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HomeMy WebLinkAboutMinutes - Minutes - Audit Committee - Meeting Date: 6/3/2021A R I Z D N A MINUTES AUDIT COMMITTEE CITY HALL, HR CONFERENCE ROOM 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 JUNE 3, 2021 2:00 P.M. 1. CALL TO ORDER The Chair, Vice Mayor/Councilmember Hugh, called the meeting to order at 2:05 p.m. 2. ROLL CALL Present: Ian Hugh, Vice Mayor Raymond Malnar, Councilmember Lauren Tomachoff, Councilmember Irene Avalos, Member Kevin Phelps, City Manager, Ex -officio Non-voting Member Lisette Camacho, Budget & Finance Director, Ex -officio Non-voting Member Absent: Rusty Simmons, Member Also Present: Khala Stanfield, Director, Organizational Performance Michael Kingery, Independent Internal Audit Program Manager Vicki Rios, Assistant City Manager James Gruber, Chief Deputy City Attorney Feroz Merchhiya, Chief Information Officer Arlene Chemello, Deputy Chief Information Officer Christian Polintan, Administrator - Information Technology Terry Garrison, Fire Chief Gary Benson, Assistant Fire Chief Cory Johnson, Acting Fire Captain Lis Cortes, Supervisor - Fire Administration Mark Steranka, Partner In Charge, Moss Adams (Guest) Halie Garcia, Consulting Senior Manager, Moss Adams (Guest) Chris Wetzel, Senior Manager, Moss Adams (Guest) 3. CITIZEN COMMENTS No members of the public were present. No comments. 4. APPROVAL OF THE MINUTES Audit Committee Minutes of March 4, 2021. Councilmember Malnar motioned to approve the Audit Committee Minutes of the March 4, 2021, meeting as written. Chairman Hugh made the second. Motion carried unanimously. 5. MOTION TO CALL FOR AND ENTER INTO EXECUTIVE SESSION Councilmember Malnar motioned to enter into Executive Session at 2:06 p.m. Ms. Avalos made the second. 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)). Session was held. 7. MOTION TO ADJOURN EXECUTIVE SESSION AND RECONVENE IN OPEN SESSION Councilmember Tolmachoff motioned to adjourn Executive Session and reconvene in Open Session at 2:39 p.m. Councilmember Malnar made the second and Open Session was reconvened. 8. CONSIDERATION AND POSSIBLE VOTE ON EXECUTIVE SESSION ITEMS Chairman Hugh announced that the committee would table the Annual Payroll/Timesheets Audit until the September meeting because it was mistakenly included on the published agenda for this meeting. Chairman Hugh announced that the committee would review and consider vote to approve the following three audit reports: Telestaff Business Process and Internal Control Review; Information Systems Security; and, Technology Governance Program Evaluation. Ms. Avalos motioned to approve the above three audit reports. Councilmember Malnar made the second. Motion carried unanimously. 9. FY2020-21 AUDIT PLAN UPDATE Staff will provide an update on the status of the FY2020-21 Annual Audit Plan. For information and discussion. Ms. Stanfield gave a presentation on current status of the FY2020-21 Audit Plan. The first six audits are complete and have been presented to City Council as a result of prior Audit Committee meetings. The three audits approved in today's Executive Session will be presented to Council on June 22, 2021. The remaining six audits will be presented in the next Audit Committee meeting scheduled for September 2, 2021. Ms. Avalos asked if the updated Audit Plan was included in the packet for the meeting. Ms. Stanfield said it was included, but that a separate copy would be emailed to her after this meeting adjourned. There were no further questions asked. 10. PROPOSED FY2021-22 AUDIT PLAN Staff will present the proposed FY2021-22 audit plan pursuant to Glendale City Ordinance NO. 019-43. Staff is seeking an Audit Committee recommendation to the City Council to approve the proposed FY2021-22 audit plan. For discussion and action. Ms. Stanfield reviewed the risk assessment process and results, along with the proposed FY2021-22 audit plan. From the risk assessment, 22 potential audits were identified. Of those 22, 14 were selected for completion in FY2021-22. Out of the 14 selected, eight (Housing Management and Maintenance, Intelligent Transportation Systems, Risk Management training program evaluation, Engineering — Capital Improvement Program, Budget & Finance — Contract Compliance and Performance, IT Security, City Transit Program, and Fleet Management Program) will be assigned to the approved external vendor(s), and six (Arizona Sports and Tourism Authority Contract, Cash Management, Purchasing Cards, Payroll Process, Telecommuting Policy and Compliance, and Park Ranger Program evaluation) are assigned to the IIAP. The remaining eight potential audits from the original pool of 22 will be placed back into the risk assessment population for consideration in the FY2022-23 audit plan. Chairman Hugh asked for approval of the FY2021-22 audit plan. Councilmember Tolmachoff motioned to approve the audit plan. Ms. Avalos made the second. Motion carried unanimously. 11. PROCUREMENT OF THIRD -PARTY FIRM Staff will provide an update on the procurement of continued contract with Moss Adams to conduct independent audits identified in the annual audit plan. For information and discussion. Ms. Stanfield recommended that of the eight FY2021-22 audits assigned to the approved external vendor(s), the first two (Housing Management and Maintenance, Intelligent Transportation System) should be contracted with Moss Adams so that audits can begin early in the fiscal year. For the remaining six assigned to external resources, the IIAP Manager will meet with the respective departments to assess and clarify scope. Subsequently, those six audits will go to "bid" by the approved external vendors (Securance LLC, Protiviti, Inc., Moss Adams, Henry & Horne, Heinfeld Meech). Following review of the quotes/bids, the I IAP Manager will recommend assignment of each audit for consideration at the September Audit Committee meeting. There were no further questions. 12. COMMITTEE COMMENTS AND SUGGESTIONS Ms. Avalos asked to ensure for future meetings that all documents are distributed at least one full week prior to the scheduled meeting date. There were no other comments or suggestions. 13. NEXT MEETING The next regularly scheduled meeting of the Audit Committee will be on Thursday, September 2, 2021, at 2:00 p.m. All committee members agreed on that date/time. 14. ADJOURNMENT Chairman Hugh adjourned the meeting at 2:52 p.m. No objection was made. The Audit Committee meeting minutes of June 3, 2021 were submitted and approved this 8th day of September, 2021. Michael Kingery Independent Inter Audit Program Manager