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HomeMy WebLinkAboutMinutes - Minutes - Audit Committee - Meeting Date: 6/18/2020A R 1 2 0 N A MINUTES AUDIT COMMITTEE GLENDALE CIVIC CENTER 5750 W. GLENN DR. GLENDALE, ARIZONA 85301 JUNE 18, 2020 9:00 A.M. CALL TO ORDER Tha Chair, Councilmember Hugh, called the meeting to order at 9:04 a.m. 2. ROLL CALL Present: Raymond Malnar, Vice Mayor Ian Hugh, Councilmember Lauren Tolmachoff, Councilmember Irene Avalos, Member Rusty Simmons, Member Kevin Phelps, City Manager, Ex -officio Non-voting Member Lisette Camacho, Budget and Finance Director, Ex -officio Non-voting Member Also Present: Emmanuel Ogutu, Internal Audit Program Manager Jean Moreno, Organizational Performance Director Nancy Mangone, Assistant City Attorney Elizabeth Finn, Presiding Judge, Glendale City Court Michaelanne Acree, Police Support Services Manager, Glendale Police Department 3. CITIZEN COMMENTS No members of the public were present. No comments. 4. APPROVAL OF THE MINUTES Vice Mayor Malnar motioned to approve the Audit Committee minutes of the January 9, 2020 meeting as written. Councilmember Tolmachoff made the second. Motion carried unanimously. 5. MOTION TO CALL FOR AND ENTER INTO EXECUTIVE SESSION Councilmember Tolmachoff motioned to enter into Executive Session at 9:05 a.m. Vice Mayor Malnar made the second. The motion carried unanimously. 6. EXECUTIVE SESSION Review and discuss draft audit reports pursuant to Glendale City Code §2-54b and §2-58c (A.R.S. §38-431.03 (A)(2)) 7. MOTION TO ADJOURN EXECUTIVE SESSION AND RECONVENE IN OPEN SESSION A motion was made by Vice Mayor Malnar, seconded by Councilmember Tolmachoff to adjourn the executive session. The motion carried unanimously. Chairman Hugh Adjourned the Executive session at 9:17 a.m. Open Session was reconvened at 9:17 a.m. 8. CONSIDERATION AND POSSIBLE VOTE ON EXECUTIVE SESSION ITEMS Mr. Ogutu requested Committee authorization to finalize the draft audit report on Court Revenue and Receivables Management and to forward the report to City Council, pursuant to Glendale City Code. Councilmember Tolmachoff motioned to finalize the draft audit report on Court Revenue and Receivables Management and to forward the report to City Council, pursuant to Glendale City Code. Vice Mayor Malnar made the second. The motion carried unanimously. Judge Finn requested to make a comment on the report. She wanted to go through the ticket response from the Court and the response from the Police Department and to provide a bit of history. Judge Finn's comments included the following: • When the Court prepared its response, it did not have a copy of the Police response. • Starting with November 24, 2014, the Criminal Justice Users Group met, which is made up of police, prosecutors, and others, with the Court. The warrants were stored in one database, managed by Phoenix, and this went away. After that, they had to be entered by the Police Records Section, and this is when it was discovered that a number of fields were missing, such as height, weight, and things that were precluded from being entered as a warrant. • Judge Finn has a copy of an email she sent on November 24, 2014, establishing the fatal error log. This means two of her staff had to go to the police building every day and check the log. The log was established before Judge Finn. This established another layer which required the court staff to review every citation. • In terms of Hexagon, the court was unfortunately not brought in until the end and one of the issues was accepting criminal citations electronically. First of all, they did not use the Supreme Court Table of Offenses, they used a different Table of Offenses. For the court to electronically receive a criminal citation, there was no place to capture the defendant's signature. Judge Finn cited notes from a Citation Meeting in 2018, noting that the Glendale PD was investigating options for e -signature devices to be included in next fiscal year budget. However, the City still does not have the e -signature devices. • Judge Finn stated that the Court would wait days and days and a warrant could not be issued without the defendant's signature. On November 27th, a decision was made to stop doing this. In a meeting at the Police Department with all the parties there, including IT, it was stated that only civil citations would be accepted electronically. Judge Finn read an email from Glendale PD dated November 29th which states that the City is in the middle of looking at several possible fixes and until a report could be produced which shows what the court has not received, the Police Department would not know what had not been received until they show up in court. Judge Finn stated that there was no way for the Court to know what they had not received. • Judge Finn stated that the Court would work with the Police Department on the new program being developed by Motorola to ensure that some of these deficiencies are addressed. 9. INDEPENDENT INTERNAL AUDIT PROGRAM STAFF UPDATE Mr. Ogutu provided a presentation on the recent activities of Internal Audit, which included the following information: 1. Staff Audits by IIAP Manager • MAS Triennial Review: Completed • City Court Revenue and Receivables: In process, estimated completion 6/25/20 • Development Agreements Review: In process, estimated completion 7/15/20 • E -Warrants Audit: Deferred due to new system upgrade at the Court. Will move to FY21-22. Subject to Risk Assessment process. 2. Other Staff Accomplishments • IIAP Administrative Policy Revision: Completed • IIAP Procedure Manual: In process, estimated completion 8/31/2020 • Audit Software Implementation: In process, estimated completion 8/31/2020 • A provider, Galvanize, was chosen. • Initial training was completed yesterday. . This software includes data analytics and data robotics, which helps in the usage of data to improve organizational performance. • Staff will host a demonstration for the Audit Committee upon completion of implementation. • Audit Follow -Ups: In process, ongoing, updates will be done in quarterly Audit Committee meetings Vice Mayor Malnar asked, regarding audit follow-ups, if staff was finding that most audit findings were resolved or if Mr. Ogutu still has to work quite a bit with departments to resolve follow-up items. Mr. Ogutu replied that some departments have implemented a number of recommendations, while some are still open and are being worked on. Mr. Ogutu stated that all the audit findings will be input into the new software and then a monthly report will be generated showing the outstanding items. Reminders will be issued monthly until the recommendation is completed. Mr. Ogutu stated that staff will continue to work with departments. Vice Mayor Malnar asked if a summary on the follow-ups will be provided to the Committee. Mr. Ogutu replied in the positive. Ms. Avalos asked if the audits that are currently in progress or completed would be able to be included in the new software for tracking. Mr. Ogutu replied that he will be inputting any findings from the current audits into the software as well. 10. AUDIT PLAN IMPLEMENTATION UPDATE Mr. Ogutu provided an update on the Audit Plan, which included the following information: • Contracted Audits o RFP issued and quote process completed on March 31, 2020 o Moss Adams selected o COVID crisis has delayed implementation o Contract is pending final acceptance from Moss Adams • Revised Contracted Audit Timeline o For FY2019-20 Planned Audits — 8 Total • 5 will move forward, however into the next fiscal year • 2 deferred due to COVID operational impacts • 1 deferred due to implementation of new Code Compliance system and processes o For FY2020-21 Planned Audits, staff will make a determination on how many will move forward during the next quote process in July/August 2020 No questions or comments. 11. FY2021-22 AUDIT PLANNING CYCLE Mr. Ogutu presented the FY21-22 Audit Planning Timeline. 12. GOAL SETTING AND TOPICS FOR DISCUSSION FOR THE UPCOMING YEAR Mr. Ogutu provided a presentation on the recent activities of Internal Audit, which included the following information: • Pursuant to Glendale City Code Chapter 2, Article VIII, all Boards and Commissions are required to set goals and discuss issues it would like to consider for the upcoming year. • Staff is seeking the Committee's direction on the goals the Committee would like to set and the issues the Committee would like to consider during the upcoming year. • Possible goals for the Committee to consider may include: o To monitor the status of implementation of IIAP quality assurance and improvement program o Review the ordinance to determine if changes are needed o Monitor remediation of recommendations raised in previous audits No comments or additional suggestions. 13. COMMITTEE COMMENTS AND SUGGESTIONS Ms. Avalos noted that the Audit Planning timeline has a date of January 6, 2021 for the Committee's review of the FY2021-22 Plan and asked if this was correct. Mr. Ogutu replied that this date should be the end of February. Ms. Avalos stated that the timing would be that Council could have approximately one month for review. Mr. Ogutu confirmed. 14. NEXT MEETING Ms. Avalos asked if the next meeting was to include Audit Reports and/or goal setting. Mr. Ogutu replied that goal setting was to be done during this meeting, but could be included on the next agenda, if the Committee preferred. Mr. Ogutu stated that Audit Reports and previous audit findings would be on the next agenda as well. Mr. Ogutu stated that the next Committee meeting would include a presentation on the quarter of July through September 2020, and therefore the next Audit Meeting would likely be October. No opposition was voiced. The specific date will be determined. 15. ADJOURNMENT Councilmember Tolmachoff motioned to adjourn the meeting at 9:47 a.m. Vice Mayor Malnar made the second. The motion carried unanimously. The Chair, Councilmember Hugh adjourned the meeting at 9:47 a.m. The Audit Committee meeting minutes of June 18, 2020 were submitted and approved this 8th day of Octobee 0. C> Em nuelOgutu Internal Audit Program Manager