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HomeMy WebLinkAboutMinutes - Minutes - Audit Committee - Meeting Date: 12/7/2021017 Glendale A R I Z O N A MINUTES AUDIT COMMITTEE CITY HALL, CONFERENCE ROOM B3 5850 W. GLENDALE AVE. GLENDALE, ARIZONA 85301 DECEMBER 7, 2021 3:00 P.M. CALL TO ORDER Vice Mayor/Councilmember Hugh (Chairperson), called the meeting to order at 3:02 p.m. 2. ROLL CALL Present: Vice Mayor/Councilmember Ian Hugh, Chairperson Councilmember Jamie Aldama, Member Councilmember Raymond Malnar, Member Irene Avalos, Member Rusty Simmons, Member City Manager Kevin Phelps, Ex -officio Non-voting Member Budget & Finance Director, Lisette Camacho, Ex -officio Non-voting Member Also present: Khala Stanfield, Department of Organizational Performance Director Mike Kingery, Independent Internal Audit Program Manager James Gruber, Chief Deputy City Attorney James Brown, Director, Human Resources & Risk Management Julie Bower, City Clerk Sheryl Rabin, Deputy City Clerk, City Clerk's Office Kristen Benavidez, Records Program Manager, City Clerk's Office Chelsea Ritchie, Consulting Manager, Moss Adams (Guest) 3. CITIZEN COMMENTS No members of the public were present. No comments. 4. APPROVAL OF THE MINUTES Councilmember Aldama motioned to approve the Audit Committee Minutes of the September 8, 2021 meeting as written. Councilmember Malnar 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 3:03 p.m. Councilmember Aldama 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 Malnar motioned to adjourn Executive Session at 3:28 p.m. Councilmember Aldama made the second. Motion carried unanimously and Open Session was reconvened. 8. CONSIDERATION AND POSSIBLE VOTE ON EXECUTIVE SESSION ITEMS Chair Hugh announced that the committee would review and consider vote to approve the following two audit reports: Public Records Law Compliance; Overtime Use and Compliance Audit. Chair Hugh motioned to approve both audit reports. Councilmember Malnar made the second. Motion carried unanimously. 9. DETERMINATION OF AUDIT COMMITTEE'S CHAIRPERSON Chair Hugh motioned to appoint Councilmember Aldama as the new Chairperson. Councilmember Malnar made the second. Motion carried unanimously. 10. STATUS UPDATE OF AUDIT COMMITTEE GOALS Mr. Kingery reviewed the goals that were approved by the Audit Committee during the September 8, 2021 meeting. The goals are: 1) developing a work plan for implementation of an Independent Internal Audit Program (I IAP) quality assurance and improvement program in preparation for a peer review in FY24, and 2) monitoring remediation of outstanding recommendations from prior audits to ensure they are fully implemented by June 30, 2022. Mr. Kingery stated that preliminary research for a peer review has begun, and that some information from the Association of Local Government Auditors was received this morning, but he had not yet had a chance to review it. For the second goal, Mr. Kingery noted that the number of findings still outstanding had gone from the original count of 80+ to approximately 40 at the last meeting, and now to 23 as of today. Nearly half of the remaining findings are from one audit, and the HR and IT departments are working together to consolidate policies to address them; the other outstanding findings are being researched and responded to by the corresponding auditee departments. Updates to the status of both goals will be provided at the next Audit Committee meeting. There was no further discussion on this agenda item. 11. UPDATE TO FY21 AND FY22 AUDIT PLANS Mr. Kingery explained that with the two completed audits presented by Moss Adams today, the FY21 audit plan has now been completed. For the FY22 audit plan, the first two audits performed by the IIAP (Arizona Sports and Tourism Authority (AZSTA) Contract Compliance, and Purchasing Cards) are underway, with both being in the preliminary research and planning stage. The status of the other IIAP audits (Cash Management, Payroll Process, Telecommuting Policy and Compliance, and Park Ranger Program evaluation) remain as scheduled and discussed at the September 8, 2021 meeting. Councilmember Aldama asked how recently both the Purchasing Card and the Cash Management audits had been completed. Mr. Kingery stated that the Cash Management audit was completed as part of the FY21 audit plan. Being unsure of when the Purchasing Card audit last occurred, Mr. Kingery said he would need to research that and follow-up with the answer. Councilmember Aldama indicated he would like to know the status of any unresolved findings as part of these audits for FY22. Mr. Kingery stated that both of these audits, along with the Payroll Process audit, would be more of a full -scope engagement this year (including status of prior findings resolution), with an eye towards continuous monitoring through IIAP's audit software Robotic Process Automation (RPA) functionality moving forward. There were no further questions or discussion related to the IIAP audit plan portion. Mr. Kingery addressed the contracted audits portion of the FY22 audit plan. Moss Adams currently has two audits underway (Risk Management training program evaluation, and Intelligent Transportation System). A third audit is currently underway (IT Security audit) and being done by another approved, qualified vendor, Securance LLC. Of the remaining five to be performed by Moss Adams, two (Housing Management and Maintenance, Budget & Finance — Contract Compliance and Performance) are awaiting key vacant positions in those areas to be filled very soon prior to beginning the engagement. The last three (Engineering — Capital Improvement Program, City Transit Program, and Fleet Management Program) remain as scheduled and discussed at the September 8, 2021 meeting. There were no further questions. 12. COMMITTEE COMMENTS AND SUGGESTIONS Councilmember Aldama thanked everyone for their support in being appointed as the new Audit Committee Chairperson. There were no other comments or suggestions. 13. NEXT MEETING The next regular meeting of the Audit Committee will be held on Thursday, March 3, 2022, at 2:00 p.m. All committee members agreed on that date/time. 14. ADJOURNMENT Chairman Hugh adjourned the meeting at 3:37 p.m. No objection was made. The Audit Committee meeting minutes of December 7, 2021 were submiftedanda a roved this 3rd day of March, 2022. Michael Kingery Independent InternI udit Program Manager