal Auditor presented on the importance of internal audit for enhancing accountability, transparency, and effective risk management within municipal governance. Council members discussed potential audit areas, including issues with grocery sales tax collection, hotel bed tax remittance, and a significant increase in city-wide overtime spending. The Charter and policies are slated to be brought forward for formal adoption as a consent item at the first meeting in October.
Key Decisions & Votes
Internal Audit Charter and Policies
24:00The City Council approved the recommendation to bring the proposed internal audit Charter and policies forward for formal adoption as a consent item at the first meeting in October.
Financial Matters
Grocery Tax Collection Issues
Concerns were raised regarding the incorrect collection of sales tax on grocery items, including the city's portion, following the state's reduction of grocery tax. This was identified as a potential area for internal audit.
City-wide Overtime Spending
The Internal Auditor noted a significant increase in city-wide overtime spending, from approximately $3 million to $8 million since 2019, identifying it as a potential area for audit to improve efficiency.
Hotel Bed Tax Remittance
The remittance of hotel bed taxes was identified as an area that has not been audited previously, suggesting it as a potential focus for the internal audit function.
Medical Marijuana Industry Cash Transactions
The collection and receipt of taxes from cash transactions within the medical marijuana industry were highlighted as an area needing audit to ensure correct revenue collection.
Coming Up
Watch For
- Formal adoption of the Internal Audit Charter and Policies at the first City Council meeting in October.
- Potential internal audits on grocery sales tax collection, hotel bed tax remittance, medical marijuana industry cash transactions, and city-wide overtime spending.
Announcements
- A hotline for reporting improper activities is available through EBA Regional Certified Public Accounting Firm at 866-912-5378 or ww.belly.com/hotline, with options for anonymous tips.
Agenda Summary
Discussion regarding the internal audit Charter and policies
Presentation and discussion of the proposed internal audit Charter and policies, outlining its purpose, authority, responsibilities, governance structure, and potential areas of focus for the City of Norman.