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HomeMy WebLinkAboutAudit Reports - Public - Community Action Program - Audit Follow-up - 9/28/2018 Date: September 28, 2018 To: Kevin R. Phelps, City Manager From: Candace MacLeod, City Auditor Subject: Audit Follow-up: Community Action Program An audit of the Community Action Program (CAP) was conducted by the City Auditor’s Office in 2014. Subsequent follow-up audits were performed in 2016, which identified six open items, and 2017, which identified two open items. In September 2018, an additional follow-up was conducted to ensure actions were taken by management on the outstanding recommendations. Both items remain open as follows: • Enhancing controls to ensure utility payments are monitored for leased premises • Implementing a new data system once developed by the State of Arizona An additional follow-up will be performed in 2019 to ensure action has been taken to address the outstanding audit recommendations. Please contact me if you have any questions. Attachment cc: Michael D. Bailey, City Attorney David Beard, City Engineer Lisette Camacho, Assistant Director of Budget and Finance Tom Duensing, Assistant City Manager Jack Friedline, Assistant City Manager Vicki Rios, Director of Budget and Finance Stephanie Small, Director of Community Services Michelle Woytenko, Director of Field Operations _____________________________________________________________________________________ City Auditor’s Office 1 CAP Audit Follow-up Recommendation Management Response March 2017 Management Response September 2018 Status 5.A Public Works should ensure adequate controls have been developed over the monitoring of utility payments for leased premises. Public Works does not have control over leases or leased properties and is unable to do so with current staffing levels. This will remain a risk until controls exist. A “Real Estate Coordinator” position was requested to support this through the FY18 budget process. There is currently no anticipated completion date. The Engineering Department hired a Real Estate Program Manager in January, 2018. The Real Estate Program Manager is in the process of developing a lease close-out checklist for departments to follow when closing out a lease with an outside entity. It is anticipated that a draft of the lease close-out checklist will be completed and sent to department heads for review by October 31, 2018 and finalized by January 31, 2019. Open 9.B CAP should follow up on CAP60 procedures, data storage and access. The State/DES initiated CAP60 as the statewide system for CAP agencies. City IT staff and the City Attorney’s Office reviewed the CAP60 computer agreement and approved. State/DES currently funds the CAP60 system and is aware of security concerns. State/DES is reviewing contract language to address confidential data and system storage for CAP agencies using CAP60. Once this occurs, then DES and CAP will complete a new contract agreement with CAPLuck, Inc. to include specific language on data Implementation of a new statewide data system has been put on hold due to a recent audit. Once the audit is complete, the State will resume the search for a new system. There is no anticipated implementation date at this time. Open _____________________________________________________________________________________ City Auditor’s Office 2 CAP Audit Follow-up Recommendation Management Response March 2017 Management Response September 2018 Status storage. This should be resolved by June 30, 2018.