Minutes - 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